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Forbes
2 days ago
- Business
- Forbes
Money Market Interest Rates Today: June 27, 2025 - Earn Up To 4.89%
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. The highest money market account rate available today is 4.89% Changes from the Fed or your bank can quickly change money market rates Online banks typically offer the most competitive yields on the market Right now, the average money market rate sits at 0.53%, but the best rate today is 4.89%, according to Curinos. Here are today's money market account rates: Money market account are interest-bearing deposit accounts that work similarly to savings accounts. You deposit money whenever you have some to spare and it grows more interest the longer you leave it alone. These accounts are insured by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions up to $250,000 per depositor. Money market accounts offer convenient fund accessibility, often including checks and debit cards, though you might be limited to six monthly transactions. Compared to regular savings accounts, money market accounts usually offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn these. Before opening a money market account , check out different options at various banks or credit unions. In addition to shopping around for the highest rates, you'll want to compare minimum balance and deposit requirements, monthly fees and withdrawal limits. Look for an account that offers competitive rates you can easily qualify for. You can typically submit an application for a money market account online or in person at a branch. The application will ask you to provide basic information, including your name, address, Social Security number, employment status and income. You will probably need to present a government-issued ID as well. After being approved, you can make your first deposit. Money market accounts act like a hybrid between savings accounts and a checking account. Both MMAs and savings accounts: Let you deposit funds as you please Earn interest on your savings Are highly liquid Are safe deposit accounts May have withdrawal restrictions, balance requirements and monthly fees Similar to checking accounts and unlike most savings, money market accounts: Can come with debit cards, checks or both Tend to have higher fees Tend to have deposit and balance requirements Frequently Asked Questions (FAQs) Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution. Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank's economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors. You can use a money market account calculator to see how much interest you'll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save. Was this article helpful?
Forbes
2 days ago
- Business
- Forbes
CD Rates Today: June 27, 2025 - Take Home Up To 4.94%
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today's highest CD rate is 4.94% for a jumbo 6-month CD. CD rates from online banks are commonly twice as high as the national average rates. CD ladders let you leverage high rates without locking up all of your money long-term. The best interest rates on CDs—certificates of deposit—range as high as 4.94% today, which is far higher than CD rates were a few years ago. Here's an overview of the best CD rates for you. A CD is a kind of savings account with a fixed interest rate for a given term. You can access your principal and interest payments once the CD term expires; if you withdraw money before that time, you'll incur an early withdrawal penalty . Traditionally, the longer a CD term, the higher the yield, but that dynamic hasn't held in recent years. Make sure you select a CD that matches up with when you'll need the money. Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.29%, but the highest rate is 4.62%. Last week, three-month CDs earned an average of 1.3%. If you're interested in a short-term CD with high yields, consider a six-month CD . The best rate today is 4.94%. The current average APR for a six-month CD is 1.76%, down 0.01 point from last week. The highest interest rate currently available on a 12-month CD—one of the most popular CD terms—is 4.64%. If you discover a rate in that neighborhood, you've found a good deal. That rate hasn't changed much since last week. The average APY, or annual percentage yield, on a one-year CD is now 1.83%, unchanged from a week ago. If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That's the same as this time last week. The average APY for the CD is 1.66%, flat to last week's average. Today's highest rate on a three-year CD is 4.26%, so you'll want to shop around for that rate or something near it. The average APY stands at 1.58%. On a five-year CD , the highest rate today is 4.26%. APYs are averaging 1.59%, similar to last week. The longer the term, the higher the early withdrawal penalty. It's not unusual to lose one full year's worth of interest or more if you break open a five-year CD early. Be absolutely certain you understand the penalty before you make your investment. The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.81%, versus 1.82% last week. Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there's no universally agreed-upon definition regarding what qualifies as a "jumbo" CD. Some banks and credit unions slap the label "jumbo" on CDs you can open with $50,000, $25,000 or even less. Related: CD Interest Rates Forecast: How Good Will They Get? When looking for the best CD rates, cast a wide net. Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you've never heard of provides the highest yields. For example, PenFed Credit Union's CD rates currently range from 2.90% to 3.40% while U.S. Bank CD rates currently range from 0.05% to 0.25%. Other top CD rates by banks include: Opening a CD account requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements, ranging from a few hundred to several thousand dollars. Once your account is open, your principal starts earning the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you've earned. Since the goal is to let your money grow, avoid tapping your cash before the term expires. Doing so will result in an early withdrawal penalty in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties. If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts . You will have to do without the money for as long as the term lasts; otherwise you'll owe an early withdrawal penalty. Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle? The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going "poof" over the course of a year. Not a happy thought, is it? CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don't need immediately, while stocks provide solid long-term returns. You don't want to risk cash you're depending on. The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit. CD rates generally fluctuate the most following the Federal Reserve's decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets. Related: CD Interest Rates Forecast: How Good Will They Get? Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation. Frequently Asked Questions (FAQs) You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD. Follow this plan and you'll have one better-yielding five-year CD maturing each year. If you're ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD. Comparison shop to track down the best CD rates . Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate. CDs usually come with zero fees, meaning your money won't be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts. You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won't need access to your cash in the meantime.
Forbes
2 days ago
- Business
- Forbes
Mortgage Rates Today: June 27, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today, the mortgage interest rate on a 30-year fixed mortgage is 6.59%, according to the Mortgage Research Center. On a 15-year fixed mortgage, the average rate is 5.60%, and the average rate on a 30-year jumbo mortgage is 6.92%. Today's 30-year mortgage—the most popular mortgage product—is 6.59%, down 2.51% from a week earlier. The interest rate is just one fee included in your mortgage. You'll also pay lender fees, which differ from lender to lender. Both interest rate and lender fees are captured in the APR . This week the APR on a 30-year fixed-rate mortgage is 6.62%. Last week, the APR was 6.79%. Let's say your home loan is $100,000 and you have a 30-year, fixed-rate mortgage with the current rate of 6.59%, your monthly payment will be about $638, including principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. That's around $130,393 in total interest over the life of the loan. Today's 15-year mortgage (fixed-rate) is 5.6%, down 2.78% from the previous week. The same time last week, the 15-year, fixed-rate mortgage was at 5.76%. The APR on a 15-year fixed is 5.64%. It was 5.81% a week earlier. A 15-year, fixed-rate mortgage with today's interest rate of 5.6% will cost $822 per month in principal and interest on a $100,000 mortgage (not including taxes and insurance). In this scenario, borrowers would pay approximately $48,454 in total interest. Today's average interest rate on a 30-year fixed-rate jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas) fell 1.84% from last week to 6.92%. Borrowers with a 30-year, fixed-rate jumbo mortgage with today's interest rate of 6.92% will pay approximately $660 per month in principal and interest per $100,000 borrowed. That would be $138,060. Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024. Rates began to drop again in mid-January 2025, but experts don't forecast them falling by a significant amount in the near future. Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop . The Federal Reserve's decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates. Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit. Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates. While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens. Before you look for a house, you should get to know your budget. This will give you an idea of the type of house you can afford. Start by using a mortgage calculator to get a rough estimate. Simply input the following information: Home price Down payment amount Interest rate Loan term Taxes, insurance and any HOA fees Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don't charge mortgage insurance premiums or similar ongoing charges that increase the loan's APR . Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees. Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate. The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases. Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%. For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy. For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan. Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan. If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Frequently Asked Questions (FAQs) A competitive mortgage rate currently ranges from 6% to 8% for a 30-year fixed loan. Several factors impact mortgage rates, including the repayment term, loan type and borrower's credit score. Lenders adjust mortgage rates daily based on economic conditions, inflation, bond market movements and Federal Reserve actions. If you're shopping around for a mortgage, remember that you might be able to lock in a rate for 30 up to 120 days, depending on the lender. Note that some lenders charge a fee to lock your rate while others offer the service for free. National average interest rates depend on economic and market conditions, including the bond market, inflation, the economy and Federal Reserve decisions. Lenders set rates based on the loan type and term. In general, shorter terms tend to come with lower rates. Additionally, making a larger down payment signals less risk to the lender, which could get you a better rate. Other factors that can impact your rate include your credit score, debt-to-income (DTI) ratio, income and property location.
Forbes
2 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: June 27, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Savings account yields are much higher than a few years ago Top rates may fall if the Federal Reserve cuts interest rates Online banks tend to offer the best yields available Rates on savings accounts are the same compared to one week ago. You can now earn up to 5.84% on your savings. Shopping for an account where you can put some money aside? Here's a look at some of the best savings rates you can find today. Related: Find the Best High-Yield Savings Accounts Of 2025 Traditional savings accounts, called "statement savings accounts" within the banking industry, were notorious for paying meager interest in the aftermath of the Great Recession. Rates have been on the rise in recent years, and you can earn even more if you know where to look. For instance, online banks and credit unions often pay much higher rates than brick-and-mortar banks. The highest yield on a standard savings account with a $2,500 minimum deposit amount within the last week has been 5.84%, according to data from Curinos. If you spot a basic savings account with a comparable rate, you've done well for yourself. Today's average APY for a traditional savings account is 0.22%, Curinos says. APY, or annual percentage yield, reflects the actual return your account will earn in a year. It includes compound interest, which is interest that builds on the interest already in your account. High-yield savings accounts generally pay considerably more interest than conventional savings accounts. But the catch is you may have to jump through some hoops to earn that higher rate, such as becoming a member of a credit union or putting down a large deposit. On high-yield accounts requiring a minimum deposit of $10,000, today's best interest rate is 4.88%. That's about the same as last week. The average APY for those accounts is now 0.23% APY, unchanged from a week ago. On high-yield savings accounts with a minimum opening deposit of $25,000, the highest rate available today is 3.94%. You'll be in good shape if you can nail down an account offering a rate close to that. The current average is 0.24% APY for a high-yield account with a $25,000 minimum deposit. Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve's rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to the Fed's 2% goal. Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC). Curinos determines the average rates for savings accounts by focusing on those intended for personal use. Certain types of savings accounts —such as relationship-based accounts and accounts designed for youths, seniors and students—are not considered in the calculation. Frequently Asked Questions (FAQs) The best high-yield savings account pays 5.84% now, according to Curinos data, so you'll want to aim for an account that delivers a yield in that ballpark. But rates aren't everything. You want an account that charges few fees, offers great customer service and has a track record of being a stable institution. Savings yields are variable and can change depending on economic conditions or a bank's particular financial need. Usually rates are influenced by the federal funds rate, meaning that a bank tends to raise or lower its rates along with the Fed. Online banks and credit unions tend to offer the best yields because they can pass along savings from low overhead while also striving to attract new customers.
Forbes
2 days ago
- Business
- Forbes
Today's HELOC & Home Equity Loan Rates: June 27, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home's value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home's value as a revolving line of credit. Both options use your property as collateral for your payments, which means your lender can seize your property if you can't repay what you borrow. $100K HELOC Loan Rates Ideal for Medium-Sized Projects A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation. $250K HELOC Loan Rates Access More Funds for Major Investments For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk. $500K HELOC Loan Rates Maximize Your Borrowing Power If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals. Pros and Cons of a HELOC PROS CONS You can expect an average interest rate that's lower than other loan types You can expect variable interest rates that change over time, which may make it difficult to manage your payments HELOCs let you access your funds as needed compared to a traditional loan that's paid as a lump sum Lenders use your property as collateral, which means you can lose your home if you default on your loan Interest payments may be tax deductible if you meet IRS guidelines and prove that you will use the funds to buy, improve or build a home HELOCs charge several loan fees that usually equal 2% to 6% of your overall loan amount fees HELOCs can be an excellent option to consolidate your other debt payments into one monthly payment and boost your credit score If the property value drops, you can owe more on your HELOC than your home is worth See More See Less 5-Year Home Equity Loan Rates (60 Months) A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff. 10-Year Home Equity Loan Rates (120 Months) With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs. 15-Year Home Equity Loan Rates (180 Months) A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals. 20-Year Home Equity Loan Rates (240 Months) Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning. 30-Year Home Equity Loan Rates (360 Months) The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments. Pros and Cons of a Home Equity Loan PROS CONS You'll pay a fixed interest rate that remains consistent during your loan term You put your property at risk of foreclosure since your home secures your loan against defaulted payments If you have a big one-off expense or an investment opportunity, home equity loans distribute funds in lump-sum payments, unlike a credit card or a HELOC Home equity loans have strict requirements that can make them difficult to qualify for Home equity loans are unrestricted, meaning you can use them for almost any expense, including home renovations or auto repairs Home equity loan lenders tend to charge expensive fees that include origination fees, appraisal fees and closing costs Interest paid on your home equity loan might be tax-deductible if you itemize your deductions If your home's value decreases over time, you could end up with a loan balance that's higher than your property's value See More See Less What Is Home Equity? Home equity represents how much you own of your home compared to what the bank or mortgage lender owns. If you've paid off your home in full, you have 100% equity. You can utilize your home's equity without paying off your home in full, whether through a home equity loan or a home equity line of credit (HELOC). You can use your home's equity for home improvements, repairs, debt consolidation and educational costs, among other things. Why Is Home Equity Important? Home equity is important because it signifies how much wealth you have based on how much of your home you own. The more equity you have, the more wealth you've accumulated. If you ever need to utilize your home equity, you can tap into it with a home equity loan or home equity line of credit. You might also want to explore a cash-out refinance as an option to use your home's equity. What Is a HELOC? A home equity line of credit, often referred to as a HELOC, lets homeowners convert the equity in a residential property into cash through a revolving line of credit that's secured by your home. When you get a HELOC, you can take the money available in installments as you need it and pay interest only on what you use.
