Today’s top 1-year CD rate is now available, along with savings account rates.

Today's top 1-year CD rate is now available, along with savings account rates.

The Battle for the Best Banking Products: A Guide to High-Yield Accounts and CDs

When it comes to banking, there’s currently a battle raging for customer dollars. Banks are eager to attract new customers and are offering competitive rates on savings accounts and certificates of deposit (CDs) to entice them in. But with rates constantly changing, how can you be sure you’re getting the best deal?

Fear not, because we are here to help. Our team of experts monitor rates from banks and credit unions on a daily basis, ensuring that you have access to up-to-date information before opening a new account. So, let’s take a look at the top rates for popular savings accounts and CDs as of Wednesday, September 20.

High-Yield Savings Accounts: A Golden Opportunity

Let’s start with high-yield savings accounts. These accounts offer variable rates, meaning that the interest rate may change over time. However, this also means that you can have multiple savings accounts at different banks and move your money to take advantage of the highest Annual Percentage Yield (APY) available. Here are the top accounts with the best savings rates today:

Don’t Miss Out: Leading CD Rates

CDs, on the other hand, offer a fixed interest rate for a predetermined period of time. While many people may think of CDs as being offered only by banks, some of the best CD rates today are actually offered by credit unions. Don’t be deterred by this – the credit unions on our list have easy qualification standards that most people can meet. Check out the featured CD rates below:

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High-Yield Accounts: The Rise of Online and Lower-Profile Institutions

High-yield savings accounts typically offer the highest rates at online or lower-profile institutions rather than well-known national brands with brick-and-mortar locations. This is because online banks have lower overhead costs and are willing to pay higher rates to attract new customers. Here are some details on different types of high-yield accounts:

• High-Yield Savings Accounts: These accounts combine the security of a savings account with the added bonus of a high APY. They are best suited for saving cash for shorter-term goals, such as a vacation or a big purchase.

• High-Yield Checking Accounts: While slightly lower in rates compared to high-yield savings accounts, high-yield checking accounts still offer attractive rates in today’s market. They serve as a hub for your money, facilitating direct deposits and bill payments with ease.

• Money Market Accounts: Acting as a middle ground between checking and savings accounts, money market accounts provide easy access to funds through checks or a debit card. They typically offer tiered interest rates based on your account balance.

• Cash Management Accounts: With features similar to both savings and checking accounts, cash management accounts are usually offered by online banks. They allow for unlimited transfers and come with a debit card for convenient access, although cash deposits may have associated fees.

• Certificates of Deposit: CDs offer potentially the highest rates among all the aforementioned accounts. By “locking in” your money for a specific period of time, ranging from three months to five years, you can secure a higher interest rate. Be aware that withdrawing funds before the maturity date incurs a penalty. Longer-term CDs usually offer higher rates.

Top Tips for CD Terms

When it comes to CDs, there are a few terms worth understanding before making a decision:

• No-Penalty CDs: Traditionally, early withdrawal from a CD incurs a fee. However, no-penalty CDs waive this fee, presenting an attractive option with slightly higher rates than high-yield savings accounts.

• 6-Month CDs: Perfect for individuals looking for short-term gains, 6-month CDs currently offer interest rates in the mid-5% range. These are suitable for those starting to save or lacking a substantial emergency fund.

• 1-Year CDs: Among the most popular options, 1-year CDs often come with competitive rates. They are ideal for building a CD ladder or securing cash for long-term expenses.

• 2-Year CDs: With slightly lower rates than 1-year and no-penalty CDs, 2-year CDs are suited for investors who are concerned about declining rate markets or following a CD ladder strategy.

• 3-Year CDs: Although less commonly chosen, 3-year CDs provide rates comparable to 2-year CDs. They serve as important diversification tools and protect against long-term unfavorable rate markets.

• 5-Year CDs: Offering rates lower than other CD terms, 5-year CDs are still popular among investors who want to lock in high rates for an extended period. Due to their safety as investment vehicles, favorable rates can result in substantial earnings.

With all this information at your fingertips, you can confidently navigate the battle for the best banking products. Remember, rates can change, so always stay informed to ensure you make the most of your money.

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