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It was fun while it lasted.
Only recently have savers reaped the benefits of higher deposit rates — the annual percentage yield banks pay consumers on their money — after they hovered near rock bottom for years.
Since the Federal Reserve raised the federal funds rate nine times in three years, the highest yielding rates are now paying as much as 2.5%, up from 0.1%, on average, before the Fed started increasing its benchmark rate in 2015.
However, those gains could be lost if the Fed starts lowering its benchmark rate.
“It’s the same way every car in the parking lot gets wet when it rains,” said Greg McBride, chief financial analyst for Bankrate.com.
Although the Fed has no direct influence on deposit rates, it tends to be correlated to changes in the target federal funds rate.
And despite cautious wording in its June statement, investors are still betting the Fed will cut interest rates, if not at the next meeting, then later in…