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☆ What Today’s Fed Move Means for Savings Accounts and CDs
▼ + stars: | 2023-11-01 | by ( Steve Garmhausen | ) www.wsj.com time to read: +5 min

By Steve GarmhausenThe Federal Reserve’s decision to leave interest rates unchanged Wednesday means your savings accounts will continue to enjoy decades-high yields of 5% or more. The question of how long interest rates will remain robust matters to those making decisions about how to save. Savings accounts are attractive because balances are readily available for emergencies or planned expenses like a home down payment—but their interest rates can change quickly in response to Fed actions. Savings accounts vs. CDsThe best savings accounts and CDs were paying around half a percentage point of annual interest before the Fed started raising rates last spring. Safe, liquid alternatives to bank accounts include Treasury bonds—the one-year T-bill was recently yielding 5.4%—and money-market mutual funds, which yield a hair less.

Persons: Steve Garmhausen, it’s, “, ”, James Thorne, Brooke May, Daniel Wilson, Adam Stockton ,, you’ll Organizations: Wellington, Altus Private Wealth, Fed, City Locations: Altus, Indianapolis, Ind, Auburndale

☆ Big Banks Are Making Huge Profits Off Today’s Savings Rates—Are You?
▼ + stars: | 2023-10-23 | by ( Mallika Mitra | ) www.wsj.com time to read: +6 min

That’s because many big banks have been playing a ‘do as I say, not as I do’ game with customers. Many large bricks-and-mortar banks pay even less—Wells Fargo, for example, pays 0.15% on its standard savings account while JP Morgan Chase pays 0.01%. Evergreen Bank—a locally-owned bank serving the Chicago suburbs—is currently offering a 5.25% APY on savings accounts, one of the best savings account rates for October. Compare that to what big banks offer and you can see the appeal of looking for alternatives to the big banks. For some of the current best interest rate deals, check out our list of the best savings accounts and CD rates.

Persons: Mallika Mitra, they’ve, ”, Mayra Rodriguez Valladares, Morgan Chase, Adam Stockton, you’ve, Susan Mitcheltree, ” Mitcheltree, Andrew Herzog, Herzog, Banks Organizations: Federal Reserve, JPMorgan Chase, MRV Associates, Wells Fargo, Evergreen Bank, Valley Bank, Signature Bank, First Locations: U.S, Wells Fargo, New York, Stockton, “, Baltimore, Plano , Texas, Chicago, —

☆ The Fed May Be Done Raising Rates. Here’s What It Means for CDs and Savings Accounts
▼ + stars: | 2023-05-03 | by ( ) www.wsj.com time to read: +5 min

So, if you don’t need immediate access to your savings, it may make sense to lock in current interest rates with a CD. And while the pace of price increases remains well above the Fed’s preferred level of 2%, the central bank fears that raising interest rates any more could tip the fragile economy into recession. The likely explanation is that banks expect interest rates to decrease and don’t want to be locked into paying higher rates for extended periods of time. It’s true that if CD rates are, say, 3% a couple of years from now, then a 4.5% yield will look very good. And because falling interest rates tend to drive up bond prices, that’s what they’d likely do.

LAS VEGAS, March 28 (Reuters) - Mid-sized U.S. lenders are getting creative as they try to hang onto customer deposits after two bank failures rattled consumers and spurred a $119 billion exodus from small institutions in recent weeks. Industry executives discussed strategies to bolster trust in their institutions at an annual meeting of the Consumer Bankers Association conference on Monday in Las Vegas. Paying higher rates on deposits is the most common way to make them stick, executives said. Despite the recent flight in deposits to large banks, one banker at a mid-sized bank said they were confident the lender could survive the recent exodus. Reporting by Tatiana Bautzer and Nupur Anand in Las Vegas; Editing by Lananh Nguyen and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ Interest Rates Are Still Going Up—And That’s Good News for Savers
▼ + stars: | 2023-03-22 | by ( ) www.wsj.com time to read: +6 min

But they’ve cheered savers by breaking a decadelong streak of near-zero returns on cash parked in savings accounts, CDs and the like. Where interest rates are headed nextThe opportunity might not last. The fed-funds rate, which banks use to set savings and CD rates, now appears more likely to fall than rise further. What it means for your moneySavings and CDsGiven the likelihood that we’re at peak interest rates, using CDs to lock in high yields may be a good idea. On the home buyer front, the median sale price of an existing home fell 12.3% between June and February as higher mortgage interest rates weakened demand.

☆ How High Will Savings Rates Go in 2023?
▼ + stars: | 2022-12-08 | by ( ) www.wsj.com time to read: +6 min

By Steve GarmhausenInterest rates on savings accounts have been rising fast, and savers are likely to see more improvements in 2023. Where are interest rates headed in 2023? Will savings rates go up in 2023? Though they take their cues from the fed-funds rate, banks tend to take weeks or even months to hike their savings account rates. The Fed could cut rates sooner than expected, pulling savings rates down in the process.

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