Fed Stands Pat, Savers Still Find Ways to Boost Returns

The Federal Reserve has left its key overnight lending rate unchanged for the seventh consecutive month.

This decision, while expected by many, still holds significant implications for consumers and their savings. The Fed's rate influences interest rates on loans and savings accounts, but in this case, other factors have pushed interest rates higher on low-risk vehicles such as US Treasuries and certificates of deposit (CDs).

Average yields to maturity on Treasuries with durations ranging from 6 months through 10 years were over 4% on Schwab.com, with the 2-year note averaging 4.5%. The yield on the 30-year Treasury was trading near its 19-year high.

Certificates of deposit (CDs) have also seen rising rates, with average rates between 4.02% and 4.65% for CDs with durations ranging from three months to five years on Schwab.com. Online high-yield savings accounts from FDIC-insured banks offer competitive returns, but rates can change at any time.