Latest news with #highyieldsavings
Yahoo
3 hours ago
- Business
- Yahoo
July FOMC meeting: How the Fed's decision impacts your money
Yahoo Finance Personal Finance Editor Casey Bond joins Mind Your Money with Allie Canal to discuss high-yield savings accounts and certificates of deposits (CDs) in light of the upcoming Federal Reserve policy meeting kicking off on more: Should you open a savings account or CD before the Fed's next meeting? Sign up for the Mind Your Money newsletter. For more information and tools to help you handle your finances, click here. To watch more expert insights and analysis on the latest market action, check out more Mind Your Money here. Well, the FOMC's policy meeting kicks off next Tuesday with its interest rate decision coming Wednesday at 2:00 p.m.. The Fed is expected to hold rates steady, but it could still impact your financial decisions. Yahoo Finance personal finance editor, Casey Bond, is still with me. So, Casey, with rates where they are, is now a good time to sign up for a new high-yield savings account or a CD? What should people keep in mind? Yeah, so even though rates have been falling a bit over the last year and a half, um, they're still quite competitive by historical standards. And you can find a high-yield savings account or CD that pays as much as 4% APY or more. Um, so even if the Fed decides to hold its rate steady, um, that means you can still take advantage of these good rates today. Uh, high-yield savings is great for flexibility. Um, you can access your money whenever you need it. But if you want to put some money away for a little bit longer term, say, six months to a year or two, um, locking in a CD will allow you to keep earning today's rates even if the Fed does decide to lower rates later this year. And like you were saying, interest rates still pretty competitive and still elevated out there. What advice do you have for people carrying credit card debt or considering a personal loan? Yeah, so getting rid of that high interest debt is super important in a high interest rate environment. Um, definitely prioritize revolving debt, um, particularly credit cards because those are going to have the highest rates right now. Um, and even if that means you do need to take a step back on your savings goals, um, the interest rate you earn on savings or investments is probably not going to keep pace with the amount of interest you're paying on that debt. So definitely prioritize getting rid of the debt, and then you can ramp up your savings again. And for those just getting started, maybe recent grads, or folks at their first job, what's the smartest place to park your savings right now? Well, like I mentioned, high-yield savings accounts are very flexible. Uh, there's usually few to no fees, um, very low minimum balance requirements, and that's particularly at online banks. So if you're looking for, you know, your first account where you want to set aside some cash and earn a great rate, take a look at some of those online banks, um, and check out what types of high-yield savings accounts they have. That's probably going to be your best option.
Yahoo
2 days ago
- Business
- Yahoo
Best savings interest rates today, July 27, 2025 (best accounts offering 3.9% APY)
Find out how much you could earn with today's savings rates. The Federal Reserve cut its target rate three times in late 2024, which means savings interest rates are falling from their historic highs. It's important to be sure you're getting the best rate possible when shopping around for a savings account. The following is a breakdown of savings interest rates today and where to find the best offers. Overview of savings interest rates today The national average savings account rate stands at 0.38%, according to the FDIC. This might not seem like much, but consider that three years ago, it was just 0.06%, reflecting a sharp rise in a short period of time. As of July 27, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank and requires no minimum deposit. Since these rates may not be around much longer, consider opening a high-yield savings account now to take advantage of today's high rates. Here is a look at some of the best savings rates available today from our verified partners: This embedded content is not available in your region. How much interest can I earn with a savings account? The amount of interest you can earn from a savings account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (savings account interest typically compounds daily). Say you put $1,000 in a savings account at the average interest rate of 0.42% with daily compounding. At the end of one year, your balance would grow to $1,004.12 — your initial $1,000 deposit, plus just $4.12 in interest. Now let's say you choose a high-yield savings account that offers 4% APY instead. In this case, your balance would grow to $1,040.81 over the same period, which includes $40.81 in interest. The more you deposit in a savings account, the more you stand to earn. If we took our same example of a high-yield savings account at 4% APY, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you'd earn $408.08 in interest. Read more: What is a good savings account rate?
Yahoo
5 days ago
- Business
- Yahoo
Best money market account rates today, July 24, 2025 (earn up to 4.41% APY)
Find out which banks are offering the best MMA rates right now. As interest rates begin to fall following the Fed's recent rate cuts, it's more important than ever to ensure you're earning a competitive rate on your savings. One option you may want to consider is a money market account (MMA). These accounts are similar to savings accounts — they offer interest on your balance, but may also include a debit card and/or check-writing capabilities. Wondering where the top money market account rates can be found today? Here's what you need to know. What are the best money market account rates today? From a historical perspective, money market account interest rates have been quite high. The national average interest rate for money market accounts is just 0.62%, according to the FDIC, but the top money market account rates often pay above 4% APY or even more — similar to the rates offered on high-yield savings accounts. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Will money market account rates keep going down? Between July 2023 and September 2024, the Fed maintained a target range for its federal funds rate of 5.25%–5.50%. However, as inflation cooled and the economy improved, the Fed slashed the federal funds rate by 50 basis points in September 2024. It cut another 25 bps in November, and in December, the Fed made its final rate cut of the year (25bps). The federal funds rate now stands at 4.25%-4.50%. As a result, money market rates have begun to decline. Further rate cuts are expected in 2025, which means now might be the last chance for savers to take advantage of today's higher rates. Read more: Can you lose money in a money market account? Is a money market account right for you? Considering that money market account rates are still elevated, these accounts are an attractive option for savers. Even so, deciding whether it's the right time to put money in a money market account also depends on your financial goals and the broader economic conditions. Here are some key factors to consider: Liquidity needs: Money market accounts offer easy access to your money since they often come with check-writing capabilities or debit card access (though there may be a cap on monthly withdrawals). If you need to keep your money accessible while still earning a decent yield, a money market account could be ideal. Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your cash, with returns that are better than most traditional savings accounts. Risk tolerance: For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are appealing because they are backed by FDIC insurance and can't lose principal. However, if you're saving for a long-term goal like retirement, riskier investments are necessary to generate higher returns that will get you to your savings target. Given that interest rates are still elevated, now could be a good time to consider a money market account, especially if you're seeking a balance of safety, liquidity, and better returns than traditional savings accounts. Comparing rates from different institutions will help you find the best options available. Today's money market account rates: Frequently asked questions What is the current interest rate on a money market account? Today's money market account rates vary quite a bit across different financial institutions. Though the national average rate for an MMA is currently 0.64%, there are some banks offering well above 4% APY. In general, you won't find money market rates above 4.50%. Where can I get 7% interest on my money? Unfortunately, there are very few accounts that offer 7% interest. Those that do exist are limited-time promotions, and are typically found on checking accounts. There are currently no money market accounts that pay 7%. This embedded content is not available in your region.
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for July 24, 2025: Up to 4.66%
Getting the best rate as a saver has been a little more difficult since the Federal Reserve started cutting its benchmark rate toward the end of 2024. Since the beginning of 2025, Fed officials have adopted a wait-and-see approach due to concerns about tariffs and economic conditions. The central bank again held the federal-funds rate steady in June, but kept the door open for future cuts as it gathers more data on how trade policy will impact inflation. With the average savings account paying 0.38%, according to the Federal Deposit Insurance Corporation (FDIC), it might feel a little bleak for savers. However, high-yield savings accounts still offer a way to get a little more yield. The best high-yield savings account pays a much higher yield. Indeed, the top rate from a national bank is 4.66% APY, according to Locally, you might be able to check with a credit union or community bank. For example, ConnectOne Bank in New York offers an APY of 4.00% if you have at least $2,500 deposited.
CBS News
5 days ago
- Business
- CBS News
$10,000 6-month CD vs. $10,000 high-yield savings account: Here's which could earn more interest
The concept of giving up access to your money in today's economic climate can be daunting for many. After all, inflation just rose in June (for the second month in a row) and borrowing costs remain elevated thanks to higher interest rates. With stock market uncertainty still a concern, too, foregoing access to your funds may not make sense right now. And that's what will be required if depositing money into a certificate of deposit (CD) account. In exchange for a high, fixed interest rate, savers will need to keep their funds in the account untouched or risk having to pay an early withdrawal penalty. Depositing $10,000 into this account type, then, may not seem advantageous on the surface, especially when there are alternative accounts that won't mandate this loss of access. A high-yield savings account, by comparison, has rates competitive with the highest CD accounts and it functions similarly to a traditional savings account, meaning you'll maintain the ability to make deposits and withdrawals. On the other hand, these accounts have variable rates that will change over time based on market conditions. When faced with both account types, then, savers should pause before depositing their $10,000. To better determine which account is advantageous, they can calculate their potential interest earnings. Below, we'll do the math. Start earning more interest on your money with a high-rate CD account here. It's easy to calculate the interest earnings on a CD account because it has a fixed rate. Determining the interest on a high-yield savings account is more difficult because the rate there will change over time, potentially to a significant degree. Here's what both account types could earn with a $10,000 deposit tied to today's available interest rates, assuming the CD account isn't hit with an early withdrawal penalty and that the high-yield savings account rate remains the same for the full six months: Not only will the CD account earn around $8 more than the high-yield savings account, but that return is guaranteed, while the high-yield savings account's return is not. And with the chances of rate cuts being issued later in 2025 significant, savers here should expect the rate they open their high-yield savings account with this July to be lower by the end of the year. In other words, if you can afford to keep your funds in the CD untouched for the full six months, the return will likely outweigh what the high-yield savings account can offer now. Get started with a top CD account online today. Money market accounts also come with high interest rates now (around 4.30% according to Bankrate). They won't require you to lock your money away the way a CD would, and they'll offer benefits a high-yield savings account won't (like check-writing services). But the caveat here remains the same as the high-yield savings account: A money market account has a variable interest rate that's likely to decline in the months to come. Between the three account types, then, a CD becomes the clear best choice for those savers looking to earn as much guaranteed interest on their $10,000 deposit as possible right now. Both CDs and high-yield savings accounts offer savers a critical benefit right now: The chance to earn a high interest rate on their money. But only a CD guarantees that return. So, if you want to both protect and grow your money and want to take a break from worrying about today's constantly evolving interest rate climate, a CD account may be worth exploring now.
