“It’s a good time to lock in.” How to get the best rates on your money

Higher interest rates could persist for some time, thanks to persistent inflation.

This is good news for savers, who have the best opportunity to make their money profitable in 15 years.

Additionally, the potential returns on these investments – whether liquid savings or time deposits such as certificates of deposit – are also well above inflation, noted Greg McBride, chief financial analyst at Bankrate.

“It’s a good time to lock down,” McBride said.

To benefit from today’s high rates, individuals can turn to CDs, Treasury bills, and Treasury inflation-protected securities, or TIPs.

Series I bonds — a U.S. government savings bond aimed at providing inflation protection — will yield 4.28% for the next six months, the Treasury Department announced Tuesday.

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Although this is down from a high of 9.6%, current bond yields have the benefit of providing a return after inflation, according to McBride. The new interest rate of 4.28% in effect until October includes a fixed rate portion of 1.3%, which was previously as low as 0%.

Of course, many of the investments mentioned require savers to stay put for a specified period of time and may require the loss of some funds if cashed out early.

Online high-yield savings accounts offer more flexible terms for accessing cash and still have annual percentage returns greater than 5% or more.

Yet 67% of Americans enjoy interest rates below that threshold, according to a recent Bankrate survey.

When choosing between securing the return on your cash or finding a better rate on a liquid savings account, the timing of your goals should be your priority.

“The fundamental determinant is, ‘When do you need the money?’” McBride said.

Consider whether you need to have access to your money at all times or whether you can afford to lock it up for several months or years, he said.

For investors with ample cash, it may make sense to split deposits between online savings accounts, short-term CDs and even long-term CDs or Treasuries, said Ken Tumin, senior industry analyst. at Lending Tree and founder of DepositAccounts.com. .

“No one really knows where interest rates are going to drop,” Tumin said. “So you can try to hedge your bets.”

However, for savers who don’t have a lot of savings, a high-yield online savings account remains the most logical solution, he said.

All savers – regardless of the size of their deposits – should ensure that their deposits are properly insured by the Federal Deposit Insurance Corp., if deposited with a bank, or by the National Credit Union Administration, if they are deposited with a credit union.