Subscribe to Updates

    Get the latest creative news from CRYPTO NOUNCE.

    What's Hot

    Between Arbitrum’s [ARB] surging demand and whirlwind drop-off

    April 1, 2023

    Solana’s NFT space can recover soon, but SOL’s troubles are far from over 

    April 1, 2023

    Terra’s branding at MLB opener draws attention from spectators

    April 1, 2023
    Facebook Twitter Instagram
    Facebook Twitter Instagram Vimeo
    Cryptonounce.com
    Contact
    • Business
      • Deals
      • investors
      • IPO
      • Startups
      • Wall Street
    • Markets
      • Bonds
      • Commodities & Futures
      • Currencies
      • Funds & ETFs
      • Stocks
    • Crypto
      • Alticoins News
      • Binance News
      • Bitcoins News
      • Blockchain News
      • Ethereum News
      • Token Sales News
      • XRP News
    • Technology
      • Artificial Intelligence
      • Big Data
      • Cloud Computing
      • Cybersecurity
      • Gaming
      • Internet of Things
      • Mobile
      • Social Media
      • Transportation
      • VR & AR
    • FinTech
    • Personal finance
    • Grides
      • Crypto
      • FinTech
      • Investing
      • Personal Finance Guides
      • Techonology
    • Tools
      • Coins
      • ICO List
      • Organigations
      • Events
    Cryptonounce.com
    Home » Why the interest on your savings account may be way behind the Fed
    Personal finance

    Why the interest on your savings account may be way behind the Fed

    AdmincryptBy AdmincryptJanuary 3, 2023No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Valentinrussanov | E+ | Getty Images

    As the Federal Reserve continues to hike interest rates, you may assume you’re earning more on the money in your savings account.

    But that may not be the case.

    Carolyn McClanahan, a certified financial planner at Life Planning Partners in Jacksonville, Florida, was recently surprised when a client told her he was hardly making any interest on his cash.

    The interest rate on his Capital One account was 0.3%, far lower than the 3.3% annual percentage yield the firm is currently advertising for new savings accounts. McClanahan discovered the same situation when she checked her own Capital One account.

    “I was not happy,” McClanahan said.

    While a call to Capital One’s customer service revealed it was possible to access the higher interest rate by opening a new account, McClanahan decided it was better to move the money elsewhere.

    “I’ve been recommending Capital One for a long time, and they are now off my list,” McClanahan said.

    Capital One did not immediately respond to requests for comment.

    The Federal Reserve has raised the federal funds rate to the highest levels since 2007. While that makes borrowing more expensive for credit cards and other accounts, the expectation is that it will also push up the interest consumers can make on their cash savings.

    Some online savings accounts are touting rates as high as 4%. Some certificates of deposit, or CDs, may provide higher rates, depending on the term.

    Rates are expected to climb even higher as Federal Reserve poised to continue its hiking cycle in 2023. Bankrate.com predicts top-yielding national money market and savings accounts could climb to 5.25% by year end.

    Yet like McClanahan, others may be in for a surprise if they realize their accounts are not keeping up with those top rates.

    “Consumers need to check their accounts at least once a month to see what their accounts are earning,” said Ken Tumin, senior industry analyst at LendingTree and founder of Deposit Accounts.

    “Don’t assume it’s the latest greatest rate,” he said.

    More from Personal Finance:
    From ‘Quiet Quitting’ to ‘Loud Layoffs,’ career trends to watch in 2023
    How to use pay transparency to negotiate a better salary
    ‘This is a crisis.’ Why more workers need access to retirement savings

    Following Fed rate hikes, online savings accounts should generally be in the ballpark of the federal funds rate within about a month, according to Tumin.

    There are signs that may help consumers spot when they may get shortchanged on rates.

    Watch for changing account names, Tumin said. If a bank is touting savings offers under a new account name from when you opened your account, the terms you are subject to might not be the latest.

    If you see a new account, often you can request to be upgraded.

    “That’s an easy way to get the benefit of the higher rate,” Tumin said.

    Also be more vigilant when a bank, such as Emigrant Bank, has more than one online division, Tumin said. In September, Emigrant’s Dollar Savings Direct division was the first to offer 3% on an account, which eventually climbed to 3.5%.

    Now, however, its My Savings Direct division has the highest rate for an online account, with 4.35%, Tumin noted.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleWhich software is better for 2023?
    Next Article Secondary Announcement 01.03.23pm – IPO Boutique
    Admincrypt
    • Website

    Related Posts

    5 things to know before the April 18 deadline

    March 31, 2023

    2 steps to cope with fear over the market

    March 31, 2023

    Social Security trust funds depletion date moves up to 2034

    March 31, 2023

    23% of couples stay because of money

    March 31, 2023

    Leave A Reply Cancel Reply

    Our Picks
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    XRP News

    Between Arbitrum’s [ARB] surging demand and whirlwind drop-off

    By AdmincryptApril 1, 20230

    Korean exchange Upbit could be the second-largest ARB holder per accumulation speculation ARB’s value has…

    Solana’s NFT space can recover soon, but SOL’s troubles are far from over 

    April 1, 2023

    Terra’s branding at MLB opener draws attention from spectators

    April 1, 2023

    Tron [TRX]: Will new upgrade foster stagnant staking activity? Gauging…

    April 1, 2023

    Subscribe to Updates

    Get the latest creative news from CRYPTO NOUNCE.

    NEWS
    • Business
    • Crypto
    • Blockchain
    • Markets
    • Technology
    FEATURED SECTIONS
    • Coins
    • ICO List
    • Organigations
    • Events
    • Grides
    FEATURED LINKS
    • Story of the day
    • Videos
    • Infographics
    CONNECT WITH US
    • Facebook
    • Twitter
    • Telegram
    • LinkedIn
    • Pinterest
    ABOUT US
    • Contact
    • Advertise
    • Sitemap
    Copyright © 2023 Cryptonounce All rights reserved. Cryptonounce.
    • Home
    • Buy Now

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?