Maximizing Your Savings: High-Yield Accounts vs. Certificates of Deposit
Sunday, 10 March 2024, 20:00
The National Average Savings Account Rate Is Shockingly Low
The national average savings account rate is just 0.46%. It's important to put your money where it can grow effectively.
Consider Short-Term Savings Goals
If you need the money soon, consider saving it rather than investing it in a brokerage account.
High-Yield Savings Accounts
- Benefits: Offers much higher rates compared to national average, up to 5.32%. FDIC insured and a good choice for short-term funds.
- Downsides: Rates can be variable and may decline if overall rates drop.
Certificates of Deposit (CD)
- Benefits: Comes with FDIC insurance. Offers competitive yields, up to 5.55%. Great for medium-term goals.
- Downsides: Requires commitment for a period and may trigger penalties if withdrawn early.
High-yield savings accounts and CDs can provide better returns than traditional savings accounts. Shop around to find the right option for your financial goals.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.