Will a CD or a high-yield savings account be better to open after the Fed’s rate hike?

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September 16, 2026 / 2:03 PM EDT / CBS News

For the first time since the summer of 2023, the Federal Reserve raised interest rates on Wednesday. The central bank's benchmark interest rate now sits at a range from 3.75% to 4.00%. That's a stark reversal from what Americans saw in September 2025 and in September 2024, when the Fed actually cut rates both times. And it means that the approach both borrowers and savers have had in recent years may no longer work, particularly if Wednesday's latest rate hike is the first of a series, as it may be if inflation doesn't cool again.

Against this backdrop, savers should be looking for viable ways to protect their money and grow their interest while taking minimal risks. Two savings accounts, in particular, can help accomplish those goals. Certificates of deposit (CDs) and high-yield savings accounts, for example, merit serious consideration right now. If you were to only choose one, however, which is likely to be better to open after the Fed's latest rate hike? That's what we'll examine below.

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Original source: https://www.cbsnews.com/moneywatch/