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Savings account rates are higher. Here’s how to take advantage of them.

High interest rates mean your money can work harder for you.

Javier Ghersi/Getty Images

Building savings is essential to your financial well-being. You never know when you might suddenly need some cash. If you lose your job, get sick, or face unexpected expenses like expensive car repairs, savings can help you stay on track and avoid debt.

No matter how far you have to go, every dollar and cent protects you from road bumps. On the opposite side High interest rates The environment we live in today is one of potential Increase your savings Be quick with accounts that offer high annual percentage yields (APYs). Read on to learn how to make the most of today’s high interest rates and start earning more now

Check today’s savings rate to see how much more you could earn.

How to take advantage of high savings rates

Higher interest rates help your money work harder for you. Here’s how to capitalize on today’s higher rates and grow your savings.

A high-yield savings account

If you have a regular savings account, you Extra money lost – Especially when interest rates are high. High Yield Savings Account Can earn 10 to 15 times more interests More than regular savings accounts, plus they often come with benefits Low or no fees.

All savings accounts are protected if they are offered by an FDIC-insured bank or NCUA-insured credit union. This means your money safe Up to $250,000 per account per institution if the bank or credit union fails.

To see which high-yield accounts offer the best rates today, compare your options here

Certificate of Deposit (CD)

Another option for earning high interest on your savings is a Certificate of Deposit (CD). A CD is a type of account with a fixed interest rate and a fixed term. The Interest rate on CDs It may be higher than a regular savings account, but you’ll definitely be able to lock up your money fixed period (A few months to a few years).

You can access CD funds in a true emergency, but you’ll have to pay a penalty — usually a portion of the interest you’ve earned. Still, if you have the patience to wait for the entire CD term, the payment may be worth it. Also, you can always CDs of various ladders With various terms to ensure regular access to your cash at the best interest rates.

As a type of savings account, CDs are secure by federal deposit insurance unless they are provided by an FDIC-insured bank or NCUA-insured credit union.

View current CD rates online now!

Bottom line

High interest rates can cost you many areas of your financial life. One way to get some good out of them is to leverage the power of higher APYs with an interest-bearing savings account. High Yield Savings Account or Certificate of Deposit.

Which option is best for you? Depends on your personal savings goals and liquidity needs. That said, you may want to consider how you can maximize your earnings and ensure regular access to your cash by opening both types of accounts. With interest rates where they are today, the more you save, the more interest you can earn.

MoneyWatch: Managing Your Money

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