Investors welcome rising interest rates, study finds

Personal Finance

While the average interest rate on a savings account is still only 0.2 percent, some top-yielding savings accounts are now as high as 2.25 percent, up from 1.1 percent in 2015, according to Bankrate. (You can earn even more with certificates of deposit.)

With a savings rate, or annual percentage yield, of 0.2 percent, a $10,000 deposit earns just $20 after one year. At 2.25 percent, that same deposit would earn $225.

“Finding yields of 2.25 is enough to maintain your buying power and be best positioned for further increases in rates,” McBride said.

The Fed begana two-day meeting Wednesday with a policy statement set for Thursday afternoon. The Fed is largely expected hike rates once more in December, despite the criticism from Trump.

E-Trade polled nearly 1,000 active investors in October who have at least $10,000 in an online brokerage account. The survey has a margin of error of 3.2 percentage points.

More from Personal Finance:
Here’s what that Fed rate hike means for your wallet

Here are the savings accounts where your cash will grow

Credit card interest rates spike, post-Fed

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