According to the CME Fed Watch Tool, the Fed rate is projected to remain at 0%--at least through March 17, 2021. Since savings and CD rates will very likely remain historically low during this time as well; our choices as savers are to complain or to switch gears. Switching gears means changing mindset as well as strategy during this arid savings season. It means taking positive actions with respect to savings that do not depend on high savings interest rates. Let me suggest two in particular.
1) Emergency Savings: While some Deposit Account readers have long ago achieved this goal; many have not. It is essential--regardless of interest rates--to make sure that you have at least three to six months of expenses in an emergency savings account. This will create a safety net in the event of a crisis like job loss, unexpected medical expense, or major home repair. Whether a savings account pays 4% or 0%--you must have emergency savings--so this season is as good as any to get it established.
2) Debt reduction. Sometimes we forget that paying down a debt is like earning interest at the rate of the loan. For example, since savings rates are so low (and I am debt free except for my house), I recently made a 13K extra principal payment on my mortgage. My mortgage has a fixed interest rate of 2.875%; thus my principal payment was like earning 2.875% interest on the amount I payed down. If you have credit card or high rate loan interest, there is even a greater advantage. If you, for example, if your credit card has an interest rate of 10% and you pay down 2k on your balance--that is just like earning 10% on that $2000.00.
What about the fortunate Deposit Accounts readers who are completely debt free and have also paid off their mortgage? If that is the case, you know as much or more than I do, so I have little counsel to offer, other than to stay the course and keep your gaze on the long term.