Returns for savers more attractive

WASHINGTON, Sept. 4 (UPI) -- As the Federal Reserve Board has continued to raise short-term interest rates, returns for savers have become more attractive.

More and more people are getting certificates of deposit -- some at 4.5 percent for a one-year C.D., the New York Times reported Sunday.

Just over a year ago money markets were returning 0.7 percent, but many are inching toward 3.5 percent, while a yield of the 10-year Treasury note is 4.04 percent.

"It's the first time in a long time savers will benefit," said Jim McDonald, who manages money market funds at T. Rowe Price.

Inflation-adjusted returns for many savers for most of last year had been below zero, meaning savers were in essentially paying financial institutions to use their dollars, said McDonald.