Latest news with #bankingindustry
Forbes
a day ago
- Business
- Forbes
High-Yield Savings Account Rates Today: July 23, 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 as much as 5.84% on your savings. In the market for an account where you can save for a rainy day or retirement? 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 during one year. It accounts for compound interest, which is the interest that accrues on the interest in your account. High-yield savings accounts typically pay much 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 get 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. That's tough to say—it depends on the path of inflation and the overall economy. The highest interest rates in recent history were seen in the early 1980s when the Fed hiked the federal funds rate to over 19%. That was in response to record-breaking inflation that had prices rising at a rate of over 14% annually. In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to Federal Reserve data. Savings rates eventually fell as inflation cooled and the federal funds rate was brought back down. 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.
Bloomberg
3 days ago
- Business
- Bloomberg
Bank of England Considers Shelving Plans for a Digital Pound
Bank of England officials are mulling whether to set aside plans to create a digital pound for households amid growing skepticism over the project's benefits, the latest sign of dwindling support for state-backed digital currencies globally. The BOE has been privately urging the banking industry to instead accelerate payment innovations that could result in similar benefits without the creation of a central bank digital currency — or CBDC — for consumers, according to people familiar with the matter.
Forbes
3 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: July 21, 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 save for a rainy day or retirement? 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, accurately represents the actual amount your account will earn during one year. It factors in compound interest, which is the interest that builds up on the interest 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. Whether you're looking for a traditional savings account, high-yield savings account or MMA, you'll want to keep a few things in mind. A high interest rate is important, but it's not the only factor when picking an account to hold your savings. Another major consideration is whether the account has a minimum deposit - and whether you can meet that requirement. You'll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you ignore limits on withdrawals), and other pesky charges that can eat into your returns. And before you apply for an account, explore a financial institution's reputation and safety. You should trust your bank or credit union and feel like you're in good hands. Check the reviews, see what people have to say about customer service and find out how the institution responds to consumer questions. Search for an account that's insured by the FDIC or, in the case of credit unions, the NCUA. Those federal agencies provide up to $250,000 in insurance per depositor and per bank for each account ownership category. That's tough to say—it depends on the path of inflation and the overall economy. The highest interest rates in recent memory were seen in 1980 and 1981, when the federal funds rate skyrocketed above 19%. That was in the face of runaway inflation that had prices rising at an annual rate of more than 14%. In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to the Federal Reserve. Savings rates would eventually fall as inflation slowed and the federal funds rate came back down. 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.
The Guardian
16-07-2025
- Business
- The Guardian
Rachel Reeves warned by City grandees not to weaken banking safeguards
Rachel Reeves has been warned by City grandees that her plan to slash financial red tape could have little benefit for British households while increasing risks in the banking industry. The chancellor used a speech to City bosses attending the annual Mansion House dinner on Tuesday to argue that in too many areas regulation was acting as a 'boot on the neck of business', as she pledged sweeping changes to help revive the economy. However, leading figures in involved in Britain's post-2008 drive to prevent a repeat of the financial crisis warned Labour against unpicking bank ringfencing – a key measure introduced after the collapse. Sir John Vickers, the architect of the UK's ringfencing rules, deployed after the financial crisis to separate high street banking from riskier investment banking, said a wholesale retreat from the reform would be a 'very bad idea'. Lord Turner, who took over as chair of the Financial Services Authority during the 2008 crash and played a leading role in the post-crisis redesign of the banking system, also warned the chancellor to proceed with caution. He said: 'The costs of getting it wrong far outweigh the gains from loosening the requirements and allowing riskier activity by banks.' Lord Tyrie, who chaired the post-crisis parliamentary commission on banking standards, said it would be 'imprudent' to scrap ringfencing after banks had invested huge sums in separating retail banking from their riskier activities. Now a Conservative peer, he warned in 2012 that the ringfence needed 'electrification' to discourage banks from lobbying future governments. He said: 'As the banking commission, which I chaired, strongly argued, it needs to be kept under constant review and where necessary adapted. From the Mansion House speech we have very little information about what is intended so far. Succumbing to lobbying in the misplaced belief that watering it down would somehow release the economy to a higher growth path would be a serious misjudgment.' Reeves on Tuesday committed to 'meaningful reform' of the safeguards, with the government saying it would review the rules in an effort to strike a balance between ensuring financial stability and supporting economic growth. However, Vickers said: 'Nothing is perfect, I am sure that its [ringfencing] implementation is capable of improvement. But a radical rowing back on it would be a very bad idea. 'It would remove a layer of protection, for the everyday banking that firms and households depend on, from global shocks. Look what happened last time. I am not saying ringfencing would have prevented 2008-09, which was a global event. But the damage to the UK, including to UK growth prospects, would have been much lower if we had such a regime in place.' As recently as last month the Bank of England governor, Andrew Bailey, warned ministers against watering-down the rules, arguing that it led major banks to funnel more cash to their global investment arms at the expense of British businesses and households. Earlier this year, the bosses of four of the UK's biggest banks – HSBC, Lloyds Banking Group, NatWest and Santander UK – wrote to Reeves to lobby for the removal of the ringfencing rules, arguing that it was a drag on lending to the British economy. However, Bailey wrote in a letter to the Commons Treasury committee that ringfenced banks faced 'no restrictions on lending' to UK firms. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion He said: 'Removing the ringfence would most likely have a negative effect on UK lending, both in terms of cost and quantities, with banks directing funding from retail deposits away from UK households and SMEs [small and medium-sized enterprises] and towards investment banking activities or activities outside the UK.' Vickers said it would be ironic if Reeves rolled back ringfencing in the name of supporting British firms and households. 'It doesn't help the UK growth objective. It would increase risk for no benefit.' Turner said it was important to review City rules, but cautioned: 'The fundamentals of the reforms we put in place – the ringfencing of retail activities and the capital requirements on systemically important banks – need to remain the bedrock of UK regulation.' The Treasury said it would work with the Bank of England's Prudential Regulation Authority to consider if ringfenced banks could provide more products and services to UK businesses, if inefficiencies could be tackled, and if banks should be allowed to share resources and services more flexibly across the ringfence. Led by the Treasury minister, Emma Reynolds, the review would report by early 2026. It said: 'The government is committed to upholding the ringfencing regime to protect financial stability and safeguard depositors. However, the government also intends to take forward meaningful reforms to the regime to support its growth agenda.'
CNA
15-07-2025
- Business
- CNA
ECB supervisors focus on risks from tariffs to cyber attacks, central bank sources say
FRANKFURT/MADRID :European Central Bank supervisors are focusing on issues ranging from tariffs to cyber attacks and a possible dollar shortage as they assess potential risks to the region's banking industry, five senior central bank officials told Reuters. The ECB is looking into these risks amidst a global trade war and conflicts, such as the war in Ukraine. Chief ECB supervisor Claudia Buch said on Tuesday the central bank would test banks' resilience to geopolitical risk next year, telling them to come up with scenarios that had the potential to wipe out large chunks of their capital. In addition to this, ECB supervisors have been incorporating these risks into their regular checks for months, the sources, who asked to remain anonymous as details of the ECB's supervisory work are confidential, said. Banks have been told to watch their exposure to other countries, both via operations abroad and through credit to exporters, supervisors have told Reuters. Cyber attacks are also seen as a risk, particularly in Baltic countries, which have previously been the targets of Russian hackers, the sources said. The ECB has also told banks to prepare for a global dollar drought, for example if the Federal Reserve withdraws its lifelines, as Reuters reported earlier this year Supervisors are not telling banks to cut their exposures and they are not making specific recommendations at this stage, but rather urging banks to tighten their controls and think about contingency plans. The checks are taking place as part of the ECB's annual Supervisory Review and Evaluation Process and banks' own estimate of their liquidity needs, known in regulatory jargon as the Internal Liquidity Adequacy Assessment Process.
