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☆ Lock in CD rates of at least 4% for up to five years at these banks
▼ + stars: | 2023-09-22 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Higher yields on savings won't last forever, but you can at least lock them in for the next few years. The Federal Reserve indicated Wednesday it would keep interest rates higher for longer, anticipating one more rate hike before the year ends. The developments bode well for income investors , who are seeing even higher yields on Treasurys, money market funds and certificates of deposit . It also raises an interesting conflict for investors : The richest rates are at the shorter end of the yield curve, but investors willing to commit some of their money can lock in higher rates for a couple of years. If you're ready to commit to five years, a handful of banks will pay upward of 4% in yield.

Persons: bode, Jeremy Keil, It's, — CNBC's Michael Bloom Organizations: Federal Reserve, Keil Financial Partners, Treasury, UBS, Frost Bank, Bread Financial

Since the central bank kicked off its policy-tightening campaign in March 2022 — boosting interest rates 11 times — income investors have benefited from higher yields on Treasurys, money market funds and certificates of deposit. "From here, even if rates go higher you are locking in some really good income." If you're willing to sacrifice a little bit of liquidity, select banks will pay even higher yields. Drivers of those increases include higher-for-longer interest rates, and competition from Treasurys and money market funds, Graseck added. Money market funds Rates on money market funds have also jumped substantially since the rate-hiking campaign started.

Persons: Greg McBride, reinvest, US2Y, Treasurys, Sameer Samana, Sallie Mae, Morgan Stanley's Betsy Graseck, Graseck, — CNBC's Michael Bloom, Nick Wells Organizations: Federal Reserve, Fed, Treasury, Wells, Wells Fargo Investment Institute, Savings, Synchrony, Bread Financial, Investment Company Locations: maturities, Wells Fargo

☆ RBC upgrades this credit card stock, says it can rally 25% despite uncertain consumer outlook
▼ + stars: | 2023-09-05 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

RBC is optimistic on American Express despite an uncertain near-term outlook for the U.S. consumer. Analyst Jon Arfstrom upgraded American Express to outperform from sector perform. Arfstrom noted that he favors American Express due to its limited revenue reliance on late fees. A looming headwind over the sector is the Consumer Financial Protection Bureau's proposal to essentially cap "excessive" late fees by approximately 75%. If the measure passes, companies that are more reliant on late fees will be more at risk, according to Arfstrom.

Persons: Jon Arfstrom, Arfstrom, — CNBC's Michael Bloom Organizations: RBC, American Express, Express, American, Consumer

☆ Too good to last? This bank cut its 5.5% one-year CD rate just weeks after hiking
▼ + stars: | 2023-09-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Less than a month after hiking its 1-year certificate of deposit yield to 5.5%, SLM — or Sallie Mae — has cut its sweetened rate back down. The annual percentage yield on the bank's 1-year CD is now 5.1%, a 40 basis-point trim. At the time, the 5.5% rate made Sallie Mae's 1-year CD the most generous offered by the banks under Wells Fargo's coverage. That title now belongs to Bread Financial , which now pays a 5.5% yield on the instrument, and a 5.55% yield for customers who want to renew their 1-year CDs. Select banks have boosted deposit rates as the Federal Reserve has tightened its monetary policy since March 2022.

Persons: SLM —, Sallie Mae —, Sallie Mae's, Morgan Stanley, Betsy Graseck, Graseck, — CNBC's Michael Bloom Organizations: Federal Reserve Locations: Wells

☆ Best High-Yield Savings Accounts of September 2023
▼ + stars: | 2023-08-31 | by ( Martha C. White | ) www.wsj.com time to read: +18 min

With the Federal Reserve steadily raising interest rates to fight inflation, high-yield savings account payouts have steadily risen, too. After years of near-zero returns, the average savings account rate has risen to 0.43%, according to the Federal Deposit Insurance Corp. Unlike some high-yield online savings accounts, you earn a high APY—currently 5%—on every dollar in your account. You can conduct immediate electronic transfers between your brokerage account and savings account, and manage both savings and investment activities on a single platform. How we pickedTo pick Buy Side from WSJ’s Best Savings Accounts, we looked for accounts that offered the best APY on deposited funds without restrictions.

Persons: Martha C, it’s, JPMorgan Chase, Wells, Wells Fargo, Ally, Synchrony, Foster, Alliant, —, Ivy, Achilles, We’ve, Morgan Stanley, Marcus, Goldman Sachs, Charles Schwab, Charles Schwab Bank Charles Schwab Organizations: Federal Reserve, Federal Deposit Insurance Corp, Capital, National, One’s, JPMorgan, JPMorgan Chase JPMorgan Chase &, Chase Savings, Ally, Synchrony, CIT, First Citizens, Bank, Foster Care, Navy, Navy Federal, Bask Bank, Texas Capital Bank, Savings, LendingClub, Alliance Data Systems, Comenity Capital Bank, FDIC, Morgan Stanley Private, Morgan Stanley Private Bank, Bloomberg, Trade, Charles, Charles Schwab Bank, Best Bank, National Credit Union Administration, dateline Locations: Chase, Zelle, Ally’s, Chicago, U.S, Utah, .

☆ 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 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

☆ The Fed’s expected rate hike is about to sweeten yields on these investments
▼ + stars: | 2023-07-26 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The Federal Reserve is widely expected to boost interest rates by another quarter percentage point Wednesday afternoon – and that's terrific news for fixed income investors hoping to grab a little more yield. Since March 2022, the central bank has raised rates 10 times – with July's expected hike marking the 11 th increase – to cool inflation. Consider that during the week of March 11, 2022, the rate on the 2-year Treasury note was 1.75%, according to Refinitiv. Investors who wish to squeeze a little more interest income from their cash holdings have opted for Treasury bills, with the 6-month bill yielding 5.5%. By buying multiple notes of different maturities, investors can "ladder" these Treasurys and reinvest the proceeds from maturing bonds into longer-dated issues.

Persons: Greg McBride, maturities, tradeoffs, McBride, SLM —, Sallie Mae —, Nick Wells Organizations: Federal Reserve, Investors, Treasury, Bank of Locations: Bank of Indiana, Treasurys

☆ How to boost the cash flow even more from your fixed income investments
▼ + stars: | 2023-07-20 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

With interest rates peaking, now might be a good time to boost the cash flow you're generating in your fixed income portfolio. A core and satellite approach to boost cash flow For liquidity, UBS recommends a core-satellite approach. You also know when you'll be getting your income payments from the bonds, which generally pay interest twice a year. The first is "everyday cash," which means investors should be stashing money that they can readily withdraw if needed. The second tier is "savings cash" for money that you can afford to lock up for a short period of time.

Persons: US1Y, Marianna Mamou, you'll, Mamou, Michael Bloom Organizations: UBS, Bread Financial, Bread, Investors, SEC

☆ Grab a 4.9% yield for parking money at this bank
▼ + stars: | 2023-07-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Bread Financial recently boosted its savings account annual percentage yield to 4.9%, an increase of 15 basis points. An analysis by Stephens showed that a handful of institutions boosted yields on savings products this week. Synchrony Financial hiked its savings account yield 20 basis points to 4.5%. SLM , known as Sallie Mae, lifted its yield to 4.25%, up 15 basis points, and SoFi Technologies raised the rate on its savings account to 4.4%, an increase of 10 basis points. When it comes to shopping for online savings accounts, investors shouldn't just look for the highest yields, especially because banks can adjust what they're willing to pay.

Persons: Stephens, Sallie Mae, Vincent Caintic, —, shouldn't, — CNBC's Michael Bloom Organizations: Bread Financial, Synchrony, Technologies Locations: Columbus , Ohio, Treasurys

☆ The high yield on this 1-year CD just got even hotter
▼ + stars: | 2023-07-11 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Bread raised the annual percentage yield on its 1-year certificate of deposit to 5.35%, an increase of 10 basis points. That bump higher makes it the 1-year CD with the highest yield among banks under Stephens' coverage, according to a Monday report from the firm. Consider that a 2-year CD at Bread has an APY of 5%, while a 5-year CD yields 4.25%. "The past two weeks have been relatively quiet for online bank rate moves, and we wonder if this is holiday-related or if the online bank demand for deposits has slowed," said Vincent Caintic, an analyst at Stephens. He added that another driver behind the deceleration in deposit rate increases could be a slowdown of loan growth among online banks.

Persons: Bread, Stephens, you'll, Vincent Caintic, — CNBC's Michael Bloom Organizations: First Internet Bank of Indiana, Federal Deposit Insurance

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

☆ The year is half over. Here are three considerations to make sure your portfolio is on track
▼ + stars: | 2023-06-13 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Rebalance your portfolio Tech's remarkable bounce in 2023 could result in a significant portfolio tilt toward that sector — and an overconcentration that could hurt in the event there's a downturn. That means it's time to trim down a few of those oversized positions and make sure your asset allocation is properly reflecting your goals. Check in with cash Cash is another asset that requires your attention, especially in an era when investors have a host of options of where keep those funds. Cash you don't need for many years can go right back into your stock portfolio so you can keep ahead of inflation, Pearce said. "Make sure you have an appropriate amount of cash, and make sure you're not sitting on an enormous pile of cash that's doing nothing," he added.

Persons: Jorrell Bland, Josh Brown, Tony Roth, haven't, Wilmington Trust's Roth, Roth, Cash, Jerrod Pearce, Goldman Sachs, Marcus, Pearce, — CNBC's Michael Bloom Organizations: Nasdaq, Federal Reserve, Mitlin, Ritholtz Wealth Management, Wilmington Trust Investment Advisors, JPMorgan Equity, Wilmington, Creative Planning, Bread, Bread Financial, Citizens Financial, Treasury Locations: Wilmington, Treasurys

☆ Get paid for doing nothing: What you should know about cash sweep accounts
▼ + stars: | 2023-05-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Doing nothing pays these days — at least that's the case if you're talking about cash that's sitting in your brokerage account. Consider Fidelity Investments is offering a 2.6% APY on its cash management account, but LPL Financial pays 0.45% on its insured cash account for clients with $300,000 to $500,000 in household value. First, examine your goals for the money before you shop around for cash sweep rates. Finally, if you do pile cash into your sweep account, think about the tax implications of doing so. Some firms offer different options for investing your cash sweep account, including a municipal money market fund for investors who reside in high-tax states.

Berkshire acquired 9.92 million shares in Capital One, a stake worth $954 million based on the closing price on March 31, regulatory filings showed on Monday. The bank's shares have shed around 15% since early March as the banking crisis has clobbered shares of U.S. regional lenders. Silicon Valley Bank, Signature Bank, and First Republic Bank are the three banks that have so far collapsed during the current crisis. The KBW Regional Banking Index (.KRX) fell 0.38%. Fed Vice Chair for Supervision Michael Barr said the central bank was "carefully considering" rule changes for larger regional banks, including requiring them to account for unrealized losses on their banks when considering capital levels.

☆ Online banks sweeten CD rates as institutions compete for deposits
▼ + stars: | 2023-05-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Online banks are boosting rates on savings accounts and certificates of deposits as fear of deposit flight plagues regional institutions. Bread offers an annual percentage yield (APY) of 5.2% on a one-year CD and 4.65% APY on savings accounts. Capital One has an APY of 3.75% on its savings account, and it pays 4.15% APY for a one-year online CD. Other online institutions paying attractive rates on one-year CDs include Synchrony Financial, which pays 4.75% APY, and Ally Bank, which offers a 4.5% APY. Analysts expect higher rates from online banks to spur other institutions to raise their deposit betas – that is, the amount by which rates paid to customers increases following a boost in the fed funds rate.

☆ Parking your cash in these investments is paying off: 3 ways to find the best place to hide
▼ + stars: | 2023-04-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Apple, working with Goldman Sachs, entered the fray this week and launched a savings account with a 4.15% annual percentage yield. Even money market funds, where investors can park cash that's in their brokerage accounts, are paying attractive rates. With an array of places to earn yield, investors need to weigh a few factors before deciding where they ought to keep their cash. Note that the rate paid to you on a high-yield savings account can change once you've opened it. Meanwhile, savings accounts may not hit you with penalties – but you could still face limitations on the number of withdrawals and transfers from these accounts.

☆ Did you buy alternative investments and big-yielding assets last year? Your tax return could get a little messy
▼ + stars: | 2023-04-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Tax Day is upon us – but investors who have complicated tax returns may find themselves asking for an extension. April 18 is the filing deadline for your 2022 return, and on that day, you must pay any federal income taxes you owe. Last year, an estimated 19 million taxpayers asked for an extension to turn in their 2021 tax return, according to the IRS. That's because while the MLPs themselves aren't subject to federal income taxes, the limited partners who receive income distributions are responsible for taxes. You need this form in order to file your income tax return, but partnerships may not send these details until mid-March, which could lead to investors going on extension.

☆ This bank set a fresh high for yield paid on 1-year CDs, now topping 5%
▼ + stars: | 2023-03-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

That's because the online bank just lifted the rate on its 1-year certificate of deposit to a fresh high. Bread boosted the rate on its 1-year CD by 5 basis points this week to an annual percentage yield of 5.05% — a new high and a threshold that's 55 basis points above the median rate, according to Stephens. One basis point is equal to one one-hundredth of a percentage point. Discover Financial Services hiked rates to 3.6%, a 10 basis point boost, while American Express increased its rate by 25 basis points to 3.75%. SoFi added 25 basis points to its rate, landing at 4%.

☆ U.S. CFPB's bid to curb late credit card fees faces strong opposition
▼ + stars: | 2023-03-06 | by ( Niket Nishant | ) www.reuters.com time to read: +2 min

Fitch identified Discover Financial Services (DFS.N), Capital One Financial (COF.N), Synchrony Financial (SYF.N) and Bread Financial Holdings (BFH.N) among those at risk. Credit card companies typically rely on late fees to act as a bulwark against spending volumes tapering off when the economic environment is tough. If the CFPB's rule is implemented in its current form, it could reduce those fees by as much as 75% annually, the agency said. Michael Taiano, senior analyst at Fitch Ratings, said card companies could potentially resort to legal action to delay enforcement of these rules. "They could also respond by introducing other fees, like statement charges, which would charge a customer every time they request a statement," Taiano said.

☆ BNPL Sezzle had a brutal 2022. The fintech's CEO lays out its comeback plan amid a competitive field in payments.
▼ + stars: | 2023-03-06 | by ( Paige Hagy | Bianca Chan | ) www.businessinsider.com time to read: +6 min

Fintech Sezzle is betting on a comeback after a miserable year for not only itself but the wider buy now, pay later market. Murphy's LawTrue to Murphy's Law, anything that could go wrong did go for Sezzle, Charlie Youakim, Sezzle's CEO, told Insider. In February of 2022, Sezzle announced it would be bought by Zip, another Australian-traded BNPL. The shift leaves room for a "proliferation" of BNPL and other payment options, Savage said. That way, Sezzle can still extend credit to the customer, who can theoretically build on their credit score with short-term payments.

☆ Most couples are 'financially incompatible,' survey finds. Having a money talk could help — no matter how long you've been together
▼ + stars: | 2023-02-14 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +1 min

A new survey finds that 64% of couples admit to being "financially incompatible" with their partners, with different philosophies about spending, saving, and investing their money. One in 5 couples identifies money as their greatest relationship challenge, according to the most recent Couples & Money survey by Fidelity Investments. It's part of the work you need to do to help build a stronger relationship, financial psychologists say. Having that "money talk" is more important than whether you merge your accounts or go with the "yours, mine, ours" approach. Here are some tips about delving into the "money talk" no matter what stage of the relationship you're in.

Pros Check mark icon A check mark. Pros Check mark icon A check mark. More Information Keep up to $1 million in an accountInterest compounded daily, paid monthlyFDIC insuredThe Bread Savings High-Yield Savings Account is another solid high-yield savings account. No monthly service fee Check mark icon A check mark. Easy to save for various goals Check mark icon A check mark.

Pros Check mark icon A check mark. No monthly service fees Check mark icon A check mark. Pros Check mark icon A check mark. More Information Keep up to $1 million in an accountInterest compounded daily, paid monthlyFDIC insuredThe Bread Savings High-Yield Savings Account is another solid high-yield savings account. Pros Check mark icon A check mark.

Highest savings account rates: October 17, 2022 UFB Elite SavingsBask Bank Interest Savings AccountCIT Bank Savings Connect AccountBread Savings High-Yield Savings AccountLendingClub High-Yield Savings AccountBrioDirect High-Yield Savings AccountCredit Karma Money Save AccountPersonal Capital Cash AccountTAB High-Yield Savings Account Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Pros Check mark icon A check mark. More Information Keep up to $1 million in an accountInterest compounded daily, paid monthlyFDIC insuredThe Bread Savings High-Yield Savings Account is another solid high-yield savings account. Pros Check mark icon A check mark. High APY Check mark icon A check mark.

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