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finance1 year ago

November 2024: Savings and CD Rates Offer Up to 5.50% APY

Despite recent Federal Reserve rate cuts, high-yield savings accounts still offer competitive interest rates, with some reaching up to 5.00% APY. While the national average for savings accounts is 0.43%, online banks and credit unions provide better rates due to lower overhead costs and not-for-profit structures. These accounts are ideal for short-term savings goals, offering safety and liquidity, though they may not match the returns of market investments for long-term goals.

via Yahoo Finance|
#federal-reserve#finance#high-yield-accounts
finance1 year ago

November 2024: Savings and CD Rates Offer Up to 5.50% APY

Despite recent Federal Reserve rate cuts, high-yield savings accounts still offer competitive interest rates, with some reaching up to 4.55% APY. While the national average for savings accounts is 0.43%, online banks and credit unions provide better rates due to lower overhead costs and not-for-profit structures. These accounts are ideal for short-term savings goals, offering safety and liquidity, though they may not match the returns of market investments for long-term goals.

via Yahoo Finance|
#federal-reserve#finance#high-yield
finance1 year ago

Top Savings and Money Market Accounts Offering Up to 6% APY in November 2024

Money market account (MMA) rates have risen significantly due to the Federal Reserve's rate hikes between March 2022 and July 2023, but recent rate cuts have started to lower deposit rates. Despite this, some high-yield MMAs still offer up to 5% APY, far exceeding the national average of 0.64%. Online banks and credit unions often provide the most competitive rates due to lower overhead costs and not-for-profit structures, respectively. MMAs are FDIC-insured and offer higher interest rates than regular savings accounts, making them suitable for short-term savings goals, though they may require maintaining a minimum balance and limit monthly transactions.

via Yahoo Finance|
#federal-reserve#finance#interest-rates
finance1 year ago

"Comparing Top High-Yield Savings Account Rates for February 2024"

The top-earning high-yield savings accounts for February 2024 are delivering rates well above the industry average, with some offering as much as 6.17% APY. Despite the Federal Reserve's pause on interest rate hikes, competition among banks and credit unions to offer attractive rates remains strong. Online banks can afford to offer higher rates due to lower overhead costs, while demand for deposits also plays a role. Experts predict that savings rates may pull back this year, especially if the Fed cuts interest rates, but top-yielding online savings accounts are still expected to outpace inflation. The top 10 high-yield savings accounts include options with varying restrictions and minimum deposit requirements, with rates ranging from 5.32% to 6.17% APY.

via MarketWatch|
#federal-reserve#finance#high-yield-savings-accounts
personal-finance2 years ago

"Common misconceptions about high-yield savings accounts and better alternatives"

Many people mistakenly believe that high-yield savings accounts are too good to be true, but these accounts are legitimate and backed by the FDIC. Online banks offering high-yield savings accounts have lower overhead costs, allowing them to offer higher interest rates. The average annual percentage yield for a traditional savings account is 0.46%, while high-yield savings accounts can offer APYs as high as 5% or 6%. It's important to research the bank offering the account to ensure it is FDIC insured and to check for any fees or minimum balances. High-yield savings accounts can be a safe and effective way to grow your money faster.

via CNBC|
#fdic-insured#high-yield-savings-accounts#interest-rates
personal-finance2 years ago

Maximizing CD Investments: Expert Insights and Top Rates for July 2023

Investing $1,000 in a one-year CD can be a safe and worthwhile option, with the potential to earn different amounts depending on the interest rate. CDs that pay competitive rates, commonly found at online banks, can earn around $52 in interest, while CDs that pay the national average rate earn around $15.90. On the other hand, CDs from big brick-and-mortar banks typically offer rock-bottom rates, earning only around $0.30 in interest. It's important to shop around for the best rates and consider factors like minimum deposit requirements before choosing a CD.

via Bankrate.com|
#cd#interest-rates#investing
personal-finance2 years ago

"Top Savings Accounts with High APYs: June 2023 Update"

High-yield savings accounts are offering rates of 5% APY or more, a significant increase compared to a few years ago when rates were below 1%. Some of the accounts currently offering 5% or higher include Popular Direct, Salem Five Direct, Dollar Savings Direct, and Newtek Bank. While interest rates may continue to rise, it's important to consider other factors when choosing a savings account. Short-term CDs may offer slightly higher yields, but high-yield savings accounts provide more flexibility for accessing funds in case of emergencies.

via CBS News|
#apy#high-yield#interest-rates
finance2 years ago

Comparing CD Interest Rates and Yields in June 2023.

Certificates of deposit (CDs) can offer higher interest rates for savers today, with short-term CDs often having higher rates than longer-term accounts due to the inverted yield curve. Online banks typically offer higher rates than traditional banks, and laddering CDs with varying term lengths can help maximize earnings while still saving for the long-term. Current national average CD rates as of June 5, 2023, include 1-year CD yield at 1.71% APY and 5-year CD yield at 1.22% APY, but top rates from various banks can reach up to 5.10% APY for 6-month CDs and 5.22% APY for 1-year CDs.

via CBS News|
#cd-interest-rates#finance#laddering
finance2 years ago

The Pros and Cons of Online Banking: A Look at Industry Leaders and Regional Banks.

Online banks are gaining an edge over traditional banks in the deposit war, with their focus on customer experience and financial technology. As more customers turn to digital banking, online banks are able to offer higher interest rates and lower fees, attracting more deposits. Traditional banks are struggling to keep up, with many closing branches and cutting costs to compete.

via The Wall Street Journal|
#banking#customer-experience#deposit-war
finance2 years ago

Maximizing Your Savings in Today's Market

High-yield savings accounts are becoming increasingly popular due to the topsy-turvy stock market, looming recession fears, and aggressive interest rate hikes. While no specific threshold earns an account the moniker of "high-yield," the enhanced savings from such accounts can prove substantial, with some offering as much as 5% annual percentage yield. However, the yields on savings accounts could shift downward if the Federal Reserve reverses its policy of rate hikes, and prospective consumers should make sure that an account offering retains government insurance protection.

via ABC News|
#fdic#federal-reserve#finance
personal-finance2 years ago

The Potential Earnings of a $10,000 CD Investment in 1 Year

Investing $10,000 in a one-year CD can earn you around $168 with the national average rate of 1.68%, $3 with big brick-and-mortar banks, and $500 with competitive rates of 5%. Online banks like Limelight Bank, Bread Savings, and Live Oak Bank offer top-notch yields on one-year CDs. CD rates can fluctuate due to various factors, and withdrawing funds from most CDs will result in an early-withdrawal penalty. Alternatives to one-year CDs include savings accounts and money market accounts. Shopping around at different banks can help you find the best APY, with the most competitive rates often found at online banks.

via Bankrate.com|
#banking#cd#interest-rates
personal-finance2 years ago

Maximizing Your Savings: Navigating High Interest Rates and CD Rates Today

With the Federal Reserve raising interest rates to cool inflation, consumers can benefit from higher returns on savings accounts. While basic savings accounts at local branches offer low annual percentage yields, online banks offer higher-yielding products. The highest-yield savings account on the market is currently being offered by CIT Bank, which yields 4.75% a year. Many certificate of deposit products offer even higher interest rates in exchange for holding money in an account for a fixed period of time. Consumers should take advantage of the current market for high-yield savings accounts to grow their emergency funds.

via NBC News|
#cd#inflation#interest-rates
finance2 years ago

Maximizing Your Earnings: Investing $2,500 in a CD or Money Market Account

Investing $2,500 in a one-year CD can earn a higher yield than savings or money market accounts, with the national average rate currently at 1.68%. However, savers who shop around can find one-year CD rates that are significantly higher than the national average, with dozens of banks and credit unions offering rates of 4% or higher. The highest APYs available are above 5%. The best high-yield savings accounts currently pay APYs of just above 5%, but a savings account is a better choice if you might need the funds for emergencies or other expenses before the 12 months are up.

via Yahoo Finance|
#banking#cd#finance
finance2 years ago

FDIC Insurance: Limits and Risks for High Deposits

Some financial institutions, primarily fintechs and online banks, provide savers with FDIC coverage that exceeds the $250,000 limit. Wealthfront's Cash Account offers $3 million of FDIC coverage for individual accounts and $6 million for joint accounts. Betterment Cash Reserve offers up to $1 million in FDIC insurance coverage. SoFi is offering access to $2 million of FDIC insurance for individual checking and savings members. The process works by taking the money you place in the deposit account and spreading it across a network of banks that are FDIC insured.

via CNBC|
#deposit-insurance#fdic#finance
finance2 years ago

Rising Bank Rates and Nationwide Failures: Implications for Personal Loans and Small Businesses

The recent crisis at Silicon Valley Bank has led to some banks increasing their savings account and CD rates to incentivize customers to stay put or to attract new money to replenish reserves. Some online banks, in particular, have increased deposit rates because it’s easier for their customers to move money to competitors. The effect of the crisis on savings rates can be difficult to isolate because bank interest rates were already climbing significantly in the past year as the Fed has hiked its key short-term rate by 4.75 percentage points to fight inflation.

via USA TODAY|
#cd-rates#deposits#finance