The Federal Reserve raised interest rates by a quarter percentage point to a target range of 3.75% to 4%, marking its first hike since July 2023, in a unanimous decision. Investors now have several options to boost yields on their cash, including high-yield savings accounts, certificates of deposit, money market funds and Treasury bills. The current annualized seven-day yield on the Crane 100 list of the largest taxable money market funds stands at 3.79%. Unlike money market funds which do not immediately respond to Fed decisions, Treasury bills quickly reflect rate changes. High-yield savings accounts and CDs are FDIC insured, while Treasurys are backed by the U.S. government.
Source: Read the original article
