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☆ Here's why it could be better to buy Series I bonds before May, experts say
▼ + stars: | 2024-04-19 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

While the annual rate for newly purchased Series I bonds could fall below 5% in May, the assets may still appeal to long-term investors, experts say. Some experts predict the new rate could drop to around 4.27% based on inflation and other factors. Based on the last six months of inflation data, the variable portion will fall from 3.94% to 2.96% in May. The fixed-rate portion is harder to predict, but experts say it could stay close to 1.3%. By contrast, the variable rate stays the same for six months after purchase, regardless of when the Treasury announces new rates.

Persons: there's, Ken Tumin Organizations: Investors, Finance, U.S . Department of, Treasury

☆ It's not just Jamie Dimon and Wall Street. Local bank branches have big AI ambitions
▼ + stars: | 2024-04-13 | by ( Kevin Williams | ) www.cnbc.com time to read: +7 min

Naghibi envisions community bank branches with fewer employees and more AI. The bank is also exploring the use of generative AI in software engineering, customer service and ways to boost employee productivity. "Effectively, a small bank's branch will be a wall of screens," he said. But bankers like Naghibi believe AI will allow small banks to become more involved in their communities, and in effect, more human. As a community bank, that is where the edge is."

Persons: Wells Fargo, it's, Christopher Naghibi, Naghibi, Naghibi isn't, Jamie Dimon, JPMorgan Chase, Dimon, Jackie Verkuyl, Slaven Bilac, Smart, Chase, Wells, Bilac, Ken Tumin, Banks, homebuyer, Mickey Marshall Organizations: Foundation Bank, JPMorgan, Security, Community Bank, Independent Community Banking Association Locations: Irvine , California, Stockton , California, San Francisco

☆ New York Community Bank’s online arm is paying the nation’s highest interest rate
▼ + stars: | 2024-04-10 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A New York Community Bank stands in Brooklyn on February 08, 2024 in New York City. New York Community Bank , the regional lender that needed a $1 billion-plus lifeline last month, is offering the country's highest interest rate for a savings account. The standout rate could be a sign that NYCB is facing funding pressure, Tumin said. "It looks like they're trying really hard to attract deposits," Tumin said. The bank announced a capital injection from investors led by former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital on March 6.

Persons: NYCB, Ken Tumin, Tumin, Steven Mnuchin's Organizations: York Community Bank, New York City . New York Community Bank, Banking, Strategic Capital Locations: Brooklyn, New York City .

☆ Some of the rules that protect wealthy savers' bank deposits just changed. Here's what to know
▼ + stars: | 2024-04-09 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

The Federal Insurance Deposit Corporation, or FDIC, implemented new requirements for deposit insurance for trust accounts starting April 1. FDIC insurance generally covers $250,000 per depositor, per bank, in each account ownership category. How FDIC coverage of trust accounts has changedUnder the new rules, trust deposits are now limited to $1.25 million in FDIC coverage per trust owner per insured depository institution. Each beneficiary of the trust may have a $250,000 insurance limit for up to five beneficiaries. However, if there are more than five beneficiaries, the FDIC coverage limit for the trust account remains $1.25 million.

Persons: Jamie Grill, Ken Tumin, Tumin, — Organizations: Federal Insurance Deposit Corporation, FDIC

☆ How to make high interest rates work for your hard-earned savings
▼ + stars: | 2024-03-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

However, that won’t happen if you just let it sit in a traditional checking or savings account that yields next to nothing. High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.52% as of March 13, according to Bankrate. As with any bank savings rate, high-yield savings account rates can change overnight, and the bank may not alert you when it lowers it. But don’t confuse money market accounts with money market mutual funds, which invest in short-term, low-risk debt instruments. Unlike money market deposit accounts, money market mutual funds are not insured by the FDIC.

Persons: ”, Ted Rossman, ” Rossman, Ken Tumin, Schwab, you’d, Tumin, Doug Ornstein, Andy Smith, Ornstein, doesn’t, ” Smith Organizations: New York CNN, Bankrate, JPMorgan Chase, Bank of America, Fidelity, TIAA Wealth Management, FDIC, Securities Investor Protection Corp, Edelman, AAA Locations: New York, Wells Fargo, United States

☆ Where to lock down high interest rates for your savings
▼ + stars: | 2024-01-31 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.57% on January 30, according to a Bankrate survey. But many online FDIC-insured banks are still offering 5% or more on their high-yield savings accounts. As with any bank savings rate, high-yield savings account rates can change overnight, and the bank may not alert you when it lowers it. But don’t confuse money market accounts with money market mutual funds, which invest in short-term, low-risk debt instruments. Unlike money market deposit accounts, money market mutual funds are not insured by the FDIC.

Persons: Doug Ornstein, Schwab, “, ”, Greg McBride, Ken Tumin, you’d, Tumin, Wells Fargo, Andy Smith, Ornstein, doesn’t, ” Smith Organizations: New York CNN, Federal Reserve, JPMorgan Chase, Bank of America, TIAA Wealth Management, FDIC, Securities Investor Protection Corp, Fidelity, DepositAccounts.com, Treasury, Edelman, AAA Locations: New York, United States

☆ Best 6-Month CD Rates for November 2023
▼ + stars: | 2023-11-01 | by ( Martha C. White | ) www.wsj.com time to read: +7 min

Rates for short-term investments, including CDs, savings accounts and more, have grown steadily more generous in recent months with the Federal Reserve hiking interest rates to fight inflation. Best six-month CD ratesfor NovemberThe market for six-month CDs is large and, as a result, quite competitive. Our six-month CD rate picks reflect the best available on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. For instance, you could start out with a six-month CD, along with a one-year CD. When the six-month CD matures, you would then roll over that balance into a new one-year CD.

Persons: Martha C, Haviland, ”, Ken Tumin Organizations: Federal Reserve, Deposit Insurance Corp, Federal, FDIC, National Credit Union Administration

☆ Here's what investors should consider now that Series I bonds are paying 5.27%
▼ + stars: | 2023-11-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Series I bonds are now paying 5.27% annual interest through April 2024, up from the 4.3% yearly rate offered since May — and experts have tips for short- and long-term investors. While the new rate is down significantly from the record 9.62% offered in May 2022, investors can now lock in a fixed rate of 1.3%, up from 0.9%, for I bonds purchased from May 1 through Oct. 31. The new fixed rate is the highest since 2007. While the variable rate changes every six months based on inflation, the Treasury may also adjust the fixed rate or keep it the same. The fixed rate stays the same after purchase and the variable rate resets every six months starting on your original purchase date.

Persons: —, Ken Tumin Organizations: Finance, U.S . Department of, Treasury

☆ Federal Reserve Meeting Fed Expected to Keep Rates on Hold
▼ + stars: | 2023-11-01 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +7 min

The Fed last raised its benchmark rate, the federal funds rate, in July to a range of 5.25 to 5.5 percent. In recent weeks, the long-term market rates that influence many types of consumer and business loans have drifted higher, even as the Fed left its key rate on hold. Car LoansHigher loan rates have been dampening auto sales, particularly in the used-car market, because loans are more expensive and prices remain high, experts said. Used-car rates were even higher: The average loan carried an 11.4 percent rate in September, matching a high set earlier in the year. Home-equity lines of credit and adjustable-rate mortgages — which each carry variable interest rates — generally rise within two billing cycles after a change in the Fed’s rates.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, that’s, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: LendingTree

☆ Best 5-Year CD Rates for October 2023
▼ + stars: | 2023-10-31 | by ( Martha C. White | ) www.wsj.com time to read: +8 min

Best 5-year CD rates for NovemberA five-year CD is one of the more common CD terms available. Interest rates on 5-year CDs have not climbed as sharply this year as rates for CDs with shorter terms. Our CD rate picks reflect the best available five-year CD rates we found on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. You expect interest rates to fallThe current interest rate environment is great for savers, but if the U.S. economy slows, the Federal Reserve policy makers are likely to cut interest rates in order to stimulate the additional growth. These accounts’ interest rates are variable, so if prevailing interest rates decline, banks will cut their rates and you will earn less money.

Persons: Martha C, —, ”, Ken Tumin, Dillon Haviland Organizations: Federal Deposit Insurance Corp, Federal Reserve, TBH Advisors, FDIC, National Credit Union Administration Locations: U.S, Nashville, Tenn

How to calculate I bond ratesThe Treasury adjusts I bond rates every May and November, and there are two parts to I bond yields: a variable and fixed portion. The variable rate moves every six months based on inflation, and the Treasury can change the fixed rate every six months, but that doesn't always happen. The variable rate resets every six months starting on the investor's I bond purchase date, not when the Treasury announces new rates. Currently, the variable rate is 3.94% and the fixed rate is 1.30%, for a rounded combined yield of 5.27% on I bonds purchased between Nov. 1 and April 30. However, the headline rate may be different than what you receive because the fixed rate stays the same for the life of your bond.

Persons: Ken Tumin Organizations: U.S . Department of, Treasury

November's rate for new purchases could be higher than the current 4.3% interest on I bonds bought through Oct. 31, leaving some investors wondering about whether to buy more. The variable rate adjusts every six months based on inflation and the Treasury can also change the fixed rate or keep it the same. (The fixed rate stays the same for investors after purchase, and the variable rate adjusts every six months based on the investor's purchase date.) Based on inflation, the variable rate in November will likely increase to 3.94% from 3.38%. But they'd need to purchase new I bonds between Nov. 1 and April 30 to score the increased fixed rate.

Persons: Ken Tumin, David Enna, you'll, DepositAccounts.com Organizations: Getty, U.S . Department of, Treasury Locations: —

☆ Why It Finally Pays to Keep Your Savings in Cash Again
▼ + stars: | 2023-10-12 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

By Steve GarmhausenGood news for savers: interest rates on high-yield savings accounts and CDs are beating inflation. Savings accounts and CDs, even the best of them, paid interest rates below the rate of inflation. If inflation is, say, 5% and your savings account pays 1%, $1,000 in cash will be worth just $960 in a year. The average savings account interest rate is just .42% and the typical one-year CD pays 1.72%. “The difference between an online savings account and the average brick and mortar account is huge right now,” says Tumin.

Persons: Steve Garmhausen, ”, Ken Tumin, they’ve Organizations: Federal, Fed, Capital, City Credit Union, Bond Fund, ETF

☆ Best 5-Year CD Rates
▼ + stars: | 2023-09-25 | by ( Martha C. White | ) www.wsj.com time to read: +7 min

Best 5-year CD ratesA five-year CD is one of the more common CD terms available. Our CD rate picks reflect the best available five-year CD rates we found on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. For instance, a five-year CD could represent your long-term horizon in a CD ladder also containing one, two, three and four-year CDs. You expect interest rates to fallThe current interest rate environment is great for savers, but if the U.S. economy slows, the Federal Reserve policy makers are likely to cut interest rates in order to stimulate the additional growth. These accounts’ interest rates are variable, so if prevailing interest rates decline, banks will cut their rates and you will earn less money.

Persons: Martha C, —, ”, Ken Tumin, Dillon Haviland Organizations: Federal Deposit Insurance Corp, Federal Reserve, Fed, TBH Advisors, FDIC, National Credit Union Administration Locations: U.S, Nashville, Tenn

☆ What the Fed’s September Rate Decision Means for You
▼ + stars: | 2023-09-20 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

By Steve GarmhausenThe Federal Reserve elected on Wednesday to keep interest rates steady, and that’s good news for savers: It means they’ll continue to enjoy the best rates in more than two decades. There’s more good news: The market, which just a few weeks ago expected rate cuts to start early in 2024, now doesn’t expect cuts until midyear. “There are several options to get at least 5% on your liquid cash, and that should stay around until the Fed cuts rates,” says DepositAccounts.com founder Ken Tumin. Meanwhile, inflation remains well above the Fed’s preferred rate of 2%, providing another reason for it to keep rates high. The fed-funds rate is the interest rate at which banks lend reserve balances to each other overnight.

Persons: Steve Garmhausen, ”, Ken Tumin, “, Michael Yoshikami, Banks, don’t Organizations: Federal Reserve, —, Fed, BMO Alto, Federal Deposit Insurance Corp Locations: Walnut Creek, Calif

☆ Best places to park your cash in a high-rate environment
▼ + stars: | 2023-09-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

High-yield online savings accountsThe average annual percentage yield on bank savings accounts was just 0.56%, according to a September 11 survey from Bankrate. But many online, FDIC-insured banks are offering well north of 5% on their high-yield savings accounts. But don’t confuse money market accounts with money market mutual funds. And while money market funds are typically very safe investments, they may have fees and withdrawal restrictions. As of September 19, CDs listed on Schwab.com with durations of three months, six months, nine months, one year and 18 months were all yielding 5.5% or more.

Persons: —, they’ve, Lazetta Rainey Braxton, Braxton, you’ve, ”, Doug Ornstein, Ken Tumin, Schwab, you’ll, Tumin, “, Andy Smith, Ornstein, Don’t, doesn’t, ” Smith Organizations: New, New York CNN, Federal, JPMorgan Chase, Bank of America, Wealth Partners, TIAA Wealth Management, Fidelity, Treasury, Edelman, AAA Locations: New York, United States

High-yield savings accounts, with easy access to your funds, are worth considering, said Ken Tumin, founder and editor at DepositAccounts.com. While investors expect the Federal Reserve to start cutting interest rates next year, online savings account rates won't fall significantly until the policy shifts, he added. Treasury billsAmid rising interest rates, Treasury bills have also become a competitive option for cash, with yields well above 5%, as of Aug. 18. Money market fundsAnother option to consider is short-term money market funds, said certified financial planner Chris Mellone, partner at VLP Financial Advisors in Vienna, Virginia. Money market mutual funds — which are different from money market deposit accounts — typically invest in shorter-term, lower-credit-risk debt, such as Treasury bills.

Persons: Ken Tumin, They're, Chris Mellone Organizations: Istock, Getty, Federal Deposit Insurance Corporation, Federal Reserve, U.S ., Treasury, U.S . Department of, VLP Financial Locations: TreasuryDirect, Vienna , Virginia

☆ How to maximize Series I bond redemptions amid falling inflation
▼ + stars: | 2023-08-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Enes EvrenInvestors piled into Series I bonds amid record yields, and some are now eyeing an exit for higher-interest alternatives. After reaching 9.62% annual interest in May 2022, I bond yields have declined with falling inflation, reaching 4.3% interest for new purchases from May through October. However, the U.S. Department of the Treasury still needs two months of CPI readings before the next I bond rate change. "It's falling back in line with I bond inflation rates we had before the pandemic," said Ken Tumin, founder and editor of DepositAccounts.com. While longer-term investors may like the current 0.9% fixed rate portion of I bond yields, short-term investors may prefer higher-paying alternatives.

Persons: Enes, Ken Tumin, Jeremy Keil, Keil, Tumin, " Keil Organizations: U.S . Department of, Treasury, Treasury Department, Federal Reserve, Keil Financial Partners Locations: Milwaukee

☆ Where to Move Your Savings Now That the Fed Has Raised Rates Even Higher
▼ + stars: | 2023-07-26 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

But rates on savings accounts and certificates of deposit could start to fall before long—so it might make sense to lock in today’s rates soon. That means that it could become a lot harder to find savings accounts and certificates of deposit paying the most attractive rates. “I think we’ve already broken past the peak,” says Sander Read, a financial advisor in Winter Park, Fla.Where are interest rates headed next? What do higher rates mean for savings accounts and CDs? The reason: Banks that need to raise more cash to make loans are more likely to dangle higher interest rates to get it.

Persons: Steve Garmhausen, ”, Sander Read, Keith Larkin, Ken Tumin, “ Organizations: Fed, Federal Deposit Insurance Corp, Bank, Treasury Locations: Winter Park, Fla, San Francisco, Bank

☆ Federal Reserve Meeting Fed Expected to Resume Rate Increases
▼ + stars: | 2023-07-26 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +7 min

The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. The average credit card rate was 20.44 percent as of July 19, according to Bankrate.com, up from around 16 percent in March last year, when the Fed began its series of rate increases. The average rate on new car loans in June was 7.2 percent, up slightly from the start of the year, according to Edmunds.com. The average rate for an identical loan was 5 percent the same week in 2022. But yields on money market funds offered by brokerage firms are even more alluring because they have tracked the federal funds rate more closely.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, that’s, —, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Federal, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: Chicago

☆ Best 1-Year CD Rates
▼ + stars: | 2023-07-18 | by ( Martha C. White | ) www.wsj.com time to read: +7 min

Best 1-year CD ratesToday’s market for one-year CDs is big and very competitive—good news for yield-seekers. To help you find the best yields you can get today, here are some one-year CDs with the highest APYs currently on the market. These picks reflect the best available one-year CD rates as aggregated by DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions, and Buy Side from WSJ’s own research. Increased competition for your dollars today means that the best one-year CD rates come very close to tracking the movement of the Fed’s benchmark federal-funds rate, says DepositAccounts.com founder Ken Tumin. We concentrated on rates available across the U.S., although you might find a great one-year CD rate at a local community bank or credit union near you.

Persons: Martha C, Banks, Ken Tumin, Tumin, “, ” Tumin, you’re, ”, Kathy Carey, Baird Organizations: Federal Reserve, FDIC, National Credit Union Administration Locations: U.S

Jetcityimage | Istock | Getty ImagesAs inflation falls, investors are weighing whether to buy or sell Series I bonds amid other competitive options for cash. "Cooling inflation means that interest rates are likely near the end of their increases," said certified financial planner Ted Haley, president of Advanced Wealth Management in Portland, Oregon. But in the meantime, many investors are waiting for the Federal Reserve's next interest rate decision later this month, which may affect cash yields. While the yearly rate fell to 4.3% in May 2023, the fixed rate portion climbed to 0.9%, making the asset more attractive for long-term investors. Of course, the next fixed rate for I bonds could be higher or lower.

Persons: Ted Haley, Haley, David Enna, Enna, Ken Tumin, DepositAccounts.com Organizations: Istock, Getty, U.S . Bureau of Labor Statistics, Advanced Wealth Management, Federal Locations: Portland , Oregon

☆ Fed Expected to Pause Rate Increases: Live Updates
▼ + stars: | 2023-06-14 | by ( Jeanna Smialek | Joe Rennison | ) www.nytimes.com time to read: +7 min

The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. The average credit card rate was 20.44 percent as of June 3, according to Bankrate.com, up from around 16 percent in March last year, when the Fed began its series of rate increases. The average rate on new car loans was 7.1 percent in May, according to Edmunds.com, up from 5.1 percent last year. Used-car rates were even higher: The average loan carried a 11 percent rate in May, up from 8.2 percent a year earlier. The average rate for an identical loan was 5.23 percent the same week in 2022.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, Edmunds.com, that’s, —, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: San Francisco .

☆ Federal Reserve Meeting Fed Leaves Rates Unchanged: Live Updates
▼ + stars: | 2023-06-14 | by ( Jeanna Smialek | Joe Rennison | ) www.nytimes.com time to read: +7 min

Credit card rates are closely linked to the Federal Reserve’s actions, which means consumers have seen those rates rise over the past year. After raising interest rates 10 times over the past 15 months, the Federal Reserve is expected to take a break on Wednesday and hold rates steady. The Federal Reserve has already raised its benchmark rate, the federal funds rate, to a range of 5 to 5.25 percent to rein in inflation, which is showing signs of slowing. Used-car rates were even higher: The average loan carried a 11 percent rate in May, up from 8.2 percent a year earlier. Home-equity lines of credit and adjustable-rate mortgages — which each carry variable interest rates — generally rise within two billing cycles after a change in the Fed’s rates.

☆ How to capture higher savings yields with a CD ladder
▼ + stars: | 2023-05-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you're boosting your emergency fund or saving for a short-term goal, a certificate of deposit ladder, or CD ladder, may help you capture higher yields amid interest rate uncertainty. After a series of interest rate hikes from the Federal Reserve, options for cash, such as high-yield savings, Treasury bills and money market funds have become more competitive. However, experts say a CD ladder may be worth considering as the Fed weighs an interest rate pause or more rate hikes. Typically, a CD ladder involves splitting equal amounts of cash among multiple CDs with different maturity dates. "A CD ladder gives someone an opportunity to harvest a variety of yields over varying timelines," said Bankrate senior economic analyst Mark Hamrick.

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