I Bonds looking good next to miserable interest rates on CDs

Inflation has been so hot that many Gen Xers and those younger have never seen prices climb so fast. The Federal Reserve is on course this summer and later to keep driving up interest rates to try to cool things down.

Borrowers are ending up paying more for home mortgages, car loans and other loans. But savers? They’re left grumbling that the interest rates they’re getting paid on savings remain stuck in a ditch. Why aren’t savers seeing much higher rates, too?

The average one-year yield on a certificate of deposit is 0.26% now, up from 0.17% a year ago, according to Bankrate.com.

Sure, that’s up nearly 53%. But such low rates mean that on a $10,000 CD, you’d make about $26 in interest in a year — not even enough to cover a tank of gas. That’s an extra $9 from what you’d make with a 0.17% rate a year ago.

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