Latest news with #APY
Wall Street Journal
13 hours ago
- Business
- Wall Street Journal
Today's CD Rates for July 23, 2025: Highest APYs Range From 4.25% 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 4.62%, 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 4.45% APY on a nine-month CD with a $500 minimum deposit requirement. The best local bank CD rate is T Bank with a 4.55% APY on a 12-month CD with a $1,000 minimum to earn the APY. If you're looking for the highest yield, no matter where you live, review the top CD rates today.
CBS News
2 days ago
- Business
- CBS News
Here's what not to do if your CD matures this July, according to experts
Recent years have been a boon for many savers who've enjoyed high rates in certificate of deposit (CD) accounts. In particular, those who opened a CD during the 2023–2024 rate surge likely earned a fixed rate above 5%. Now, however, these CDs are reaching maturity at a time when rates are slightly lower. Those who let their CDs automatically renew could end up earning a lower annual percentage yield (APY). The average one-year CD now earns 2.03% APY, though top offers from online banks and credit unions reach up to 4.40% APY. Fortunately, you have options, and knowing what not to do can help you choose the best one. After all, even the most seasoned CD investors can make mistakes that impact their future earnings and flexibility. Below, we'll explore expert-backed insights into the most costly missteps to avoid if your CD is set to mature this July so you can make informed decisions about what to do next. Start by seeing how much you could be earning with a new, high-rate CD here. If you're wondering about your next steps, post-CD account maturity, it helps to know which mistakes to avoid making. According to the experts we spoke to, it's important to avoid taking the following steps this July: It's tempting to grab the highest rate you can find, especially after a long run of competitive CD yields. But longer terms can be a trap if you're not sure when you'll need the money again. "The most common mistake I see is prioritizing the interest rate without considering the time commitment," says Melissa Estrada, founder of Fidela Wealth in Calabasas, California. "A rate that's a half percent higher may seem attractive, but if it locks up your funds for an extra year and you need that liquidity, it's not a smart move." Ideally, you can time your CDs to mature in line with a savings goal, even if it pays less. For example, if you plan to put a down payment on a home in two years, a 2-year CD with the best available rate could be a smart choice. What you don't want to do is lock your money in a CD term that matures after you need it. Compare current CD rates and terms here to learn more. Letting your CD roll over without reviewing the new terms isn't always in your best financial interest. "One of the biggest mistakes I see savers make with CDs is letting them renew automatically into whatever the bank's newest rate is," says Kyle Newell, a financial planner and owner of Newell Wealth Management in Orlando, Florida. "Oftentimes, banks or credit unions will offer attractive rates to bring money in, then set renewal rates much lower than they originally offered." Newell says savers should always shop around for rates as they change often. Estrada agrees: "I don't usually recommend auto-renew. I'm a believer in reevaluating every financial decision based on the current life circumstances. A lot can change in a year." If you're not paying attention, your CD could renew before you even realize it. Make sure to note the maturity date and check for notices from your bank so you can explore your options beforehand. "Typically, banks will send notice of the CD maturing, but I have seen as short as a 7-day turnaround time," Newell adds. "A mistake too many make as their CDs reach maturity is not using this moment to reassess their financial goals and the best use of those funds," says Alex Beene, a financial literacy instructor at the University of Tennessee at Martin. "This maturity date offers the opportunity to look at other CD rates both within and outside of that institution to see which one is best, as well as considering other options like high-yield savings accounts that could offer similar rates with more lenient withdrawal requirements." Before your CD's maturity date, ask yourself some hard questions about what your next large purchases are and how soon you'll need the funds. These are timely considerations you must make, especially as you decide whether to roll over your funds and lock up your money for another term. Another common mistake to avoid when your CD matures is taking your funds and parking them in a regular savings account. By doing so, you could potentially miss out on better returns. Consider this: As of June 2025, the national average savings account rate is just 0.38%, according to FDIC data. By contrast, the average 12-month CD rate is more than four times that amount, but top-earning CDs and high-yield savings accounts offer APYs in the mid-4% range, more than 11 times higher. "The main drawback is that your money stops working for you," says Estrada. "I'm a strong advocate for high-yield savings accounts. They provide liquidity, typically a two-day transfer time, with no lock-up period, and currently offer around 4% annually, paid monthly. It's a smart way to keep your cash both flexible and productive." CD rates are still substantially higher than those offered by standard savings accounts, but they have ticked down in recent months. So if your account is set to mature this July, take the opportunity to reevaluate your financial goals and strategize your next move. Don't let your CD auto-renew without confirming what the new rate will be as it could be much lower. And while shopping for the best CD rate is ideal, make sure the CD's term ends before you'll need access to your money.
Yahoo
3 days ago
- Business
- Yahoo
Best savings interest rates today, July 20, 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 20, 2025, the highest savings account rate available from our partners is 4.3% APY. This rate is offered by Openbank 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
3 days ago
- Business
- Yahoo
Best money market account rates today, July 20, 2025 (best account provides 4.41% APY)
Find out how much you could earn with today's money market account rates. The Federal Reserve cut its target rate three times in 2024. So deposit rates — including money market account (MMA) rates — have started falling. It's more important than ever to compare MMA rates and ensure you earn as much as possible on your balance. Overview of money market account rates today The national average money market account rate stands at 0.62%, according to the FDIC. Even so, some of the top accounts are currently offering rates of 4% APY and up. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today's high rates. 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. How much interest can I earn with a money market account? The amount of interest you can earn from a money market 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 (money market account interest typically compounds daily). Say you put $1,000 in an MMA at the average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $1,006.42 — your initial $1,000 deposit, plus just $6.42 in interest. Now let's say you choose a high-yield money market 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 money market account, the more you stand to earn. If we took our same example of a money market 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. This embedded content is not available in your region.
Yahoo
3 days ago
- Business
- Yahoo
Best CD rates today, July 20, 2025 (lock in up to 5.5% APY)
Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Overview of CD rates today Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today's economic climate, the opposite is true. As of July 20, 2025, the highest CD rate is 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $1000 minimum opening deposit required. This embedded content is not available in your region. How much interest can I earn with a CD? The amount of interest you can earn from a CD 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 (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? Types of CDs When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. This embedded content is not available in your region.
