Banks are paying savers again after many years of low rates

Banks are paying up for savers’ deposits in a much bigger way than they have in a long time. After a decade of low interest rates, the Federal Reserve has unleashed a rapid series of rate hikes to combat inflation. a move that has also pushed banks to pay higher interest on traditional savings products. A 24-month CD, a common savings product for medium-term savers, is now carrying an average yield of 4.81%, according to the Federal Reserve Bank of St. Louis. That’s up from a 1.18% yield only a year ago. Further, big names like Apple are now stepping into the deposit game.