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As interest rates on loans have increased, so have the rates on savings.Īnother game-changer for savers this year was the collapse of several regional banks, which led many Americans to move their deposits into larger institutions. The inflation rate has dropped sharply from its 9.1% peak during the summer of 2022, when it hit a 40-year high. The aggressive rate-hiking campaign is largely aimed at bringing inflation closer to the Fed’s 2% target, by making borrowing costlier. Those actions have indirectly caused the rates on savings accounts to increase. ![]() ![]() The central bank’s Federal Open Market Committee has raised its benchmark federal funds rate 11 times since March 2022. The main catalyst for the higher rates on savings accounts and CDs is the Federal Reserve. Why Savings Account Yields Are Higher Than Inflation ![]() ![]() ![]() The player to dealer left cuts the deck after the last shuffle. Anyone can shuffle, but the dealer has the right to shuffle last. 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