Banks Battle for Deposits: High-Yield Savings and CD Rates Soar
Banks Compete for Deposits as Interest Rates Soar
In the current high-interest rate environment, banks are vying for customer deposits, offering attractive rates on savings accounts and certificates of deposit (CDs). With rates changing rapidly, consumers are advised to stay informed to secure the best deals.
Financial experts suggest that now may be an opportune time to lock in CD rates, as they are not expected to increase further in 2024. For those seeking flexibility, high-yield savings accounts remain a popular option.
Among the top nationally available deposit rates, Betterment Cash Reserve Account leads with a 5.50% APY for new customers’ first three months, followed by Western Alliance Bank High-Yield Savings Premier at 5.31% APY. For CDs, USALLIANCE FINANCIAL offers a 5.20% APY on its 1-year Online CD.
Several institutions are also offering bonuses to attract new customers. Alliant Credit Union is promoting a $100 bonus for its High-Rate Savings Account, while SoFi Checking and Savings is offering up to $300 for qualifying direct deposits.
High-yield accounts are not limited to savings. Money market accounts, cash management accounts, and high-yield checking accounts are also providing competitive rates. These accounts offer varying features, such as check-writing capabilities and debit card access, catering to different financial needs.
CDs continue to be attractive for those willing to lock in their funds for a set period. No-penalty CDs have gained popularity, offering higher rates than traditional savings accounts without the risk of early withdrawal penalties.
As the banking landscape evolves, consumers are encouraged to compare offers and consider their financial goals when choosing between the various high-yield options available in today’s market.
