High-Yield Savings and CD Rates Hold Steady Following Fed Rate Decision

Despite expectations of rate cuts, the Federal Reserve's decision to maintain current interest rates has kept savings and CD rates elevated.

The Federal Reserve maintained the federal funds target interest rate at 5.25% to 5.50%, the highest in 23 years, influencing high savings and CD rates.
Digital banks and fintechs offer savings rates over 5% APY, significantly higher than traditional banks.
Certificates of deposit (CDs) are seeing high yields, with rates soaring past 5% APY for terms ranging from three months to five years.
The high interest rates on savings and CDs are a result of the Fed's efforts to combat inflation, which remains above the 2% target.
Despite high consumer and producer price index figures, the Fed has signaled it may not lower rates soon due to ongoing inflation concerns.