Rising inflation is not good news for savers right now

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Some types of yields have risen this year, but the changes are more noticeable in percentage terms rather than in actual dollars and cents.

Yields on deposit accounts have started to creep higher amid rising inflation and interest rates, but the changes so far are hard to detect unless you use a magnifying glass.

Yield increases often are more noticeable when inflation is heating up and the Federal Reserve jacks up interest rates, like now. But rates paid on deposits are slow to respond this time, and this scenario might persist for a while, owing to unusual conditions.

This isn’t good news for savers who have grappled with meager yields for more than a decade. Savers haven’t suffered actual losses like stock market investors, but they, too, are hurt as inflation erodes the real value of their accounts.

The silver lining is that yield pressures for retirees are partly offset by higher Social Security benefits that will rise again next year, perhaps substantially.

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