The Fed Has Raised Rates 4 Times -- How Much Does Your Savings Account Pay Now?
The Federal Reserve has implemented three interest-rate increases in the past seven months, which has allowed banks to charge consumers higher rates on loans. However, this hasn't yet translated to higher interest rates on savings accounts and CDs at most financial institutions. Here's a look at the effects of this rate-increase cycle so far, and what to do if you want a slightly higher yield on your savings.
Historically speaking, the federal funds rate has been a good predictor of rates on banking deposit products. While consumer deposit rates, such as savings account interest rates, aren't officially tied to the federal funds rate, an increase or decrease by the Fed has typically led to an increase or decrease in deposit interest rates.
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Source: Fool.com
