Local financial expert discusses high-yield savings options

MILWAUKEE (CBS 58) -- With an aim to provide insights on high-performing savings vehicles, Tony Drake from Drake & Associates joined us on Wednesday, Oct. 4 to explain why high-yield savings options such as CDs and money market accounts are garnering attention.

Drake mentioned that elevated federal interest rates over the past months have played a significant role in the impressive performance of these savings vehicles. The ongoing rate hikes by the Federal Reserve have made borrowing more costly, allowing savers to benefit.

Additionally, online savings accounts often offer better returns due to reduced overheads. Currently, Drake said that some high-yield accounts offer rates approximately nine times that of a standard savings account, with average returns hovering between 4% and 5%.