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Best apy savings account 2015


best apy savings account 2015

Savings; High Yield Savings; Money Market Rates are variable and subject to change after account opening without notice. Used 2015-2016 Models. Description, Minimum Balance to Open Account, Minimum Daily Balance to Earn APY, Interest Rate, Annual Percentage Yield (APY*). IOLTA Checking, $10, $10. If you have any questions or require current rate and fee information on your accounts, please call the Credit Union. APY = Annual Percentage Yield. Fees may.
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Two weeks after debut, Betterment's high-yield savings product takes a haircut


Just two weeks after introducing its new savings product with one of the banking industry’s highest yields at 2.69%, Betterment – the investment robo-advisor – lowered the promotional savings rate to 2.41%, according to an email it sent customers this week.

The move comes after the Federal Reserve last week cut by a quarter-point its key benchmark rate that banks use to set borrowing and savings rates.

But it still comes as a surprise given the attention Betterment gave the yield when it launched its savings platform on July 23 and underscores that even these financial tech companiesoffering high-yielding savings accounts are affected by the changing rate environment. 

“Online banks are not immune from lower falling interest rates,” says Greg McBride, chief financial analyst at Bankrate.com. “While returns can be expected to pull back as the Fed trims rates, yields are still much higher than they were a couple years ago before the Fed ramped up rate hikes, and significantly higher than the 0.1% average that most people are earning on their savings.”

The rate change game

The rate on Betterment Everyday Savings is 2.41%, which includes a quarter-point promotional rate boost that expires at the end of the year. The email from the company explained that the rate is variable and is affected by any moves from the Fed.

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“If the Federal Reserve lowers its target range, the interest rate on Betterment Everyday Savings will generally change by a similar amount. You can expect this to impact rates at other banks as well. In fact, some banks have already been lowering their rates in anticipation,” according to a Betterment site linked to the email.

In fact, Ally and Marcus – both big players in high-yield savings – lowered their savings yields a month before the central bank actually reduced its rate. Most economists at the time forecast a rate cut.

But the move by the pair took people by surprise because, up until then, the online banks had been topping each other on savings rates to gain new customers.

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“Never before in the history of mankind have a couple of 10 basis point interest rate cuts generated so much media attention, as was the case with Ally and Marcus,” McBride says.

Rate reality

What these online banks are offering – rate cut or not – is much higher than what most people are earning on their savings accounts at the bigger national banks, which is often 0.1% or less.

For instance, Popular Direct offers 2.55% on its savings accounts, but require a $5,000 minimum balance, according to an accounting from Bankrate. Other top ones include Vio Bank at 2.52%, Comenity Direct Bank at 2.45%, and MySavingsDirect at 2.4%.

Market watchers expect the Fed to cut rates again two more times this year, walking back some of the nine increases that the central bank enacted between 2015 and 2018.

Even so, McBride says: “Online savings accounts are still a lot higher than they had been before rates started rising, higher than inflation, and higher than what you’d earn otherwise by keeping your money at the bank down the street.”

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Источник: https://www.usatoday.com/story/money/2019/08/09/betterment-lowers-high-interest-savings-account-2-41-apy/1966890001/

What is the Average Interest Rate on Savings Accounts?

There are many ways to save and invest your money. If you’re looking for a solution that’s simple and safe, you can’t go wrong with a savings account. Money in a savings account will earn interest.

But many factors determine the amount of interest you earn. These include the bank, the type of savings account, and even the U.S. economy.

Whether you’re saving for a vacation, a new home, or building an emergency fund, savings accounts are a fundamental part of financial planning. And, you'd want to earn as much interest as you can on your money.

What is the National Average for Savings Rates?

To give you an idea of what savings rates are like in the U.S., the Federal Reserve publishes a national average of the interest rates earned in savings accounts:

Historical National Savings Rate Averages (<$100,000)

DateNational average (APY)
March 19, 20180.07%
January 3, 20170.06%
January 4, 20160.06%
January 5, 20150.06%
January 6, 20140.06%
January 7, 20130.07%
January 2, 20120.11%
January 2, 20110.17%
January 4, 20100.21%

What Factors Affect Savings Rates?

Savings rates aren’t written in stone, so they can fluctuate from day-to-day.

To understand these rate fluctuations, you must first understand the role of the Federal Reserve. And you need to understand how the federal funds rate works. Both factors influence savings rates.

The Federal Reserve is the central bank of the United States. It was created with the purpose of keeping the financial system safe and stable.

How the Fed controls rates

Basically, the Fed lowers interest rates when the economy suffers. This makes it easier for people to get credit or borrow money. This encourages spending and contributes to growth.

When the economy is booming, the Fed responds by raising interest rates. This puts the brakes on borrowing and controls inflation (rising of prices over time).

The Fed uses the federal funds rate to control inflation and economic growth. This is the interest rate that banks charge each other on loans to meet reserve requirements.

The Fed requires banks to maintain a minimum cash reserve at the end of each day. Sometimes, a bank doesn’t have enough in reserves. If not, they can borrow the needed funds from other banks at the federal funds rate.

The Fed doesn’t determine the federal funds rate per se, but it does establish a target range for this rate. When the Fed increases this target rate, it becomes more expensive for banks to borrow funds. And unfortunately, financial institutions pass this cost onto consumers.

A decrease in the federal funds rate triggers lower interest rates across the board, which is a good thing. But an increase triggers higher rates. As a result, interest on short-term loans like auto loans and credit cards increase.

Because banks base their consumer rates on this benchmark, the federal funds rate also determines your rate on savings accounts. Thus, a higher target rate can also result in higher yields on savings rates, but not by very much.

Unfortunately, savings rates don’t move up as much as loan rates.

Bank-to-bank competition

Although economic conditions play a role in interest rates, banks ultimately decide their savings account rates. Banks know that you have plenty of options. And if their savings rates are too low, you’ll go elsewhere.

Therefore, some banks offer slightly higher savings rates to gain a competitive edge. This encourages customers to open savings accounts with their institutions.

So in a lot of ways, savings rates are also based on what other banks offer.

If one bank increases its interest rates on savings accounts, other banks may follow. But even when a bank increases its rate, the bump tends to be small.

Where Can You Find the Highest Savings Rates?

The fact that savings rates haven’t increased much in recent years doesn’t mean you have to settle for earning pennies. You can get a higher return on your deposits, but this entails putting your money in the right place.

A big name brick-and-mortar bank may be conveniently located near your house. If so, you’re free to open an account with this institution. Just know that these banks don’t usually offer the same return on savings accounts as online banks.

Bigger doesn’t always mean better, especially with regard to banking. Sure, a local big bank may be reputable and offer a wide assortment of financial products.

But the bigger a bank, the more it likely spends on overhead and operating costs. And unfortunately, many of these expenses trickle down to consumers.

Average savings & CDs Interest Rates

Low costs mean higher rates

An online bank, however, may have lower operating costs. Therefore, opening an account with these banks can translate into savings for you.

Likewise, you might save money by depositing your money in a credit union or a small community bank. These institutions may also have cheaper operating expenses.

But while a credit union or community bank may have lower costs, these financial institutions may not advertise the best rates. If you’re looking for a higher savings rate “and” lower costs, an online bank is your best bet. You can grow your savings and reach your financial goals sooner.

Another upside is that you might receive better customer service through an online bank. Fewer expenses allow some online banks to invest more resources in training customer service representative.

Or they may have more resources to invest in newer technologies. As a result, they can offer online and mobile banking systems that are as sophisticated as those set up by big banks.

How to Find a Better Savings Account

Questions to consider when choosing an online bank for savings:

What are my savings options?

High-yield savings accounts are popular products offered by online banks. But these aren’t the only savings tools available to you.

Other options might include high-yield money market accounts. They can have a larger minimum balance to earn the advertised APY. Also, it may come with checks and a debit card.

What are the monthly fees?

Some online savings accounts have monthly maintenance fees, whereas others don’t. Keep in mind that some banks will waive the monthly fee if you maintain a minimum average daily balance.

Another plus is that many online savings accounts have no or low minimum opening deposit requirements. This lets you open an account with little funds.

Will I have access to ATMs?

One downside of an online savings account is that you may have no access to an ATM, depending on the bank.

On one hand, your money isn’t as accessible, so you’re less likely to make unnecessary withdrawals. But on the other hand, this reduces the liquidity of your funds.

Does the bank offer mobile banking?

Mobile banking is an essential feature of any savings account.

Make sure the bank offers mobile banking before opening an online savings account or a money market account. This way, you don’t have to mail in checks.

Instead, you can deposit checks from your smartphone. Mobile banking also lets you check your balance and transfer funds between accounts from a mobile device.

What is the excess transaction fee?

Online savings accounts and money market accounts let you tap your funds whenever. You’ll receive an ATM card with your savings account. Likewise, a money market account comes with a debit card and check writing privileges.

Just know that these accounts limit the number of withdrawals or checks you can write per month. If you exceed this limit, the bank will charge an excess transaction fee.

Conclusion

Some people immediately choose a regular savings account from a bank in their neighborhood -- probably the one with the biggest sign. This is a safe, simple place for funds.

But, a regular savings account won’t earn much interest. Other types of savings accounts can offer higher returns.

The recommended option for a better return is a high-yield savings account through online banks.

Of course, it isn’t enough to know the different types of savings. You should also be familiar with average rates for these accounts. When you know what to expect, you can then determine the best place to store your money for the greatest return.

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Источник: https://www.mybanktracker.com

Interest rates on deposits 2021Oct

Note: Due to rounding, the sum may differ slightly from the total of the components

a. Interest rates presented here are effective rates calculated by dividing the accrued interest flows for the months under review by the monthly averages of the corresponding outstanding amounts. For the different types of deposits, including step-up deposits, they correspond to the average conditions practiced during the month under review by the French credit institutions on deposits of non-financial corporations and households (including non-profit institutions serving households) residents.
b. Regulated rates passbooks include passbooks A, blue passbooks, sustainable development passbooks, home savings plans, youth passbooks and people's savings passbooks.
c. Monthly averages.
d. 5 years Constant Maturity Rate. Source: French Bond Association.
e. Revised data.
f. Provisional data.
g. Including taxed saving books, other special saving accounts, people saving plans (PEP) and subordinated loans

Источник: https://www.banque-france.fr/en/statistics/savings-and-national-financial-accounts/bank-savings/interest-rates-deposits

Find Higher Yields for Your Cash

There’s no way to sugarcoat it: Yields on savings accounts, certificates of deposit and other safe places to park your cash are disappointingly low, and interest rates will remain in the dumps for a while. In response to the coronavirus crisis, last spring the Federal Reserve slashed short-term rates back to the near-zero levels at which they had hovered from late 2008 through most of 2015. “It’s pretty much ‘back to the future.’ We’re revisiting the territory that became all too familiar after the Great Recession,” says Greg McBride, chief financial analyst for Bankrate.com. Kiplinger expects rates to remain near zero through 2024.

Even keeping pace with inflation on your cash holdings is a tough prospect. Annual inflation recently ran at 1.4%, and nearly all the top-yielding savings accounts and money market deposit accounts offer less than 1%. The Fed has stated that with inflation running persistently lower than its long-term goal of 2%, it will aim to achieve inflation “moderately above 2% for some time.” That means that at least for a while, the Fed doesn’t expect to raise interest rates even if inflation starts to accelerate.

Savers who struggled to scrounge up a respectable yield during the last low-rate period may notice that the pickings are even slimmer this time around. Ken Tumin, founder of DepositAccounts.com, notes that rates for several savings accounts and certificates of deposit from online banks and credit unions have fallen to lower levels in the past several months than they did when account rates last bottomed out, around 2012 and 2013. Many banks saw a surge in deposits in 2020 as consumers stepped up their savings rate, reducing the banks’ desire to lure savers with competitive interest rates, says Tumin.

Despite the dim outlook, seeking accounts with above-average rates is worthwhile. If you put $50,000 in a savings account yielding 0.75% (compounded monthly) and maintain that rate for a year, you’ll pocket $376 in interest earnings. If you instead use an account yielding 0.09%—the recent national average, according to Bankrate—you’ll have only $45 in interest after a year.

Here, we’ve highlighted several ways to earn a relatively strong yield without sacrificing safety. All the deposit accounts come with protection against bank failure, with up to $250,000 insured per depositor at each bank or credit union. (To calculate whether your balances are covered, use the tools at edie.fdic.gov and mycreditunion.gov) And savings bonds are backed by the full faith and credit of the U.S. government.

The accounts listed here are available to customers nationwide. Rates are as of November 6 and are subject to change, so be sure to confirm the current rate before you open an account. To see current top rates at institutions both near you and nationwide, visit DepositAccounts.com, where you can choose the type of account you’d like to open, then enter your deposit amount and zip code.

Checking Accounts

If you’re looking for a no-fuss checking account, you’ll likely have to settle for a rate well under 1%. One exception: The no-fee, online T-Mobile Money checking account offers a 1% interest rate even to those who are not customers of the company’s wireless services. T-Mobile and Sprint wireless customers who deposit at least $200 monthly into the account get an impressive 4% rate on balances of up to $3,000 and 1% on the portion of the balance higher than $3,000.

Digital Federal Credit Union  recently offered 0.5% on up to $100,000 in its free checking account if you activate the “Earn More” feature, which sweeps your funds into FDIC-insured accounts with partner institutions (you retain normal access to your money). The credit union is temporarily refunding all out-of-network ATM charges; typically, you must have a direct deposit and make five transactions per month to get $300 in fees reimbursed yearly. You can become eligible for Digital membership if you join a partner organization, such as Reach Out for Schools (the membership fee starts at $10), and deposit $5 into a savings account.

The free, online checking account from FNBO Direct yields 0.4%, but the account does not come with check writing. To move money out of the account, you can use a debit card, make online transfers or pay other people with peer-to-peer payment service PopMoney. TIAA Bank offers a fixed 0.4% yield for the first year (0.12% thereafter) on up to $250,000 in its free Yield Pledge Checking account, and you get unlimited reimbursement of ATM withdrawal fees if you keep at least $5,000 in the account, or up to $15 in ATM fees refunded monthly if you have less than $5,000.

More-Rewarding Accounts

You can earn a considerably higher yield on your checking balance if you’re willing to jump through some hoops, such as making several monthly purchases with your debit card, having a direct deposit and using online banking features. The rates on high-yield checking are often better than what you can get with a savings account, so you may consider keeping some of your savings stash in one of these accounts, too.

Consumers Credit Union (based in Illinois) has long offered chart-topping rates on its Rewards Checking account. You get 4.09% on up to $10,000 if you make at least 12 debit card transactions monthly; have at least $500 monthly in direct deposits, mobile check deposits and transfers into the account; spend at least $1,000 monthly on a CCU Visa credit card; and receive electronic statements. You get a 3.09% rate if you spend $500 on the credit card monthly and meet the other requirements, and a 2.09% rate if you do not use the credit card but meet the other requirements. All out-of-network ATM fees are reimbursed if you meet the monthly requirements. Anyone in the U.S. can join CCU by paying a one-time, $5 fee to the Consumers Cooperative Association and depositing $5 into a savings account.

The free Vertical Checking account from Evansville Teachers Federal Credit Union yields 3.3% on up to $20,000 if you make at least 15 monthly debit card purchases, have a monthly direct deposit, log in to online or mobile banking monthly, and receive electronic statements. The account refunds up to $15 monthly in ATM surcharges if you meet the activity requirements. Anyone in the country can join the credit union by donating $5 to the Mater Dei Friends & Alumni Association and depositing $5 in a savings account.

One free account with a long track record is Rewards Checking from Axos Bank. It has offered a rate of 1.25% since 2011, says Tumin, and the rate applies to balances of up to $150,000. You’re eligible for the 1.25% yield if you have monthly direct deposits of at least $1,000 and make 15 debit card purchases (minimum $3 per transaction) monthly. Plus, you get unlimited reimbursement of out-of-network ATM fees.

Savings and money market accounts

Savings accounts and money market deposit accounts are prime places to store your emergency fund—a backup cash stash that you can tap if you have a sudden loss of income or an unexpected expense. They are also good parking spots for other money that you’d like to set aside for a goal, such as a vacation or a big purchase.

Among savings accounts, the free, online account from ConnectOne Bank  recently offered one of the best available rates: 0.9% on balances between $2,500 and $250,000. First Foundation Bank has a 0.75% yield on its online savings account ($1,000 opening deposit but no ongoing minimum required). The free savings accounts from Live Oak Bank (0.7% yield) and SFGI Direct (0.67% yield) have consistently had strong yields over the past few years.

Several prominent internet banks, including Ally Bank, American Express , Marcus by Goldman Sachs and Synchrony recently matched one another with a 0.6% rate on their free, no-minimum savings accounts. Notably, Synchrony’s account comes with an ATM card, and the account refunds $5 monthly in ATM fees. At 0.61%, the rate on Axos Bank’s free savings account is a smidge higher. If you prefer to keep your savings and checking with one institution, consider Ally or Axos—both offer free checking accounts.

If you’re physically active—or are looking for more motivation to exercise—check out Fitness Bank. Its savings account yields 0.4% if you walk fewer than 5,000 steps a day, on average—or 0.5% if you’re at least 65 years old—but if you step up your walking regimen, the yield jumps. You get 0.85% if you walk an average of at least 12,500 steps a day (10,000-step minimum if you’re 65 or older), 0.75% if you walk at least 10,000 steps daily (7,500 steps for those 65 or older), 0.65% for walking at least 7,500 steps (5,000 steps if 65 or older), and 0.55% if you walk at least 5,000 steps. To count steps, link a fitness tracker such as a Fitbit or an Apple Watch to Fitness Bank’s step-tracking app. You must keep $100 in the account to avoid a $10 monthly fee.

Top Money Market Accounts

Money market deposit accounts are similar to savings accounts but often come with a debit card or check writing for easy access to your money. To get the best rates or avoid fees, you may have to meet certain activity requirements or keep a big balance.

Affinity Plus Federal Credit Union pays an outstanding 1.5% on balances of up to $25,000 (0.7% on the portion of the balance higher than $25,000) on its free Superior Money Market Account, which offers check writing and a debit card. But to get that rate, you must have a direct deposit of at least $500 into an Affinity Plus checking, savings or money market account and sign up for electronic statements. You can join the credit union by paying a $25 fee to the Affinity Plus Foundation and depositing $10 into a savings account.

The Impact Money Market account from National Cooperative Bank yields 0.91% on all balances, and you can request checks and a debit card. But to avoid a stiff $25 monthly fee, you must keep at least $5,000 in the account. The High Yield Money Market Account from CFG Bank yields 0.8% if you hold a balance of at least $25,000, but it does not come with check writing or a debit card. You must keep a minimum $1,000 balance to avoid a $10 monthly fee.

As with savings accounts, several banks are offering money market rates hovering at 0.6%. One of the best options is the free account from Axos Bank, which requires a $1,000 opening deposit (no ongoing minimum) and includes check writing and a debit card. The money market account from Northern Bank Direct yields 0.6% on up to $250,000, with no monthly fee. (If your balance is higher than $250,000, you get 0.25% on the entire amount.) You must make a $5,000 opening deposit (no ongoing minimum required) and it comes with an ATM card.

Certificates of deposit

With a CD, you agree to keep your money in the account for a certain period in exchange for a guaranteed interest rate during that time. If you decide to reclaim the money before the CD matures, you’ll usually owe an early-withdrawal penalty, which may range from a few months’ worth of interest to a year or more of interest. If you’d like to hedge your bets—especially if you invest in CDs with maturities of a few years or more—look for certificates with light early-withdrawal penalties. Ally Bank, for example, penalizes you a relatively forgiving 150 days’ worth of interest on its five-year High Yield CD (no minimum amount required), which recently yielded 1%.

If you have a CD nearing its maturity, shop around for the best interest rate rather than letting it renew at the institution’s current rates, which may be considerably lower than the previous rate you earned. The highest rates on one-year CDs aren’t much better than those of the top-yielding savings accounts, and five-year CD rates don’t offer much of an advantage over yields on CDs with shorter terms. But for long-term savings that you’re willing to lock away for a while, you may be able to squeeze out a little more yield than you can get with your savings account—and you can rest easy knowing that the interest rate won’t fall during the CD’s term. 

Recently, you could get a 0.95% yield with a one-year term, or a 0.9% yield with a six-month term, on CDs from CommunityWide Federal Credit Union ($1,000 minimum deposit). You can join the credit union by making $5 donation to an affiliated organization, including Michiana Goodwill Boosters or Habitat for Humanity Helpers, and depositing $5 into a savings account. State Bank of Texas  offers 0.95% on a one-year CD with a $25,000 minimum deposit.

Pen Air Federal Credit Union offers one of the leading rates for a five-year CD, at 1.35% with a minimum deposit of $500. Its early-withdrawal penalty is 180 days’ worth of interest. For membership eligibility, Pen Air will make a $1 donation on your behalf to the Friends of the Navy–Marine Corps Relief Society, and you must deposit $25 into a savings account. Hiway Credit Union also offers 1.35% on a five-year CD, but the minimum deposit is $25,000. If you withdraw money early from a five-year CD from Hiway, you’ll owe one year’s worth of interest. To become a member of Hiway, join the Minnesota Recreation and Park Foundation, with a $10 fee, or the Association of the U.S. Army ($40 for a two-year membership), and keep $5 in a savings account.

Savings bonds

Savings bonds are another option for long-term cash holdings. Series EE and Series I bonds are not redeemable the first 12 months you own them, and if you cash them out before five years have passed, you’ll owe a penalty of three months’ interest. One nice benefit is that you pay no state or local income tax on savings bond interest, and you can defer federal income tax until you redeem the bond or when it reaches maturity in 30 years, whichever comes first. You can purchase up to $10,000 in EE bonds and $10,000 in I bonds per year.

I bonds are a bright spot at a time when yields on many other savings options trail inflation. The bonds combine a fixed interest rate, which remains the same for the life of the bond, with an inflation rate that is based on the consumer price index and resets every six months. The two rates form a composite yield, which is 1.68% for those who purchase I bonds between November 1, 2020, and April 30, 2021. That’s a higher rate than you can get with even the top-yielding five-year CDs. And adjustments to the inflation component of the bonds should help your savings keep up with inflation.

Series EE bonds purchased between November 1, 2020, and April 30, 2021, earn a measly 0.1% interest. But if you’re willing to hang on to the bond for a couple of decades, it becomes a more attractive investment: After 20 years have passed, if interest earnings haven’t caused the EE bond to double in value, the Treasury will make a one-time adjustment to bring the bond’s value to twice the purchase price. That’s a guaranteed return of about 3.5%.

Get a high rate on the go

If you spend a lot of time on your smartphone, you may not mind doing all of your banking on the device, too. These two mobile banks, which operate primarily through a smartphone app, offer noteworthy yields.

Chime offers a free “Spending” account, which comes with a debit card, plus a free savings account that recently yielded 1% on all balances. (You must have a Spending account to use the savings account, and you can transfer money into the savings account only from Spending.) Each time you use your debit card for a purchase or bill payment, Chime automatically rounds up the transaction to the nearest dollar and deposits the difference into your savings account. You can withdraw money with the debit card at 38,000 ATMs nationwide fee-free.

Like Chime, Simple offers a free basic checking account for everyday spending. You can pair it with the free “Protected Goals” checking account, which yields 0.6% on all balances and is designed to hold money that you’re saving for future expenses. You can instruct Simple to round up debit-card purchase amounts to the nearest dollar and transfer the difference to Protected Goals, and you can use budgeting tools to see your progress toward savings goals, such as going on a vacation. You can access 40,000 ATMs fee-free with Simple’s debit card.

Both of these financial-technology companies partner with institutions insured by the Federal Deposit Insurance Corp. to hold your funds, and they have been established for several years. Take caution, however, with tech companies that are newer to the game of offering bank accounts. Customers of Beam, a mobile bank that launched in the fall of 2019, recently had problems withdrawing money from their accounts. When investing app Robinhood first announced a checking and savings account in 2018, it claimed that customers’ funds would be covered by the Securities Investor Protection Corp., which protects brokerage accounts. The SIPC disputed the claim, and Robinhood later introduced a cash management account that sweeps funds into FDIC-insured bank accounts.

Build a CD ladder

A CD ladder is a tried-and-true method to ensure that a portion of your savings will regularly become available to capture current interest rates, while the rest of your money benefits from the higher rates that longer maturities offer. Divvy up your pot of money dedicated to CDs among several maturities—say, $5,000 each in CDs with maturities of one, two, three, four and five years. When a CD matures each year, you can reinvest the money at current rates or use it for other needs. If you reinvest, one option is to put the money in a five-year CD each year after your initial investment in CDs of various maturities, suggests Tumin. You’ll eventually have all of your money in five-year CDs, with one CD reaching maturity each year.

Источник: https://www.kiplinger.com/personal-finance/banking/high-yield-savings-accounts/601766/find-higher-yields-for-your-cash

The 5 Best Alternatives to Bank Savings Accounts

With traditional passbook savings accounts paying only a little better now than next to nothing in interest, more and more individuals are looking for better-paying alternatives. Among them are money market accounts, other bank-account options, and peer-to-peer lending. Here's what you need to know.

Key Takeaways

  • With interest rates still hovering around historic lows, savers are hard-pressed to enjoy favorable interest rates on deposits kept with bank savings accounts.
  • Several low-risk alternatives do exist that can boost the interest rate you receive.
  • Here we look at five, including money market accounts and CDs at online banks.

1. Higher-Yield Money Market Accounts

One of the simplest alternatives to depositing money in a traditional passbook savings account is to obtain a money market account. Money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC) just like regular savings or checking accounts.

In addition to paying higher interest rates than standard savings accounts, money market accounts offer limited checking account services. There is usually a relatively low maximum number of checks that a customer can write on their account per month—typically between five and 10. In return for abiding by this restricted withdrawal activity, money market account holders receive a higher interest rate than those that are available for traditional savings accounts. A bank offering only a 0.10% interest rate on standard savings accounts, for example, might offer a0.25% interest rate on a money market account.

With passbook savings accounts paying so little, try to find a better place to stash your emergency fund—just watch for whether the money is still insured.

In addition to the limit on monthly transactions, money market accounts usually have other restrictions as well, such as a required minimum opening deposit amount or a minimum balance that must be maintained. If there is a minimum balance requirement and the account drops below the minimum, account holders may be paid just the standard, lower interest rate offered on regular savings accounts; however, some banks also charge a penalty fee. Before opening a money market or other alternative account, scrutinize the fine print of your agreement for any restrictions that apply to the account, along with all fees that the account may incur.

2. Certificates of Deposit

For individuals who do not expect to need access to their savings for at least a year or two, there are certificates of deposit (CDs). The longer the term that customers are willing to have their money tied up, the higher the interest rate available. One-year and two-year CDs offer higherinterest rates than are currently available on traditional savings accounts. But the catch is your money will be locked up for the term of the CD—typically a few months to a few years. If you touch the money prior to that, you may be subject to fees and penalties.

According to Bankrate.com, 0.21% was the national average APY rate for a one-year CD (as of January 2021); two-year CDs offered as high as 0.95%. However, Qontic Bank and Delta Community Credit Union were paying the highest rates, subject to a $500 - $1,000 minimum. With a little planning, individuals can spread their capital across CDs of varying term lengths to provide themselves with more liquidity, in case they need to access part of their savings. Even better, CDs are FDIC-insured. Since the terms of CDs—including interest rates and early withdrawal penalties—vary significantly between institutions, it is important to shop around for a CD to maximize your return.

3. Credit Unions and Online Banks

It's often possible to obtain a higher interest rate simply by moving a savings account to a different financial institution, either one down the street or one accessed through the internet. Credit unions operate much the same as banks, although they typically offer fewer financial services. Credit union accounts are federally insured through the National Credit Union Share Insurance Fund (NCUSIF), the credit union equivalent of the FDIC.

Credit unions commonly offer significantly better interest rates on savings accounts than banks do because credit unions are nonprofit organizations. For example, an individual may be able to go from earning around 0.09% to 1.25% simply by opening a savings account at a credit union rather than at a traditional bank.

Online banks, such as Ally Bank or American Express Bank, also typically offer higher interest rates on savings accounts. They are able to do this because they avoid the brick-and-mortar overhead expenses of maintaining physical branch offices. Moreover, these banks typically offer attractive rates on CDs, above those of brick-and-mortar banks.

4. High-Yield Checking Accounts

There are high-yield checking accounts that offer better interest rates than savings accounts. Some of these checking accounts offer up to 2.00% annual percentage yield, in contrast to lower savings account rates.

To obtain the higher interest rates, customers typically have to meet certain requirements, such as a minimum balance, establishing direct deposit or bill pay, or conducting a minimum number of monthly debit card transactions. If account holders fail to meet the requirements for receiving the higher rates, there's usually no penalty. They are often simply provided the bank's standard lower rate for checking accounts.

5. Peer-to-Peer Lending Services

Peer-to-peer lending services, usually operated through websites, have become increasingly popular in recent years. Peer-to-peer lending provides a way for individuals looking to borrow money to obtain personal loans outside of going to a bank—and for individual lender investors to earn excellent returns on investment by funding the loans with their lending account deposits. Through websites such as Prosper.com, individuals on the lending side provide loan capital for individuals on the borrowing side.

Lending accounts with peer-to-peer lenders are not FDIC-insured like a savings account at a bank, and it is possible to lose money. Borrowers are screened by the service and typically must meet certain requirements in order to obtain loans.

The feature of peer-to-peer lending that vastly reduces risk is the structure of the loans. The risk on any individual loan is spread across a large number of lender investors. Individual lenders usually fund no more than $25 to $50 of any one loan. An individual seeking a loan of $2,000 for home improvements, for example, may have the loan funded by 40 different individual lenders, each providing $50 toward the loan total.

The lending service evaluates borrowers and the purpose of the loan to determine credit risk and the interest rate to be charged for a loan. Individual lender investors can select their level of risk to determine which kinds of loans their money will be used to fund. Even if a single borrower defaults now and then, lenders receive some protection because the investment is spread across so many different loans. Still, as of 2015, lender investors were able to earn an overall return of around 5% to 9%. According to the National Bureau of Economic Research, loan default rates taken out through popular peer-to-peer lending platforms averaged around 5% at that time.

One of the advantages of putting money into a peer-to-peer lending account is that an individual can open a lending account with a very low minimum deposit, as little as $25, and can choose to add money to the account monthly just as one does with a savings account.

Although this option is not government-insured, guaranteed income in the same way that a savings account is, it can be a low-risk investment that offers potential returns far above what a regular savings account offers. However, the regulatory environment around P2P lending is complicated and can differ from state to state. Due diligence before investing—and careful examination of how payment to you as a lender is organized—is especially necessary here.

The Bottom Line

There are definitely alternatives to the traditional passbook savings account that allow you to earn higher interest rates on your money. They may not offer the liquidity of a savings account, and they do come with requirements ranging from minimum balances and monthly limits on transactions to lack of federal insurance. But, depending on your financial situation, they could prove attractive.

Источник: https://www.investopedia.com/articles/personal-finance/091815/5-best-alternatives-bank-saving-accounts.asp
best apy savings account 2015

Interest rates on deposits 2021Oct

Note: Due to rounding, the sum may differ slightly from the total of the components

a. Interest rates presented here are effective rates calculated by dividing the accrued interest flows for the months under review by the monthly averages of the corresponding outstanding amounts. For the different types of deposits, including step-up deposits, they correspond best apy savings account 2015 the average conditions practiced during the month under review by the French credit institutions on deposits of non-financial corporations and households (including non-profit institutions serving households) residents.
b. Regulated rates passbooks include passbooks A, blue passbooks, sustainable development passbooks, home savings plans, youth passbooks and people's savings passbooks.
c. Monthly averages.
d. 5 years Constant Maturity Rate. Source: French Bond Association.
e. Revised data.
f. Provisional data.
g. Including taxed saving books, other special saving accounts, people saving plans (PEP) and subordinated loans

Источник: https://www.banque-france.fr/en/statistics/savings-and-national-financial-accounts/bank-savings/interest-rates-deposits

Find Higher Yields for Your Cash

There’s no way to sugarcoat it: Yields on savings accounts, certificates of deposit and other safe places to park your cash are disappointingly low, and interest rates will remain in the dumps for a while. In response to the coronavirus crisis, last spring the Federal Reserve slashed short-term rates back to the near-zero levels at which they had hovered from late 2008 through most of 2015. “It’s pretty much ‘back to the future.’ We’re revisiting the territory that became all too familiar after the Great Recession,” says Greg McBride, chief financial analyst for Bankrate.com. Kiplinger expects rates to remain near zero through 2024.

Even keeping pace with inflation on your cash holdings is a tough prospect. Annual inflation recently ran at 1.4%, and nearly all the top-yielding savings accounts and money market deposit accounts offer less than 1%. The Fed has stated that with inflation running persistently lower than its long-term goal of 2%, it will aim to achieve inflation “moderately above 2% for some time.” That means that at least for a while, the Fed doesn’t expect to raise interest rates even if inflation starts to accelerate.

Savers who struggled to scrounge up a respectable yield during the last low-rate period may notice that the pickings are even slimmer this time around. Ken Tumin, founder of DepositAccounts.com, notes that rates for several savings accounts and certificates of deposit from online banks and credit unions have fallen to lower levels in the past several months than they did when account rates last bottomed out, around 2012 and 2013. Many banks saw a surge in deposits in 2020 as consumers stepped up their savings rate, reducing the banks’ desire to lure savers with competitive interest rates, says Tumin.

Despite the dim outlook, seeking accounts with above-average rates is worthwhile. If you put $50,000 in a savings account yielding 0.75% (compounded monthly) and maintain that rate for a year, you’ll pocket $376 in interest earnings. If you instead use an account yielding 0.09%—the recent national average, according to Bankrate—you’ll have only $45 in interest after a year.

Here, we’ve highlighted several ways to earn a relatively strong yield without sacrificing safety. All the deposit accounts come with protection against bank failure, with up to $250,000 insured per depositor at each bank or credit union. (To calculate whether your balances are covered, use the tools at edie.fdic.gov and mycreditunion.gov) And savings bonds are backed by the full faith and credit of the U.S. government.

The accounts listed here are available to customers nationwide. Rates are as of November 6 and are subject to change, so be sure to confirm the current rate before you open an account. To see current top rates at institutions both near you and nationwide, visit DepositAccounts.com, where you can choose the type of account you’d like to open, then enter your deposit amount and zip code.

Checking Accounts

If you’re looking for a no-fuss checking account, you’ll likely have to settle for a rate well under 1%. One exception: The no-fee, online T-Mobile Money checking account offers a 1% interest rate even to those who are not customers of the company’s wireless services. T-Mobile and Sprint wireless customers who deposit at least $200 monthly into the account get an impressive 4% rate on balances of up to $3,000 and 1% on the portion of bank of america winter village bryant park ice rink balance higher than $3,000.

Digital Federal Credit Union  recently offered 0.5% on up to $100,000 in its free checking account if you activate the “Earn More” feature, which sweeps your funds into FDIC-insured accounts with partner institutions (you retain normal access to your money). The credit union is temporarily refunding all out-of-network ATM charges; typically, you must have a direct deposit and make five transactions per month to get $300 in fees reimbursed yearly. You can become eligible for Digital membership if you join a partner organization, such as Reach Out for Schools (the membership fee starts at $10), and deposit $5 into a savings account.

The free, online checking account from FNBO Direct yields 0.4%, but the account does not come with check writing. To move money out of the account, you can use a debit card, make online transfers or pay other people with peer-to-peer payment service PopMoney. TIAA Bank offers a fixed 0.4% yield for the first year (0.12% thereafter) on up to $250,000 in its top 10 home remedies for migraine Yield Pledge Best apy savings account 2015 account, and you get unlimited reimbursement of ATM withdrawal fees if you keep at least $5,000 in the account, or up to $15 in ATM fees refunded monthly if you have less than $5,000.

More-Rewarding Accounts

You can earn a considerably higher yield on your checking balance if you’re willing to jump through some hoops, such as making several monthly purchases with your debit card, having a direct deposit and using online banking features. The rates on high-yield checking are often better than what you can get with a savings account, so you may consider keeping some of your savings stash in one of these accounts, too.

Consumers Credit Union (based in Illinois) has long offered chart-topping rates on its Rewards Checking account. You get 4.09% on up to $10,000 if you make at least 12 debit card transactions monthly; have at least $500 monthly in direct deposits, mobile check deposits and transfers into the account; spend at least $1,000 monthly on a CCU Visa credit card; and receive electronic statements. You get a 3.09% rate if you spend $500 on the credit card monthly and meet the other requirements, and a 2.09% rate if you do not use the credit card but meet the other requirements. All out-of-network ATM fees are reimbursed if you meet the monthly requirements. Anyone in the U.S. can join CCU by paying a one-time, $5 fee to the Consumers Cooperative Association and depositing $5 into a savings account.

The free Vertical Checking account from Evansville Teachers Federal Credit Union yields 3.3% on up to $20,000 if you make at least 15 monthly debit card purchases, have a monthly direct deposit, log in to online or mobile banking monthly, and receive electronic statements. The account refunds target visa pay my bill to $15 monthly in ATM surcharges if you meet the activity requirements. Anyone in the country can join the credit union by donating $5 to the Mater Dei Friends & Alumni Association and depositing $5 in a savings account.

One free account with a long track record is Rewards Checking from Axos Bank. It has offered a rate of 1.25% since 2011, says Tumin, and the rate applies to balances of up to $150,000. You’re eligible for the 1.25% yield if you have monthly direct deposits of at least $1,000 and make 15 debit card purchases (minimum $3 per transaction) monthly. Plus, you get unlimited reimbursement of out-of-network ATM fees.

Savings and money market accounts

Savings accounts and money market deposit accounts are prime places to store your emergency fund—a backup cash stash that you can tap if you have a sudden loss of income or an unexpected expense. They are also good parking spots for other money that you’d like to set aside for a goal, such as a vacation or a big purchase.

Among savings accounts, the free, online account from ConnectOne Bank  recently offered one of the best available rates: 0.9% on balances between $2,500 and $250,000. First Foundation Bank has a 0.75% yield on its online savings account ($1,000 opening deposit but no ongoing minimum required). The free savings accounts from Live Oak Bank (0.7% yield) and SFGI Direct (0.67% yield) have consistently had strong yields over the past few years.

Several prominent internet banks, including Ally Bank, American Express , Marcus by Goldman Sachs and Synchrony recently matched one another with a 0.6% rate on their free, no-minimum savings accounts. Notably, Synchrony’s account comes with an ATM card, and the account refunds $5 monthly in ATM usaa atm locations killeen tx. At 0.61%, the rate on Axos Bank’s free savings account is a smidge higher. If you prefer to keep your savings and checking with one institution, consider Ally or Axos—both offer free checking accounts.

If you’re physically active—or are looking for more motivation to exercise—check out Fitness Bank. Its savings account yields 0.4% if you walk fewer than 5,000 steps a day, on average—or 0.5% if you’re at least 65 years old—but if you step up your walking regimen, the yield jumps. You get 0.85% if you walk an average of at least 12,500 steps a day (10,000-step minimum if you’re 65 or older), 0.75% if you walk at least 10,000 steps daily (7,500 steps for those 65 or older), 0.65% for walking at least 7,500 steps (5,000 steps if 65 or older), and 0.55% if you walk at least 5,000 steps. To count steps, link a fitness tracker such as a Fitbit or an Apple Watch to Fitness Bank’s step-tracking app. You must keep $100 in the account to avoid a $10 monthly fee.

Top Money Market Accounts

Money market deposit accounts are similar to savings accounts but often come with a debit card or check writing for easy access to your money. To get the best rates or avoid fees, you may have to meet certain activity requirements or keep a big balance.

Affinity Plus Federal Credit Union pays an outstanding 1.5% on balances of up to $25,000 (0.7% on the portion of the balance higher than $25,000) on its free Superior Money Market Account, which offers check writing and a debit card. But to get that rate, you must have a direct deposit of at least $500 into an Affinity Plus checking, savings or money market account and sign up for electronic statements. You can join the credit union by paying a $25 fee to the Affinity Plus Foundation and depositing $10 into a savings account.

The Impact Money Market account from National Cooperative Bank yields 0.91% on all balances, and you can request checks and a debit card. But to avoid a stiff $25 monthly fee, you must keep at least $5,000 in the account. The High Yield Money Market Account from CFG Bank yields 0.8% if you hold a balance of at least $25,000, but it does not come with check writing or a debit card. You must keep a minimum $1,000 balance to avoid a $10 monthly fee.

As with savings accounts, several banks are offering money market rates hovering at 0.6%. One of the best options is the free account from Axos Bank, which requires a $1,000 opening deposit (no ongoing minimum) and includes check writing and a debit card. The money market account from Northern Bank Direct yields 0.6% on up to $250,000, with no monthly fee. (If your balance is higher than $250,000, you get 0.25% on the entire amount.) You must make a $5,000 opening deposit (no ongoing minimum required) and it comes with an ATM card.

Certificates of deposit

With a CD, you agree to keep your money in the account for a certain period in exchange for a guaranteed interest rate during that time. If you decide to reclaim the money before the CD matures, you’ll usually owe an early-withdrawal penalty, which check td bank gift card balance online range from a few months’ worth of interest to a year or more of interest. If you’d like to hedge your bets—especially if you invest in CDs with maturities of a few years or more—look for certificates with light early-withdrawal penalties. Ally Bank, for example, penalizes you a relatively forgiving 150 days’ worth of interest on its five-year High Yield CD (no minimum amount required), which recently yielded 1%.

If you have a CD nearing its maturity, shop around for the best interest rate rather than letting it renew at the institution’s current rates, which may be considerably lower than the previous rate you earned. The highest rates on one-year CDs aren’t much better than those of the top-yielding savings accounts, and five-year CD rates don’t offer much of an advantage over yields on CDs with shorter terms. But for long-term savings that you’re willing to lock away for a while, you may be able to best apy savings account 2015 out a little more yield than you can get with your savings account—and you can rest easy knowing that the interest rate won’t fall during the CD’s term. 

Recently, you could get a 0.95% yield with a one-year term, or a 0.9% yield with a six-month term, on CDs from CommunityWide Federal Credit Union ($1,000 minimum deposit). You can join the credit union by making $5 donation to an affiliated organization, including Michiana Goodwill Boosters or Habitat for Humanity Helpers, and depositing $5 into a savings account. State Bank of Texas  offers 0.95% on a one-year CD with a $25,000 minimum deposit.

Pen Air Federal Credit Union offers one of the leading rates for a five-year CD, at 1.35% with a minimum deposit of $500. Its early-withdrawal penalty is 180 days’ worth of interest. For membership eligibility, Pen Air will make a $1 donation on your behalf to the Friends of the Navy–Marine Corps Relief Society, and you must deposit $25 into a savings account. Hiway Credit Union also offers 1.35% on a five-year CD, but the minimum deposit is $25,000. If you withdraw money early from a five-year CD from Hiway, how to activate walmart prepaid debit card owe one year’s worth of interest. To become a member of Hiway, join the Minnesota Recreation and Park Foundation, with a $10 fee, or the Association of the U.S. Army ($40 for a two-year membership), and keep $5 in a savings account.

Savings bonds

Savings bonds are another option for long-term cash holdings. Series EE and Series I bonds are not redeemable the first 12 months you own them, and if you cash them out before five years have passed, you’ll owe a penalty of three months’ interest. One nice benefit is that you pay no state or local income tax on savings bond interest, and you can defer federal income tax until you redeem the bond or when it reaches maturity in 30 years, whichever comes first. You can purchase up to $10,000 in EE bonds and $10,000 in I bonds per year.

I bonds are a bright spot at a time when yields on many other savings options trail inflation. The bonds combine a fixed interest rate, which remains the same for the life of the bond, with an inflation rate that is based on the consumer price index and resets every six months. The two rates form a composite yield, which is 1.68% for those who purchase I bonds between November 1, 2020, and April 30, 2021. That’s a higher rate than you can get with even the top-yielding five-year CDs. And adjustments to the inflation component of the bonds should help your savings keep up with inflation.

Series EE bonds purchased between November 1, 2020, and April 30, 2021, earn a measly 0.1% interest. But if you’re willing to hang on to the bond for a couple of decades, it becomes a more attractive investment: After 20 years have passed, if interest earnings haven’t caused the EE bond to double in value, the Treasury will make a one-time adjustment to bring the bond’s value to twice the purchase price. That’s a guaranteed return of about 3.5%.

Get a high rate on the go

If you spend a lot of time on your smartphone, you may not mind doing all of your banking on the device, too. These two mobile banks, which operate primarily through a smartphone app, offer noteworthy yields.

Chime offers a free “Spending” account, which comes with a debit card, plus a free savings account that recently yielded 1% on all balances. (You must have a Spending account to use the savings account, and you can transfer money into the savings account only from Spending.) Each time you use your debit card for a purchase or bill payment, Chime automatically rounds up the transaction to the nearest dollar and deposits the difference into your savings account. You can withdraw money with the debit card at 38,000 ATMs nationwide fee-free.

Like Chime, Simple offers a free basic checking account for everyday spending. You can pair it with the free “Protected Goals” checking account, which yields 0.6% on all balances and is designed to hold money that you’re saving for future expenses. You can instruct Simple to round up debit-card purchase amounts to the nearest dollar and transfer the difference to Protected Goals, and you can use budgeting tools to see your progress toward savings goals, such as going on a vacation. You can access 40,000 ATMs fee-free with Simple’s debit card.

Both of these financial-technology companies partner with institutions insured by the Federal Deposit Insurance Corp. to hold your funds, and they have been established for several years. Take caution, however, with tech companies that are newer to the game of offering bank accounts. Customers of Beam, a mobile bank that launched in the fall of 2019, recently had problems withdrawing money from their accounts. When investing app Robinhood first announced a checking and savings account in 2018, it claimed that customers’ funds would be covered by the Securities Investor Protection Corp., which protects brokerage accounts. The SIPC disputed the claim, and Robinhood later introduced a cash management account that sweeps funds into FDIC-insured bank accounts.

Build a CD ladder

A CD ladder is a tried-and-true method to ensure that a portion of your savings will regularly become available to capture current interest rates, while the rest of your money benefits from the higher rates that longer maturities offer. Divvy up your pot of money dedicated to CDs among several maturities—say, $5,000 each in CDs with maturities of one, two, three, four and five years. When a CD matures each year, you can reinvest the money at current rates or use it for other needs. If you reinvest, one option is to put the money in a five-year CD each year after your initial investment in CDs of various maturities, suggests Tumin. You’ll eventually have all of your money in five-year CDs, with one CD reaching maturity each year.

Источник: https://www.kiplinger.com/personal-finance/banking/high-yield-savings-accounts/601766/find-higher-yields-for-your-cash

Personal bank accounts and registered products interest rates

View TD's interest rates on personal bank accounts and registered products.
Rates are as of October 8, 2020.

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first national bank severna park $50,000.00 to $99,999.99

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Save Automatically to your Account.

Our Automated Savings tools can help you make savings part of your everyday life.

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best apy savings account 2015 $0 to $4,999.99

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Save Automatically to your Account.

Our Automated Savings tools can help you make savings part of your everyday life.

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0.010%

$5,000.00 and over first citizens bank ballentine sc hours

0.010%

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Optimize your account with Overdraft Protection, Direct Deposit, Pre-Authorized Payments and more.

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Источник: https://www.td.com/ca/en/personal-banking/products/bank-accounts/account-rates

Two weeks after debut, Betterment's high-yield savings product takes a haircut


Just two weeks after introducing its new savings product with one of the banking industry’s highest yields at 2.69%, Betterment – the investment robo-advisor – lowered the promotional savings rate to 2.41%, according to an email it sent customers this week.

The move comes after the Federal Reserve last week cut by a quarter-point its key benchmark rate that banks use to set borrowing and savings rates.

But it still comes as a surprise given the attention Betterment gave the yield when it launched its savings platform on July 23 and underscores that even these financial tech companiesoffering high-yielding savings accounts are affected by the changing rate environment. 

“Online banks are not immune from lower falling interest rates,” says Greg McBride, chief financial analyst at Bankrate.com. “While returns can be expected to pull back as the Fed trims rates, yields are cnbtexas much higher than they were a couple years ago before the Fed ramped up rate hikes, and significantly higher than the 0.1% average that most people are earning on their savings.”

The rate change game

The rate on Betterment Everyday Savings is 2.41%, which includes a quarter-point promotional rate boost that expires at the end of the year. The email from the company explained that the rate is variable and is affected by any moves from the Fed.

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“If the Federal Reserve lowers its target range, the interest rate on Betterment Everyday Savings will generally change by a similar amount. You can expect this to impact rates at other banks as well. In fact, some banks have already been lowering their rates in anticipation,” according to a Betterment site linked to the email.

In fact, Ally and Marcus – both big players in high-yield savings – lowered their savings yields a month before the central bank actually reduced its rate. Most economists at the time forecast a rate cut.

But the move by the pair took people by surprise because, up until then, the online banks had been topping each other on savings rates to gain new customers.

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“Never before in the history of mankind have a couple of 10 basis point interest rate cuts generated so much media attention, as was the case with Ally and Marcus,” McBride says.

Rate reality

What these online banks are offering – rate cut or not – is much higher than what most people are earning on their savings accounts at the bigger national banks, which is often 0.1% or less.

For instance, Popular Direct offers 2.55% on its savings accounts, but require a $5,000 minimum balance, according to an accounting from Bankrate. Other top ones include Vio Bank at 2.52%, Comenity Direct Bank at 2.45%, and MySavingsDirect at 2.4%.

Market watchers expect the Fed to cut rates again two more times this year, walking back some of the nine increases that the central bank enacted between 2015 and 2018.

Even so, McBride says: “Online savings accounts are still a lot higher than they had been before rates started rising, higher than inflation, and higher than what you’d earn otherwise by keeping your money at the bank down the street.”

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Источник: https://www.usatoday.com/story/money/2019/08/09/betterment-lowers-high-interest-savings-account-2-41-apy/1966890001/

History of savings account interest rates

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Putting your nest egg within easy reach when you need it, a savings account is a must-have for many people. Looking at historical savings account rates in terms of their movement alongside the national rate can help you make an informed decision when choosing a bank.

The FDIC has only kept track of savings account interest rates from the beginning of 2010. See how the online savings account you’re considering performs compared to previous average market rates.

January 20100.21%
July 20100.20%
January 20110.17%
July 20110.14%
January 20120.11%
July 20120.09%
January 20130.07%
July 20130.06%
January 20140.06%
July 20140.06%
January 20150.06%
July 20150.06%
January 20160.06%
July 20160.06%
January 20170.06%
July 20170.06%
January 20180.06%
July 20180.08%
January 20190.09%

*Based on the national average interest rates for savings accounts according to the FDIC.

Источник: https://www.finder.com/history-of-savings-account-interest-rates

The 5 Best Alternatives to Bank Savings Accounts

With traditional passbook savings accounts paying only a little better now than next to nothing in interest, more and more individuals are looking for better-paying alternatives. Among them are money market accounts, other bank-account options, and peer-to-peer lending. Here's what you need to know.

Key Takeaways

  • With interest rates still hovering around historic lows, savers are hard-pressed to enjoy favorable interest rates on deposits kept with bank savings accounts.
  • Several low-risk alternatives do exist that can boost the interest rate you receive.
  • Here we look at five, including money market accounts and CDs at online banks.

1. Higher-Yield Money Market Accounts

One of the simplest alternatives to depositing money in a traditional passbook savings account is to obtain a money market account. Money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC) just like regular savings or checking accounts.

In addition to paying higher interest rates than standard savings accounts, money market accounts offer limited checking account services. There is usually a relatively low maximum number of checks that a customer can write on their account per month—typically between five and 10. In return for abiding by this restricted withdrawal activity, money market account holders receive a higher interest rate than those that are available for traditional savings accounts. A bank offering only a 0.10% interest rate on standard savings accounts, for example, might offer a0.25% interest rate on a money market account.

With passbook savings accounts paying so little, try to find a better place to stash your emergency fund—just watch for whether the money is still insured.

In addition to the limit on monthly transactions, money market accounts usually have other restrictions as well, such as a required minimum opening deposit amount or a minimum balance that must be maintained. If there is a minimum balance requirement and the account drops below the minimum, account holders may be paid just the standard, lower interest rate offered on regular savings accounts; however, some banks also charge a penalty fee. Before opening a money market or other alternative account, scrutinize the fine print of your agreement for any restrictions that apply to the account, along with all fees that the account may incur.

2. Certificates of Deposit

For individuals who do not expect to need access to their savings for at least a year or two, there are certificates of deposit (CDs). The longer the term that customers are willing to have their money tied up, the higher the interest rate available. One-year and two-year CDs offer higherinterest rates than are currently available on traditional savings accounts. But the catch is your money will be locked up for the term of the CD—typically a few months to a few years. If you touch the money prior to that, you may be subject to fees and penalties.

According to Bankrate.com, 0.21% was the national average APY rate for a one-year CD (as of January 2021); two-year CDs offered as high as 0.95%. However, Qontic Bank and Delta Community Credit Union were paying the highest rates, subject to a $500 - $1,000 minimum. With a little planning, individuals can spread their capital across CDs of varying term lengths to provide themselves with more liquidity, in case they need to access part of their savings. Even better, CDs are FDIC-insured. Since the terms of CDs—including interest rates and early withdrawal penalties—vary significantly between institutions, it is important to shop around for a CD to maximize your return.

3. Credit Unions and Online Banks

It's often possible to obtain a higher interest rate simply by moving a savings account to a different financial institution, either one first united bank mortgage payment the street or one accessed through the internet. Credit unions operate much the same as banks, although they typically offer fewer financial services. Credit union accounts are federally insured through the National Credit Union Share Insurance Fund (NCUSIF), the credit union equivalent of the FDIC.

Credit unions commonly offer significantly better interest rates on savings accounts than banks do because credit unions are nonprofit organizations. For example, an individual may be able to go from earning around 0.09% to 1.25% simply by opening a savings account at a credit union rather than at a traditional bank.

Online banks, such as Ally Bank or American Express Bank, also typically offer higher interest rates on savings accounts. They are able to do this because they avoid the brick-and-mortar overhead expenses of maintaining physical branch offices. Moreover, these banks typically offer attractive rates on CDs, above those of brick-and-mortar banks.

4. High-Yield Checking Accounts

There are high-yield checking accounts that offer better interest rates than savings accounts. Some of these checking accounts offer up to 2.00% annual percentage yield, in contrast to lower savings account rates.

To obtain the higher interest rates, customers typically have to meet certain requirements, such as a minimum balance, establishing direct deposit or bill pay, or conducting a minimum number of monthly debit card transactions. If account holders fail to meet the requirements for receiving the higher rates, there's usually no penalty. They are often simply provided the bank's standard lower rate for checking accounts.

5. Peer-to-Peer Lending Services

Peer-to-peer lending services, usually operated through websites, have become increasingly popular in recent years. Peer-to-peer lending provides a way for individuals looking to borrow money to obtain personal loans outside of going to a bank—and best apy savings account 2015 individual lender investors to earn excellent returns on investment by funding the loans with their lending account deposits. Through websites such as Prosper.com, individuals on the lending side provide loan capital for individuals on the borrowing side.

Lending accounts with peer-to-peer lenders are not FDIC-insured like a savings account at a bank, and it is possible to lose money. Borrowers are screened by the service and typically must meet certain requirements in order to obtain loans.

The feature of peer-to-peer lending that vastly reduces risk is the structure of the loans. The risk on any individual loan is spread across a large number of lender investors. Individual lenders usually fund no more than $25 to $50 of any one loan. An individual seeking a loan of $2,000 for home improvements, for example, may have the loan funded by 40 different individual lenders, each providing $50 toward the loan total.

The lending service evaluates borrowers and the purpose of the loan to determine credit risk and the interest rate to be charged for a loan. Individual lender investors can select their level of risk to determine which kinds of loans their money will be used to fund. Even if a single borrower defaults now and then, lenders receive some protection because the investment is spread across so many different loans. Still, as of 2015, lender investors were able to earn an overall return of around 5% to 9%. According to the National Bureau of Economic Research, loan default rates taken out through popular peer-to-peer lending platforms averaged around 5% at that time.

One of the advantages of putting money into a peer-to-peer lending account is that an individual can open a lending account with a very low minimum deposit, as little as $25, and can choose to add money to the account monthly just as one does with a savings account.

Although this option is not government-insured, guaranteed income in the same way that a savings account is, it can be a low-risk investment that offers potential returns far above what a regular savings account offers. However, the regulatory environment around P2P lending is complicated and can differ from state to state. Due diligence before investing—and careful examination of how payment to you as a lender is organized—is especially necessary here.

The Bottom Line

There are definitely alternatives to the traditional passbook savings account that allow you to earn higher interest rates on your money. They may not offer the liquidity of a savings account, and they do come with requirements ranging from minimum balances and monthly limits on transactions to lack of federal insurance. But, depending on your financial situation, they could prove attractive.

Источник: https://www.investopedia.com/articles/personal-finance/091815/5-best-alternatives-bank-saving-accounts.asp

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