Latest news with #neobanks
Yahoo
4 days ago
- Business
- Yahoo
Best CD rates today, July 25, 2025 (up to 5.5% APY return)
See which banks are currently paying the highest CD rates. If you're looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available. Banks with the best CD rates right now Today's CD rates vary quite a bit. In general, however, CD rates are beginning to decline due to the Fed's decision to cut its benchmark rate three times in the later part of 2024. Even so, some banks are still offering competitive CD rates. For those that are, top rates reach about 4% APY. This is especially true for shorter terms of one year or less. As of July 25, 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. Here is a look at some of the best CD rates available today from our verified partners: Compare these rates to the national average as of July 2025 (the most recent data available from the FDIC): Compared with today's top CD rates, national averages are much lower. This highlights the importance of shopping around for the best CD rates before opening an account. Why do online banks have the best CD rates? Online banks and neobanks are financial institutions that operate solely via the web. That means they have lower overhead costs than traditional brick and mortar banks. As a result, they're able to pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you're looking for the best CD rates available today, an online bank is a great place to start. However, online banks aren't the only financial institutions offering competitive CD rates. It's also worth checking with credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that just about anyone can join. Should you open a CD? Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle — they don't lose money (in most cases), are backed by federal insurance, and allow you to lock in today's best rates. However, there are some drawbacks to consider. First, you must keep your money on deposit for the full term, otherwise you'll be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, although today's CD rates are high by historical standards, they don't match the returns you could achieve by investing your money in the market. If you're saving for a long-term goal such as retirement, a CD won't provide the growth you need to reach your savings goal within a reasonable time frame. Read more: Short- or long-term CD: Which is best for you?
Yahoo
19-07-2025
- Business
- Yahoo
Best CD rates today, July 18, 2025 (up to 5.5% APY return)
See which banks are currently paying the highest CD rates. If you're looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available. Banks with the best CD rates right now Today's CD rates vary quite a bit. In general, however, CD rates are beginning to decline due to the Fed's decision to cut its benchmark rate three times in the later part of 2024. Even so, some banks are still offering competitive CD rates. For those that are, top rates reach about 4% APY. This is especially true for shorter terms of one year or less. As of July 18, 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. Here is a look at some of the best CD rates available today from our verified partners: Compare these rates to the national average as of June 2025 (the most recent data available from the FDIC): Compared with today's top CD rates, national averages are much lower. This highlights the importance of shopping around for the best CD rates before opening an account. Why do online banks have the best CD rates? Online banks and neobanks are financial institutions that operate solely via the web. That means they have lower overhead costs than traditional brick and mortar banks. As a result, they're able to pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you're looking for the best CD rates available today, an online bank is a great place to start. However, online banks aren't the only financial institutions offering competitive CD rates. It's also worth checking with credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that just about anyone can join. Should you open a CD? Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle — they don't lose money (in most cases), are backed by federal insurance, and allow you to lock in today's best rates. However, there are some drawbacks to consider. First, you must keep your money on deposit for the full term, otherwise you'll be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, although today's CD rates are high by historical standards, they don't match the returns you could achieve by investing your money in the market. If you're saving for a long-term goal such as retirement, a CD won't provide the growth you need to reach your savings goal within a reasonable time frame. Read more: Short- or long-term CD: Which is best for you?
Yahoo
12-07-2025
- Business
- Yahoo
I'm a Bank Expert: 7 Reasons You Should Ditch Your Traditional Bank for an Online Bank or Neobank in 2025
According to a MarketWatch Guides survey, 56% of Americans access their banking accounts primarily through mobile apps, and only 16% regularly visit physical bank branches. The survey also revealed that 13% of Americans never visit a bank. During the Capital One outage earlier in the year, many banking customers were unable to access their accounts and funds. While online banks and neobanks are gaining popularity, not everyone has an account yet. Read Next: Explore More: Why should people consider a switch to an online bank or neobank this year? Here are seven reasons you could consider making the switch and how they could benefit your finances. 'If you're like the majority of Americans who rarely visit their physical bank, you're essentially paying higher fees and accepting lower interest rates to make up for the costs of maintaining physical locations,' said Laurie Sepulveda, a CEPF and MarketWatch Guides banking expert. If you're already banking digitally, you may not require access to a physical branch. You'll want to think about the last time you went in person. The reality is that you could be paying banking fees for a physical location that you may never visit. Be Aware: 'Most neobanks operate without the need to maintain physical branches, which often means lower fees for their services, better interest rates and more savings for end users,' said Roman Eloshvili, a banking expert and founder of XData Group. Digital banks and neobanks generally offer lower fees and better rates, as they don't incur the expenses associated with maintaining physical locations to provide in-person banking services. The savings can be passed down to customers, and you could keep more of your money in your account. Sepulveda pointed out that online banks lead in digital security because it's part of their core business model, not an add-on service. 'Traditional banks have legacy systems that present more challenges for securing both digital and physical access points,' she said. Online banks can also offer more advanced features, such as fraud monitoring, biometric authentication and instant account alerts. This additional security and innovation can help you save money by avoiding potential issues with fraud. Traditional banks may not always have the best user experience when it comes to apps and online financial transactions. Eloshvili noted that the user experience as a whole is generally better with digital banks, as users can receive instant notifications, full access to a suite of tools and 24/7 support. Many younger banking customers are accustomed to living on their smartphones and expect to be able to conduct their banking and financial transactions through apps. You can start by going over the reviews of online banks or neobanks to see what others are saying to ensure that you have your money stored somewhere where you can easily access it and handle your transactions smoothly. Sepulveda said that, according to a MarketWatch Guides survey, the most popular banking activities are paying bills, transferring funds between accounts and tracking spending. Since online banks make these tasks easier and more efficient, it may make sense to make the switch to match your banking habits. Online banks can also offer higher-quality budgeting tools, from spending categorization to financial insights. If you're looking to gain a better understanding of your finances or get better with your spending habits, you can use these tools to assist you. Since online banks and neobanks are built for the digital world, they also do a great job accommodating that demand. The experts pointed out that you can get faster service and greater control over your finances. You won't have to make an appointment with a consultant or wait in long lines when you have any questions. Most of the time, all of the financial help you could ask for is available at your fingertips. This means if you're looking for advice on paying down debt, saving up for a home or figuring out your retirement accounts, you could likely find it easier with a bank that's set up for the digital experience. Eloshvili emphasized that many neobanks facilitate the management of multiple currencies, including access to crypto assets. Since these accounts are constantly evolving to meet modern financial habits, you'll likely have greater flexibility over how you manage your finances and investing habits. Since traditional banks can struggle to keep up, you'll want to think about making the switch to an account that matches what you're looking for. More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on I'm a Bank Expert: 7 Reasons You Should Ditch Your Traditional Bank for an Online Bank or Neobank in 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Best CD rates today, July 11, 2025 (up to 5.5% APY return)
See which banks are currently paying the highest CD rates. If you're looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely. Learn more about CD rates today and where to find high-yield CDs with the best rates available. Today's CD rates vary quite a bit. In general, however, CD rates are beginning to decline due to the Fed's decision to cut its benchmark rate three times in the later part of 2024. Even so, some banks are still offering competitive CD rates. For those that are, top rates reach about 4% APY. This is especially true for shorter terms of one year or less. As of July 11, 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. Here is a look at some of the best CD rates available today from our verified partners: This embedded content is not available in your region. Compare these rates to the national average as of June 2025 (the most recent data available from the FDIC): Compared with today's top CD rates, national averages are much lower. This highlights the importance of shopping around for the best CD rates before opening an account. Online banks and neobanks are financial institutions that operate solely via the web. That means they have lower overhead costs than traditional brick and mortar banks. As a result, they're able to pass those savings on to their customers in the form of higher interest rates on deposit accounts (including CDs) and lower fees. If you're looking for the best CD rates available today, an online bank is a great place to start. However, online banks aren't the only financial institutions offering competitive CD rates. It's also worth checking with credit unions. As not-for-profit financial cooperatives, credit unions return their profits to customers, who are also member-owners. Although many credit unions have strict membership requirements that are limited to those who belong to certain associations or work or live in certain areas, there are also several credit unions that just about anyone can join. Whether or not you should put your money in a CD depends on your savings goals. CDs are considered a safe and stable savings vehicle — they don't lose money (in most cases), are backed by federal insurance, and allow you to lock in today's best rates. However, there are some drawbacks to consider. First, you must keep your money on deposit for the full term, otherwise you'll be subject to an early withdrawal penalty. If you want flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, although today's CD rates are high by historical standards, they don't match the returns you could achieve by investing your money in the market. If you're saving for a long-term goal such as retirement, a CD won't provide the growth you need to reach your savings goal within a reasonable time frame. Read more: Short- or long-term CD: Which is best for you? This embedded content is not available in your region.
Forbes
07-07-2025
- Business
- Forbes
The Neobank Boom In Latin America: How To Stand Out In A Fragmented Market
Juan Arroyo is Cofounder and COO of SG Consulting Group. Over the past few years, Latin America has witnessed a true explosion of neobanks: New fintech initiatives have emerged from Mexico to Argentina, even reaching emerging markets like Ecuador. Yet this wave of innovation hits a critical obstacle: the regulatory, cultural and banking fragmentation that defines the region. In an environment where each country—and even each customer segment—demands distinct solutions, the question is no longer 'Why launch a neobank?' but rather, 'How can you differentiate yourself and conquer a profitable niche?' I'm the cofounder and COO of a financial advisory and technology firm in Ecuador, and I've identified five strategic levers—from targeting specific verticals to forging local partnerships and leveraging cutting-edge technology—to help your fintech proposition cut through the noise and thrive in Latin America. 1. Understand market fragmentation. Latin America is not a homogeneous block but a mosaic of regulatory and socioeconomic realities. Brazil has been issuing fintech licenses for years, while Ecuador established its comprehensive fintech regulatory framework with the Fintech Law enacted in December 2022; Mexico applies entity-based regulation to fintech, and Colombia prioritizes interoperability among banks. Layered onto this are stark differences in financial inclusion—urban users are more comfortable with apps versus rural communities that are reliant on correspondents—and cultural variations in digital adoption. Assuming one product fits all is a recipe for failure. To navigate fragmentation, map local regulations, identify financial penetration rates and study consumption habits by country and segment. Then you can design value propositions that resonate with specific needs, avoid scatter-shot efforts and maximize ROI. 2. Target high-potential verticals. I've found the first step to standing out is abandoning the 'one-size-fits-all' mindset and defining niches where your value proposition fits like a glove. I think three verticals stand out for their urgency and profitability: • Digital SMEs: These businesses demand agile payment and financing solutions. A neobank that offers automated credit lines and real-time invoice reconciliation could earn loyalty and grow alongside its clients. • Remittances And Migrants: With a significant number of Latin Americans involved in cross-border money flows, minimizing fees and guaranteeing near-instant transfers—with multilingual interfaces—could translate into mass adoption and organic word-of-mouth growth. • Unbanked Users: True inclusion requires lightweight apps that bypass documentary bureaucracy, secured by mobile biometrics for identity verification. For this segment, simplicity and trust are paramount. By focusing on one or two verticals, neobanks can better escape the 'generalist noise' and build a dedicated community ready to evangelize the brand. 3. Forge strategic local partnerships. In a fragmented market, trust and speed depend on allies with regional influence. I've found that three types of partnerships are critical. The first is regulatory sandboxes and supervisory bodies. Active collaboration in sandbox environments can accelerate licensing and position neobanks as a proactive leader before regulators. Another important partnership involves cooperatives and traditional banks. Through a white-label model, you can embed digital solutions into existing networks, leveraging the infrastructure and reputation of established institutions. Finally, don't forget about physical correspondent networks. For rural segments, adding kiosks or service points in partner retail locations can bridge the digital-physical gap, boosting accessibility and perceived security. These alliances can function as brand extensions that validate your offering and shorten adoption curves. 4. Implement cost-efficient acquisition and retention strategies. With high customer acquisition costs and saturated markets, I've learned the trick is to blend digital tactics with irresistible value: • Hyper-Targeted Marketing: Use demographic and behavioral data to run highly specific social campaigns, such as LinkedIn ads for SMEs and TikTok ads with succinct visuals for younger migrants. • Referral And Rewards Programs: Consider offering cashback or bonuses for new user referrals. The viral effect can drive organic growth and turn customers into brand ambassadors. • High-Quality Educational Content: Host webinars, create downloadable guides and publish micro-content that answers practical questions ('How to issue your first digital invoice in five steps'), positioning your neobank as a strategic partner. • Personalized Experiences: Segment communication by user lifecycle: tutorials for newcomers, financing offers after a transaction threshold and product alerts based on usage patterns. In my experience, synchronizing these tactics not only lowers acquisition costs but also builds long-term loyalty and engagement. 5. Consider technological and product differentiators. Beyond branding, technology can create true competitive distance: • Open APIs And A Collaborative Ecosystem: Break down data silos and enable integrations with ERPs, CRMs and e-commerce platforms. The easier it is to plug into your neobank, the greater the stickiness may be. • Alternative Credit Scoring: Deploy machine-learning risk models using digital behavior variables (login frequency, transaction volumes) to complement or replace traditional credit bureau reports. • Intelligent Omnichannel: Seamlessly integrate app, web and chat support with bots and scalable human assistance. Frictionless channel transitions often elevate satisfaction. These technological differentiators could enhance your value proposition and erect formidable barriers to entry in an increasingly competitive sector. Conclusion In a fragmented landscape like Latin America, launching a neobank without a clear differentiator can be akin to getting lost in the noise. By focusing on verticals with defined pain points, forging local partnerships, deploying cost-efficient acquisition tactics and harnessing cutting-edge technology, neobanks can better stand out and build a loyal, evangelistic user base. I think it's time for fintech leaders to embrace complexity as a competitive edge—because in Latin America, those who personalize, innovate and collaborate, win. The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
