Jill Slattery is the VP of Content for the Hearst E-Commerce team. She previously served as the Chief Content Officer of Livingly Media. Email her at jill.slattery@hearst.com.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research. Mobile app users, click here for the best viewing experience.For the first time in over a decade, banks are seriously competing for your business. That's great news for savvy consumers who are willing to shop around in order to make the most of their hard-earned money.After years of maintaining low deposit interest rates, banks are now fielding challenges from a wealth of higher-yield options. Money market funds, in particular, are having a moment. Skittish investors flocked to them last week after the Silicon Valley Bank and Signature Bank turmoil 바카라 게임 웹사이트 US money market funds had more than $120 billion of net inflows this week, according data from the Investment Company Institute.According to FDIC data, overall commercial bank deposits fell last year for the first time since 1948, with net withdrawals hitting $278 billion. This slide in deposits has broader implications for the economy 바카라 게임 웹사이트 lower reserves hamper a bank's ability to lend money, among other things. So what are banks doing to try and stem the tide of outflows? They're raising interest rates on deposits, specifically CDs.Annual percentage yields on the best performing 1-year CDs have topped 5% in recent weeks, which is well above CD rates from a few years ago. And bank customers seem to be taking notice. According to S&P, the outstanding CDs amount in the US banking industry totaled $1.7 trillion in the fourth quarter of 2022, up from $1.49 trillion in the third.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If you're willing to do your research and shop around, though, you may be able to find much higher CD rates, particularly at online banks.PHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSIwN2ZiOTg4My0yNzgwLTQ3MjItYmIzZi1mMjBhZWEwYWM1ZWEiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LWNkLW11bHRpIiBkYXRhLXN1Yi1pZD0iaHR0cDovL3d3dy5rY3JhLmNvbS9hcnRpY2xlL2hpZ2hlci1jZC1yYXRlcy80MzM5OTk0OSI+PC9kaXY+How a CD worksWhen you commit to a CD, the bank is also making a promise: that it will honor the same interest rate for the length of the term. Terms typically range from one to five years (though you can find CDs with terms as short as three months). In most cases, you바카라 게임 웹사이트ll find the best interest rates on CDs with longer terms, though at the moment many of the best rates are on 1-year CDs.Once you put your money in a CD, you must leave it there for the length of the term or you바카라 게임 웹사이트ll have to pay a fee for taking it out early (known as an early withdrawal penalty). You also can바카라 게임 웹사이트t add to it once the term starts. So before locking any of your money in a CD, you바카라 게임 웹사이트ll want to be certain you can afford to part with it for that long. CDs can be a low-risk way to grow your savings, aside from the risk you might incur by locking your money in one place for a specific length of time.CDs are also insured up to $250,000, as long as they바카라 게임 웹사이트re with a bank that바카라 게임 웹사이트s insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration.Once your CD matures (that is, reaches the end of its term), you will typically have seven to 10 days to decide what to do next. You can renew the CD at the current rate, withdraw the money, or move it to another account or CD. If you do nothing, most banks will renew the CD for the same term but at the current rate, which might be higher or lower than the rate when you originally took out the CD. Pros and cons of CDsBecause a CD is a long-term commitment that keeps some portion of your money "locked" away, you may want to consider the pros and cons of a CD before obtaining one.ProsHigher interest ratesA safe, insured way to save moneyFixed interest rate, so it will stay the same for the term even if the market shiftsYou can predict exactly how much your money will growConsYour money is locked in for a specific amount of timeThere are penalties for early withdrawalsThe fixed interest rate can turn into a negative if rates on other types of savings accounts go up during the termLower return over the long-term than you바카라 게임 웹사이트d get from investing in the stock marketPHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSIwN2ZiOTg4My0yNzgwLTQ3MjItYmIzZi1mMjBhZWEwYWM1ZWEiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LWNkLW11bHRpIiBkYXRhLXN1Yi1pZD0iaHR0cDovL3d3dy5rY3JhLmNvbS9hcnRpY2xlL2hpZ2hlci1jZC1yYXRlcy80MzM5OTk0OSI+PC9kaXY+Savings account rates are also risingWhile interest rates on savings accounts haven't risen quite as much as CD rates, they are still substantively higher than they've been in recent years, particularly on high-yield savings accounts.High-yield savings accounts function much like a traditional savings account: Money that you deposit earns interest, also called the annual percentage yield, or APY. That interest can also be compounded, which means that over time, you earn interest on the interest that바카라 게임 웹사이트s been added to your account. Unlike CDs, savings account interest rates are not fixed, so rates may fluctuate. But you can also access your money at any time, which may be important to you.The primary difference between a high-yield savings account and a traditional account is the amount of interest you can earn. Online banks, which tend to offer the best interest rates, don바카라 게임 웹사이트t have the same overhead as brick-and-mortar banks. They pass that savings on to customers in the form of higher interest rates. As long as the bank is FDIC insured, it doesn바카라 게임 웹사이트t matter if it바카라 게임 웹사이트s a traditional bank or online bank; your money is protected up to $250,000 per depositor, per account type. According to Bankrate, the national average yield for savings accounts is 0.24 percent APY for the week of May 3. Many online banks have savings rates higher than the national average, though.PHNwYW4+PC9zcGFuPjxzY3JpcHQgYXN5bmM9InRydWUiIHNyYz0iaHR0cHM6Ly9zdGF0aWMubXlmaW5hbmNlLmNvbS93aWRnZXQvbXlGaW5hbmNlLmpzIj48L3NjcmlwdD48ZGl2IGNsYXNzPSJteUZpbmFuY2Utd2lkZ2V0IiBkYXRhLWFkLWlkPSJjYjdiMTc1Yy03YjU2LTRmY2QtODVjZS1kYjcxNjJmZDhmM2UiIGRhdGEtY2FtcGFpZ249ImhlYXJzdHR2LXNhdmluZ3MtbXVsdGkiIGRhdGEtc3ViLWlkPSJodHRwOi8vd3d3LmtjcmEuY29tL2FydGljbGUvaGlnaGVyLWNkLXJhdGVzLzQzMzk5OTQ5Ij48L2Rpdj4=The bottom lineWith the banking industry in flux, continued inflation concerns, and mixed opinions on whether the Federal Reserve will continue to raise rates, it may be a good idea to take advantage of the current high rates on CDs and/or savings accounts. With the right research, both CDs and savings account can be great tools in maximizing your overall financial health in the long run.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender바카라 게임 웹사이트s website for the most current information.This article was first published on SFGate.com and reviewed by Jill Slattery, who serves as VP of Content for the Hearst E-Commerce team. Email her at jill.slattery@hearst.com.
Jill Slattery is the VP of Content for the Hearst E-Commerce team. She previously served as the Chief Content Officer of Livingly Media. Email her at jill.slattery@hearst.com.
Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.
Mobile app users, click here for the best viewing experience.
For the first time in over a decade, banks are seriously competing for your business. That's great news for savvy consumers who are willing to shop around in order to make the most of their hard-earned money.
After years of maintaining low deposit interest rates, banks are now fielding challenges from a wealth of higher-yield options. Money market funds, in particular, are having a moment. Skittish investors flocked to them last week after the Silicon Valley Bank and Signature Bank turmoil 바카라 게임 웹사이트 US money market funds had more than $120 billion of net inflows this week, according data from the .
According to FDIC data, overall commercial bank deposits fell last year for the first time since 1948, with net withdrawals hitting $278 billion. This slide in deposits has broader implications for the economy 바카라 게임 웹사이트 lower reserves hamper a bank's ability to lend money, among other things. So what are banks doing to try and stem the tide of outflows? They're raising interest rates on deposits, specifically CDs.
Annual percentage yields on the best performing 1-year CDs have topped 5% in recent weeks, which is well above from a few years ago. And bank customers seem to be taking notice. According to S&P, the outstanding CDs amount in the US banking industry totaled $1.7 trillion in the fourth quarter of 2022, up from $1.49 trillion in the third.
If you're willing to do your research and shop around, though, you may be able to find much higher CD rates, particularly at online banks.
How a CD works
When you commit to a CD, the bank is also making a promise: that it will honor the same interest rate for the length of the term. Terms typically range from one to five years (though you can find CDs with terms as short as three months). In most cases, you바카라 게임 웹사이트ll find the best interest rates on CDs with longer terms, though at the moment many of the best rates are on 1-year CDs.
Once you put your money in a CD, you must leave it there for the length of the term or you바카라 게임 웹사이트ll have to pay a fee for taking it out early (known as an early withdrawal penalty). You also can바카라 게임 웹사이트t add to it once the term starts. So before locking any of your money in a CD, you바카라 게임 웹사이트ll want to be certain you can afford to part with it for that long. CDs can be a low-risk way to grow your savings, aside from the risk you might incur by locking your money in one place for a specific length of time.
CDs are also insured up to $250,000, as long as they바카라 게임 웹사이트re with a bank that바카라 게임 웹사이트s insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration.
Once your CD matures (that is, reaches the end of its term), you will typically have seven to 10 days to decide what to do next. You can renew the CD at the current rate, withdraw the money, or move it to another account or CD. If you do nothing, most banks will renew the CD for the same term but at the current rate, which might be higher or lower than the rate when you originally took out the CD.
Pros and cons of CDs
Because a CD is a long-term commitment that keeps some portion of your money "locked" away, you may want to consider the pros and cons of a CD before obtaining one.
Pros
- A safe, insured way to save money
- Fixed interest rate, so it will stay the same for the term even if the market shifts
- You can predict exactly how much your money will grow
Cons
- Your money is locked in for a specific amount of time
- There are penalties for early withdrawals
- The fixed interest rate can turn into a negative if rates on other types of savings accounts go up during the term
- Lower return over the long-term than you바카라 게임 웹사이트d get from investing in the stock market
Savings account rates are also rising
While interest rates on savings accounts haven't risen quite as much as CD rates, they are still substantively higher than they've been in recent years, particularly on .
High-yield savings accounts function much like a traditional : Money that you deposit earns interest, also called the annual percentage yield, or APY. That interest can also be compounded, which means that over time, you earn interest on the interest that바카라 게임 웹사이트s been added to your account. Unlike CDs, savings account interest rates are not fixed, so rates may fluctuate. But you can also access your money at any time, which may be important to you.
The primary difference between a high-yield savings account and a traditional account is the amount of interest you can earn. Online banks, which tend to offer the best interest rates, don바카라 게임 웹사이트t have the same overhead as brick-and-mortar banks. They pass that savings on to customers in the form of higher interest rates. As long as the bank is , it doesn바카라 게임 웹사이트t matter if it바카라 게임 웹사이트s a traditional bank or online bank; your money is protected up to $250,000 per depositor, per account type.
According to , the national average yield for savings accounts is 0.24 percent APY for the week of May 3. Many online banks have savings rates higher than the national average, though.
The bottom line
With the banking industry in flux, continued inflation concerns, and on whether the Federal Reserve will continue to raise rates, it may be a good idea to take advantage of the current high rates on CDs and/or savings accounts. With the right research, both CDs and savings account can be great tools in maximizing your overall financial health in the long run.
Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender바카라 게임 웹사이트s website for the most current information.
This article was first published on and reviewed by Jill Slattery, who serves as VP of Content for the Hearst E-Commerce team. Email her at jill.slattery@hearst.com.
