Latest news with #highYield
Forbes
3 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: June 18, 2025
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 put some money aside? 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" in the banking world, have been notorious for paying paltry interest in past years, especially after the Great Recession. That's changed more recently, and you can find rates 10-times higher than those offered by traditional financial institutions if you opt for an online bank or a credit union. 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 often pay considerably more interest than conventional savings accounts. But the thing to know 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. To find the best savings account for your needs, you first must answer the question: What exactly are you looking for? And you must realize that different types of accounts have trade-offs. If you want to open an account at a traditional bank with branches, that will likely rule out the best interest rates, which are typically available at online-only banks. Many traditional savings accounts at brick-and-mortar banks earn just 0.01% or 0.02% APY, while some online-only savings accounts earn more than 4.00% APY. Don't settle on any option until you're certain you have a good grasp on the fees you'll be charged. Savings accounts can ding you with monthly service fees, excess withdrawal fees and returned item fees (if you deposit checks that bounce), among others. Those charges add up and can gnaw away at your savings. As you shop around, check the reviews and ratings of financial institutions and make sure you choose one that will protect your money with federal insurance—from the FDIC or, in the case of credit unions, the NCUA. 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. 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.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for June 18, 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 May announcement continues the pattern of keeping the rate on hold until there's more data on market responses to trade policy. With the average savings account paying 0.42%, 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.
Yahoo
4 days ago
- Business
- Yahoo
Best high-yield savings interest rates today, June 17, 2025 (Earn up to 4.3% APY)
The Federal Reserve reduced its target interest rate three times in 2024. As a result, high-yield savings account rates have been falling. That said, some of the best accounts still pay above 4% APY. In order to get the highest interest rate possible on your savings, it's important to do your research and find competitive offers. Not sure where to start? Here's a closer look at savings interest rates today and where you can find the best ones. The average interest rate on a traditional savings account is only 0.42%, according to the FDIC. However, the best savings rates can be found on high-yield accounts, which often pay much more. As of June 10, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by EverBank with no minimum opening deposit required. Openbank also offers a savings acount rate of 4.3% APY, but requires a minimum opening deposit of $500. 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. Over the last decade, savings account interest rates have fluctuated quite a bit. From 2010 to about 2015, rates were rock-bottom, hovering at around 0.06% to 0.10%. This was largely due to the 2008 financial crisis and the Federal Reserve's decision to lower its target rate to near zero in order to spur economic growth. From 2015 to 2018, interest rates began to increase gradually. However, they remained low by historical standards. Then the onset of the COVID-19 pandemic in 2020 led to another sharp decrease in rates as the Fed once again cut rates to stimulate the economy. This brought average savings interest rates down to new lows, around 0.05% to 0.06% by mid-2021. Since then, savings account rates have recovered considerably, largely driven by the Fed's interest rate hikes in response to skyrocketing inflation. However, the Fed finally lowered the federal funds rate in September, November, and December 2024, and as a result, deposit rates are beginning to fall as well. The following is a look at how savings interest rates have changed over the past decade: Despite the fact that interest rates have risen substantially since 2021, the average savings account rate is still fairly low, especially compared to market investments. If you're saving for a long-term goal such as a child's education or retirement, a savings account probably won't generate the returns needed to reach your goal. On the other hand, if you're saving for an emergency fund, home down payment, vacation, or other short-term goal, a high-yield savings account is ideal — especially if you want to access the funds as needed. Other types of deposit accounts, including money markets and CDs, may offer similar or even better rates, but restrict how often you can make withdrawals. The key is to shop around and find an account that provides a competitive rate with low or no fees. This embedded content is not available in your region.
Wall Street Journal
4 days ago
- Business
- Wall Street Journal
Today's High-Yield Savings Rates for June 17, 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 May announcement continues the pattern of keeping the rate on hold until there's more data on market responses to trade policy. With the average savings account paying 0.42%, 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.
Yahoo
4 days ago
- Business
- Yahoo
5 Safe Dividend Stocks Yielding Over 5% You Can Buy Without Hesitation Right Now for Passive Income
These companies generate very stable cash flows to support their high-yielding dividends. They also have rock-solid balance sheets. Their strong financial profiles enable them to grow their businesses and increase their dividends. 10 stocks we like better than Enterprise Products Partners › Higher-yielding dividend stocks can produce a lot of passive income. However, one drawback is that a higher dividend yield can be a warning sign that the payout is at risk of a reduction. That's not always the case. Here are five low-risk dividend stocks with yields above 5%, which is more than triple the S&P 500's sub-1.5% dividend yield. Because of their lower risk profiles, you can confidently buy these higher-yielding dividend stocks for passive income right now. Enterprise Products Partners (NYSE: EPD) currently yields 6.7%. The master limited partnership (MLP), which sends investors a Schedule K-1 Federal Tax Form each year, backs that payout with a very stable cash flow profile and strong balance sheet. The midstream energy company's integrated network of pipelines, processing plants, storage terminals, and export facilities generates predictable cash flow backed primarily by long-term, fixed-rate contracts and government-regulated rate structures. The company produced enough distributable cash flow to cover its high-yielding payout by a comfy 1.7 times in the first quarter. Enterprise also has the strongest balance sheet in the energy midstream sector. The MLP has proved the durability of its high-yielding distribution over the decades by increasing it for 26 straight years. That streak seems likely to continue. Enterprise currently has $7.6 billion of major capital projects on track to enter commercial service through the end of next year. The incremental free cash flow from those projects will give the company even more fuel to continue increasing its high-yielding payout. Enbridge (NYSE: ENB) currently yields 5.8%. The Canadian pipeline and utility company produces stable cash flow to backstop that payout. Predictable cost-of-service agreements and long-term, fixed-fee contracts lock in 98% of its annual earnings. Its earnings are so predictable that Enbridge has achieved its annual financial guidance for 19 years in a row. Enbridge pays out 60% to 70% of its stable cash flow in dividends, retaining the rest to help fund expansion projects. Enbridge also has a strong investment-grade balance sheet with a leverage ratio trending toward the lower end of its target range. That gives it the flexibility to invest billions of dollars every year into expanding its oil pipelines, natural gas pipelines, natural gas utilities, and renewable power businesses. This growth gives it the fuel to increase its dividend, which Enbridge has done for 30 straight years. NNN REIT (NYSE: NNN) has a 5.5% dividend yield. The REIT focuses on investing in single-tenant retail properties secured by long-term, triple-net (NNN) leases. Those leases provide it with stable cash flow to pay dividends because tenants cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance. The REIT has a conservative dividend payout ratio and balance sheet. It expects to produce $200 million in post-dividend free cash flow this year and has a sector-leading 11.6-year weighted average debt maturity. Those features give it lots of capacity to invest in new income-generating retail properties. It primarily buys properties through sale-leaseback transactions with its existing tenants. This strategy has steadily grown its income, enabling NNN REIT to raise its dividend payment for 35 straight years. Only two other REITs and fewer than 80 publicly traded companies have reached that milestone. Verizon (NYSE: VZ) has a 6.3% dividend yield. The mobile and broadband giant produces lots of recurring cash flow as customers pay their bills. Last year, Verizon generated $36.9 billion in cash flow from operations. That was enough money to cover its capital expenditures to maintain and expand its fiber and 5G networks, which accounted for $17.1 billion, and its dividend payment, accounting for $11.2 billion, leaving $8.6 billion in excess free cash flow to spare. That surplus enabled Verizon to strengthen its already rock-solid balance sheet. Verizon is also buying Frontier Communications in a $20 billion deal to bolster its fiber network, and its overall growth investments in 5G and fiber should support growing cash flows in the future. That should enable the company to continue increasing its high-yielding dividend. Last year, Verizon raised its payout for the 18th year in a row, the longest current streak in the U.S. telecom sector. Vici Properties (NYSE: VICI) has a 5.4% dividend yield. The REIT backs its payout with a high-quality real estate portfolio. Vici Properties invests in market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. It leases these properties back to operating tenants under very long-term NNN leases, with a 40.4-year weighted average lease term remaining. The REIT pays out 75% of its stable income in dividends. It also has a rock-solid investment-grade balance sheet. These features give it the financial flexibility to invest in additional income-generating experiential real estate. Vici's growing portfolio has enabled it to steadily increase its dividend. It has raised its dividend in all seven years since its formation, growing its payout at a 7.4% compound annual rate, which leads its NNN lease peers. Enterprise Products Partners, Enbridge, NNN REIT, Verizon, and Vici Properties generate stable cash flow, which helps support their more than 5%-yielding payouts. These companies also have strong financial profiles, which allows them to invest in growing their businesses. That growth has supported steady dividend increases, which seems likely to continue. This combination of yield, financial strength, and growth is why you can buy any one of these high-yielding dividend stocks for passive income without hesitation right now. Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — 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 Matt DiLallo has positions in Enbridge, Enterprise Products Partners, Verizon Communications, and Vici Properties. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends Enterprise Products Partners, Verizon Communications, and Vici Properties. The Motley Fool has a disclosure policy. 5 Safe Dividend Stocks Yielding Over 5% You Can Buy Without Hesitation Right Now for Passive Income was originally published by The Motley Fool
