Now that the Fed raised rates, where to score the best yields on your cash
From money market funds to Treasury bills, where experts are stashing their cash — and some of the yields they're finding.
TL;DR
- The Federal Reserve increased the federal funds rate by 0.25% to a target range of 3.75% to 4%.
- Investors may see higher yields on high-yield savings accounts and CDs.
- Treasury bills (T-bills) with maturities of one year or less react to Fed rate changes and offer tax advantages at the state and local level.
- Money market funds also follow the fed funds rate, though they may not respond as immediately as T-bills.
- CD ladders, a strategy of holding CDs with staggered maturities, can help manage locked-in rates.
- Floating-rate assets, like those in funds holding bank loans and CLOs, fluctuate with short-term interest rates and can offer higher returns.