Latest news with #savingsaccounts
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for June 27, 2025: Up to 4.66%
Pay attention to restrictions that sometimes come with HYSAs. For example, some savings accounts limit the number of withdrawals and transactions you can complete in a month. Others might require a minimum deposit to open an account or have limits on your APY based on your balance. How traditional savings accounts work Traditional savings accounts work the same as HYSAs. However, unlike high-yield accounts that are often found online with no brick-and-mortar branches, traditional savings accounts are usually held at banks that have physical branches. In some cases, you can get above-average yields with more traditional accounts held at local credit unions and community banks with physical locations, but often the best savings rates are found with online-only accounts. Traditional savings accounts might have transaction limits, deposit requirements and tiered rates based on your balance. HYSA dependency on Fed rate The Federal Reserve meets eight times a year to announce its benchmark federal-funds rate (sometimes called the Fed rate). This is the rate banks charge each other for short-term lending. High-yield savings accounts are highly dependent on the Fed rate. When the target rate rises, savings yields generally rise as well. For savers, this can mean higher returns for letting their money sit at a bank or credit union. On the other hand, when the Fed cuts its benchmark rate, yields tend to fall. Savings yields can fluctuate regularly, but they are most likely to significantly change when the Federal Reserve announces a cut or increase of its benchmark rate.
Finextra
4 days ago
- Business
- Finextra
NatWest BaaS unit negotiates deal with Saga
Over-50's group Saga is wading deeper into the financial services market as it agrees a deal with NatWest's Banking-as-a-Service unit Boxed to provide savings accounts and other banking products to its membership base. 0 In a trading update, Saga says it has agreed heads of terms and is now in final negotiations with NatWest for a range of personal banking products, starting with a new savings proposition. "This partnership would combine NatWest's scale and banking capabilities with our customer insight and marketing strengths, and support our ambition to continue growing our Money business," says the firm. Saga offers a range of products and services exclusively for the over 50s, including insurance, holidays, money and a monthly magazine. A Natwest Group spokesperson says: 'We have a long-standing partnership with Saga and look forward to continuing to support its growth ambitions. 'The next stage of our partnership will serve to broaden and differentiate Saga Money's product range to meet evolving customer needs, in partnership with Natwest Boxed. We will share more details in due course.'
Wall Street Journal
20-06-2025
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for June 20, 2025: Up to 4.66%
Pay attention to restrictions that sometimes come with HYSAs. For example, some savings accounts limit the number of withdrawals and transactions you can complete in a month. Others might require a minimum deposit to open an account or have limits on your APY based on your balance. How traditional savings accounts work Traditional savings accounts work the same as HYSAs. However, unlike high-yield accounts that are often found online with no brick-and-mortar branches, traditional savings accounts are usually held at banks that have physical branches. In some cases, you can get above-average yields with more traditional accounts held at local credit unions and community banks with physical locations, but often the best savings rates are found with online-only accounts. Traditional savings accounts might have transaction limits, deposit requirements and tiered rates based on your balance. HYSA dependency on Fed rate The Federal Reserve meets eight times a year to announce its benchmark federal-funds rate (sometimes called the Fed rate). This is the rate banks charge each other for short-term lending. High-yield savings accounts are highly dependent on the Fed rate. When the target rate rises, savings yields generally rise as well. For savers, this can mean higher returns for letting their money sit at a bank or credit union. On the other hand, when the Fed cuts its benchmark rate, yields tend to fall. Savings yields can fluctuate regularly, but they are most likely to significantly change when the Federal Reserve announces a cut or increase of its benchmark rate.
Reuters
10-06-2025
- Business
- Reuters
Brazil's central bank chief signals imminent bridge solution for real estate financing
June 10 (Reuters) - Brazil's central bank governor Gabriel Galipolo said on Tuesday he expects to soon present a solution to finance the real estate sector, which is struggling due to a drop in deposits in savings accounts, historically its largest funding source. Speaking at an event hosted by banking group Febraban in Sao Paulo, Galipolo said a "bridge process" would be introduced to transition from the previous financing model to a new one. The move comes amid discussions with key players in the sector, including state-run lender Caixa Economica Federal ( the market leader in housing credit in Brazil, Galipolo said. During his remarks, Galipolo displayed a chart illustrating declines both in nominal and inflation-adjusted balances held in savings accounts, attributing the trend to the wide offer of more competitive yields through other investment options. "The more people have access to alternatives, and the more financial education they receive, the more natural it is to see, over time, this reduction in savings accounts balances," he said. "This compels the central bank and the financial system to seek alternative funding sources to enable a migration toward a new system, a new model." During periods of high interest rates, including currently in Latin America's largest economy, other fixed-income investments become more attractive than savings accounts, prompting withdrawals. Brazil's benchmark Selic rate stands at 14.75%, the highest level in nearly 20 years, following a tightening cycle that began last September to rein in inflation. Galipolo also called a proposed constitutional amendment before Congress providing for financial autonomy for the institution an "essential" agenda. Galipolo said the proposal, which the left-wing government of President Luiz Inacio Lula da Silva opposes, is not intended to give the central bank a blank check, but rather to provide tools for more effective supervision and regulation.
Khaleej Times
29-05-2025
- Business
- Khaleej Times
Follow these steps to make saving a hard habit to break
From paying your credit card bills to going out for dinner with friends, we do many things on a monthly basis that have become habits – they are part of our routine. So why not treat saving money the same way? Turn it into a monthly habit, maybe at the end of every month or whenever your salary comes through. In a few years' time, you will be glad you did. Habit forming Let's start by being realistic. If you have never saved before, it can be hard to start. A bit like going to the gym. You need to start saving and then quickly turn it into a habit. And developing a new habit doesn't need to take that long. For some tasks, they can become a habit in a matter of weeks, others take months. For saving money, you could make a note in your phone's diary as a recurring monthly event. Then you will be sent an alert and reminder to take action. From a psychological standpoint, saving every month trains your brain to prioritise future security over current spending. It makes budgeting easier, and your savings become a non-negotiable 'expense'. Make it easy Like with all habits, if they are simple and easy, then we are more likely to stick to them. Even better, what if you could automate saving money? For example, you could set a limit on your current account of Dh5,000, so that any amount above this is automatically swept into a savings account and earns a high rate of interest. Check with your bank to see if this facility is available. LIV has a number of innovative savings accounts such as Goal and Money Ahead. With Goal, you can earn up to four per cent interest a year if you follow a few rules, one of them being you need to transfer your salary into LIV. The Goal savings account has an option called 'Set & Forget' which sets automatic rules where you save a fixed amount every day, week or month. This sounds like a great way to automate your savings in case you forget. Eighth wonder of the world When you save money you earn interest which leaves you with a bigger amount. And then you earn interest on this bigger amount, interest on top of interest, or compound interest to use the correct term. Albert Einstein famously described compound interest as 'the eighth wonder of the world,' adding: 'He who understands it, earns it; he who doesn't, pays it'. So you want to be the one earning it, not paying it. This example should help convince you: Let's say you save Dh1,000 a month earning an annual interest rate of five per cent. In just five years, this will be grow to Dh78,000 and in 10 years it will grow to Dh155,000. Without any interest being paid and then not compounded year on year, your savings would only be worth Dh120,000 after 10 years. Now you can see the power of compound interest. And when is the best time to start saving? Yesterday. And the second best? Today. People often regret not saving sooner, but almost no one regrets having saved early in the lives. Best accounts Now you have been convinced that now is the right time to save, the next task is to find the best savings account. Some of the higher paying ones will give you upwards of four per cent but you need to read the small print to make sure you satisfy the terms. Some involve locking your money up for a set period, which you should be comfortable doing as you are starting a new long-term habit. Others may require a minimum balance to qualify for the higher interest rates. Banks do summarise the benefits and T&Cs but you still need to read them. ADCB Super Saver Account pays up to five per cent, which includes a base rate and a bonus rate, but read carefully the requirements needed to qualify for the bonus as it includes minimum balances you need to maintain. Emirates NBD will pay 4.5 per cent on new money going into its Plus Saver UAE dirham account while RAK Bank is paying six per cent interest but this is only available for three months. A simpler savings account is offered by Wio Bank which will pay you 3.75 per cent with no minimum amount or lock-in period. If you can lock your money up then you will get a higher interest rate – rising to 4.5 per cent.
