Last month, the Federal Reserve increased interest rates by 0.25% as part of ongoing inflation control.
However, the Fed's upcoming actions are uncertain, adding complexity to consumers' savings options.
According to Mark Hamrick, senior economic analyst at Bankrate, now is an opportune moment to make the most of the higher savings yields.
Whether your goal is to save for the short-term or you'd like to increase your emergency fund, it's wise to explore the advantages of more generous returns.
High-yield savings accounts are a good option because these accounts provide easy access and are a safe place to keep cash.
Certificates of deposit, commonly known as CDs, offer a fixed interest rate for a specified duration.
Rates for CDs are usually 'locked in,' ensuring that your investments continue to grow at the same rate until they mature.
With yields exceeding 5% as of August 18th, Treasury bills are another great option. Treasury bills are deemed as "very safe", as they are backed by the U.S. government.
Short-term money market funds are also worth exploring. Money market mutual funds usually invest in lower-credit-risk, shorter-term debts such as Treasury bills.