Sunday'​s New York Times says "Now May Be the Time to Lock In High Interest Rates on Your Savings. They tell us, "If you want to lock in generous rates on your cash savings for the next year or so, now may be the time to do it. Yields on federally insured certificates of deposit are the highest they'​ve been in years. The most competitive rates -- offered by banks that operate mostly online -- were recently as high as 5.​66 percent for a one-​year certificate, according to the financial site Bankrate. Those attractive yields, however, may shrink in the new year." The Times writes, "Rates began to rise in 2022 from less than 1 percent after the Federal Reserve began increasing its benchmark interest rate, known as the federal funds rate, to tame inflation. (​Banks generally follow the direction of the federal funds rate in setting rates on loans, savings accounts and C.​D.​s.) But inflation has been cooling, and the Fed recently signaled that it might cut rates in 2024. That suggests that C.​D. rates may fall in the coming months, analysts say. '​This is a good time to lock in rates while they are still high,' said Ken Tumin, founder of the financial site DepositAccounts.​com, part of LendingTree." The article also says, "But if you need the cash for continuing or short-​term expenses, C.​D.​s may not be the best option, financial advisers say. If you have to withdraw your cash early, you’​ll usually pay a penalty (​typically, several months of interest).... Before creating a step stool or ladder, savers should also consider whether they have the time to manage certificates at different banks with different maturities, Ms. Costa said. Unless you are moving a large sum of cash, she said, the effort may not be worth the extra yield. For many people, Ms. Costa said, choosing a high-​yield savings account may be the best approach -- even if it means getting a somewhat lower return on your savings. The online bank Marcus, the consumer arm of Goldman Sachs, is offering 4.​5 percent on a savings account, for example, and Ally Bank, another online-​only bank, is paying 4.​35 percent. You'​ll need to link the savings account to your regular bank to transfer money in and out." It adds, "Paul Brahim, a financial adviser at the Wealth Enhancement Group in Pittsburgh, said he heard that question from clients eyeing attractive yields on low-​risk cash vehicles. He said he generally advised clients to keep money in cash based on their spending needs for the next six months to three years, including a reasonable reserve for emergencies. But if you move too much money out of long-​term investments, Mr. Brahim said, market timing becomes more of a risk, and you could miss out on significant investment gains. 'Cash is a great idea for everyone,' he said. '​But it'​s important to have a rational allocation.'"

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