Latest news with #interestrate
Forbes
an hour ago
- Business
- Forbes
Discover To Increase CD Rates For A Limited Time: How You Can Take Advantage
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. If you have a purchase looming on the horizon, it's time to take advantage of a hot new offer from Discover. The bank has announced a limited-time interest rate increase on its six-month certificate of deposit (CD) accounts, allowing customers to earn 4.20% annual percentage yield (APY). Discover has announced an increase in interest rate on its six-month CD account, raising it from 3.70% to 4.20% for a limited time. While the exact end date of the offer is unknown, consumers would be smart to take advantage of the offer before it ends. Discover CDs are more flexible than most, requiring no minimum deposit to open an account. Interest also compounds daily and gets added to the account monthly. In comparison, some of the best CDs on the market require minimums of hundreds to thousands of dollars to lock in a favorable rate. That said, the more money you put in, the more interest you'll earn. Six months is a short-term commitment, so to get the most bang for your buck, we'd frontload the account with as much as your budget allows. Remember that there are penalties for touching the funds before your CD matures; Discover charges three months' simple interest for early CD withdrawals with terms of less than a year. A CD is a savings account that allows consumers to earn interest at a fixed rate over a predetermined period. The tradeoff is that users have limited access to their funds, unlike most savings accounts where withdrawals are easy and do not incur a penalty. CDs are lucrative for those saving for a big-ticket purchase, like a home or a car, or those with disposable funds they'd like to grow. When choosing a CD , note its compounding schedule, which is the key to your profit. Some CDs compound interest daily, while others compound monthly. The more frequent the interest compounds, the more you stand to earn. Consumers may opt for a CD over a high-yield savings account if they do not require access to their funds for a foreseeable period. While both accounts typically offer higher interest rates than traditional savings accounts, high-yield accounts come with interest rates that fluctuate based on market conditions and the Federal Reserve's benchmark rate. CDs, however, lock in an interest rate over a fixed term, which can guarantee a higher return when saving for a goal with a specific timeline. High-yield savings accounts are better used for building an emergency fund or saving toward goals without a fixed deadline. Some banks may offer more lenient or stringent terms if you anticipate emergency withdrawals, but we'd advise opening a CD only if you're sure the funds can stay put and grow. When picking a CD, make sure it is federally insured. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, bank and ownership category, while the National Credit Union Administration (NCUA) insures individual accounts at credit unions for up to $250,000. When you invest in a CD, how much you earn depends on how much you deposit upfront, since you typically can't add more money during the term. If you have a long-term savings goal and want to earn a specific amount of interest from a CD, use Forbes Advisor's CD calculator to run the numbers in advance. It will help you estimate how much you'll receive when the CD matures. For example, if you deposit $10,000 into a six-month CD with a 4.00% APY compounded monthly, you'll earn $198.04 in interest by the end of the term. Now say you deposit $20,000 into a CD with the same terms. You'd earn $396.08, or double the interest thanks to double the deposit. No matter how much you choose to invest, make sure it's an amount you can afford to set aside for the entire term. Many banks charge penalties for early withdrawals, and the goal is to earn interest, not lose money from your deposit. Read more: 10 Best CD Rates Of July 2025: Up To 4.50% APY
Bloomberg
6 hours ago
- Business
- Bloomberg
Hungary Holds Key Rate Steady for 10th Month to Anchor Inflation
Hungary's central bank kept borrowing costs unchanged as expected for a 10th month after a rebound in inflation. The National Bank of Hungary held its benchmark interest rate at 6.5% on Tuesday, matching the estimate of all 19 economists in a Bloomberg survey. The key rate is tied with neighboring Romania for the highest level in the European Union.
Bloomberg
14 hours ago
- Business
- Bloomberg
Hungary to Hold Key Rate Steady for 10th Month: Decision Guide
Hungary's central bank is poised to keep borrowing costs unchanged for a 10th month after a rebound in inflation. The National Bank of Hungary will hold its benchmark interest rate at 6.5% on Tuesday, according to all 19 economists in a Bloomberg survey. That's tied with neighboring Romania for the highest key rate level in the European Union.
Free Malaysia Today
15 hours ago
- Business
- Free Malaysia Today
Trump officials to visit Fed amid renovation probe
US President Donald Trump has launched a barrage of nearly daily criticism of Federal Reserve chair Jerome Powell. (Reuters pic) WASHINGTON : US President Donald Trump's administration wants to visit the Federal Reserve's Washington headquarters this week to review its US$2.5 billion renovation, Semafor reported today, citing White House deputy chief of staff James Blair. Senate banking chair Tim Scott is in talks to attend the visit as well, the report added, citing a person familiar with the plans. Trump has raised the renovation project as a possible reason for ousting Federal Reserve chair Jerome Powell, suggesting there could be fraud, without providing evidence. The president has launched a barrage of nearly daily criticism of Powell, whose departure he is seeking because of the central bank's reluctance to deliver interest-rate cuts. Powell had told the administration that 'design plans have changed' from earlier proposals, Semafor reported Blair as saying. 'We just want to know whether or not that's true' he said. The White House did not immediately respond to a Reuters' request for comment outside of regular business hours. The Federal Reserve declined to comment on the report and directed Reuters to the officials quoted by Semafor for a comment. Powell last week responded to a Trump administration official's demands for information about cost overruns on the project, saying it was large in scope and involved a number of safety upgrades and hazardous materials removals.
Reuters
a day ago
- Business
- Reuters
Mexico's headline inflation seen returning to target in early July
MEXICO CITY, July 21 (Reuters) - Mexico's annual headline inflation likely slowed in the first half of July, though the core index remained under pressure, fueling expectations the central bank will moderate the pace of its interest rate cuts, a Reuters poll showed on Monday. The median forecast from 11 analysts was for a 3.64% annual headline inflation rate, down from 4.13% in the second half of June. The rate would place it within the central bank's target range of 3%, plus or minus one percentage point. (MXCPHI=ECI), opens new tab In contrast, forecasts for core inflation, considered a better measure of price trends because it strips out highly volatile items, indicated an acceleration to 4.30%, its highest level since the middle of last year. (MXCPIC=ECI), opens new tab Compared with the previous two-week period, consumer prices were seen rising 0.27%, while the core index is forecast to have increased 0.20%, according to the poll. (MXCPIF=ECI), opens new tab (MXCPIH=ECI), opens new tab Official data is scheduled for release on Thursday. Last month, Mexico's central bank cut its key interest rate by 50 basis points to 8.0%, although the five-member board's decision was not unanimous, as Deputy Governor Jonathan Heath voted to leave it unchanged. According to the meeting minutes, the four officials who supported the cut, the fourth consecutive cut of that size, said the bank could adopt a more gradual approach in future decisions. The central bank has lowered its benchmark rate by 325 basis points since the start of 2024 as part of an easing cycle after the rate reached a historic high of 11.25%. The next monetary policy decision is scheduled for August 7.
