Savers, be warned: The days of high-yield savings accounts are numbered.
In March 2022, the Federal Reserve embarked upon a campaign of higher interest rates to combat inflation. The central bank hiked rates 11 times, lifting them to a two-decade high of 5.25–5.5 percent.
This allowed savers to park their cash in low-risk investment vehicles—high-yield savings accounts, certificates of deposit (CDs), money-market funds, and Treasury bills—and generate solid returns of 4–5 percent.
Even billionaire Warren Buffett accumulated an enormous cash position, allocating a substantial portion of Berkshire Hathaway’s capital into Treasury bills and garnering tens of millions of dollars in monthly earnings….