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Wall Street Journal
2 hours ago
- Business
- Wall Street Journal
Today's CD Rates for June 20, 2025: Highest APYs Range From 4.00% to 4.75%
Certificates of deposit (CDs) often offer the best rates for savings. However, to get the highest annual percentage yield (APY), you need to agree to keep your money with the financial institution for a set time period. Right now, the best CD rates are on short-term CDs. The Federal Deposit Insurance Corporation (FDIC) reports that the average rate on a 12-month CD is 1.75%. However, the average for the top high-yield CDs is 4.68%, according to There are also six-month CDs with competitive rates, depending on the institution, as well as promotional CDs with higher rates. Top CD rates today The best CD yield from a national bank is Northern Bank Direct, with a 4.50% APY on a nine-month CD with a $500 minimum deposit requirement. The best local bank CD rate is Linkbank with a 4.50% APY on a 10-month CD with a $500 minimum to earn the APY. If you're looking for the highest yield, no matter where you live, review the top CD rates today.
Yahoo
a day ago
- Business
- Yahoo
How to choose the best high-yield savings account for you
Choosing the best high-yield savings account requires comparing interest rates, fees, and account features. Look for accounts offering APYs up to 4.40 percent with FDIC insurance, no monthly maintenance fees and convenient digital features like mobile check deposit and automatic transfers. The key is finding an account that combines competitive earnings with easy access to your money when you need it. High-yield savings accounts offer significantly higher interest rates than traditional accounts, helping you grow your money faster. Look for accounts with competitive APYs, FDIC insurance and low fees to maximize your earnings. Understand withdrawal limits and accessibility to make sure the account fits your savings habits. Compare multiple accounts to find the best combination of rate, features and convenience for your needs. The primary advantage of high-yield savings accounts is earning significantly higher interest on your deposits. While the average savings account pays 0.6, the best high-yield accounts offer rates above 4.00% APY. This difference can translate to hundreds more in interest annually. For a $10,000 balance, earning 4.50% APY generates $450 in interest per year versus just $50 with a 0.50% account. That extra $400 could cover a few months of groceries or contribute meaningfully to your financial goals. 'Don't just look at the headline rate when comparing accounts. Check if there are balance requirements to earn the advertised APY, promotional rates that drop after a few months or terms like minimum monthly deposits. The best high-yield accounts offer their top rates with minimal strings attached.' Online banks typically offer the highest rates because they have lower overhead costs than traditional brick-and-mortar institutions. These savings get passed along to customers in the form of higher yields. Keep in mind that some banks offer tiered or promotional rates depending on your balance or require you to meet certain conditions, like maintaining a minimum balance or making a minimum number of transactions per month. Learn more: See Bankrate's top picks for high-yield savings accounts Beyond the interest rate, account features can significantly impact your banking experience. Consider how easily you can manage your money and access the tools you need for everyday banking. Here are a few things to consider: Essential digital features: Modern high-yield savings accounts should offer a robust online and mobile banking platform. Look for features like mobile check deposit, which lets you deposit checks by taking photos with your phone, and automatic transfer options to move money between accounts seamlessly. Customer service: Consider how you prefer to get help when you need it. Some banks offer 24/7 phone support, while others provide live chat features or comprehensive online help centers. If you value in-person service, check whether the bank has branch locations in your area or partners with ATM networks. Account management: Look for banks that offer useful features like savings goal tracking, spending categorization or the ability to create multiple savings 'buckets' for different goals within one account. Here's a list of accounts that come with built-in budgeting tools. Payment and transfer options: Check what options you have for moving money. Can you easily transfer funds to external accounts? Does the bank support services like Zelle for sending money to friends and family? How quickly do transfers process? Related: Best mobile banking apps and features Federal deposit insurance is non-negotiable when choosing any bank account. Choose a high-yield savings account from a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA). These federal agencies protect your deposits up to $250,000 per depositor, per institution, in the event of a bank failure. This insurance gives you peace of mind that your money is safe, regardless of what happens to the financial institution. You can verify a bank's FDIC insurance status by checking the FDIC's online database or looking for the FDIC logo on the bank's website. For credit unions, check the NCUA's database to confirm insurance coverage. Account fees can quickly erode your interest earnings, so pay close attention to the fee structure of any account you're considering. Many high-yield savings accounts have no monthly maintenance fees and minimal other charges, but it's important to verify this before opening an account. Common account fees to watch for: Monthly maintenance fees: Often waived with minimum balance requirements Minimum balance fees: Charged when your account falls below a certain threshold Excess withdrawal fees: Applied when you exceed transaction limits ATM fees: Charges for using out-of-network ATMs Paper statement fees: Many banks charge for mailed statements Account closure fees: Some banks charge if you close your account too soon See the full list of bank fees (and tips to avoid them) here. The best high-yield savings accounts typically have no monthly maintenance fees and low or no minimum balance requirements. Others may waive fees if you maintain a certain balance or link a checking account. Also note minimum opening deposit requirements. Some accounts have no minimum to get started, while others ask for $50, $100 or more. If an account requires more than you're comfortable depositing initially, continue looking for better options. You can explore Bankrate's list of savings accounts with no minimum deposits and our list of banks that reimburse ATM fees to compare options. Federal Regulation D traditionally limited savings account holders to six 'convenient' withdrawals or transfers per month, including online transfers, checks, and debit card transactions. While this limit was suspended in 2020 due to the COVID-19 pandemic, some banks still restrict the number of withdrawals on savings accounts. Understanding these restrictions is important, especially if you plan to access your savings frequently. Some banks may charge excess withdrawal fees or convert your account to a checking account if you exceed their transaction limits. Check the specific terms for any account you're considering. Banks typically allow unlimited in-person withdrawals and ATM transactions, but may limit electronic transfers and other 'convenient' transactions. Choosing the right high-yield savings account involves balancing competitive rates with the features and convenience you need. Start by comparing APYs among FDIC-insured institutions, then evaluate fees, digital features and accessibility. Once you've chosen your account, maximize its benefits by setting up automatic transfers to build savings consistently, naming your account based on your goal to stay motivated, and reviewing your account periodically to ensure you're still earning a competitive rate. Money tip: Set up automatic transfers from your checking account to build savings without thinking about it. Even small, regular contributions can add up significantly over time thanks to compound interest. Consider opening multiple high-yield savings accounts for different goals — one for emergencies, another for vacation savings and perhaps a third for a home down payment. This approach helps you track progress toward specific objectives and resist the temptation to dip into funds earmarked for other purposes. Review your account's performance every six months to ensure you're still earning a competitive rate. If your bank has lowered rates significantly below market averages, don't hesitate to shop around for better options. Related reading: Compare current high-yield savings account rates High-yield savings vs. money market accounts vs. CDs How much should you save each month?
Forbes
a day ago
- Business
- Forbes
10 Best CD Rates of June 2025: Up to 4.50% APY
The accounts below are arranged by demand for the term, rather than by the duration. Learn More On Website 3.50% to 4.00% Rates and details as of 3/12/25. Learn More On Synchrony Bank's Website Member FDIC Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit for current rates, terms and account requirements. Member FDIC. 0.25% to 4.15% Rates and details as of 6/18/25. You should consider several factors before opening a CD. Here's what you need to keep in mind. Term Length: One of the most important decisions you'll need to make before choosing a CD is what term length to opt for. You'll need to be comfortable with your cash being tied up for the entire term you choose, which can range anywhere from one month to 10 years. You may also want to consider interest rates when choosing a term length. If rates are expected to drop, consider locking in a high rate with a longer-term CD. But if rates are expected to rise, you may opt for a shorter-term CD so you don't miss out on the higher rate later. One of the most important decisions you'll need to make before choosing a CD is what term length to opt for. You'll need to be comfortable with your cash being tied up for the entire term you choose, which can range anywhere from one month to 10 years. You may also want to consider interest rates when choosing a term length. If rates are expected to drop, consider locking in a high rate with a longer-term CD. But if rates are expected to rise, you may opt for a shorter-term CD so you don't miss out on the higher rate later. APY: APY is also important to consider when opening a CD. The higher the APY, the more you'll earn over time. Online banks and credit unions typically offer CDs with higher APYs than traditional brick-and-mortar institutions. APY is also important to consider when opening a CD. The higher the APY, the more you'll earn over time. and credit unions typically offer CDs with higher APYs than traditional brick-and-mortar institutions. Minimum Deposit Requirement: This is the minimum amount you'll need to deposit to open a CD. Some CDs have no minimum deposit requirement, but others require initial deposits of several thousand dollars. This is the minimum amount you'll need to deposit to open a CD. Some CDs have no minimum deposit requirement, but others require initial deposits of several thousand dollars. Compounding Schedule: Some CDs compound interest daily, while others compound monthly. The more frequently your CD's interest is compounded, the more you can earn. Some CDs compound interest daily, while others compound monthly. The more frequently your CD's interest is compounded, the more you can earn. Early Withdrawal Penalty: If you withdraw funds from your CD before it matures, you'll be charged an early withdrawal penalty , which varies between institutions. These penalties can be hefty, offsetting much of the interest you may have earned. If you withdraw funds from your CD before it matures, you'll be charged an , which varies between institutions. These penalties can be hefty, offsetting much of the interest you may have earned. Safety: Ensure your CD is federally insured by the FDIC or NCUA. The FDIC insures up to $250,000 per depositor, bank, and ownership category. The NCUA insures individual accounts at credit unions for up to $250,000. All CDs on our list are either FDIC- or NCUA-insured. Opening multiple CDs at once can be an effective way to grow your savings. Known as CD laddering , this strategy involves opening multiple CD accounts with varying term lengths, so that when each CD matures, you'll have access to a part of your savings. For example, say you invest $10,000 evenly across five CDs with terms ranging from one year to five years and increasing in one-year increments. When each of these initial deposits matures, you'll reinvest it into a longer-term CD. So when your one-year CD matures, you'll reinvest that cash into a five-year CD. When your two-year CD matures, you'll open another five-year CD, and so on, continuing the ladder. After five years, one of these five-year CDs will mature each year, giving you access to a portion of your cash. The highest CD rates today reach 5.02% APY, but the key is to find the best CD rate that matches a term that fits your financial needs. Also keep in mind that banks change yields all the time, depending on market conditions. As the Federal Reserve brings down borrowing rates, for instance, expect CD yields to fall. While shopping for CDs, you'll find that online banks typically offer the highest rates. This is because online banks lack the overhead costs associated with maintaining physical branches, and offering high rates is an effective way for banks to compete for customers and deposits. If APY isn't your top priority, and you'd rather sacrifice a higher rate to be able to bank with a well-established institution with a physical presence, consider the following: How much your CD earns in one year depends on your account's APY, term length and compounding schedule. For example, a $10,000 CD with a 4.00% APY compounded monthly would earn $400 in interest after a year. A three-year CD with the same rate and deposit would earn around $1,250. If your CD had an APY of 4.50%, you'd make even more: $450 after one year and about $1,400 after three years. Use our CD calculator to determine how much you'd earn with a CD, depending on term length, APY and initial deposit. If you're looking for a savings account with a high interest rate and easy access to your funds, consider the following CD alternatives. High-Yield Savings Accounts Both high-yield savings accounts and CDs earn higher-than-average APYs and are great options to grow your savings risk-free. However, they differ in several key ways. Unlike CDs, high-yield savings accounts have variable interest rates, meaning your account's APY will fluctuate based on the market. And while CDs charge an early withdrawal penalty, high-yield savings accounts allow you to deposit and withdraw funds whenever you want. Money Market Accounts Money market accounts combine features of both savings and checking accounts. They offer competitive APYs and come with debit or ATM cards and check-writing capabilities to make it easier to spend or withdraw funds. To create this list, Forbes Advisor analyzed 458 CD and share certificate accounts across 148 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. For the star rating, we ranked each account on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and ranked each account by individual term. The following is the weighting assigned to each category: APY: 55% Minimum deposit: 10% Compound interest: 5% Available terms: 5% Availability: 5% App Store rating: 3.75% Google Play rating: 3.75% Online banking: 2.50% BBB grade: 3.75% Trustpilot rating: 3.75% Live chat: 2.50% Banks We Monitor These financial institutions were included in our research for the best CD rates: ableBanking, Affinity Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant, America First Credit Union, American Express, Apple Federal Credit Union, Armed Forces Bank, Axos Bank, Banesco, Bank of America, Bank OZK, Bank5 Connect, BankPurely, BankUnited, Barclays, Bask Bank, BECU, Bethpage Federal Credit Union, Blaze Credit Union, Blue Federal Credit Union, BMO, BMO Alto, Bread Financial, Cadence Bank, Capital One, CFG Bank, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIBC Bank, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union(IL), Consumers Credit Union (MI), Credit Human, Credit Union of Denver, Department of Commerce FCU, Digital Federal Credit Union (DCU), Discover, DollarSavingsDirect, Dow Credit Union, Edward Jones, EmigrantDirect, EverBank, Exchange Bank & Trust ( Fairwinds Credit Union, Fidelity, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Citizens Bank, First Foundation Bank, First Horizon Bank, First Internet Bank, First National Bank of America, Georgia's Own Credit Union, Golden 1 Credit Union, Greenwood Credit Union, Hancock Whitney, Hanscom Federal Credit Union, Heritage Bank, Hughes Federal Credit Union, Huntington Bank, Ideal Credit Union, iGObanking, IncredibleBank, KeyBank, Kinecta Federal Credit Union, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Langley, LendingClub, Limelight Bank, Live Oak Bank, M&T Bank, MAC Federal Credit Union, MainStreet Bank (Virginia), Marcus by Goldman Sachs, Merchants Bank of Indiana, Merrick Bank, Morgan Stanley, MSU Federal Credit Union, My Banking Direct, My eBanc, MySavingsDirect, NASA Federal Credit Union, Navy Federal Credit Union, NBKC Bank, Newtek Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Paramount Bank, PenAir Credit Union, PenFed Credit Union, Pima Federal Credit Union, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, PSECU, Quontic, Quorum Federal Credit Union, Regions Bank, Rising Bank, Royal Credit Union, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Seattle Bank, Security Service Federal Credit Union, Service Credit Union, Southwestern National Bank, Spectrum Credit Union, State Bank of Texas, State Department Federal Credit Union, State Farm, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, Texas Bank, Texas Capital Bank, Third Federal Savings & Loan, TotalBank, Transportation Federal Credit Union, Truist, U.S. Bank, Union Bank & Trust, USAA, USAlliance Financial, Valley Bank, Vanguard, Vio Bank, Webster Bank, Wells Fargo, Western Alliance, Wings Credit Union, Zions Bank
Yahoo
a day ago
- Business
- Yahoo
Why Wells Fargo Stock Zoomed Higher on a Sleepy Wednesday
An apparent proposal for a regulatory change should benefit large banks. On top of that, an analyst raised his price target on Wells Fargo's shares. 10 stocks we like better than Wells Fargo › Wednesday's action on the stock market was fairly sedate, with stock market indexes like the S&P 500 index essentially moving sideways. That wasn't the case with big American bank Wells Fargo (NYSE: WFC), as its shares bounced more than 3% higher. A piece of news about regulations was one reason for this, while an analyst's price target raise also assisted in the lift. Late on Tuesday, Bloomberg reported that federal bank regulators are aiming to reduce a capital requirement for banks called the enhanced supplementary leverage ratio (eSLR). Large lenders like Wells Fargo are required to essentially hold a certain amount of capital to insulate themselves from economic shocks. Bloomberg, citing unidentified "people briefed on the discussions," said that the Federal Reserve (Fed), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency are considering such a move. They are aiming to reduce the capital requirement of the SLR by up to 1.5 percentage points, to a range of 3.5% to 4.5%. A lower requirement would free up more capital for banks to trade in Treasury securities, widely considered to be one of the safest investments on the market. Separately, Raymond James analyst David Long upped his price target on Wells Fargo's shares to $84 apiece from his preceding $78. In doing so, he maintained his strong buy recommendation. According to reports, Long feels that the recent removal of the long-standing asset cap imposed on the bank by the Federal Reserve in 2018 will have a significant impact on its fundamentals. The bank is sure to grow its assets now that it's free to do so; it should also benefit from higher securities trading and investment banking revenue. While I've personally had some doubts about Wells Fargo's conduct in the past -- a key reason for the asset cap -- I think it's being more careful about its operations now. Assuming that impression is correct, I'd agree that it has much potential now that the asset cap has been lifted. Before you buy stock in Wells Fargo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wells Fargo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Wells Fargo Stock Zoomed Higher on a Sleepy Wednesday was originally published by The Motley Fool
Reuters
2 days ago
- Business
- Reuters
Regulators' plans for US bank leverage relief may underwhelm US Treasury market
NEW YORK, June 18 (Reuters) - U.S. Treasury market participants hoping for a long-awaited shift in bank leverage rules may be in for a letdown if U.S. regulators choose to ease capital requirements rather than exclude U.S. government bonds from leverage calculations. The Federal Reserve said this week it would weigh proposals to ease leverage requirements for large banks at a June 25 meeting, launching what's likely to be a wider review of banking regulations. The agenda includes potential changes to the "supplementary leverage ratio," a rule that mandates banks hold capital against all assets, irrespective of risk. Regulators including the Fed, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency have been considering whether to tweak the rule's formula to reduce big banks' burdens or provide relief for extremely safe investments, like Treasury bonds, Reuters has reported. Currently, all banks are required to hold 3% of their capital against their leverage exposure, which is their assets and other off-balance sheet items like derivatives. The largest global banks must hold an extra 2% as well in what is known as the "enhanced supplementary leverage ratio." The Fed is expected to propose tweaks to that ratio in a bid to reduce the overall burden of that requirement, as opposed to broadly exempting categories of assets from the requirement, such as Treasury bonds, according to two industry officials. However, it is possible the Fed could seek input on some exemptions, the officials said. The FDIC announced its own meeting next Thursday, where the agency will also discuss proposed changes to that ratio. On Tuesday, Bloomberg reported that regulators plan to reduce by up to 1.5 percentage points the enhanced ratio for the biggest banks, bringing it down to a range of 3.5% to 4.5%. "Lowering the capital requirements instead of a Treasury carve-out from the SLR is a weaker form of regulatory easing, and in my view it doesn't fully address the constraint dealers face during intense market stress," said Steven Zeng, U.S. rates strategist at Deutsche Bank. "In our view, the news is moderately underwhelming," analysts at Wells Fargo said in a note. "We think that many market participants were anticipating a carve out of UST assets from the denominator." The Fed did not immediately respond to a request for comment. Spreads between long-term swap rates and Treasury yields tightened on Wednesday, turning more negative, even as earlier in the year they had been widening amid hopes that regulatory shifts in bank capital rules would bolster demand for Treasuries. The move likely reflected disappointment on the news that regulators plan to lower the requirements, said Zeng. "I still think a full carve-out is the most effective way to bolster market liquidity and compress the spread between Treasuries and swaps, but understandably it's also a significant jump for Fed regulators," he said. The 10-year swap spreads were last at minus 54 basis points from minus 53 on Tuesday, while 30-year swap spreads were last at minus 88 bps from minus 86.5 bps on Tuesday. Banks have argued for years that the SLR, established after the 2007-2009 financial crisis, should be reformed. They say it was meant to serve as a baseline, requiring banks to hold capital against even very safe assets, but has grown over time to become a constraint on bank lending. U.S. Treasury Secretary Scott Bessent has said in a Bloomberg interview last month that a shift in the ratio could bring Treasury yields down significantly. Treasury market participants have come to see it as a major obstacle to banks providing liquidity to traders, particularly at times of heightened volatility, but there are doubts over whether an easing of the requirement will boost Treasury prices. "We're skeptical that lowering SLR will trigger a massive round of buying in U.S. Treasuries from major U.S. banks," BMO Capital Markets analysts said in a note on Wednesday.
