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☆ What the Fed’s interest rate decision means for your savings
▼ + stars: | 2024-06-12 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

Online high-yield savings accountsThe best bang for your savings can still be had in online high-yield savings accounts at FDIC-insured banks, which yield way more than today’s 0.58% overall average savings rate. As of June 11, the average online savings account rate was 4.40%, according to DepositAccounts.com. If you leave it parked in a regular savings account at 0.5%, you’ll get $50 in interest for a year. As with any savings account, banks can lower the rate they offer — also known as the APY — at any time. Money market accounts and money market fundsMoney market deposit accounts and money market mutual funds are generating yields competitive with the best high-yield savings accounts.

Persons: ’, ”, Greg McBride, ” McBride, you’ll, —, McBride, “, Collin Martin, Martin Organizations: New, New York CNN, Federal Reserve, National Credit Union Share Insurance, Securities Investor Protection Corporation, Treasury, Fed, Schwab Center, Financial Research Locations: New York, Schwab.com, United States

☆ Americans were paid an additional $235 billion in interest in 2023, thanks to the Fed
▼ + stars: | 2024-05-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

High-yield savings accountsThe average interest rate on regular bank savings accounts is roughly 0.5% but can run as low as 0.01% at the biggest banks. By contrast, the average on high-yield savings accounts is well over 4%, according to DepositAccounts.com. If you leave it parked in a regular savings account at 0.5%, you’ll get $50 in interest for a year. As with any savings account, banks can lower the rate they offer — also known as the APY — at any time. Money market accounts and money market fundsAlthough money market deposit accounts and money market mutual funds are both generating yields competitive with the best high-yield savings accounts, there are important differences.

Persons: —, It’s, ”, Greg McBride, you’ll, McBride, “, ” McBride, Ben Bakkum, Collin Martin, Martin Organizations: New, New York CNN, Federal Reserve, Federal Deposit Insurance Corporation, FDIC, National Credit Union Share Insurance, Securities Investor Protection Corporation, Treasury, Fed, Schwab Center, Financial Research Locations: New York, Schwab.com, United States

☆ You can now invest in bitcoin ETFs. But should you?
▼ + stars: | 2024-01-11 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

The Securities and Exchange Commission on Wednesday gave the green light to the listing and trading of 11 bitcoin exchange-traded funds, or ETFs. Understand what bitcoin is … and what it isn’tIt’s important to grasp what kind of asset bitcoin is. Plus, bitcoin ETFs will make it easier for financial advisers to access the cryptocurrency for their clients who can afford to invest in alternative asset classes. Deciding if a bitcoin ETF makes sense for youThe investment firms that have received approval to offer bitcoin ETFs are competing fiercely for investor dollars. And if you normally invest on a platform that automatically rebalances your portfolio for you, make sure the system does not rebalance your holdings based on your bitcoin investment.

Persons: New York CNN —, Bitcoin, bitcoin, Fidelity, Chainanalysis, Sam Bankman, ” Alex Michalka, Wealthfront, ”, Bryan Armour, … It’s, It’s, ” Armour, Alex Lozano, Lozano, “, Trent D, Porter, ” Porter Organizations: New, New York CNN, New York CNN — It’s, The Securities, Exchange Commission, Wednesday, SEC, US, Fidelity, New York Times, Securities Investor Protection Corporation, NASDAQ, NYSE, Morningstar, Better, ” Locations: New York, bitcoin, United States

Money market funds, on the other hand — while also generally safe — are a bit riskier, experts said. Investors who prefer money market funds may opt for government money market funds, which carry slightly less risk, Elliott said. YieldMoney market funds tend to pay a slightly higher interest rate relative to high-yield savings accounts, Elliott said. TaxesInterest income for both high-yield savings and money funds is taxed as regular income, experts said. However, some money market funds may carry tax benefits, said Eric Bronnenkant, head of tax at Betterment.

Persons: Kamila Elliott, Elliott, Greg McBride, They've, McBride, Treasurys —, Eric Bronnenkant, Bronnenkant Organizations: Wealth Partners, CNBC, Bankrate, Federal Reserve, Deposit Insurance Corporation, Treasury, Lehman, Federal Reserve Bank of Boston, Investor Protection Corporation, Investors, Data, Federal, Consumers, U.S Locations: Atlanta

☆ How protected is your money in accounts outside of banks?
▼ + stars: | 2023-03-28 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

Spoiler alert: You likely have at least some protection in all but your crypto accounts. There are several types of deposit accounts you may have at one bank (e.g., individual savings account, joint checking, business account, etc.) NCUA, which is backed by the full faith and credit of the US government, covers accounts up to $250,000, in much the same way the FDIC covers bank accounts. Crypto accountsIf you invest in crypto assets you have no federally guaranteed protections should the company acting as custodian of your assets go under. Even if you’re holding your crypto assets at a firm that is an SEC-registered broker-dealer and it is a member of SIPC, your crypto assets will not receive SIPC protection.

☆ Yellen says uninsured deposits may be at risk in future bank failures. Here’s how FDIC coverage works
▼ + stars: | 2023-03-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

How FDIC coverage worksThe limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. The majority of Americans are going to be covered by FDIC insurance. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC protectionIf you want to know whether your deposits are FDIC-insured, check your bank statement, Jenkin said. Not all accounts provide FDIC coverage, Jenkin noted.

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☆ As BlockFi files for bankruptcy, what to know about crypto investor protections
▼ + stars: | 2022-11-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

The ongoing FTX fallout — and bankruptcies earlier this year for lenders Celsius Network and Voyager Digital — is teaching crypto investors a hard lesson about their protections relative to more traditional asset classes. Howey Co., established the so-called Howey test to determine what constitutes a security, or "investment contract." More on how the Howey test works can be found below. Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. The Securities Investor Protection Corporation insures investors for up to $500,000 in the event a brokerage firm liquidates and their holdings are tied up in the insolvent firm.

☆ Why protections for crypto investors are linked to orange groves
▼ + stars: | 2022-11-21 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

watch nowHow orange groves impact crypto protectionsThe reason why largely hinges on a 1946 Supreme Court case about investors in Florida orange groves. Howey Co. — established the so-called Howey test to determine what constitutes a security, or "investment contract." (More on how the Howey test works can be found below.) Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. Why the 'security' distinction mattersThe Howey test has four parts to determine if something like bitcoin is an "investment contract."

☆ Beware: The companies that hold your crypto aren’t insured the way banks are
▼ + stars: | 2022-11-13 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

But now, in the wake of crypto exchange FTX’s implosion, crypto investors were reminded of another risk they face: Crypto accounts lack guaranteed protections when the exchange or platform provider goes belly up. But most banks and brokerages, as well as 401(k) plans, do provide federally guaranteed protections and other insurance. What’s more, customers may unwittingly agree to let the company running an exchange or platform use their digital assets. Bank and credit union accountsIf you have a checking or savings account, a money market deposit account or certificates of deposit at a bank or credit union, make sure the institution has deposit insurance. There are several types of deposit accounts you may have at one bank (e.g., personal account, business account, etc.)

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It's important to make sure you can trust an investment app before you start using it. See Insider's guide to the best investment apps for beginners »Get the latest tips you need to manage your money — delivered to you biweekly. Before you start placing trades, you should have a sense of whether you can trust an investment app with your money. Here are more details on the warning signs to look out for when searching for an investment app. It's not transparent about how it makes moneyMost investment apps offer fee transparency and/or disclosures that detail where their compensation comes from.

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