What the latest interest rate hike by the Federal Reserve means for your savings?

Finding extra money to save can be difficult in the midst of record high prices caused by historically high inflation.

However, the Federal Reserve's 0.75 percentage point increase in interest rates means that savers will get a better return on their money.

The move is the latest effort by the US central bank to bring inflation down to its target rate of 2%.

While borrowing costs will rise, higher interest rates will benefit savers. Nonetheless, it may be some time before those returns can compete with inflation.

Rates on online savings accounts began the year at around 0.5 percent and are now above 2 percent.

Series I bonds, which currently offer a 9.62% annual rate through October, have been a boon to savers seeking higher returns closer to inflation.

But as the Fed gets inflation down to 2%, I bonds will also go down to that level, though it will not happen overnight