Latest news with #highyield
Yahoo
4 hours ago
- Business
- Yahoo
Best high-yield savings interest rates today, June 19, 2025 (top account pays 4.3% APY)
If you're looking to supercharge your savings, a high-yield savings account could provide an above-average return to help your balance grow faster. However, not all banks offer high savings account rates, which is why it's important to shop around and find the most competitive savings interest rates available. Read on to learn more about where to find the best savings interest rates today. Savings account rates have been trending down since last year, when the Federal Reserve began cutting the federal funds rate. The good news is that many high-yield savings accounts still offer rates of around 4% APY and up. The best rates are typically offered by online banks, although you may be able to find comparable savings interest rates at some credit unions and community banks. As of June 19, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by Openbank and EverBank, but EverBank requires no minimum deposit whereas Openbank requires a minimum depost of $500. Here is a look at some of the best savings interest rates available today from our verified partners: This embedded content is not available in your region. Selecting a savings account with a competitive interest rate is important. The higher the rate, the faster your balance will grow over time. That said, the interest rate shouldn't be your only point of comparison. Other factors, such as fees, ATM locations, the bank's reputation, and more should also be considered. The best savings accounts offer a combination of high rates, low fees, accessibility, and an overall positive banking experience. Not sure where to start? Check out our ranking of the 10 best high-yield savings accounts available today. Following several years of near-zero interest rates, the Federal Reserve began raising the the federal funds rate in 2022 in order to combat rapidly rising inflation. As a result, savings interest rates skyrocketed, reaching a 15-year high. However, in late 2024, the Fed implemented a series of cuts to the federal funds rate, and savings account rates have started dropping. It's also expected that the Fed will implement more rate cuts in 2025. It's difficult to predict exactly how and when interest rates will change going forward, but one thing is for sure: Today's high savings account rates won't last forever. So, if you're hoping to give your savings a boost and take advantage of the best rates on the market, there's no better time than now. The requirements involved in opening a savings account vary by financial institution. However, if you're ready to open an account, you can follow these general steps: Research savings account rates: Of course, when choosing a savings account, one of the most important factors to evaluate are the interest rates. Be sure that you select a savings account with a competitive rate to help your money grow. Figure out your must-haves: Although savings account interest rates should be top of mind, that's not the only factor to consider. You'll also want to think about what else you need from your account, whether it's no minimum balance requirement, low fees, or other perks. Finding a savings account with a solid rate that also helps you achieve your goals is key. Prepare documentation: Opening a bank account requires you to provide a few important personal details and documents. Before you start your application, be sure you have your Social Security number, driver's license or passport number, and proof of address. Fill out the application: In many cases, you can apply for savings account online. However, some financial institutions may require you to visit the branch in person to apply. Either way, the application for a new savings account should only take a few minutes to complete. In many cases, you'll get your approval decision instantly. Fund your account: Once your savings account application is approved, you'll need to add funds to the account. Be sure you're aware of any minimum opening deposit requirements and timeline for funding. Read more: Step-by-step instructions for opening a high-yield savings account
Yahoo
14 hours ago
- Business
- Yahoo
How a high-yield savings account with 'savings buckets' could supercharge your progress
Are you saving money for a vacation? A wedding? Car repairs? Chances are, you're working toward more than one savings goal right now, but you're lumping all of your spare money into one place: a traditional savings account. There's certainly nothing wrong with having just one regular savings account, but going that route makes it challenging to know how much you've really saved for each goal. If you're not careful, you could easily mix up your emergency fund with your savings for a down payment, for example. One way to avoid that problem is to open multiple savings accounts, each one dedicated to a different goal. However, to save a lot of time and effort — plus, grow your balance faster — you could open a single high-yield savings account that has "savings buckets" instead. This embedded content is not available in your region. Savings buckets, which are sometimes called sub-savings accounts, let you set up categories for each of your unique savings goals within one account. This free account feature, which comes with a handful of savings accounts, is like a set of digital envelopes you can use to build up and track your separate financial goals. For example, you can label one bucket as "House Down Payment," another as "Emergencies," and a third as "Holiday Gifts." When you make a deposit to your savings account, you get to choose if you want to keep the money in your general savings or move it to one of your buckets. Read more: Guide to the envelope budgeting system For accounts with this feature, the bank may offer anywhere from 20 savings buckets to an unlimited number, all of which earn the same interest rate as your general savings. These accounts also tend to have other savings-friendly features, like the option to round up your debit purchases and deposit the difference into a bucket. Eliminates the need for multiple savings accounts Can incentivize you to save more money Makes it easier to organize and track multiple savings goals Instantly transfer money between buckets Some accounts let you set goals and track your progress for each bucket Higher collective deposits can help you avoid bank fees and qualify for higher interest rates Mid- to long-term deposits usually earn more when invested in other types of accounts, such as certificates of deposit (CDs), 529 plans, or retirement accounts Interest rates are variable; savings account rates can change at any time Deposit amounts over $250,000 may not be federally insured Unfortunately, savings buckets aren't a common feature for savings accounts. But we've saved you the trouble of having to scour the internet to find a good option. Here are a few accounts that come with savings buckets and offer high interest rates — some up to 4% APY — to supercharge your savings progress. With Ally's online savings account, you can create up to 30 buckets. Ally also offers a competitive 3.6% APY with no monthly maintenance fees. To make things more convenient, Ally's "Boosters" let you schedule automatic deposits to the buckets of your choice. You can also opt to round up your debit purchases and transfer the money to savings once you've accrued at least $5. Read our full review of Ally. If you want the highest interest rates on an account with savings buckets, check out Betterment. All deposits earn 4% APY with Betterment's Cash Reserve account. Betterment doesn't use buckets per se, but you can input multiple savings goals and set up recurring deposits of your desired amount for each goal. Just note that Betterment is not a bank; it's a robo-advisory firm. So, its accounts have some unique requirements and features. For example, you have to open a Betterment Securities brokerage account before you can open a Cash Reserve account. Further, this account is a cash management account, not a regular savings account. With SoFi's online bank account, you can have up to 20 'Savings Vaults' at a time. Plus, your deposits earn up to 3.8% APY, depending on the total balance. SoFi also lets you input goals for each bucket and track your progress. Similar to Ally, you can opt to round up your debit purchases to the next dollar and have the difference deposited into the vault of your choice. Read our full review of SoFi. Wealthfront offers "categories," which serve the same function as savings buckets. With Wealthfront's Cash Account, another cash management account, you can set up an unlimited number of customizable categories within your account. And your balance earns 4% APY. Read more: The 5 best neobanks and fintech companies of 2025 For savings accounts that have savings buckets, there is not typically a minimum amount you have to deposit into each bucket. Yes. Regardless of whether you move your savings into a bucket or sub-account, it will usually earn the same interest rate. The number of savings buckets you can set up for your deposit account depends on the financial institution's policies. For example, Boeing Employees Credit Union (BECU) gives you 12 buckets while Wealthfront offers an unlimited number.
CBS News
a day ago
- Business
- CBS News
Is a high-yield savings account worth it in today's economy? Here's what savings experts think.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. If you want to earn more interest on your money, it could be time to open a high-yield savings account. Getty Images While there are numerous interest-bearing deposit accounts for savers to consider, high-yield savings accounts have become a popular financial tool. These accounts are easy to open from the convenience of your own home, thanks to the wide variety of online banks that offer them. And unlike traditional savings accounts, high-yield savings accounts allow you to earn hefty returns on your savings. Like other savings tools, though, the potential returns on high-yield savings accounts are largely dependent on the economic climate. These accounts were especially worth considering in recent years, as interest rates were high overall thanks to the fight against elevated inflation. When the Federal Reserve lowered the federal funds rate in late 2024 and early 2025, though, many high-yield savings account rates dropped in tandem. That, in turn, led to questions about whether it was really worth it to open this type of savings account. Whether a high-yield savings account is ultimately worth it for you depends on a range of factors, including your savings goals and liquidity needs, so you'll need to weigh all the factors to determine whether opening one is the right move. But to help you decide, we spoke with savings experts to find out if these accounts are still worth it in today's economic climate. Find out how to earn more with the right high-yield savings account now. Is a high-yield savings account worth it in today's economy? Here's what experts had to say about opening this type of savings account in this economy: These accounts offer an opportunity to earn more A high-yield savings account can help you earn considerably more than you would in a traditional savings account. Right now, the average traditional savings account rate is just 0.42%, which doesn't really equate to a meaningful return on your savings. High-yield savings accounts, on the other hand, typically have returns that are many times that. "High-yield savings accounts do what most savings accounts don't: actually earn something, " says Ryan McLin, a CFP with Impact Wealth Group. "With rates often 10x higher than traditional savings accounts, they're ideal for emergency funds and cash reserves." To give you an idea of how much better the earning potential is with a high-yield savings account, imagine you had $10,000 of savings to deposit. In a high-yield savings account with a 4% interest rate, you would earn more than $400 in the first year and more than $2,200 after five years. Meanwhile, you would earn about $211 in interest on $10,000 after five years in a traditional savings account with a 0.42% return. According to McLin, these accounts are well-suited to short-term financial goals, such as the down payment on the home you're planning to buy in the next year or two. They're also the best place to house your emergency fund, thanks to the safety and liquidity they offer. Explore your high-yield savings account options and get started today. High-yield savings account rates remain high for now Interest rates on high-yield savings accounts are variable, so they generally ebb and flow based on the Federal Reserve's federal funds rate and other economic conditions. When the Fed lowers rates, the rates on high-yield savings accounts typically also decline (and vice versa). "After the Fed raised rates and then hit pause, we saw high-yield savings accounts hold steady with some of the best rates we've had in years," says Michael Rodriquez, a certified financial planner with Equanimity Wealth. "Online banks are still competing for deposits, which is keeping rates elevated for now. It's been a rare bright spot in a pretty uncertain economy." Though rates may be a bit lower than they were throughout parts of 2023 and 2024 when the federal funds rate was higher, it's still possible to find high-yield savings account rates of 4% or more currently. Rates on these accounts vary from one bank to the next, though, so it's worth shopping around for one with a competitive return. Of course, there's no guarantee high-yield savings account rates will remain high. If the Fed decreases the federal funds rate, you can expect high-yield savings account rates to dip. But even at their lowest rates, these accounts tend to offer more generous returns than traditional savings accounts. High-yield savings accounts aren't a substitute for investing While high-yield savings accounts are an excellent option for emergency savings and short-term financial goals, they aren't a suitable replacement for investing. "Don't let interest earned in high-yield savings account replace what equity and even bond markets can offer over the long term," says McLin. "This account isn't for growing wealth but making sure accessible cash doesn't lose purchasing power over time." According to the U.S. Securities and Exchange Commission, the stock market has an average historical return of about 10% per year. On the other hand, you'd be lucky to earn 5% in a high-yield savings account. This can make high-yield savings accounts less than ideal for things like your retirement savings, where the goal is growing wealth rather than just preserving it. Your high-yield savings account should also be just one part of your overall financial plan. Generally speaking, you'd turn to stocks and other investments for your retirement and long-term savings and reserve your high-yield savings account for emergency and short-term savings. You may want to consider CDs as an alternative High-yield savings accounts are one option for short-term savings, but they aren't the only option. You may also consider certificates of deposit (CDs). CDs have set terms and fixed interest rates, so you're able to lock in today's high rates for the full CD term. "Short-term CDs, those with maturities of under a year, offer more flexibility, while long-term CDs (one year or longer) typically provide higher interest rates in exchange for less liquidity," says Matt Hicks, VP of Deposit Products at First Tech Federal Credit Union. "However, with the current interest rate environment, consumers can still find short-term certificates with rates equal to or greater than those of their long-term counterparts." Some banks offer more competitive rates on CDs than on high-yield savings accounts, which can make them a solid choice. However, CDs also require you to lock up your funds for the full term. If you do withdraw money early, you will generally face early withdrawal penalties. The bottom line High-yield savings accounts can still be worth it in today's economic climate, especially compared to traditional savings accounts. While rates are a bit lower than they were a year or two ago, high-yield savings accounts remain one of the best tools for your short-term and emergency savings. Just make sure to think of a high-yield savings account as a part of your financial strategy instead of the entirety of it. When combined with other financial tools, though, high-yield savings accounts can help you meet your financial goals and preserve the value of your hard-earned savings.
Yahoo
2 days 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
2 days ago
- Business
- Forbes
7 Effective Personal Finance Best Practices You Need To Start Today
Personal finance best practices getty Mastering personal finance is an essential life skill. Beyond managing money, it's about optimizing what you already have to build wealth and achieve financial freedom. Whether you are just beginning your career or want to enhance your habits, this article discusses seven best practices that can anchor your financial life on stable and productive ground. Before addressing any other expense, prioritize yourself by treating savings as a non-negotiable. Rather than waiting to save what's left over after expenses, set aside funds immediately upon receiving your paycheck. A simple strategy is to set up automatic transfers to dedicated accounts, such as a high-yield savings account, a retirement vehicle, or a brokerage account. This ensures consistency and removes the burden of decision-making every payday. Begin with a target savings amount (usually 10% to 20% of income, though any amount is better than none) and set it up through your online banking platform. Choose the appropriate destination based on your financial goals. For example, high-yield savings accounts are best for emergency funds and short-term savings. For long-term growth, consider contributing to a Roth IRA, 401(k), or a taxable brokerage account, depending on your eligibility and objectives. Many investment platforms also offer automatic contributions that allow scheduled investments to mutual funds or ETFs. Over time, you will be more disciplined since you only live within the margin of what's left after savings, ensuring your long-term financial goals are met. Emergencies can derail your financial plans if you do not have contingencies for them. Your first line of defense is to have a well-established emergency fund in an account separate from your savings or checking accounts. Save at least six months' worth of living expenses in an easily accessible account. Remember to use this fund only for emergencies, such as a job loss, car accident, natural disaster, or sudden family obligations, and replace the amount as soon as you can. Having an emergency fund provides peace of mind and helps you stay on track with your other financial goals and avoid costly credit card debts or high-interest loans when times are tough. You may also explore various insurance products as an added protection. For example, if you have dependents, a comprehensive life insurance ensures your family is provided for in case of your death. Auto insurance covers not only accidents but also potential liabilities, while disability insurance replaces income if illness or injury prevents you from working. Similarly, health insurance helps cover medical costs, and renters or homeowners insurance protects your possessions and property. Get adequate insurance coverage based on your specific situation and needs. It's better to have insurance and not need it, than the other way around. Only spend what you have because you go into debt otherwise. It's quite straightforward, but it's easier said than done, especially with a bombardment of invitations to consume in social media, TV, billboards, etc. In a culture saturated with advertising, quick credit, and instant gratification, it is easy to confuse wants as needs and to normalize a lifestyle that exceeds your actual income. To live within your means, you first need to distinguish between essential (food, utilities, rent, savings) and discretionary expenses (subscriptions, dining out, vacation, gadget upgrades) and knowing which to prioritize. Of course, this doesn't mean depriving yourself. Instead, it's about being more intentional with your spending habits and thinking well about each expense before making it. You should also avoid lifestyle inflation and impulse buying which are some of the most common causes of debt accumulation. For example, say you get salary raise at work, it doesn't necessarily mean you have to upgrade your car, rent a more expensive apartment, or buy the latest iPhone. More often than not, you don't need those impulse buys. Why not increase your savings rate, or open an IRA, or maybe payoff credit card debt? If you feel you really need (or want) an expense, delay for a few days to allow more time to decide. Be mindful about your spending habits. Focus on the long-term and not immediate indulgences. Saving is essential, but it doesn't really create lasting wealth. To truly grow your resources and outpace inflation, you must invest. You must put your money to work in assets that generate returns over time, whether through capital accumulation, interest, dividends, or passive income streams. The earlier you start, the better, as you have more time for compounding to grow your returns. To illustrate, a $200 monthly investment that you make from age 25 to 65 will earn approximately $495,000 at 7% interest compounded. If you delay investing and start at age 40, you will need to invest around $690 a month to reach $495,000 at age 65 (assuming same interest rates). That's more than $110,000 more in total investments for the same returns. Remember, time, not timing, is your greatest financial tool when investing. Consider your time horizon and risk tolerance when selecting investments. You should also diversify your portfolio to manage risk. Have a mix of asset classes, such as stocks, bonds, or real estate, and spread them across different geographies and sectors so that your portfolio is protected against market volatility. People assume that you need a restrictive budget to manage your money effectively, but often, just a clear understanding of where your money goes is enough. When you track your spending, you are able to see patterns and discover areas where you can cut back, such as a daily coffee run or forgotten subscriptions. Such seemingly minor expenses can then be used to boost your savings, invest, or pay off debts. The key here is consistency. You may use a spreadsheet, an app, or a simple notebook to jot down all your expenses. You can do it at the end of each day or even during the actual instance of spending itself. Expense tracking may seem inconvenient at first, but the rewards are worth it, especially if you develop the habit to become second nature. Doing so not only protects you from late fess, penalty interest rates, and service disruptions, but it is crucial for building and maintaining your credit score. Payment history is an influential factor in credit scoring models, and even one missed payment can negatively impact your creditworthiness, making it harder to secure favorable terms on loans, credit cards, or rental applications. Pay every bill on or before the due date to demonstrate to lenders that you are reliable. You can set up reminders on your phone, email alerts from service providers, or automatic payments through your bank or creditor's platform. Just remember to regularly review your automated payments to ensure you have sufficient funds in your account and that no billing errors have occurred. While much of personal finance can be managed independently with the right knowledge and discipline, you need not do things alone. Especially as your finances become more complex, professional guidance can save you from costly mistakes and uncover strategies you might otherwise overlook. Depending on your situation and goals, you may benefit from a range of experts. For example, a certified financial planner can help you build a comprehensive plan that includes budgeting, retirement savings, insurance, and other considerations. An investment advisor can assist in selecting and balancing your portfolio, while enrolled agents or CPAs can help you reduce your tax liability through legal means. For estate planning concerns, an attorney can help you prepare a will, set up a trust, or manage your assets so they are distributed according to your wishes. Whatever your need, financial advisors can provide valuable expertise and experience. Do your due diligence when selecting an advisor. Ensure they are fiduciaries acting on your best interests. Ask about their fees and how often you will meet. You may also verify their credentials and check their history using tools like FINRA's BrokerCheck or the SEC's Investment Adviser Public Disclosure website. Personal referrals and client interviews can also help you gauge whether a professional is trustworthy and aligns with your values and goals. Financial success is a product of consistent, discipline habits. Follow these personal finance best practices to achieve greater stability, financial freedom, and peace of mind. Continuously improve your financial knowledge by reading books and articles or attending webinars so that you can adapt to changing circumstances in the market, government policies, and your own life.
