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High Interest Rates on Short-term CDs and High-Yield Savings Accounts May Drop in 2024

Savers are advised to take advantage of current high rates, with diversification recommended for substantial savings.

Overview

  • High-yield savings accounts and short-term CDs are currently offering some of the highest interest rates in years, making them attractive options for savers.
  • Interest rates on these accounts could drop in 2024, so it's advisable to lock in the current high rates now.
  • West Town Bank & Trust offers the highest 6-month CD rate at 5.88% APY, with a $10,000 minimum opening deposit requirement.
  • High-yield savings accounts are offering rates of 4.5% or higher, with some online banks offering even higher rates.
  • While it's beneficial to keep a significant amount in high-yield savings, diversification into other investment vehicles is recommended once a substantial amount has been saved.