The Fed raised interest rates again. Here is where you can earn 3%-5% on your savings account now

“As interest rates rise, more competitive savings accounts offer returns last seen in 2009 and continue to rise,” says Greg McBride, Bankrate’s chief financial analyst. Many accounts currently pay 3% or more, and you can see some of the highest savings account rates you may get right now here.

Sure, those higher rates come from high-yield savings accounts (here we’re listing a couple of checking and savings accounts that pay up to 5% right now), but the average savings account still pays an unremarkable return (see below).

Savings rates today

Here are the latest average rates on savings accounts and CDs, according to Bankrate data released Dec. 14, then we talk with the experts about how much you should save (yes, even in this hyperinflationary environment), where to put the money, and more.

How much do you need in savings?

The general rule is that you should plan to keep 3 to 12 months of basic income in an emergency fund. Factors such as your age, marital status, and career all play a role in exactly how much emergency savings you need.

“Married couples still in their careers want 3 to 6 months of savings, but potentially closer to six if income is out of balance,” says certified financial planner Curtis Crossland of Suttle Crossland Wealth Advisors. “If you are looking to change careers and expect to be out of work for a few months,” says Alvin Carlos, a certified financial planner with District Capital Management.

In addition to an emergency fund, you may also want to save for short-term goals, such as buying a home in the next six months, or taking a vacation in the near future.

See some of the highest savings account rates you may get right now here.

Where to put your money: savings account, MMA vs. CDs

Experts unanimously agree that you should put your emergency fund money in a safe place, such as a high-yield savings account, money market account, or CD.

The advantages of savings accounts are the flexibility, ease of saving, earning interest, and knowing your money is protected. But there can also be drawbacks to having your money in high-yield savings accounts, such as withdrawal limits that incur fees when you exceed the number of withdrawals in a month. These accounts are also not ideal for retirement savings; Professionals say that it is better to invest this money.

Risk averse investors or anyone looking to invest money only for the short term should consider CDs, as they can be beneficial in terms of protecting capital, while allowing for a bit of interest to be earned. In fact, CDs usually offer better interest rates than savings accounts, but it’s important to keep in mind that putting money into a CD only makes sense if you’re able to hold it until it reaches maturity, which is usually between a few months. And five years—otherwise, you’ll be on the hook for a huge penalty. A CD is often one of the best savings tactics if you are saving with a specific goal in mind, as it is guaranteed to get you a return.

Money Market Accounts (MMAs) are savings accounts that have discount and check writing capabilities with higher interest rates than traditional savings accounts. MMAs often have higher minimum balance requirements and usually have subpar interest rates than high-yield savings accounts, but if the option to spend directly from a savings account is important to you, MMA offers decent rates with the flexibility of writing a check or using a card. discount attached to the account.

What to know before you open an MMA or savings account or buy a CD

Before opening a savings account, make sure you have the protection of Federal Deposit Insurance, that you are able to meet any balance requirements to avoid any monthly fees, and that you can easily get money in and out of the account when needed. “Linking the account to a checking account at your existing bank or credit union is often an easy way to move money back and forth,” McBride says. (sThe highest savings account rates you may get right now are here.)

Before getting a CD, make sure you understand the terms of the deposit and that you’re okay with not being able to touch your money for any specific period of time you’ve agreed to. It’s also wise to familiarize yourself with the early withdrawal penalty fee in case you find yourself needing to withdraw money before the CD is due.

Before opening an MMA account, make sure you can meet the minimum balance requirements and compare the interest rate to a traditional savings account and a high-yield savings account to make sure you’re getting the most bang for your buck.

The future of savings rates

No one can say for sure where interest rates will go, but with further interest rate hikes looming on the horizon, savers can expect an improvement in returns for savings accounts and CDs, particularly at online banks, smaller community banks and credit unions. “The outlook for additional interest rate hikes is promising for savers, especially at the point when we’re starting to see inflation ease,” McBride says.