In recent years, the Federal Reserve Board has been on a trajectory of raising interest rates. While this move may have posed challenges for those seeking mortgages, it has presented a silver lining for savers. As interest rates climb, savers now have the opportunity to seek out higher yields for their hard-earned money.

However, the reality is that many big banks still offer miniscule interest rates on savings accounts. To truly capitalize on the benefits of rising interest rates, savers must actively seek out better options. The goal is to maximize your returns in this evolving landscape and I want to outline a few options to secure higher interest rates.

• Money markets & Certificates of Deposit (CDs): You can find rates upwards of 5 percent for 12 months, but you’ll likely need to ask for these higher rates.
• Fixed annuities: Once offering modest returns, have also seen a significant uptick in rates. What was once a five-year fixed annuity yielding two and three-quarter percent can now fetch around five percent. The time is ripe to capitalize on these higher income opportunities.
• Tax-free bond funds or money markets: If you find yourself grappling with a looming tax bill from Uncle Sam, we can explore tax-free bond funds or tax-free money markets to help ease the burden of taxation on your investments.
• Single Premium Immediate Annuity: For those seeking a reliable income stream akin to a pension, higher interest rates have opened doors to innovative solutions. A single premium annuity, where your investment pays out a steady income for the rest of your life may be worth evaluating.

In essence, we find ourselves at a favorable juncture with regard to interest rates, offering ample opportunities for savers to make their money work harder.

If you're unsure about how to navigate these options or have assets sitting in low-yield accounts, the good news is you have options. We're here to help you understand those options and happy to share as much information as we can. Here’s a link to my calendar if you want to book some time to chat. https://calendly.com/chris-c3m/15-min-phone-call

Your financial well-being is our priority, and we're dedicated to helping you make informed decisions that align with your goals.