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    • Today’s Best Savings Accounts Still Pay the Highest Rate in Nearly Two Decades: Up to 5.50%
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    Today’s Best Savings Accounts Still Pay the Highest Rate in Nearly Two Decades: Up to 5.50%

    Harry Posted on

    Key Takeaways

    • The Fed cut interest rates by a quarter point last week, but most of the quotes in our ranking best high yield savings accounts They stood firm.
    • This includes Pibank’s At 5.50%, it is just below the 23-year high of 5.55% seen in April.
    • Newtek Bank And open bank They also still pay outstanding rates of 5.25%. Six more savings accounts offer rates of 5.00% or higher.
    • Although interest rates will fall as the Fed continues to raise interest rates, today’s savings accounts are still paying rates that are likely among the highest since 2001.
    • Don’t let this earning opportunity pass you by by keeping your cash in an account that pays almost nothing.

    The full article continues below these quotes from our partners.

    Today’s 9 Best Savings Accounts Let You Earn 5.00% to 5.50% on Your Cash

    with Federal Reserve As last week announced a widely anticipated interest rate cut, several savings account rates fell. But nine of last week’s top 11 accounts are still paying stellar rates.

    Among these is the market leader Pibank. Pibank Savings the account offers 5.50%. This site, which can be opened with any deposit amount (even if there is no initial fund), also has no ongoing minimum balance requirement and no monthly maintenance fee. Although Pibank is relatively new to the United States, it is owned by the physical Intercredit Bank, which has been FDIC insured since 1984.

    Apart from Pibank, two other accounts pay outstanding rates. both Newtek Bank And open bank They still offer a runner-up rate of 5.25%, and neither has an ongoing minimum balance requirement. But these aren’t your only great options. Our daily ranking best high yield savings accounts It includes six more options that will allow you to earn an annual return (APY) of 5.00% or more. Choosing any of these first nine accounts will take you to an elite level in terms of savings rates.

    Odds savings accounts It rose to a 20-year high last spring and peaked at 5.55% in April. This is thanks to the Federal Reserve’s aggressive 2022-2023 rate hike campaign aimed at bringing down interest rates from the highest rates in decades. inflation. Although the Fed has made two interest rate cuts since then, you can still earn very close to the top savings rate.

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    You can find additional details on all the best high-yield savings accounts by checking out our page: Daily summary of top APYs. We research rates from more than 100 federally insured institutions every business day to keep our rankings current.

    Best High Yield Savings Account Rates – November 12, 2024

    To qualify for our rankings, a bank or credit union must be federally insured by the FDIC or NCUA.

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    Are you worried that saving money at another bank will be inconvenient? Don’t worry. online banking It makes interbank transfers extremely easy. Although the transfer process takes one to three days, you can handle it by not moving. All Transfer your savings to the new account. Instead, keep a small reserve at your main bank so you can make an immediate transfer to the check if necessary.

    Will Savings Account Interest Rates Fall?

    Savings accounts have variable rates, meaning bank or credit union may change your interest rate at any time and without warning. One of the main factors that determines how institutions set savings account rates is the Federal Reserve’s benchmark interest rate. federal funds rate. Although banks and the Fed do not move in lockstep on interest rates, they generally move in the same direction.

    Unfortunately for savers, the Fed has begun what is expected to be a series of rate cuts. The Fed cut the federal funds rate for the second time this year, dropping it by 0.25 percentage points on Nov. 7. This follows a 0.50 point cut on September 18. A new cut could come in December 2024, and further cuts are likely in 2025. Any further cuts by the Fed will put downward pressure on savings account interest rates.

    But it’s good to keep some perspective. Although let’s say best savings account rate From 5.50% today to maybe 4.50% by the end of the year, or even going down to 3.50% by the end of 2025, those are still historically high yields. You can easily see this in the chart below, which shows the state of APY in the market in 2022, before the Fed’s interest rate hike campaign. highest paid The nationwide savings account was at a very low 0.70%.

    What Are Today’s Best CD Rates?

    If you can commit to not touching some of your savings for months or years, it’s a smart time to open a bank in the nation. best certificates of deposit (CDs)because they also pay historically high rates. With APYs on new CDs will fall further with the federal funds rate, a CD you open now will have a guaranteed return that you will keep until the CD matures.

    You can currently lock in a rate as high as 5.50%. best 6 month CDor up to 5.00% best 1 year CD. Top CD rates for maturities from 18 months to 5 years range from 4.30% to 4.65% and offer a rate guarantee that will last at least until late. 2026 and as long as 2029.

    But if you want to open a CD, hurry up. Like savings accounts, CD rates will be pushed lower due to any rate cuts by the Fed. That’s why it’s best to lock in a guaranteed CD rate as soon as possible.

    Daily Ranking of the Best CDs and Savings Accounts

    Note that the “top rates” quoted here are the top rates available nationally, as determined by Investopedia in its daily rates survey of hundreds of banks and credit unions. This is very different from the national average, which includes all banks that offer CDs by that term, including many large banks that pay a very low interest rate. So national averages are always pretty low, while the highest rates you can find by shopping around are often five, 10, or even 15 times higher.

    How Do We Find the Best Savings and CD Rates?

    Investopedia tracks rate data for more than 200 banks and credit unions offering CDs and savings accounts to customers nationwide each business day and determines daily rankings of the highest-paying accounts. To qualify for our listings, the institution must be federally insured (FDIC for banks, NCUA for credit unions) and the account’s minimum initial deposit must not exceed $25,000. Also cannot specify a maximum Deposit amount less than $5,000.

    To be nationally present, banks must be present in at least 40 states. Although some credit unions require you to donate to a specific charity or association to become a member if you do not meet other eligibility criteria (for example, you do not live in a certain area or are not employed in a certain job), we exclude credit unions with a donation requirement of $40 or more. For more information about how we choose the best odds, Read our full methodology.

    Harry
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