Federal Reserve Keeps Key Interest Rate at 23-Year-High; Rate Cuts Expected This Year

Online FDIC-Insured Banks Offer 5% or More on High-Yield Savings Accounts; CDs and Short-Term Treasury Bills Also Yield High Returns

The Federal Reserve has kept its key interest rate at a 23-year-high for the fourth meeting in a row, with predictions that rate cuts will start sometime this year.
Online FDIC-insured banks are offering 5% or more on their high-yield savings accounts, which are a good place to deposit money that will likely be used within the next two years.
Money market accounts and funds are another option for savers, with money market mutual funds having an average 7-day yield of 5.16% as of January 29.
Certificates of deposit (CDs) are a high-return, low-risk investment for money that won't be needed for a few months or a couple of years, with CDs listed on Schwab.com yielding between 5% and 5.21% as of January 30.
Short-term Treasury bills, backed by the full faith and credit of the United States, had yields of 5.20% and 5.09% respectively on January 30.