Current SOFR (Fed rate) is 4.34%: https://www.newyorkfed.org/markets/reference-rates/sofr https://www.newyorkfed.org/markets/reference-rates/sofr Banks will of

Current SOFR (Fed rate) is 4.34%: https://www.newyorkfed.org/markets/reference-rates/sofr https://www.newyorkfed.org/markets/reference-rates/sofr Banks will offer low yield on cash if you don't go looking for better yield, but it's easy enough to find good yield: money market accounts. E.g., VMFXX throws off 4.21%, which is reasonably close to 4.34. (I don't agree with the general thrust of GP's argument, just clarifying on some neutral facts.)