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The Federal Reserve cut interest rates in 2024 after having raised them 11 times throughout 2022 and 2023 to combat inflation, but savings rates still haven't substantially declined.

Revenge spending—the pent-up consumption as COVID lockdowns eased—is giving way to a new, equally impactful trend: revenge saving.

The U.S. personal saving rate has increased from 3.5% in December to 4.5% in May, according to the Bureau of Economic Analysis.

Saving with a long-term view Workers are also increasing the share of pay they contribute to retirement savings plans, which has boosted the 401 (k) savings rate to a record high.

Home Personal Finance Banking Savings Savings Accounts This Savings Account Earns You More Than $4,000. Here's How See how a jumbo CD can help you reach your savings goals quicker.