Savings account – USA Prime Loans http://usaprimeloans.com/ Mon, 26 Sep 2022 11:50:17 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://usaprimeloans.com/wp-content/uploads/2021/10/icon-10-120x120.png Savings account – USA Prime Loans http://usaprimeloans.com/ 32 32 How high will savings account rates be in 2023? https://usaprimeloans.com/how-high-will-savings-account-rates-be-in-2023/ Mon, 26 Sep 2022 11:50:17 +0000 https://usaprimeloans.com/how-high-will-savings-account-rates-be-in-2023/ Image source: Getty Images Inflation has been torturing consumers for over a year now, to the point that many people have had no choice but to rack up expensive credit card debt just to pay bills and put food on the table. on the table. The Federal Reserve is doing its part to remedy the […]]]>

Image source: Getty Images

Inflation has been torturing consumers for over a year now, to the point that many people have had no choice but to rack up expensive credit card debt just to pay bills and put food on the table. on the table. The Federal Reserve is doing its part to remedy the situation, however.

The Fed has already implemented several large interest rate hikes in an effort to slow inflation. By making borrowing more expensive for consumers, it is hoped that spending will decrease enough to allow supply to catch up with demand. Once that happens, inflation should start to cool.

Save: click here to discover a top-notch savings account that can earn you 14 times your bank

More: Check out our best online checking accounts of 2022

That said, higher borrowing rates aren’t exactly a good thing for consumers. But there’s a silver lining here, and that’s that the Fed’s interest rate hikes have also led to higher interest rates in savings accounts. And there’s reason to believe that this trend could continue into 2023.

Will savers earn even more next year?

Let’s get one thing clear before we go any further. The Fed does not directly determine what rates credit card companies charge consumers or what rates banks offer for savings accounts and CD deposits. Rather, the Fed is responsible for the federal funds rate, which is the rate banks charge themselves when borrowing short-term.

But when the fed funds rate rises, consumer interest rates tend to follow. This is a good thing in the context of banking products, but not so much for loans and credit cards.

Meanwhile, over the past few months, many people have seen the interest rate on their savings accounts increase. In the same way, banks offered more generous CD rates this summer compared to the start of the year.

Given that the Fed is not done raising interest rates, it is fair to assume that borrowing could become more costly for consumers in the coming months, and well into 2023. But it is also just to assume that savings accounts will start paying more as well.

Now it’s hard to predict how much more they will start paying. Many high-yield savings accounts these days offer annual interest rates of 2%. That’s a marked improvement from earlier in the year, when many savers weren’t even getting 1% on their money.

Precisely where savings account rates could land in 2023 is hard to pin down. But it’s not unreasonable to think they could be closer to 2.5% or 3%.

And remember, CDs tend to pay higher interest rates than savings accounts. So even if savings account rates don’t go up much from where they are today, there may be opportunities to earn more interest by opening a CD.

Should you put more money in savings in anticipation of higher interest rates?

If you do not have a complete file emergency fund, then it is definitely worth working to increase your savings. But if you’re ready for that, you might want to consider putting some extra money into a brokerage account.

While savings accounts could pay off handsomely in 2023, you could earn much higher returns on your money by investing in a brokerage account. So if you’re talking about money you don’t think you’ll need anytime soon, keeping that money in a savings account could actually mean settling for less than you might get.

These savings accounts are FDIC insured and could earn you up to 19x your bank

Many people miss out on guaranteed returns because their money languishes in a big bank savings account earning almost no interest. Our choices of best online savings accounts can earn you more than 19 times the national average savings account rate. Click here to check out the top picks that landed a spot on our shortlist of the best savings accounts for 2022.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Is a high interest savings account what you need? https://usaprimeloans.com/is-a-high-interest-savings-account-what-you-need/ Tue, 20 Sep 2022 04:00:41 +0000 https://usaprimeloans.com/is-a-high-interest-savings-account-what-you-need/ With rising prices and inflation, finding a good high interest savings account is even more important if we don’t want to leave our savings sitting idle and erode our purchasing power. With most Singaporeans having a personal savings rate of around 37.5%, finding a suitable high interest savings account is an important tool in our […]]]>


With rising prices and inflation, finding a good high interest savings account is even more important if we don’t want to leave our savings sitting idle and erode our purchasing power.

With most Singaporeans having a personal savings rate of around 37.5%, finding a suitable high interest savings account is an important tool in our financial arsenal. Luckily, there are plenty of options available to us, with the latest offering being the Citi Interest Booster account from Citibank.

With so many high interest savings accounts available, is the Citi Booster Interest Account the savings account you need?

Read also : [2022 Edition] Best Savings Accounts for Working Adults in Singapore

The Citi Interest Booster account offers up to 2.8% interest per year (if you meet all the criteria and only during the month of your birthday)

Similar to other high interest savings accounts, the Citi Interest Booster account allows you to earn higher interest rates when you meet different criteria for different categories on a monthly basis:


Source: Citibank

The base interest rate you can earn (without fulfilling any of the bonus interest categories) is 0.3% per annum on the first $50,000 balance. While the maximum interest you can earn is 2.8% per annum, this includes the birthday bonus interest which only occurs one month per year meaning you will earn less than 2, 8% per year most of the time. Again, the bonus interest is capped at the first balance of $50,000.

One of the advantages of the Citi Interest Booster account is that the bonus interest categories are distinct from each other. This means you don’t have to meet multiple category criteria to earn the interest bonus. Even if you only meet the spending criteria, you will receive the interest bonus of 0.2% per year for a total interest of 0.5% per year.

It can be difficult for most people to realistically reach the high interest rate of 2.7% per year (or 2.8% per year in the month of your birthday). For example, the Invest bonus category requires you to complete 3 or more qualifying investment transactions. This includes a minimum investment fund purchase of $1,000, a minimum currency conversion of $1,000, or a minimum stock purchase of $5,000. This means a minimum of $3,000 in qualifying investments to earn the 0.6% interest bonus.

The bonus interest for the mortgage and insurance also only lasts for 12 months. For most people, we’re unlikely to re-evaluate our mortgage or buy another regular premium insurance policy so soon after a year. This could make it difficult to earn bonus interest for these categories beyond the first year.

As for the Savings category, the interest bonus of 0.2% only applies to the additional balance of the previous month. This means that if your starting balance is $10,000 and you meet the criteria for the savings bonus interest category by increasing your account balance by $1,500, you will only earn the interest bonus 0.2% on the $1,500 instead of your total account balance of $11,500.

Assuming you were considering getting a home loan and insurance policy from Citibank and meeting the minimum card spend of $500, you could earn an interest rate of 1.9% per year without too much expense. extra effort for the first 12 months.

Also Read: A Beginner’s Guide to Fixed Deposits in Singapore

Citi Interest Booster is part of Citibank’s new Citi Plus

Known for its focus on wealth management, Citibank has introduced the Citi Interest Booster Account as part of its new wealth management solution: Citi Plus.

Citi Plus is a digital-only offering for the new affluent that includes the Citi Interest Booster and a digital wealth platform that helps them manage their money, build wealth, and achieve their financial goals. The app includes financial wellness modules and articles to improve financial literacy and a financial goal tracker.

Plus, Citi Plus customers get 2% cash back, up from the usual 1.6% cash back, on their Citi Cash Back+ Mastercard if they’re the primary account holder Citi Interest Booster.

Although Citi Plus generally has a minimum total monthly balance of $15,000, the $15 account service fee is waived until December 31, 2023. This means you have the ability to enjoy the benefits of Citi Plus and the Citi Interest Booster account without incurring any fees. additional costs until the end of next year.

Existing Citi Wealth First clients can choose to transfer to Citi Plus

Existing Citibank customers may already have a Citi Wealth First account, which is a similar high-interest savings account.

Unlike Citi Plus, which targets the new wealthy, Citi Wealth First is available for the different levels of wealth that Citibank serves. This includes Citibanking, Citi Priority, Citigold and Citigold Private Client. Thus, the bonus interest criteria for Citi Plus is easier to meet compared to Citi Wealth First.

The differences between the two accounts include:

Citi Plus / Interest Booster Account Citi Wealth First Account
Base interest rate 0.3% per year 0.01% per year
Spend 0.2% bonus interest per annum on a minimum of $500 of qualifying spend on Citi Cash Back + Mastercard / Citibank Debit Mastercard 0.2% additional interest per annum for a minimum of $250 in qualifying spend on qualifying Citibank debit cards
Invest 0.6% bonus interest per year for 3 eligible investment transactions 0.8% bonus interest per annum for 12 months for $50,000 in investment transactions (including purchase of trust units, structured notes and bonds)
To assure 0.6% bonus interest per annum for 12 months for a new regular premium insurance policy with min. $5,000 annual bonus 0.8% bonus interest per annum for 12 months for a new single premium insurance policy with total premiums of at least $50,000
Mortgage 0.8% bonus interest per annum for 12 months for taking a min. $500,000 home loan 0.8% bonus interest per annum for 12 months for taking a min. $500,000 home loan
to safeguard 0.2% additional interest per annum on the additional balance of the previous month for the increase in the account balance of $1,500 0.2% bonus interest per annum on the additional balance from the previous month to increase the account balance by $3,000

Existing Citibank customers can choose to transfer to Citi Plus, but they will no longer receive bonus interest on their Citi Wealth First account after converting to Citi Plus. However, for ongoing Protect, Invest and Borrow bonus interest, it will be paid until the end of the 12 month period.

Also Read: Guide to Private Banking in Singapore: Here’s How Much You Need to Earn or Open an Account



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Why are savings account interest rates rising so slowly? https://usaprimeloans.com/why-are-savings-account-interest-rates-rising-so-slowly/ Fri, 16 Sep 2022 20:52:12 +0000 https://usaprimeloans.com/why-are-savings-account-interest-rates-rising-so-slowly/ We’ll see how aggressively officials plan to fight inflation going forward when the Federal Open Market Committee meets next week. The Fed has been raising interest rates for about five months now. The purpose of raising interest rates is to cool demand by making it more expensive to borrow money. Although it hurts if you […]]]>

We’ll see how aggressively officials plan to fight inflation going forward when the Federal Open Market Committee meets next week. The Fed has been raising interest rates for about five months now.

The purpose of raising interest rates is to cool demand by making it more expensive to borrow money. Although it hurts if you want to buy a house or a car, or take out a student loan, the upside is that we should earn more from our savings.

Yet the average savings account rate is a measly 0.13%, according to Bankrate. It’s partly because of our old friends: supply and demand.

Over the past few years, people have fattened their savings account balances with pandemic relief money, said Lauren Goodwin, an economist at New York Life Investments. Thus, “banks have more deposits than they can find”.

Banks use money from our savings accounts to make loans. But they have more deposit money than they need for these loans right now. The overabundance of deposits is diminishing, however. Goodwin credits the end of pandemic relief programs and people getting out and spending more.

“Banks’ cash supply and demand, that dynamic is changing again. And that’s part of the reason why we’re starting to see savings and checking rates go up a bit.

Online banks pay the highest rates on savings accounts — sometimes 10 times higher than the average rate, according to NerdWallet’s Chanelle Bessette.

“And that’s because online banks don’t have the overhead that big traditional banks have,” she said.

But even online interest rates on savings accounts are still lower than they were the last time we had a series of interest rate hikes from the Fed several years ago. years. In early 2019, online banks were offering an average rate of around 2.2% on savings accounts, according to Ken Tumin, senior savings analyst at LendingTree. Now the online average is around 1.8%.

Tumin said part of the problem is that banks aren’t lending as much now. “As loan growth declines, banks have less need for deposits and less reason to raise rates.”

Unlike 2019, some banks are now worried about a recession, Tumin added. This means they are pickier about who they lend money to, as more people default on their loans during economic downturns.

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How much money should have hidden in a savings account at all times https://usaprimeloans.com/how-much-money-should-have-hidden-in-a-savings-account-at-all-times/ Wed, 07 Sep 2022 07:00:00 +0000 https://usaprimeloans.com/how-much-money-should-have-hidden-in-a-savings-account-at-all-times/ Bank / Savings Account ljubaphoto / Getty Images/iStockphoto If you have the happy problem of trying to figure out where to keep money beyond what you need to pay your monthly expenses, you may not know what the right amount to keep in an account is. standard savings. Don’t worry or make any hasty decisions. […]]]>

ljubaphoto / Getty Images/iStockphoto

If you have the happy problem of trying to figure out where to keep money beyond what you need to pay your monthly expenses, you may not know what the right amount to keep in an account is. standard savings. Don’t worry or make any hasty decisions. Experts have a few simple recommendations.

See our list: 100 Most Influential Money Experts
More: 7 surprisingly easy ways to reach your retirement goals

The gold standard: 3-6 months

For those who can, it’s a good idea to have a safety net of at least three months of minimum living expenses, according to Scott Alan Turner, a certified financial planner with Rock Star Financial Planning. “We hope for the best and plan for the worst. After COVID-19, many people realized that they could lose their jobs for a long time or see their salary cut in half.

Another reason for a three-month minimum is that if you need to collect disability benefits, there may be up to 90 days of waiting before those benefits become available, Turner said.

Another benefit is that having cash on hand allows you to “take advantage of opportunities as they arise,” Turner pointed out. Whether it’s a sale or a bargain, with cash on hand, “you can get that deal on the spot.”

Take our survey: Do you think student loan debt should be forgiven?

Enough to avoid debt

Although the specific dollar amount will vary from person to person (or family to family), having money in your savings account saves you from debt on a credit card or taking out expensive loans, said Adam Wood, co-founder of RevenueGeeks.

He actually recommends saving a bit more – for single-earner households, having a savings account for 12 months of income, and for two-earner households, six months. “Remember that your monthly expenses don’t always equal your monthly income.”

Enough to feel comfortable

The truth is, some people are more comfortable with higher risk, so how many months of income you’ve saved depends on your preferences, says Scott Stanley, Certified Financial Planner and Founder of Pharos Wealth Management. “We all feel inherently different about our money – our comfort levels vary depending on our background, family history, anxiety levels, job security, etc. Simply put, if you feel more comfortable with six months, then this is the right answer for you.

Save more if income is unpredictable

If you have a job that fluctuates, like self-employment or seasonal work, Certified Financial Planner Kenny Senour of Millennial Wealth Management recommended to have up to one year of income in savings. However, he recommended against keeping it in a standard savings account and instead said to put it in a high-interest savings account.

“Having too much cash on hand causes a ‘money downturn’ on your overall portfolio and net worth,” he said. “Excess cash in your portfolio should be allocated to other purposes, such as taxable investment accounts or a Roth IRA, to allow for additional tax-free growth for retirement.”

But don’t keep so much that you miss growth opportunities

Beyond six months of spending, “you start accumulating a pretty sizable opportunity cost,” Stanley said. “Savings accounts are paying next to nothing right now. The name of the game is beating inflation. Ideally, you should have money allocated to solid investments that will help you beat inflation. If you don’t, the value of your savings will erode over time and your hard work will be wasted.

Consider savings levels

If you thought one savings account was enough, Derek Ripp, certified financial planner and partner at Austin Wealth Management, recommended a different approach, dividing your money into three “tiers.” The first level is for your current and recurring expenses. “The predictable bills that come in every month.” Some keep the bare minimum, others prefer a cushion instead. He recommended that you determine the lowest number you are comfortable with and ensure that this amount is in your checking account.

In the second level, you save for planned expenses over the next 12 to 24 months, such as buying a car, home repairs or vacations. “These are expenses that you know are coming and that you can properly prepare for. Do not be tempted to invest this money by planning these expenses, because it is better not to take risks with the money you know you will need. The goal here is to pay big expenses in full when the time comes.

At the third and final level, you have your emergency fund, which should cover your expenses in case of job loss or other surprise expenses. “It’s money that’s designed not to be spent except in a real emergency.”

The first level is a checking account and the second and third levels are savings accounts. “No matter where you bank, you should consider taking advantage of online banking to get the most out of your money.”

How much you save will ultimately depend on many very individual and personal factors, but now you have a starting point.

More from GOBankingRates

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Give a second look at a high-yield savings account https://usaprimeloans.com/give-a-second-look-at-a-high-yield-savings-account/ Fri, 02 Sep 2022 12:35:43 +0000 https://usaprimeloans.com/give-a-second-look-at-a-high-yield-savings-account/ Time to change where you put your spare change? NerdWallet CEO Tim Chen said that in a changing economy and an inflationary environment, consumers should re-examine high-yield savings accounts for the first time in 20 years. “The silver lining is that if you put money into work, you’re also going to earn more now. So […]]]>

Time to change where you put your spare change?

NerdWallet CEO Tim Chen said that in a changing economy and an inflationary environment, consumers should re-examine high-yield savings accounts for the first time in 20 years.

“The silver lining is that if you put money into work, you’re also going to earn more now. So I really think people should start for the first time in 20 years looking at things like savings accounts at high yield and really trying to bank those extra dollars. They’re going a little deeper now,” Chen said.

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August 31, 2022 – Forbes Advisor https://usaprimeloans.com/august-31-2022-forbes-advisor/ Wed, 31 Aug 2022 13:16:49 +0000 https://usaprimeloans.com/august-31-2022-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Average rates on a variety of savings accounts are slightly lower than a week ago, even as the Federal Reserve prepares to raise interest rates again in September. Are you looking for […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Average rates on a variety of savings accounts are slightly lower than a week ago, even as the Federal Reserve prepares to raise interest rates again in September. Are you looking for an account where you can save money? Here’s a rundown of the best savings rates you’ll find today.

Related: Compare the Best High Yield Savings Accounts

Savings Rate Today: Traditional Savings Account

Traditional savings accounts, known as “statement savings accounts” in the banking industry, have been known to pay minimal interest in recent years. This is slowly changing, thanks to the Fed’s campaign to hike interest rates to fight inflation.

Today’s highest interest rate on a standard savings account is 2.19%, according to data from Bankrate.com. If you get a basic savings account with a rate in this general area, you’ve found a good deal. A week ago, the best rate was also 2.19%.

The national average rate is just 0.13%, according to the most recent data from the FDIC, the government agency that insures bank deposits. But today’s average APY for a traditional savings account is 0.59%, according to Bankrate, up from 0.60% a week ago.

APY, or Annual Percentage Rate, represents the actual return your account will earn for a year. It takes into account compound interest, which is the interest that accumulates on the interest in your account.

Savings Rate Today: High Yield Savings Account

High yield savings accounts generally earn significantly higher interest than a conventional savings account. But the tradeoff is that you’ll have to jump through a few hoops for the bank or credit union. Often this means making a large deposit to open the account.

On high yield accounts requiring a minimum deposit of $10,000, the current best interest rate is 2.00%. It’s been unchanged for a week.

The average APY for these accounts is now 0.13% APY, the same as a week ago.

The current average is 0.28% APY for a high yield account with a minimum deposit of $25,000. This is below last week’s 0.29%.

Savings Rate Today: Money Market Account (MMA)

Money market accounts are savings accounts that offer some of the benefits of checking accounts. Generally, you can write checks and have some debit card privileges.

MMAs tend to pay at least slightly higher interest than a standard savings account. The FDIC says the average MMA rate is 0.14%, compared to 0.13% for a traditional savings account.

But today, the best money market accounts have rates as high as 1.83%. This is above the peak rate of 1.73% from a week ago.

The average APY for an MMA is now 0.15%, down from 0.16% this time last week, according to Bankrate.

How to choose a savings account

Whether you’re looking for a traditional savings account, a high yield savings account, or an MMA, there are a few key points you’ll want to remember.

An attractive interest rate is important, but it is not the only factor when selecting an account to deposit your savings. Another major consideration is whether the account has a minimum deposit and if you can find the money.

You will also want to be mindful of fees. Savings accounts can come with monthly maintenance fees, excess transaction fees (if you ignore withdrawal limits), and other annoying fees that can erode your returns.

And before opening your account, be sure to explore the reputation and security of the bank or credit union. Read reviews, see what account holders have to say about customer service, learn how the financial institution answers consumer questions, and know that your money will be protected.

Look for an account insured by the FDIC or, in the case of credit unions, the NCUA. These federal agencies provide up to $250,000 of insurance per depositor per bank for each category of account ownership.

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What type of savings account to open? https://usaprimeloans.com/what-type-of-savings-account-to-open/ Tue, 30 Aug 2022 16:17:21 +0000 https://usaprimeloans.com/what-type-of-savings-account-to-open/ It is important to consider several savings options to optimize your returns. Getty Images About 95% of U.S. households have at least one member with a checking or savings account, according to a 2019 Federal Deposit Insurance Corporation (FDIC) report. While a checking account is essential for day-to-day transactions, a traditional savings account is ideal […]]]>
Spotlight on the coin slot of a piggy bank
It is important to consider several savings options to optimize your returns.

Getty Images


About 95% of U.S. households have at least one member with a checking or savings account, according to a 2019 Federal Deposit Insurance Corporation (FDIC) report.

While a checking account is essential for day-to-day transactions, a traditional savings account is ideal for emergency savings or other purposes. It is important to consider several savings options in order to optimize your returns and make the best use of your cash savings.

If you don’t have an account or want one with better earned interest, there are options you should explore.

It’s important to first understand why savings accounts are so important and how you can benefit from opening one (or more).

Why is a savings account important?

Savings accounts are essential because they provide a safe place to store money that you intend to use for specific purposes or goals. For example, you can use your savings account to keep your emergency fund or to put money aside for a down payment on your first home. Your savings account protects your money until you need access to it.

When to open a savings account? You must open a savings account as soon as you reach the age of 18, the minimum age required by banks. The earlier you can establish the habit of saving money, the better. Saving money allows you to enjoy greater security in your life and deal with unexpected financial emergencies.

How does a savings account work?

You can open a savings account with a bank, credit union, or online lender. You need to complete an application and once accepted, you will deposit money into your account.

Money in your savings account earns interest based on the annual percentage yield (APY) of the account. The higher the APY, the more your money will earn. Banks can compound interest daily, monthly, quarterly or annually. Your earnings will also depend on the amount of money you deposit and how long your money stays in your account.

Let’s say you open a traditional savings account and deposit $10,000 with a bank that compounds the interest annually. According to FDIC data from June 2022, the average interest rate on savings accounts is 0.13% APY, which means you would earn about $13 in interest for the year. After one year, your new balance ($10,013) would start earning interest. Your money will grow faster if your bank offers a shorter compounding period. Keep in mind that projecting your income is not an exact science, as your APY is variable and can change at any time.

To get a better idea of ​​how much money your savings can potentially bring in, it’s worth talking to an expert who can advise you..

You can access your money whenever you want, but some banks have restrictions on withdrawals. Although federal regulations limiting withdrawals to six times per month were lifted in 2020, some banks still charge a fee if you exceed their stated limit.

What are the different types of savings accounts?

When looking at different savings account options, pay attention to the various features, advantages, and disadvantages of each type to determine which savings account best suits your financial needs and goals.

Here are six savings accounts to help you determine which type you should open.

Traditional savings account

Traditional savings accounts are standard accounts offered at physical banks and credit unions. Most national bank savings accounts are covered by FDIC insurance up to $250,000 per account. Similarly, the National Credit Union Administration (NCUA) insures credit union savings accounts up to the same amount.

A traditional savings account may be better if you need a safe place to store money for a long time and don’t care about interest rates. Unfortunately, this type of savings account usually doesn’t offer the best interest rate, although recent federal interest rate hikes have triggered a slightly higher rate of 0.13% APY. Your bank may also require you to pay monthly fees or minimum balance fees.

High Yield Savings Account

Like traditional savings accounts, high yield savings accounts are federally insured options for storing your money and earning interest. Unlike regular savings accounts, however, high-yield savings accounts typically offer above-average APYs. The security and income potential of high-yield savings accounts can make them a suitable option for your emergency fund or for any other purpose where you might need quick access to your funds.

If you want to grow your savings, you can easily start by opening a high yield savings account right now.

Although traditional banks and credit unions may offer high-yield savings accounts, you’re more likely to find them at online banks, with higher yields and lower fees. A savings account with a high return may seem attractive, but remember, these rates are variable and can change at any time.

Money market account

Money Market (MMA) accounts are ideal if you want more options for accessing your money but still want to earn interest on your savings. In this case, a money market account does the trick by combining the features of a traditional savings account with the features of a checking account. You can earn more interest on your balance than you would with a regular savings account. You will also have the option of writing checks or using a debit card to withdraw funds or make purchases.

Note: You may need to deposit a minimum amount to open a money market account. On top of that, interest rates can be tiered, so you may need to deposit a higher amount to take advantage of the best rates.

DC Account

Certificates of Deposit (CDs) are savings accounts with a time component, which means that you must lock your money into the CD account for a specific period of time. CD accounts generally offer higher interest rates than savings or money market accounts. As of August 2022, the APY for a 12-month CD is 0.46%, outpacing income from money market accounts (0.14% APY) and regular savings accounts (0.13% APY).

You will likely have to pay an early withdrawal penalty if you withdraw money from the account before its due date. Once the CD matures, you can usually withdraw your savings without penalty or transfer it to a new CD.

Specialized savings account

Until now, savings account options have focused on saving money that you don’t need to access for a while. Specialty savings accounts are different because they usually have a specific savings goal, such as saving for retirement or healthcare costs.

Likewise, specialty savings accounts can focus on one person, such as your child or a student.

Here are some common types of specialty savings accounts

  • Health Savings Account (HSA)
  • Individual Retirement Account (IRA)
  • Flexible Spending Account (FSA)
  • Children’s savings account
  • Student savings account
  • 529 college savings account
  • Christmas Club Account

You’ll earn interest on your savings in a specialized savings account, and you might pay little or no monthly maintenance fee in some cases. On the other hand, your interest rates can be less than ideal with children’s savings accounts, student accounts and Christmas Club accounts. Also keep in mind that some specialty accounts follow strict tax rules on withdrawals.

Cash management account

Typically, banks do not offer Cash Management Accounts (CMAs). Rather, they are available through online brokers and robo-advisor platforms. Cash management accounts earn interest, but their primary purpose is to hold money that you’re not ready to invest but will eventually put into your brokerage or retirement account.

Because many investors deal with large balances, cash management accounts often offer FDIC insurance on balances of $1 million or more once the funds arrive at a program bank.

One of the disadvantages of cash management accounts is that their interest rates can be lower than those of a high yield savings account or a CD.

What are the best ways to grow your savings account?

Once you’ve chosen the best savings account for your needs, there are countless ways you can grow the money in your account. Here are some best practices for saving or earning money that you can deposit into your savings account.

  • Set a budget so you have a plan to pay all your bills on time.
  • Pay off as much debt as possible to minimize or eliminate interest charges.
  • Automate your savings by setting up recurring deposits from your current account.
  • Set a spending limit on your credit or debit cards to help you avoid overspending.
  • Automate your invoices so you never miss a due date and incur late fees.
  • Reduce non-essential expenses and deposit the savings in your account.
  • Earn more money by working overtime, asking for a raise, or taking on a side job.

What type of savings account is best?

The best savings account is usually one that offers high interest rates without charging excessive fees while providing access to your money. However, the best savings account will likely depend on what you want to achieve financially. Ultimately, one account may not be enough to achieve your goals, so you may want to consider opening multiple types of savings accounts as needed to achieve your goals.

Ready to start? You can open an account now and start earning interest on your savings.

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August 26, 2022 – Forbes Advisor https://usaprimeloans.com/august-26-2022-forbes-advisor/ Fri, 26 Aug 2022 16:35:45 +0000 https://usaprimeloans.com/august-26-2022-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Rates on a variety of savings accounts are rising as the Federal Reserve raises interest rates. Looking for an account where you can save for a rainy day or for your retirement? […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Rates on a variety of savings accounts are rising as the Federal Reserve raises interest rates. Looking for an account where you can save for a rainy day or for your retirement? Here’s a rundown of the best savings rates you’ll find today.

Related: Compare the Best High Yield Savings Accounts

Savings Rate Today: Traditional Savings Account

Traditional savings accounts, known as “statement savings accounts” in the banking industry, have been infamous for paying minimal interest in recent years. This is gradually changing, thanks to the Fed.

Today’s highest interest rate on a standard savings account is 2.19%, according to data from Bankrate.com. If you spot a basic savings account with a rate in this range, you’ve found a good deal. A week ago, the best rate was also 2.19%.

The national average rate is just 0.13%, according to the most recent data from the FDIC, the government agency that insures bank deposits. But today’s average APY for a traditional savings account is 0.60%, according to Bankrate, and that’s up from 0.59% a week ago.

APY, or Annual Percentage Rate, reflects the actual return your account will earn for a year. It takes into account compound interest, which is the interest that accumulates on the interest in your account.

Savings Rate Today: High Yield Savings Account

High Yield Savings Accounts generally earn considerably higher interest than a conventional savings account. But the catch is that you will have to meet strict conditions set by the bank or credit union. Often this means making a large deposit to open the account.

On high yield accounts requiring a minimum deposit of $10,000, the current best interest rate is 2.00%. It’s been unchanged for a week.

The average APY for these accounts is now 0.13% APY, down from 0.12% a week ago.

The current average is 0.29% APY for a high yield account with a minimum deposit of $25,000. This is above last week’s 0.24%.

Savings Rate Today: Money Market Account (MMA)

Money market accounts are savings accounts that exhibit some of the properties of checking accounts. Generally, you can write checks and take advantage of debit card privileges.

MMAs tend to pay slightly higher interest than a standard savings account. The FDIC says the average MMA rate is 0.14%, compared to 0.13% for a traditional savings account.

But today, the best money market accounts have rates as high as 1.73%. It is stable with the maximum rate of 1.73% from a week ago.

The average APY for an MMA is now 0.16%, down from 0.15% this time last week, according to Bankrate.

How often do savings account interest rates change?

Interest rates on savings accounts are generally variable, meaning they can go up or down as other rates change throughout the economy. Savings rates are often influenced by Federal Reserve rate movements, and the central bank has raised its benchmark federal funds rate in recent months in an attempt to keep inflation under control.

But while financial institutions are generally quick to raise credit card rates and other borrowing costs when the Fed raises rates, they tend to take their time increasing the interest paid to savers. Rates on savings accounts have been rising slowly, and this is expected to continue through 2022 and into 2023 as the Fed remains active.

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3 reasons to withdraw money from your savings account now https://usaprimeloans.com/3-reasons-to-withdraw-money-from-your-savings-account-now/ Fri, 26 Aug 2022 10:32:26 +0000 https://usaprimeloans.com/3-reasons-to-withdraw-money-from-your-savings-account-now/ Image source: Getty Images It may be time for a transfer. Key points Your savings account is the perfect home for your emergency fund. You may want to deposit money for other purposes in another account. The benefits of doing so include tax breaks and easier access if you have a big bill coming your […]]]>

Image source: Getty Images

It may be time for a transfer.


Key points

  • Your savings account is the perfect home for your emergency fund.
  • You may want to deposit money for other purposes in another account.
  • The benefits of doing so include tax breaks and easier access if you have a big bill coming your way.

You will often hear that the more you can increase your savings account balance, the better. Indeed, a higher balance will put you in an excellent position to deal with financial emergencies, whether it’s home repairs, medical bills or job loss.

But you may reach a point where you actually have too much money in your savings account. Here are some reasons to withdraw money from this account and put it elsewhere.

1. You want to take advantage of tax breaks

The advantage of keeping your money in a savings account is to earn interest on it, while having easy access to that money. But you don’t get tax relief on the money that goes into your savings account. On the contrary, the interest you earn on your savings account is taxable.

If you’re looking to reduce your tax burden, you might want to transfer some of your money into an IRA. Traditional IRA contributions are tax-free, so if you put $3,000 into an IRA this year, the IRS won’t tax you on that $3,000.

Now, one thing you should know is that IRAs are somewhat restrictive in that you cannot access your money until you are 59½. This generally carries a 10% early withdrawal penalty (although there are some limited exceptions). But if you have money that you don’t need in an emergency and are ready to put it towards your retirement, it pays to make this transfer.

2. You want a higher return

Savings accounts are finally starting to pay more generously after years of low interest. But even so, you could still get a much higher rate of return on your money by investing some of it in a brokerage account.

Now, the downside here is that with investments in a brokerage account, you run the risk of losing money if market conditions worsen or the companies you invest in do not perform well. But if you want to grow your money at a faster rate, it might be beneficial to transfer some of the savings to your brokerage account.

3. You are expecting a big bill

If you know you’ll soon need to write a big check for a car or house repair, or for child care expenses, it pays to transfer the money you need to your checking account. If you have your savings account and checking account at the same bank, you may be able to transfer between the two instantly. But if you have those accounts at separate banks and you know you have a big bill coming up, it’s beneficial to make that transfer to your checking account so you don’t have to worry about clearing those funds on time.

It’s a great idea to keep your savings account well funded. But if these situations apply to you, it might be beneficial to take money out of your savings and put it somewhere more appropriate.

These savings accounts are FDIC insured and could earn you up to 19x your bank

Many people miss out on guaranteed returns because their money languishes in a big bank savings account earning almost no interest. Our choices of best online savings accounts can earn you more than 19 times the national average savings account rate. Click here to check out the top picks that landed a spot on our shortlist of the best savings accounts for 2022.

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August 24, 2022 – Forbes Advisor https://usaprimeloans.com/august-24-2022-forbes-advisor/ Wed, 24 Aug 2022 13:11:11 +0000 https://usaprimeloans.com/august-24-2022-forbes-advisor/ Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. Rates on a variety of savings accounts are rising as the Federal Reserve raises interest rates. Are you looking for an account where you can park money? Here’s a rundown of the […]]]>

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Rates on a variety of savings accounts are rising as the Federal Reserve raises interest rates. Are you looking for an account where you can park money? Here’s a rundown of the best savings rates you’ll find today.

Related: Compare the Best High Yield Savings Accounts

Savings Rate Today: Traditional Savings Account

Traditional savings accounts, known as “statement savings accounts” in the banking industry, have been known to pay minimal interest in recent years. This is gradually changing, thanks to the Fed’s campaign to raise interest rates to fight inflation.

Today’s highest interest rate on a standard savings account is 2.19%, according to data from Bankrate.com. If you score a basic savings account with a rate in this range, you’ve found a good deal. A week ago, the best rate was also 2.19%.

The national average rate is just 0.13%, according to the most recent data from the FDIC, the government agency that insures bank deposits. But today’s average APY for a traditional savings account is 0.60%, according to Bankrate.

APY, or Annual Percentage Rate, indicates the actual return your account will earn for a year. It takes into account compound interest, which is the interest that accumulates on the interest in your account.

Savings Rate Today: High Yield Savings Account

High yield savings accounts often earn much higher interest than a conventional savings account. But the thing to know is that you will have to meet strict requirements set by the bank or credit union. Often this means making a large deposit to open the account.

On high yield accounts requiring a minimum deposit of $10,000, the current best interest rate is 2.00%. It’s been unchanged for a week.

The average APY for these accounts is now 0.13% APY, down from 0.12% a week ago.

For a high yield account with a minimum deposit of $25,000, the current average is 0.29% APY. This is above last week’s 0.24%.

Savings Rate Today: Money Market Account (MMA)

Money market accounts are savings accounts that offer some of the benefits of checking accounts. Generally, you can write checks and take advantage of debit card privileges.

MMAs tend to pay slightly higher interest than a standard savings account. The FDIC says the average MMA rate is 0.14%, compared to 0.13% for a traditional savings account.

But today, the best money market accounts have rates as high as 1.73%. It is stable with the maximum rate of 1.73% from a week ago.

The average APY for an MMA is now 0.16%, down from 0.15% this time last week, according to Bankrate.

How high can savings rates go?

It’s hard to say, it depends on the trajectory of inflation and the overall economy.

The highest interest rates in recent memory were seen in 1980 and 1981, when the Fed hiked its federal funds rate above 19%. This was in the face of runaway inflation that was driving prices up at an annual rate of more than 14%.

In the early 1980s, the typical five-year CD fetched nearly 12%, compared to less than 2% today, according to Bankrate data. Savings rates would eventually fall as inflation cools and the fed funds rate is brought down.

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