Federal Reserve Raises Interest Rates for First Time in Three Years

The Federal Reserve System raised its benchmark interest rate on Wednesday, marking the first rate hike in three years. This policy shift is expected to prompt banks and credit unions to increase the annual percentage yields offered on deposit accounts, providing savers with opportunities for higher returns.

Consumers now face varying financial options based on their liquidity needs. High-yield savings accounts provide easier access to funds for emergency use, while Certificates of Deposit allow savers to lock in fixed rates for set terms ranging from three months to ten years in exchange for restricted access to their cash.