Updated
Updated · CBS New York · Jun 11
Savers Shift to 4.15% CDs and 4.10% Accounts as 4.2% Inflation Erodes Cash
Updated
Updated · CBS New York · Jun 11

Savers Shift to 4.15% CDs and 4.10% Accounts as 4.2% Inflation Erodes Cash

3 articles · Updated · CBS New York · Jun 11

Summary

  • 4.2% inflation is leaving money in traditional savings accounts losing purchasing power, with the average rate at just 0.38%.
  • 4.15% 18-month CDs, 4.11% 1-year CDs and 4.10% 6-month CDs are being highlighted as ways to lock in returns that roughly keep pace with current inflation.
  • 4.10% high-yield savings accounts offer similar protection while preserving access to deposits and withdrawals, though their rates can move with market conditions.
  • Low odds of a near-term rate cut — and some chance of a later hike — support the case for moving cash online, where banks often offer stronger rates and terms.

Insights

As global energy conflicts drive inflation, can changing your bank account truly shield your finances from the risk of a wider economic crisis?
With inflation caused by a global oil shock, can the Federal Reserve's rate hikes fix the problem without triggering a US recession?