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High-Yield Savings Rates: Act Now Before Fed Cuts Impact 2024 Returns

High-Yield Savings Rates: Act Now Before Fed Cuts Impact 2024 Returns

Federal Reserve Rate Cuts May Impact High-Yield Deposit Rates

As the Federal Reserve signals potential rate cuts in 2024, savers are advised to lock in high interest rates on deposits before they potentially decrease. A snapshot of top rates from banks and credit unions as of January 21 reveals competitive offerings across various account types.

Nationally available savings accounts continue to offer attractive Annual Percentage Yields (APYs). LendingClub leads with a 5.00% APY and a $2,500 minimum opening balance, followed closely by BrioDirect at 4.75% APY with a $500 minimum. Other notable offers include Barclays (4.50% APY, no minimum), Western Alliance Bank (4.50% APY, $1 minimum), Betterment (4.50% APY, no minimum), and Bread Savings (4.50% APY, $100 minimum).

In the Certificates of Deposit (CD) market, Prism Bank offers a standout 5.50% APY for a 1-year term with a $1,000 minimum deposit. Barclays provides a 5.00% APY for an 18-month term with no minimum, while Discover Bank offers 5.00% APY for a 1-year term with a $2,500 minimum. Sallie Mae and Bread Savings round out the top offerings with 5.00% APY for 1-year terms and $2,500 and $1,500 minimum deposits, respectively.

High-interest checking accounts are also gaining traction. Upgrade’s Rewards Checking offers up to 5.00% APY with no minimum balance, while SoFi provides up to 4.50% APY. Discover Cashback Debit offers 1% cashback on up to $3,000 in debit card purchases monthly, and Truist’s One Checking account provides up to 3.00% APY with a $100 minimum opening deposit.

These high-yield accounts, often offered by online banks, provide consumers with opportunities to maximize their savings in a fluctuating economic environment. As the Federal Reserve contemplates rate adjustments, savers are encouraged to evaluate these options to potentially secure favorable rates for their short-term and long-term financial goals.