All articles tagged with #savings accounts
Originally Published 2 months ago — by CNBC
With the Federal Reserve expected to cut rates next week, now is a good time to lock in high-yield CDs, such as OMB Bank's 4.36% APY for a 3-month term, to secure a guaranteed return before rates fall further.
Originally Published 5 months ago — by Class Action Lawsuits
Capital One has agreed to pay $425 million to settle a lawsuit claiming it failed to raise interest rates on its 360 Savings accounts despite raising rates on other accounts, benefiting account holders from September 2019 to June 2025. The settlement includes cash payments and additional interest payments for eligible account holders, with a claim deadline of October 2, 2025, and a final hearing scheduled for November 6, 2025.
Originally Published 5 months ago — by The Washington Post
Treasury Secretary Scott Bessent criticizes the newborn savings accounts created under Trump's tax law, claiming they serve as a 'back door' to privatize Social Security by allowing tax-deferred investments for newborns, with contributions up to $5,000 annually until age 18.
Originally Published 7 months ago — by NPR
The article discusses the debate over implementing time limits on federal rental assistance, highlighting a successful Delaware program that combines work requirements, savings accounts, and support services to help recipients transition to independence, while noting that evidence on the effectiveness of time limits is mixed and some programs have found them counterproductive.
Originally Published 1 year ago — by Yahoo Finance
Savings account interest rates are currently high due to past Federal Reserve rate hikes, but recent rate cuts suggest they may soon decline. The national average rate is 0.43%, but some accounts, like Everbank, offer up to 4.75% APY. It's advisable to secure a high-yield savings account now to benefit from these rates before they potentially decrease.
Originally Published 1 year ago — by Yahoo Finance
Savings account interest rates are currently high due to past Federal Reserve rate hikes, but recent rate cuts suggest they may soon decline. The national average savings rate is 0.43%, but some accounts offer up to 4.75% APY, such as Everbank, with no minimum deposit. It's advisable to open a high-yield savings account now to benefit from these rates before they potentially decrease.
Originally Published 1 year ago — by Yahoo Finance
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.
Originally Published 1 year ago — by Yahoo Finance
Following the Federal Reserve's recent rate cuts, savings interest rates are beginning to decline, making it crucial to secure high-yield savings accounts that offer better returns than traditional ones. As of November 27, 2024, Everbank offers the highest rate at 4.75% APY with no minimum deposit. High-yield accounts are ideal for short-term savings goals due to their accessibility and FDIC insurance, despite not matching stock market returns for long-term growth.
Originally Published 1 year ago — by USA TODAY
Online-only personal savings accounts offer the highest interest rates, beating traditional accounts and even one-year CDs, while credit union checking accounts have significantly higher rates and lower fees compared to regional banks. Credit unions also offer the best CD rates across all maturities, while business accounts are the most expensive and offer the lowest rates. Overall, electronic statements are recommended to save money, and students can benefit from checking accounts with the lowest fees.
Originally Published 1 year ago — by Mish Talk
Online-centric banks like UFB, Capital One Financial, and CIT Bank are accused of deceiving customers by advertising competitive rates while paying longtime customers lower ones on high-yield savings accounts. The article suggests the need for a genuine savings bank that pays interest at the Fed funds rate minus a small cut to the bank taking the deposits, and criticizes the FDIC and Fed for not addressing the issue of banks speculating with interest rate bets on deposits. The author proposes the creation of a 100 percent safekeeping bank that only parks money at the Fed, in T-Bills, or in time-matched treasuries, and criticizes the Fed for refusing to grant FDIC to a bank operating on the safest possible policies while failing to monitor massive speculation on other banks.
Originally Published 1 year ago — by CNBC
A GOBankingRates survey reveals that nearly half of Americans have $500 or less in their savings accounts, leaving them vulnerable to unexpected expenses. The lack of cash in both savings and checking accounts suggests that many are living paycheck to paycheck, emphasizing the importance of having an emergency fund. Financial planners recommend saving three to six months' worth of expenses, and it's advised to start small if necessary. Stashing the emergency fund in a high-yield savings account can help it grow over time, despite only 9.8% of respondents currently having one.
Originally Published 2 years ago — by MarketWatch
Financial adviser Jeremy Keil is struggling to convince clients to lock into long-term CD rates at 5% as economic indicators point to a drop in interest rates. Despite the potential for rates to decrease, investors are still pouring money into fixed-income products, with CDs offering the highest rates for longer terms. Experts advise considering early withdrawal penalties, promotional rates, and laddering strategies when investing in CDs to navigate potential rate fluctuations.
Originally Published 2 years ago — by CNBC
Expert predictions suggest that interest rates for various consumer loans will likely decrease in 2024 as the Federal Reserve aims for a "soft landing" to bring inflation down to its 2% target. Credit card rates are expected to fall just below 20%, mortgage rates are predicted to decline to 5.75%, auto loan rates may edge down to 7%, and high-yield savings rates are anticipated to stay over 4%. These changes reflect a modest easing of borrowing costs following significant rate increases since early 2022, offering some relief to consumers in a persistently high interest rate environment.
Originally Published 2 years ago — by USA TODAY
The Federal Reserve is expected to keep interest rates unchanged at its final meeting of the year, signaling a possible end to the nearly two-year streak of rate hikes as inflation cools. While the high rates have allowed consumers to earn good interest on their savings, many are not taking advantage of this opportunity. The rising inflation and higher interest rates have made it costlier for consumers to borrow, leading more Americans to seek higher credit card limits. Additionally, the number of Americans working multiple jobs has reached its highest peak since before the pandemic, possibly due to financial pressure caused by high inflation. The Fed's decision and Chair Jerome Powell's remarks will provide insight into whether interest rates will be cut in 2024.
Originally Published 2 years ago — by BBC.com
The Bank of England has revised its prediction of struggling mortgage holders, suggesting that fewer households will struggle to make mortgage payments than previously expected. However, the bank's analysis also reveals a "payment shock" for some borrowers, with nearly 900,000 expected to see their mortgage payments increase by over £500 per month due to higher interest rates. The bank estimates that five million mortgage accounts have already been re-priced since December 2021, and another five million will see their payments rise by 2026. On the other hand, the Financial Conduct Authority (FCA) reports signs of more competitive interest rates for cash savers, with some easy-access savings products offering interest rates of 5% or more. However, the FCA encourages customers to shop around for the best savings deals and urges banks to prompt customers in lower-paying accounts to move.