“Rates will likely top out where they are today,” says Jason Steeno, president of CoreCap Investments in Southfield, Mich. As a result, most professional investors think banks are likely to start reducing savings rates-or at best, hold rates steady-in 2024. That means the Fed is unlikely to hike rates further and could cut them if the economy starts to weaken. Over the past several months, however, inflation has slowed. That’s up from less than 1% in early 2022, before the Federal Reserve began hiking interest rates to fight rising prices. Today’s most generous high-yield savings accounts pay interest rates of 5% to 6%. But with the pace of inflation slowing, savers may not enjoy them for much longer. Interest rates on savings accounts are the highest they’ve been in years.
