Just as important as saving your money is where you’re saving it. As the Federal Reserve has hiked the nation’s benchmark rate to increase borrowing costs, rates on high-yield savings accounts have followed, offering big returns for savers. Some of the top high-yield savings accounts are offering more than 5 percent annual percentage yield (APY). But the Fed has signaled it could start cutting the nation’s benchmark rate and VERIFY viewers asked how that will impact rates on high-yield accounts. When the Federal Reserve adjusts interest rates it directly impacts your wallet, but it’s not always for the worst. Bad news for borrowers has been a boon for savers as the Fed has hiked rates nearly a dozen times since the pandemic. Savings account rates are loosely linked to rates set by the Fed, according to Bankrate. When the Fed raises its rate, financial institutions tend to follow by paying more interest on high-yield savings accounts. Online banks like Barclays or American Express tend to offer higher rates for savers given fewer overhead costs compared to traditional brick-and-mortar banks like Chase, according to Bankrate. MORE: https://www.wtsp.com/article/news/verify/interest-rate-impact-on-high-yield-savings-accounts/67-278511f7-c39e-4a1e-a0cd-5e344ca5c9b1 ►Subscribe: https://on.wtsp.com/youtube ►Website: https://www.wtsp.com/ ►Facebook: https://facebook.com/10TampaBay ►X: https://twitter.com/10TampaBay