Latest news with #depositrates
Yahoo
a day ago
- Business
- Yahoo
Best savings interest rates today, July 23, 2025 (Earn up to 4.3% APY)
Here's a look at how today's savings account rates stack up. The Federal Reserve cut the federal funds rate three times in late 2024, which means deposit rates are now falling. It's more important than ever to ensure you're earning the highest rate possible on your savings, and a high-yield savings account could be the solution. These accounts pay more interest than the typical savings account — as much as 4% APY and higher. Not sure where to find the best savings interest rates today? Read on to find out which banks have the best offers. What are the best savings rates today? Historically speaking, savings account interest rates have been high. That said, the rates on traditional savings accounts pale in comparison to those offered for high-yield savings accounts. For example, the average savings account rate is just 0.42%, while the best savings interest rates are generally around 4% to 4.5% APY. As of July 23, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank and requires no minimum opening deposit. Here is a look at some of the best savings rates available today from our verified partners: Will savings interest rates keep going down? Deposit account rates — including savings rates — are tied to the federal funds rate. This is the target interest rate set by the Federal Reserve; when it increases its target rate, deposit account rates usually increase. And conversely, when the Fed lowers its rate, deposit rates fall. After multiple interest rate hikes by the Fed in response to skyrocketing inflation, it finally lowered the federal funds rate three times in late 2024. As a result, deposit rates are falling as well. Experts anticipate that the Fed will cut its target rate two more times in 2025, so we can expect savings account rates to continue falling this year. However, high-yield savings accounts remain one of the best places to safely store cash and earn the best deposit rates available. Read more: I bond vs. high-yield savings account: Which is better for beating inflation? Is now a good time to put your money in a savings account? Choosing where to put your money is an important decision, and there are a few factors you should consider when evaluating your options. A high-yield savings account could make sense if you're looking for a secure place to hold shorter-term savings while earning a solid return. Here are a few key considerations: Interest rates: One of the most important features of a savings account is the interest rate. It's important to shop around and compare the best offers to ensure your money will grow over time. Considering that savings rates will likely drop in the near future, opening a high-yield savings account now will allow you to take advantage of historically high rates. Goals: Today's high-yield savings accounts offer rates we haven't seen in more than a decade. That said, savings rates still don't match average returns for the stock market. If you're saving for a long-term goal like retirement, a savings account probably isn't the best place to put your money, since your balance won't grow at a pace that will allow you to reach your target. However, if you're saving for a financial emergency, a down payment on a home or car, gifts for the holiday season, or another short-term goal, a savings account is a great place to hold those funds. Accessibility: Certain types of accounts and investments may provide higher returns than a savings account, but may make it difficult to access your funds in a pinch. For example, if you put your savings in a certificate of deposit (CD) and need to access the money before the maturity date, you could be subject to an early withdrawal penalty. So, if you want to be able to dip into your savings as needed, a high-yield savings account is likely the better choice. Security: In most cases, savings accounts are insured by the FDIC up to the federal limit. They also can't lose money due to fluctuations in the market, making them a low-risk option. Read more: Can you negotiate a higher savings account rate with your bank?
Yahoo
16-07-2025
- Business
- Yahoo
Best savings interest rates today, July 16, 2025 (Earn up to 4.3% APY)
Here's a look at how today's savings account rates stack up. The Federal Reserve cut the federal funds rate three times in late 2024, which means deposit rates are now falling. It's more important than ever to ensure you're earning the highest rate possible on your savings, and a high-yield savings account could be the solution. These accounts pay more interest than the typical savings account — as much as 4% APY and higher. Not sure where to find the best savings interest rates today? Read on to find out which banks have the best offers. Historically speaking, savings account interest rates have been high. That said, the rates on traditional savings accounts pale in comparison to those offered for high-yield savings accounts. For example, the average savings account rate is just 0.42%, while the best savings interest rates are generally around 4% to 4.5% APY. As of July 16, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank, and Openbank, which both require no minimum opening deposit. Here is a look at some of the best savings rates available today from our verified partners: Deposit account rates — including savings rates — are tied to the federal funds rate. This is the target interest rate set by the Federal Reserve; when it increases its target rate, deposit account rates usually increase. And conversely, when the Fed lowers its rate, deposit rates fall. After multiple interest rate hikes by the Fed in response to skyrocketing inflation, it finally lowered the federal funds rate three times in late 2024. As a result, deposit rates are falling as well. Experts anticipate that the Fed will cut its target rate two more times in 2025, so we can expect savings account rates to continue falling this year. However, high-yield savings accounts remain one of the best places to safely store cash and earn the best deposit rates available. Read more: I bond vs. high-yield savings account: Which is better for beating inflation? Choosing where to put your money is an important decision, and there are a few factors you should consider when evaluating your options. A high-yield savings account could make sense if you're looking for a secure place to hold shorter-term savings while earning a solid return. Here are a few key considerations: Interest rates: One of the most important features of a savings account is the interest rate. It's important to shop around and compare the best offers to ensure your money will grow over time. Considering that savings rates will likely drop in the near future, opening a high-yield savings account now will allow you to take advantage of historically high rates. Goals: Today's high-yield savings accounts offer rates we haven't seen in more than a decade. That said, savings rates still don't match average returns for the stock market. If you're saving for a long-term goal like retirement, a savings account probably isn't the best place to put your money, since your balance won't grow at a pace that will allow you to reach your target. However, if you're saving for a financial emergency, a down payment on a home or car, gifts for the holiday season, or another short-term goal, a savings account is a great place to hold those funds. Accessibility: Certain types of accounts and investments may provide higher returns than a savings account, but may make it difficult to access your funds in a pinch. For example, if you put your savings in a certificate of deposit (CD) and need to access the money before the maturity date, you could be subject to an early withdrawal penalty. So, if you want to be able to dip into your savings as needed, a high-yield savings account is likely the better choice. Security: In most cases, savings accounts are insured by the FDIC up to the federal limit. They also can't lose money due to fluctuations in the market, making them a low-risk option. Read more: Can you negotiate a higher savings account rate with your bank?
CNA
23-05-2025
- Business
- CNA
China lowers deposit rate ceilings to protect bank interest margins, sources say
BEIJING: China has lowered the ceilings on deposit rates, three banking sources with direct knowledge of the guidance said on Friday (May 23), as authorities seek to protect banks' profit margins and discourage savings. The interest rate self-regulatory body under China's central bank has lowered the upper limit of deposit rates banks can offer their clients, the sources said. The move came days after China cut benchmark lending rates and state banks reduced their baseline deposit rates. China's economy is suffering from weak consumption, a prolonged property crisis and a trade war with the United States, putting pressure on banks' profitability. "Banks' interest margins are under heavy pressure," one of the sources said. Every 10 basis-point (bp) cut in deposit rates could reduce overall borrowing costs by roughly 5 bps, the source added. Under the latest guidance, the ceilings for some banks' time deposit rates have been slashed by 30-40 bps, according to the sources. In contrast, China's major banks reduced baseline deposit rates by up to 25 basis points (bps) for some tenors on Tuesday. This reflects regulators' desire to prevent interest margins from shrinking further, as some banks compete heavily to build deposits by promising high returns. Amid the heated competition for deposits, reducing the rate ceilings can give some breathing space for banks already suffering from sliding margins, a source said. Commercial banks' net interest margin - a key profitability measure - dropped to a record low 1.43 per cent in the first quarter of this year, official data showed. The margins are expected to fall a further 10-15 bps this year, analysts at China International Capital Corp predicted.
Reuters
23-05-2025
- Business
- Reuters
China lowers deposit rate ceiling to protect banks' interest margins, sources say
BEIJING/SHANGHAI, May 23 (Reuters) - China has lowered the ceiling of deposit rates, three banking sources with direct knowledge of the guidance said on Friday, as authorities seek to protect banks' profit margins and discourage savings. The interest rate self-regulatory body under China's central bank has lowered the upper limit of deposit rates banks can offer their clients, the sources said. The move came days after China cut benchmark lending rates and state banks reduced their baseline deposit rates.
South China Morning Post
23-05-2025
- Business
- South China Morning Post
‘A bit lost': China's savers search for options after deposit rate cuts
After a landmark decision by China's biggest banks this week to slash one-year deposit rates below 1 per cent for the first time, households across the country are grappling with a pressing question: where should they park their money? Advertisement The dilemma arose for risk-averse savers after six major state-owned lenders and leading joint-stock bank China Merchants Bank (CMB) announced on Monday they would cut their one-year fixed deposit rate to 0.95 per cent, eliminating what was once a safe, if modest, source of passive income. Smaller banks have followed suit, trimming rates across maturities, albeit to a smaller degree. Their one-year rate stands at 1.15 per cent, while three-year rates are at 1.3 per cent. For millions of Chinese families, the decline in deposit yields makes an already challenging financial landscape all the more slippery. Households are wracked with economic uncertainty while facing weak income prospects and a lack of attractive investment options. 'Since the rate cuts, we've seen a surge in clients asking what to do next. Many lament that the days of relying on bank deposits for steady returns are over,' said Liu, a client manager at a Shanghai branch of CMB who requested partial anonymity. Advertisement The move, the seventh such adjustment among China's leading banks since September 2022, officially ushered the country's deposit rates into the sub-1 per cent era.
