CD and Savings Account Rates Today


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Banks are fighting for customer dollars right now, and people with cash to spare are well-positioned to benefit from a high rate environment. With rates rapidly changing, how can you feel confident that you’re getting the best CD or best savings account?

We monitor rates from banks and credit unions daily to help you feel confident before you open a new account. Here are the top rates for popular savings accounts and CDs on Wednesday, August 30.

Leading High-Yield Savings Account Rates

Remember that high-yield savings account rates are variable, so they will change over time. An account offering 5% today may offer 5.25% six months from now — or 4.5%. However, you are allowed to have multiple savings accounts at different banks, and to move your money in search of the highest APY. Here are the accounts offering the best savings rates today:

Featured High-Yield Savings Account Rates

CloudBank 24/7 High Yield Savings Account

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 5.26% Annual Percentage Yield (APY). $1 minimum deposit. FDIC Insured.


Fees

no monthly service fee


Annual Percentage Yield (APY)

5.26%


Minimum Deposit Amount

$1

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accounts pay high interest rates
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Open accounts you might not be able access outside of Raisin
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum opening requirements are often lower than if you opened an account directly with a bank
Cons

  • con icon Two crossed lines that form an ‘X’. No checking accounts or business accounts
  • con icon Two crossed lines that form an ‘X’. Only way to deposit or withdraw money is by connecting to an external account
  • con icon Two crossed lines that form an ‘X’. Can’t connect to third-party budgeting apps, like Mint


Product Details

  • Raisin is an online marketplace that partners with banks to offer competitive rates
  • Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
  • Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
  • Interest is compounded daily and paid monthly
  • Deposits are federally insured by the FDIC or NCUA

UFB High Yield Savings

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn up to 5.25% APY on your savings. No monthly maintenance fees. No minimum deposit required to open an account.


Fees

no monthly service fee


Annual Percentage Yield (APY)

5.25% (as of 08/11/2023)


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. ATM card included
Cons

  • con icon Two crossed lines that form an ‘X’. May not be easy to deposit cash (Only cash accepting ATMs)


Product Details

  • Earn up to 5.25% APY*.
  • No monthly maintenance fees.
  • No minimum deposit required to open an account.
  • Access your funds 24/7 with easy-to-use digital banking tools.
  • Enjoy peace of mind with FDIC insurance up to the maximum allowance limit ® Certificate #35546.
  • * The Annual Percentage Yield (APY) is accurate as of 08/11/2023. The interest rate and corresponding APY for savings is variable and is set at UFB’s discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.

CIT Bank Platinum Savings

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 5.05% APY on balances of $5,000 or more. The higher your balance, the more you’ll earn. FDIC insured.


Fees

$0 monthly service fees


Annual Percentage Yield (APY)

5.05% (with $5,000 minimum balance)


Minimum Deposit Amount

$100

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
Cons

  • con icon Two crossed lines that form an ‘X’. $100 minimum opening deposit


Product Details

  • No monthly fees
  • $100 to open an account, however must maintain $5,000 daily balance to receive top tier
  • Member FDIC

Barclays Online Savings Account

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

4.35% Annual Percentage Yield with no monthly maintenance fees or minimum account requirement


Fees

no monthly service fee


Annual Percentage Yield (APY)

4.35%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
Cons

  • con icon Two crossed lines that form an ‘X’. Must transfer money to external bank to access it
  • con icon Two crossed lines that form an ‘X’. Low mobile app ratings in the Apple store


Product Details

  • No checking account or debit card, so you must transfer funds to an external bank account to access your money
  • Compounds interest daily to maximize earnings
  • Interest compounded daily, deposited monthly
  • FDIC insured

American Express® High Yield Savings Account

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 4.25% Annual Percentage Yield (APY) with no account minimums or monthly fees.


Fees

no monthly service fee


Annual Percentage Yield (APY)

4.25% APY as of 8/18/23


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit or minimum account balance
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 phone support
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No excess transaction fee
Cons

  • con icon Two crossed lines that form an ‘X’. No mobile app for banking customers
  • con icon Two crossed lines that form an ‘X’. You must make a deposit within the first 60 days
  • con icon Two crossed lines that form an ‘X’. No live online chat


Product Details

  • Member FDIC
  • 24/7 account access
  • Earns interest daily, and posts to account monthly

Leading CD Rates

Many of the best CD rates right now are offered by credit unions rather than banks. Don’t let this scare you — all of the credit unions on our list have easy qualification standards that most people can meet. If you’re looking for more CD options, check out our guides to individual CD terms in the sections below.

Featured CD Rates

Western Alliance Bank 1 Year CD


Annual Percentage Yield (APY)

5.51%


Minimum Deposit Amount

$1

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accounts pay high interest rates
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Open accounts you might not be able access outside of Raisin
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum opening requirements are often lower than if you opened an account directly with a bank
Cons

  • con icon Two crossed lines that form an ‘X’. No checking accounts or business accounts
  • con icon Two crossed lines that form an ‘X’. Only way to deposit or withdraw money is by connecting to an external account
  • con icon Two crossed lines that form an ‘X’. Can’t connect to third-party budgeting apps, like Mint


Product Details

  • Raisin is an online marketplace that partners with banks to offer competitive rates
  • Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
  • Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
  • Interest is compounded daily and paid monthly
  • Deposits are federally insured by the FDIC or NCUA

CIT Bank 6 Month Term CD

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 5.00% APY with a minimum deposit of $1,000. FDIC Insured*


Annual Percentage Yield (APY)

5.00%


Minimum Deposit Amount

$1,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive rates for some terms
Cons

  • con icon Two crossed lines that form an ‘X’. $1,000 minimum deposit
  • con icon Two crossed lines that form an ‘X’. Non-competitive rates for some terms


Product Details

  • Terms ranging from 6 months to 5 years
  • Early withdrawal penalties: 3 months simple interest for terms under 1 year, 6 months simple interest for terms of 1 to 3 years, 12 months simple interest for terms over 3 years
  • FDIC insured

Barclays 1 Year Online CD

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Enjoy fast, secure growth with a 4.90% APY CD. No hidden monthly fees or minimum balances — even to open an account


Annual Percentage Yield (APY)

5.00%


Minimum Deposit Amount

$0

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. Low mobile app ratings in the Apple store


Product Details

  • Terms range from 3 months to 5 years
  • Early withdrawal penalties are as follows: 90 days interest for terms of 24 months or less, 180 days interest for terms of more than 24 months
  • Interest compounds daily to maximize earnings
  • FDIC insured

About High-Yield Accounts

High-yield savings accounts aren’t the only accounts paying favorable rates right now. You’ll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick and mortar presence. This is normal; online banks have lower overhead cost and are willing to pay high rates to attract new customers.

High-Yield Savings Accounts

The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase. 

High-Yield Checking Accounts

The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today’s rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it’s typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.

Money Market Accounts

The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.

Cash Management Accounts

A cash management account is also like a savings/checking hybrid. You’ll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn’t. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.

Certificates of Deposit

The best CD rates may outpace any of the other accounts we’ve described above. That’s because a certificate of deposit requires you to “lock in” your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you’ll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you’ll let the bank hold your money, the higher rate you’ll get. CD rates aren’t variable; the rate you get upon depositing your money is the rate you’ll get for the length of your term.

About CD Terms

Locking your money into an account in exchange for a higher interest rate can be a big decision. Here’s what you need to know about common CD terms.

No-Penalty CDs

Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won’t have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

6-Month CDs

The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don’t have a large emergency fund for unexpected expenses.

1-Year CDs

The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses. 

2-Year CDs

The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

3-Year CDs

The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

5-Year CDs

The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

Products in this post: Technology Credit Union 5 Month No Penalty CD, TotalDirectBank 6 Month CD, TotalDirectBank 1 Year CD, Pelican State Credit Union 2 Year Share Certificate, US Senate Federal Credit Union 3 Year Smart Share Certificate, Department of Commerce Federal Credit Union 5 Year Share CDBetterment Cash Reserve Account, CloudBank 24/7 High Yield Savings Account, UFB High Yield Savings, Milli Savings Account, Newtek Bank Personal High Yield Savings Account



Source link: https://www.businessinsider.com/personal-finance/cd-rates-savings-account-rates-today-wednesday-6-2023-9

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