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☆ 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

☆ Best 1-Year CD Rates for September 2023
▼ + stars: | 2023-09-01 | by ( Martha C. White | ) www.wsj.com time to read: +6 min

By Martha C. WhiteWith interest rates on the rise, certificates of deposit are very much in the spotlight today. Best 1-year CD ratesToday’s market for one-year CDs is big and very competitive, with many offering even batter rates than on their longer-term options. The Fed has been steadily hiking interest rates in its effort to fight inflation. These CD rate picks picks reflect the best available one-year CD rates we found on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. When to buy a one-year CDWith one-year CD rates about as high as experts expect them to get, this is a good time to buy if you have money on the sidelines.

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

☆ There's no 'free lunch' with high-interest cash options, advisor says. How to plan for taxes
▼ + stars: | 2023-08-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Savers are now getting higher cash yields after several interest rate hikes from the Federal Reserve. "Everyone thinks it's kind of a free lunch," said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. Falling into the regular tax brackets, ordinary income is less favorable than long-term capital gains. Similarly, taxable money market funds — which typically invest in shorter-term lower-credit-risk debt — and Treasury bills also trigger ordinary income. But Treasury bill earnings aren't subject to state or local taxes.

Persons: Crane, Tommy Lucas, Moisand Fitzgerald Tamayo, you've Organizations: Federal Reserve, Crane Data, Finance Locations: Orlando , Florida

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

☆ Despite interest rate hikes, nearly 70% of middle-income Americans haven't switched to higher-yield savings
▼ + stars: | 2023-07-25 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Andresr | E+ | Getty ImagesAfter years of low interest payouts, savings accounts now are paying higher yields, after a series of interest rate hikes from the Federal Reserve. Despite inflation concerns, nearly 70% of middle-income Americans haven’t moved savings to higher-yielding accounts, according to a new survey from Santander. Meanwhile, the top 1% of savings accounts were paying above 4.5%, as of July 25, according to DepositAccounts, compared to a 0.42% average for traditional banks. "For many of them, the juice just isn't worth the squeeze," said Dallas-based CFP Brandon Gibson, wealth manager at Gibson Wealth Management. Brandon Gibson Wealth manager at Gibson Wealth Management

Persons: Kevin Brady, Brandon Gibson, There's Organizations: Federal Reserve, U.S . Bureau of Labor Statistics, Wealthspire Advisors, Gibson Wealth Management, Brandon Gibson Wealth, Gibson Wealth Locations: Santander, New York, Dallas

☆ 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

☆ 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.

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 .

☆ 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.

☆ The Best CD Rates Are from Credit Unions Right Now. Here Are the Top Offers
▼ + stars: | 2023-06-08 | by ( ) www.wsj.com time to read: +7 min

But with many credit unions struggling to attract deposits their CD terms are especially sweet right now, experts say. The upshot: Half of the top 12 CD rates on DepositAccounts.com, a site that aggregates banking rates, are offered by credit unions. Why credit unions have such high CD rates nowCredit unions frequently offer financial products with more attractive interest rates and lower fees than conventional banks. The best credit union CD ratesWith nearly 5,000 credit unions in the country, there are plenty of favorable CD and share certificate rates out there. The FDIC doesn’t cover credit unions, but a different agency, the National Credit Union Administration, or NCUA, provides a parallel level of protection.

Persons: Martha C, they’ve, They’re, you’re, ”, Dawit Kebede, Curt Long, branchless Organizations: Credit, Nonprofit, Credit Union National Association, National Association of, “, don’t, Workers Credit Union, of, Financial, Association, Workers, Bellco, Bellco Foundation, Dow Credit Union, Dow Credit, Bank, Federal Deposit Insurance Corp, FDIC, National Credit Union Administration Locations: Silicon Valley, DepositAccounts.com, Central Massachusetts, Colorado

☆ 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.

☆ Banks have tripled what they pay you to save—here's how to take advantage
▼ + stars: | 2023-05-15 | by ( Ryan Ermey | ) www.cnbc.com time to read: +1 min

The average rate on a 30-year fixed-rate mortgage has jumped to 6.35%, up from a low of 2.67% in December 2020, according to the St. Louis Fed. If you hold credit card debt, you're now paying a near record-high average interest rate of 20.33%, according to Bankrate. Higher short-term interest rates mean that banks pay you more for depositing your cash. Last year, banks paid out $78.7 billion to domestic deposit accounts — more than tripling the $24.3 billion payout in 2021, according to a recent study from DepositAccounts. Here's how you can take advantage to earn the most on your cash.

☆ Here's the best time to redeem Series I bonds to maximize your interest
▼ + stars: | 2023-05-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Meanwhile, annual inflation rose to 4.9% in April, the smallest jump in two years, the U.S. Bureau of Labor Statistics announced Wednesday. But after a series of interest rate hikes from the Federal Reserve, alternatives like Treasury bills, certificates of deposit or money market accounts have emerged as competitive options for cash. "You lose that last three months of interest," said Ken Tumin, founder and editor of DepositAccounts.com. watch nowIf you're selling I bonds within five years, it's easy to get confused by how much interest you're giving up. (You can find the rate by purchase date here and rate change by purchase month here.)

The average interest rate on new-car loans was 7 percent in March, according to Edmunds, up nearly a percentage point from six months earlier. The average interest rate on new-car loans was 7 percent in March, according to Edmunds, up nearly a percentage point from six months earlier. The rate for current federal student loan borrowers isn’t affected because those loans carry a fixed rate set by the government. The average rate for an identical loan was 5.1 percent the same week in 2022. 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.

☆ Series I bonds still 'attractive for longer-term investors' as annual rate falls to 4.3%, expert says
▼ + stars: | 2023-05-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Series I bonds will pay 4.3% annual interest through October, a drop from 6.89% in November amid falling inflation, the U.S. Department of the Treasury announced on Friday. There are two parts to I bond interest rates: a fixed rate that stays the same after purchase, and a variable rate, which changes every six months based on inflation. Starting May 1, the new variable rate is 3.38% and the fixed rate is 0.9%. While experts predicted the 3.38% variable rate, the fixed rate, which jumped to 0.9% from 0.4% in November, "definitely makes it attractive for long-term investors," said Ken Tumin, founder and editor of DepositAccounts.com. The 0.9% fixed rate is the highest since November 2007, when I bonds offered 1.2%, Tumin said, noting the new rate was a "pleasant surprise."

☆ The Federal Reserve is expected to hike rates one more time. What that means for you
▼ + stars: | 2023-05-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

"Yet another rate hike from the Fed means today's sky-high credit card interest rates will rise even further in the very near future," said Matt Schulz, chief credit analyst at LendingTree. Cardholders should expect their current cards' interest rates to rise in the next billing cycle or two, he said. Auto loan rates rose to more than 6.5%Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. Federal student loans are already near 5%Wavebreakmedia | Istock | Getty ImagesFederal student loan rates are also fixed, so most borrowers aren't immediately affected by rate hikes. Interest rates for the upcoming school year will be based on an auction of 10-Year Treasury notes later this month.

☆ Series I bond rate expected to fall to below 4% in May, experts say
▼ + stars: | 2023-04-12 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

But rates have been falling and the yield will decline again in May, experts say. Annual inflation rose by 5% in March, down from 6% in February, according to the U.S. Department of Labor. The annual rate may drop below 4%Based on inflation data from the past six months, Tumin says the variable portion of the I bond rate could drop to 3.38% in May. If the fixed rate remains at 0.4%, the new annual rate may drop to 3.79%, Tumin said. Of course, the combined annual yield is only an estimate until TreasuryDirect announces new rates in May.

☆ Most Americans are using tax refunds to boost savings or pay off debt, CNBC survey finds
▼ + stars: | 2023-04-11 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

mediaphotos | E+ | Getty ImagesMost Americans will use their tax refund to bolster their finances amid economic uncertainty, stock market volatility and lingering inflation. More than one-third of Americans are saving their tax refund this season and 44% have earmarked the funds to pay off debt or bills, according to the CNBC Your Money Financial Confidence Survey, conducted in partnership with Momentive. A recent Bankrate survey also found that tax refunds are important to most Americans' financial situation, and that paying off debt and boosting savings are top priorities this year, which is similar to past findings. Some 45% of Americans expect to receive or have already received a tax refund this season, according to the CNBC survey. "So if you have credit card debt, putting some of this refund money towards that debt is a really good choice."

☆ Finally! Savings Rates Could Soon Beat Inflation
▼ + stars: | 2023-02-23 | by ( ) www.wsj.com time to read: +6 min

Why savings rates could rise in 2023Fortunately, many experts predict the situation will reverse, with inflation on a downward trend even as the Fed continues nudging up interest rates. Since the most generous banks have increased their rates in tandem with the Fed, they would likely increase savings rates as well. Bottenfield doesn’t see savings account interest rates surpassing the rate of inflation before 2024. “The difference between an online savings account and the average brick and mortar account is huge right now,” says Tumin. If you think interest rates will fall, you can lock in mid-4% rates long-term with a five-year CD.

☆ When it makes sense to buy extra paper Series I bonds with your tax refund, according to experts
▼ + stars: | 2023-02-06 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Jetcityimage | Istock | Getty ImagesIf you're trying to max out the yearly purchase limit for Series I bonds, your tax refund offers an opportunity to buy even more. While the annual purchase limit is generally $10,000 per person for electronic I bonds, you can buy another $5,000 in paper I bonds with your tax refund. Buying paper I bonds with your tax refund may make sense if you're eager to purchase as much as possible, said Ken Tumin, senior industry analyst at LendingTree and founder of DepositAccounts.com, a website that tracks I bonds, among other assets. Downsides of paper I bondsKeil said it's also important to consider the downsides of purchasing paper I bonds tied to your tax return. What's more, paper I bonds must be converted to electronic form before redemption.

☆ Savers poised for 'biggest win' in 2023 as inflation falls. Where to put your cash now
▼ + stars: | 2023-02-06 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Xavier Lorenzo | Moment | Getty ImagesAs interest rates go up, 2023 is shaping up to be a good time for savers who stand to earn more money on their cash. As the unemployment rate hit a 53-year low in the latest jobs report, the interest rate increases are expected to keep coming. Online savings accounts tend to pay the highest rates, with rates like 4% or 4.5% becoming more common. Series I bonds have 'become a better deal'Series I bonds are accrual type savings bonds tied to inflation that are issued by the government. If you cash in the I bond in the first five years, you will lose three months' interest, McBride said.

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