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☆ Sallie Mae hikes yield on 1-year CDs as Fed stays in rate policy holding pattern
▼ + stars: | 2024-06-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Last week, Sallie Mae boosted the annual percentage yield for its 12-month CD by 10 basis points, or 0.10% week over week, to 5.15%. Certificate of deposit rates have come a long way since the Fed started raising interest rates in March 2022. The average online bank APY has gone up by 4.14 percentage points to 4.79% since then, Wells Fargo analyst Michael Kaye said in a note Friday. Since banks generally follow the fed funds rate, interest rates on CDs and savings accounts are expected to fall in turn. "Broadly we still expect online bank deposit rates to decline," BTIG's Caintic said.

Persons: Sallie Mae, we're, Vincent Caintic, Wells Fargo, Sallie Mae's, APY, Wells, Michael Kaye, BTIG's Caintic, Morgan Stanley, BOK Organizations: Federal Reserve, Fed, New York Community Bancorp, Federal Deposit Insurance Corp, FDIC, Bank, Bank of America Locations: Wells, Wells Fargo, company's

☆ Blue-collar jobs are booming. White-collar jobs, not so much.
▼ + stars: | 2024-05-15 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +14 min

Now, she told me, blue-collar work is an oasis in the fake-email-job desert, with a newfound social cachet. In a survey conducted in late 2021, 67% of blue-collar workers said they believed the pandemic changed how people viewed their jobs, and 75% of white-collar workers agreed. AdvertisementNow, the economy is adding blue-collar jobs at a rapid clip. There is a tendency — particularly among white-collar workers — to look at blue-collar work through rose-colored glasses, to romanticize the hard work and skills it requires. The labor market hasn't completely reversed course; blue-collar jobs may be booming, but a bachelor's degree is still often a prerequisite for roles with high pay and numerous benefits.

Persons: Alyssa DeOliveira, didn't, DeOliveira, Chris Collins, Collins, Steven Kurutz, influencers, Eames, Bernie Sanders, Elise Gould, she's, it's, moratoriums —, Gould, Frankie Giambrone, Giambrone, Biden, Lael Brainard, Scott Gove, Michael Kaye, Gove, there's, he's, Sam Pillar, Jeff Goldalian Organizations: Walmart, UPS, Business, The New York Times, Economic, Bureau of Labor Statistics, National Economic Council, Teamsters Union, United Auto Workers, Teamsters Locations: Boston, Tennessee, New York City

☆ High yields on savings are coming down. Here’s where you can still get 5% on cash
▼ + stars: | 2024-02-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Of the banks under Wells Fargo's coverage, Discover was the first to trim its online savings account rate for this rate cycle, according to analyst Michael Kaye. It's a marked turn from when online banks jockeyed for customers' deposits as the Fed began raising rates in March 2022. Too good to last See below for a table of online banks and the APY they're offering on savings accounts. The catch with savings accounts is that banks can opt to tweak their yields at any time. Investors hoping to play a lower rate environment with exchange-traded funds may want to consider buying intermediate-term bond funds .

Persons: Michael Kaye, Banks, Ally, Cowen, Moshe Orenbuch, Cash that's Organizations: Federal Reserve, Discover Financial, Financial, Fed, Investors Locations: Wells

☆ A slate of banks slashed CD yields. Here’s where you can still find a solid rate
▼ + stars: | 2024-01-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Online banks, which have offered some of the richest annual percentage yields on savings products, are slashing the interest they pay. Though the 1-year Treasury bill is yielding about 4.78%, select institutions will offer upward of 5% to hold your cash in a 1-year CD. "We believe banks are repositioning their CD rates ahead of potential Fed rate cuts in 2024," said analyst Michael Kaye in a report on Friday. See below for a table of where online banks now stand on 1-year CD rates. Wells Fargo scanned the online banks under its coverage and found the average APY for a 1-year CD was 0.64% in March 2022.

Persons: Wells Fargo, Michael Kaye, Mark Haefele, Cash Organizations: Treasury, Federal Reserve, CME Group, Synchrony, UBS Locations: Wells

☆ Photos show the 3.86 billion-mile journey of NASA's OSIRIS-REx asteroid sample mission from start to finish
▼ + stars: | 2023-09-28 | by ( Jenny Mcgrath | ) www.businessinsider.com time to read: +6 min

NASA's OSIRIS-REx has been traveling for seven years to get an asteroid sample to Earth. Check out its 3.86 billion-mile journey from launch to asteroid sample landing in the photos below. NASA/Keegan BarberAfter collecting the largest asteroid sample ever brought to Earth, OSIRIS began its long journey home. AdvertisementAdvertisementSample retrievalRecovery team members gather around a capsule containing Bennu asteroid samples as part of NASA's OSIRIS-REx mission. Analyzing the sampleLockheed Martin recovery specialists Levi Hanish and Michael Kaye take the lid off NASA's OSIRIS-REx asteroid sample.

Persons: REx, —, what's, OSIRIS, imager, Bennu, NASA's, Dante Lauretta, Keegan Barber, Rick Bowmer, NASA’s, Molly Wasser, Martin, Levi Hanish, Michael Kaye, Robert Markowiz, Noah Petro, What's, It's Organizations: Service, REx, NASA, United Launch Alliance, Atlas, Goddard, University of Arizona, Survey, NASA's Goddard Space, Earth, Department of Defense's Utah, AP, US Air Force, NASA’s Johnson Space Center, Space Center, JPL, Caltech Locations: Cape Canaveral , Florida, Salt Lake City, Houston, Houston , Texas

☆ This bank will now pay 5% yield on your savings
▼ + stars: | 2023-08-14 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

A new bank has joined the 5% club, handing savings account depositors a hefty yield on their idle cash. Bread Financial is the latest bank to offer 5% annual percentage yield to its savings account clients, hiking its rate 10 basis points. Bread's move to boost its yield makes it the first online bank under Wells Fargo's coverage to reach 5%, said analyst Michael Kaye. Marcus by Goldman Sachs also recently raised its online savings account rate 15 basis points, now offering a yield of 4.3% on savings accounts. "We still expect online bank rates will continue climbing even after the Fed stops raising its rates," wrote Vincent Caintic, analyst at Stephens.

Persons: Michael Kaye, Marcus, Goldman Sachs, Vincent Caintic, Stephens, Michael Bloom Organizations: Federal Reserve, Popular, CIT Bank, Fed Locations: Wells, 2H23

☆ This bank just hiked the rate on its 1-year CD to 5.5%
▼ + stars: | 2023-08-07 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

"We expect more rate action in the weeks ahead," wrote Michael Kaye, analyst at Wells Fargo in a Friday report on deposit trends. Marcus and Synchrony each hiked yields by 5 basis points to 4.4% and 4.35%, respectively. However, customers who've already snapped up a CD are effectively locked into that rate for that stated term. That's different from a high-yield savings account, wherein the bank can change the rate at any time. "Even though the market doesn't expect any more rate hikes this cycle, we expect deposit costs to keep rising until the Fed cuts rates," she said.

Persons: Sallie Mae, Marcus, Goldman Sachs, Michael Kaye, Synchrony, Morgan Stanley, Betsy Graseck, — CNBC's Michael Bloom Organizations: Federal Reserve, Synchrony, Analysts, Wells, Fed

☆ This bank just raised yields on its 2-year CD — here’s where you can lock in 5%
▼ + stars: | 2023-07-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Since the central bank embarked on its rate-hiking campaign in March 2022, yields on fixed income instruments, ranging from Treasurys to money market funds and bank deposit products, have become more attractive. Some strategists have suggested income-focused investors begin locking in higher rates so they can keep earning good yields once the central bank shifts gears. Capital One recently pushed up the annual percentage yield on its 2-year CD 5 basis points to 4.35%. As a result, a handful of institutions now offer yields of 5% or close to it for 2-year CDs. See below for a table of 2-year CDs.

Persons: Michael Kaye, Ally Financial, — CNBC's Michael Bloom Organizations: Federal Reserve, Financial, Delta Community Credit Union Locations: Wells

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