But the Fed’s unwillingness to lower rates until it sees more consistent progress in inflation data has — and will continue to — put money in your pocket this year if you have savings and seek out federally insured accounts with the highest rates. Put bluntly, “It’s a great time for savers,” said Greg McBride, Bankrate.com’s chief financial analyst. In 2023, savers made $315.4 billion in interest in deposit accounts, four times the $78.
Such funds are a good place to park cash you have in your brokerage account that you may want to use at some point to buy equities or bonds, McBride said. Money market funds are not FDIC-insured, but any brokerage you use should be insured by the Securities Investor Protection Corporation, which covers your funds up to a limit if your brokerage ever goes under.