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✅ Main takeaway:
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Key takeaways
- The Federal Reserve cut its benchmark interest rate by a quarter point last week, but the best high-yield savings and money market accounts still pay up to 5.00%, while the best CDs offer up to 4.50%.
- Cash brokerage accounts and robo-advisors are down slightly this week, with a top yield of 3.95%, while US Treasuries are paying up to 4.70%.
- Compare today’s top rates to see which accounts are still offering strong returns as interest rates fall and savers look to keep cash working harder.
Best cash returns are still up to 5%
It’s always smart to make sure your money is earning all it can, since the correct calculation It could add hundreds More for your savings over time. The good news for savers is that today’s options are still strong.
High-yield savings accounts still pay up to 5.00% If you meet certain requirements, or average returns of 4% for accounts without any restrictions. Among CDs, the best rate nationwide is 4.50% right now. Brokerages, robo-advisors and Treasury also continue to pay attractive rates.
This is despite the Federal Reserve cutting its benchmark interest rate by a quarter point last week, following a similar cut in September – making now a good time to put your money to work while interest rates are still high.
Why is this important to you?
Even with the Federal Reserve lowering interest rates, you still have plenty of ways to maintain strong cash returns. Knowing which accounts pay best can help you protect your return while maintaining liquidity.
How much can you earn on $5,000, $10,000, or $25,000?
By depositing a total of $5,000, $10,000, or even $25,000, you can earn hundreds of dollars in interest if you… Choose one of the best prices today. Whether you choose a cash management account with 3.50% interest, a high-yield savings account, a money market account that pays 5.00% interest, or anything in between, here’s what different balances could earn you over the next six months.
| Six months of earnings at various APYs | |||
|---|---|---|---|
| my dad | He earned $5,000 for 6 months | He earned $10,000 in 6 months | He earned $25,000 in 6 months |
| 3.50% | $87 | $173 | $434 |
| 3.75% | $93 | $186 | $464 |
| 4.00% | $99 | $198 | $495 |
| 4.25% | $105 | $210 | $526 |
| 4.50% | $111 | $223 | $556 |
| 4.75% | $117 | $235 | $587 |
| 5.00% | $123 | $247 | $617 |
important
The rate you earn from a savings account, money market account, cash account, or money market fund is variable, and will generally decrease when the Federal Reserve lowers interest rates. In contrast, CDs and Treasuries Allow you to secure your return For a specified period of time.
This week’s top-paying options are for savings, CDs, brokerages and Treasuries
For a low-risk return that’s still rewarding, today’s best cash investment options fall into three main categories:
- Bank and credit union products: Savings accounts, money market accounts (MMA), and certificates of deposit (CDs)
- Brokerage and robo-advisor products: Money market funds and cash management accounts
- US Treasury Products: Treasury bills, securities and bonds, in addition to inflation-protected I-bonds
You can choose one option or mix and match based on your goals and schedule. Either way, knowing what each individual is currently paying is essential. Below, we break down the top rates in each category as of market close on Friday and how they’ve changed since last week.
Bank and credit union rates
The rates below represent the highest nationally available annual percentage yields (APYs) from federally insured banks and credit unions, based on our daily analysis of more than 200 institutions offering products nationwide.
Cash Brokerage Rates and Robo-Advisor
The yield on money market funds fluctuates daily, while interest rates on cash management accounts are more fixed but can be adjusted at any time.
US Treasury bond prices
Treasury securities pay interest until maturity and can be purchased from TreasuryDirect or traded on the secondary market through a bank or brokerage. Bonds must be purchased from TreasuryDirect and can be held for up to 30 years, with rates adjusting every six months.
The best cash rates of the week, all in one place
Here’s a brief look at all of the above cash vehicles, ranked by today’s highest rates. Note that the prices shown are the highest eligible prices for each product type.
How to Find the Best Savings and CD Rates
Every working day, Investopedia It tracks rate data for more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country and determines daily rankings of the highest-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial account deposit must not exceed $25,000. It is also not possible to determine A maximum The deposit amount is less than $5,000.
Banks must be available in at least 40 states to be eligible to be available nationwide. While 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, if you do not live in a certain area or work a certain type of job), we exclude credit unions with donation requirements of $40 or more. To learn more about how to choose the best rates, read our full methodology.
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