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Forbes
3 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: May 30, 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 rate in that ballpark, 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, reflects the actual return your account will earn during one year. It accounts for compound interest, which is the interest that accrues on the interest in your account. High-yield savings accounts generally pay substantially more interest than conventional savings accounts. But the catch 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 0.22% 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 4.21%. You'll be in good shape if you can get 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. Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve's rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to its 2% goal. Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC). There really is no way to know for sure—it depends on the health of the economy and the state of inflation. The highest interest rates in recent memory were seen in 1980 and 1981 when the Fed sent the federal funds rate soaring above 19%. That was in the face of runaway inflation that had prices rising at an annual rate of more than 14%. In the early 1980s, a three-month CD went as high as 18% compared to around 5% today, according to the Federal Reserve. Savings rates would eventually fall as inflation cooled off and the federal funds rate was brought back down. 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.
Forbes
3 days ago
- Business
- Forbes
Today's Top Money Market Account Rates For May 30, 2025 - Rates Hit 4.89%
The current average money market rate is 0.53%, while the highest rate is up to 4.89%, according to Curinos. Here are today's money market account rates: A money market account, or MMA, is an interest-bearing deposit account you can open at a bank or credit union. These are insured up to $250,000 per depositor by the Federal Deposit Insurance Corp. (FDIC) at banks, or the National Credit Union Administration (NCUA) at credit unions. The insurance protects your balance if your bank fails. As with other savings accounts, your money in an MMA will grow as it earns interest, and you can add or withdraw funds at any time. You may also be able to write checks or use a debit card. However, depending on the bank, you could be limited to six transactions per statement period. Money market accounts may offer higher interest rates than typical savings accounts. In exchange, they often require higher minimum deposits and balances. Before opening a money market account, look into at least a few options with different banks or credit unions. Compare minimum balance requirements, monthly fees, withdrawal limits and annual percentage yields (APYs) to choose the best fit. Also, check out the conditions to earn the highest interest rates. You can typically apply for a money market account online or in person. You will need to provide personal information such as your name, employment status and income, address and Social Security number, and show a government-issued ID. Once you're approved, you can make your initial deposit. Money market accounts act like a hybrid between savings accounts and a checking account. Both MMAs and savings accounts: Similar to checking accounts and unlike most savings, money market accounts: Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution. Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank's economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors. You can use a money market account calculator to see how much interest you'll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.
CBS News
4 days ago
- Business
- CBS News
Is a short- or long-term CD better this June? Here's what experts think.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. The decision between short- and long-term CDs this June will be based on a variety of timely factors. Getty Images While the Federal Reserve continues to uphold the current federal funds rate, savers can maximize their returns in this high-rate environment. A certificate of deposit account (CD) comes with a fixed interest rate so you can lock in returns for a set term. In normal circumstances, long CD terms would provide the most competitive Annual Percentage Yield (APY). However, in these uncertain times, there's a notable switch, and short-term CD accounts are providing the highest interest rates. Though CD interest rates remain elevated, they may start to drop in anticipation of future rate cuts from the Federal Reserve. Based on that, now could be a good time to secure a high CD account interest rate. But unlike a savings account, CD funds aren't liquid and come with early withdrawal penalties if you access them before the CD term ends. So timing is of utmost importance when deciding between a short-term and long-term CD now. We spoke to banking and credit union professionals about which could be better to open this June. Start by seeing how much interest you could be earning with a high-rate CD here. Is a short- or long-term CD better this June? If you want to put your money in something that is more stable than the stock market and offers a high return, a certificate of deposit fits the bill. CD rates may also provide higher yields than a traditional savings account. But you want to have a strategy, especially if you're weighing short vs. long-term CD accounts. "I think anytime someone's making a CD decision, it really should be, am I just trying to maximize the amount of cash that I'm earning or is it a per purchase choice?" says Derik Farrar, head of everyday banking and borrowing at U.S. Bank. Answering this question can help guide you on whether a short-term CD or a long-term CD would be a better option for your particular situation. Why short-term CDs could be a better option this June If you're looking for the highest CD interest rates, there is no doubt that short-term CDs are the better option right now. CD terms of six to nine months are coming in higher than what you might find at 12 months or more. "I think right now in the market, the attractive rates are still really under 6 months," says Farrar. All of the experts we spoke to agree that short-term CDs are optimal for the high rates and earlier CD maturity dates. "I think a short-term CD is a better option than a long-term CD, just because of the current rate environment and the uncertainty that exists in the marketplace right now," says Karin Cook, vice president of client deposit services with Merchants Bank. "I think banks are more aggressive on their short-term rates right now." See what short-term CD rate you could lock in here now. Why long-term CDs could be a better option this June Long-term CDs aren't providing the highest yields in the current environment. However, they could still be a useful tool if you want your money to grow at a fixed rate and park it somewhere. Looking at the CD term maturity and early withdrawal penalties are paramount. Additionally, review your personal financial situation to see if a long-term CD makes sense right now. "A good candidate would be someone who maybe has a high-yield savings account that is earning a lot. So in effect, they've created the short-term CD with a high-yield savings account, and they really want certainty for a longer period of time," says Farrar. Otherwise, the general consensus among the experts we spoke to is that long-term CDs are more risky in the current environment and not as advantageous as in years past. "We recognize that members are nervous. They're worried about the economy. The rates long term really aren't great. We don't want to have our CD portfolio from our members tied up long term because we don't know what the Fed is going to do and where those rates are going to end up," says Carma Peters, president and CEO at Michigan Legacy Credit Union. "Now we do have longer-term certificates that we do offer members. They're not taking them," adds Peters. Why you should use a CD ladder strategy now The current CD rate prediction is that interest rates are likely to fall gradually. As CD account rates are fixed, you can lock in above-average yields right now across various CD terms by using a CD ladder. Through a CD ladder, you can put your money in several certificates of deposit accounts with varying maturity dates. Traditionally, the idea is that you have short-term CDs that can give you access to cash earlier, while getting high rates in long-term CDs. But we're not in a normal environment and there's an inverted yield curve where the better rates are with shorter terms. Because of this, whether it's a good idea to do a traditional CD ladder spread out over years or modify it with several short CD terms depends on your goals and liquid savings. The bottom line The CD interest rate forecast is still somewhat murky, as it seems more and more likely that the Federal Reserve will hold rates steady after its June meeting. In the current environment, it's not just about whether a short-term or a long-term CD is a good idea. Farrar says it's more about, "Do I want to be in a CD or do I want to be in a liquid product?" Given these various factors and the fact that you could get hit with a penalty before your CD matures, there are some questions to ask yourself before deciding between a short-term or long-term CD. What are your goals? Do you have an emergency fund? Do you need those funds before the CD term ends? Your answers can help guide you. But in general, short-term certificate of deposit rates will provide you the better yield right now and won't lock up your funds for too long, which could be a win-win.
Forbes
4 days ago
- Business
- Forbes
High-Yield Savings Account Rates Today: May 29, 2025
Rates on savings accounts are the same compared to one week ago. You can now earn up to 5.84% on your savings. Searching for an account where you can save for a rainy day or retirement? 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 rate in that ballpark, 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 substantially more interest than conventional savings accounts. But the catch 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 0.22% 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 4.21%. You'll be in good shape if you can get 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. Whether you're looking for a traditional savings account, high-yield savings account or MMA, you'll want to keep a few things in mind. A high interest rate is important, but it's not the only factor when picking an account to hold your savings. Another major consideration is whether the account has a minimum deposit - and whether you can meet that requirement. You'll also want to watch out for fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you make too many withdrawals) and other pesky charges that can eat into your interest earnings. And before you apply for an account, be sure you explore the reputation and safety of the bank or credit union. Check the reviews, see what people have to say about customer service and find out how the financial institution responds to consumer questions. Only consider accounts insured by the FDIC or, in the case of credit unions, the NCUA. Those federal agencies provide up to $250,000 in insurance per depositor and per bank for each account ownership category. Interest rates on savings accounts typically fluctuate in response to other rate changes throughout the economy. Savings rates are primarily influenced by the Federal Reserve's rate moves, and the central bank has finally begun reducing its benchmark federal funds rate as inflation has fallen closer to its 2% goal. Financial institutions usually adjust borrowing and savings rates soon after the Fed changes rates. The Fed votes to adjust rates eight times per year during meetings of the Federal Open Market Committee (FOMC). 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.
Forbes
23-05-2025
- Business
- Forbes
Money Market Interest Rates Today: May 23, 2025 - Earn Up To 4.89%
Right now, the average money market rate sits at 0.53%, but the best rate today is 4.89%, according to Curinos. Here are today's money market account rates: A money market account, or MMA, is an interest-bearing deposit account you can open at a bank or credit union. These are insured up to $250,000 per depositor by the Federal Deposit Insurance Corp. (FDIC) at banks, or the National Credit Union Administration (NCUA) at credit unions. The insurance protects your balance if your bank fails. As with other savings accounts, your money in an MMA will grow as it earns interest, and you can add or withdraw funds at any time. You may also be able to write checks or use a debit card. However, depending on the bank, you could be limited to six transactions per statement period. Money market accounts may offer higher interest rates than typical savings accounts. In exchange, they often require higher minimum deposits and balances. To open a money market account, start by comparing the best yields on the market, but only include those accounts with minimum requirements you can meet. In addition to rates and minimums, consider account fees, withdrawal limits and other features to find the best fit. When you're ready to open an account, submit an application online or at a bank branch. The application will ask for personal information, including your name, address, Social Security number, employment status and income. You'll also need to provide a government-issued ID. Once your application is approved, you can make your first deposit. Be sure to transfer at least the minimum opening deposit required. Money market accounts act like a hybrid between savings accounts and a checking account. Both MMAs and savings accounts: Similar to checking accounts and unlike most savings, money market accounts: Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution. Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank's economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors. You can use a money market account calculator to see how much interest you'll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.
