And if the economy has a downturn, it's likely that rates would also come down.' What happens when savings rates plateau?Īs inflation cools, experts are still predicting a recession in 2023 or 2024. 'Keep in mind that savings rates can go the other way, too. There's a chance that high-yield savings may increase by another 0.25% to 0.50% by this summer, said Jordan Hucht, a certified financial planner and partner at Vision Wealth Partners. There has been a trend of increasing rates, so it's likely they will continue to rise at least somewhat.' 'It depends on a number of factors like inflation, economic growth and interest rate policy. 'It's difficult to predict exactly how much higher high-yield savings rates will go by summer,' said Michael Ryan, a retired financial planner and founder of Michael Ryan Money. As for high-yield savings accounts, we shouldn't expect rates to increase much, either. On the CD side, whether rates go up or remain the same, experts say now's the time to lock in a long-term CD before rates drop. As a result, we may see small jumps in savings and CD rates for banks to remain competitive, but most rates will remain the same. After this week's Fed rate hike, experts believe it will be the last rate hike for a while, since inflation is cooling. Over the past several weeks, only a few banks have increased rates for CDs and savings accounts - but not by much. So where should you put your savings for now? And is a high-yield savings account still worthwhile? We'll answer these questions and cover the best CD and savings rates available. 'Once the Fed starts cutting, those rates will fall,' said Graff. However, high savings rates will only hang around until the Fed decides to lower the federal funds rate.

Though we're not quite at the Fed's inflation target of 2%, experts aren't expecting savings and CD rates to change much in the coming weeks. With the Fed raising rates again, interest-earning deposit accounts may get a little better, for now. 'Rates on money market funds and high-yield savings will remain relatively high until the Fed starts cutting interest rates,' said Tom Graff, head of investments at Facet. And even if they stay the same, they're still higher than they've been in recent years. But there's also a chance that annual percentage yields or APYs on CDs and high-yield savings will increase, too. The decision will increase the cost of borrowing, meaning everything from personal loans to credit cards will become more expensive. Earlier this week, the Federal Reserve announced its 10th rate hike in an effort to rein in inflation.

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