PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMScpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8xLjEnKTs8L3NjcmlwdD4=Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected] Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.BALTIMORE — Interest rates on savings accounts have been rising for more than a year — and Baltimore residents are uniquely positioned to take advantage of the best of the best. Video above: What to know about high-yield savings accounts (KCRA)CFG Bank, which has branches in Fells Point and Lutherville, is offering the highest savings rate in the U.S. right now — a whopping 5.17% on its high-yield money market account.That’s more than 20 times higher than the national average for savings accounts, which was 0.25% for the week of June 21, according to Bankrate.CFG’s offer is part of a larger trend where regional banks are competing with the big players by delivering highly competitive rates. While CFG Bank only maintains a handful of physical branches (which translates to low overhead), it’s able to reach customers nationwide with its online offerings. The attractive rates encourage new customers to deposit their money, shoring up the banks’ balance sheets.Here’s what you need to know to get in on the highest interest rates in recent memory.CFG Bank rate: Details on the high-yield money market accountCFG Bank’s high-yield money market account is available to both online and branch customers.APY: 5.17% Minimum opening deposit: $1,000Minimum daily balance to qualify for 5.17% APY: $1,000Monthly maintenance fee: $10 (if balance falls below $1,000)Daily withdrawal limit: $5,000Can you write checks: NoLearn more about CFG Bank’s high-yield money market account.Why savings account interest rates are so highThe average interest rate on savings accounts has more than quadrupled since March 2022, when the Federal Reserve began aggressively hiking the rate banks charge each other to borrow money, also known as the federal funds rate. Although the Fed doesn’t control interest rates on consumer products like savings accounts, its actions affect them. And whenever it raises the federal funds rate, other interest rates tend to follow.On top of that, deposits at banks have fallen dramatically over the past year, which means financial institutions are eager to attract new customers. Total deposits at U.S. banks fell by $472 billion during the first quarter of 2023, the greatest decline in 39 years, according to the Federal Deposit Insurance Corporation (FDIC). Robust coffers matter because they allow banks to lend money more readily — and the interest they earn on those loans, in turn, is how they make most of their revenue. Interest rates on savings products, however, are one of the best marketing tools that banks have to bring new deposits into the fold. Higher rates = more customers depositing more cash = more money for the bank to lend.Overview of interest rates at other banksInterest rates at online banksOnline banks, as well as online offshoots of regional banks like CFG Bank, have been offering especially high rates, in part because they don’t have the overhead of the big traditional banks — limited physical branches, for example. They pass their savings on to customers in the form of excellent interest rates. Yet online banks function much like any other bank: If they’re federally insured by the FDIC, as CFG Bank is, your money will be protected up to $250,000 per depositor. (Note that a money market account is different from a money market fund. Money market accounts like the one CFG Bank offers are FDIC insured, while money market funds are not.) They may or may not have minimum deposit and monthly fee requirements. And you can withdraw and deposit money into your bank account as often as you like (though some banks charge a fee for more than six withdrawals from a savings account in a month).In the case of CFG Bank, there is a $10 monthly maintenance fee if your daily deposit balance drops below $1,000. If you maintain a balance above that, however, the fee is zero. Many money market accounts allow you to write checks, which is one of the ways they differ from savings accounts. CFG Bank, however, does not let you write checks from its online high-yield bank account. CFG instead offers several interest-bearing checking accounts.The upshot? Your experience with a money market account with CFG Bank will be in many ways almost identical to what you’d find at another online bank — except, if you live in the Baltimore area, you’ll have access to the benefits of in-person banking. One important final note: Interest rates on money market accounts are variable, so while they’re up now, they could just as easily go down in the future. That means it’s the perfect time to consider the best place to grow your savings.Other savings accounts to considerEditorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].
Lauren Williamson is the Financial and Home Services Editor for the Hearst E-Commerce team. She previously served as Senior Editor at Chicago magazine, where she led coverage of real estate and business, and before that reported on regulatory law and financial reform for a magazine geared toward in-house attorneys. You can reach her at [email protected].
Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.BALTIMORE — Interest rates on savings accounts have been rising for more than a year — and Baltimore residents are uniquely positioned to take advantage of the best of the best. Video above: What to know about high-yield savings accounts (KCRA)
CFG Bank, which has branches in Fells Point and Lutherville, is offering the highest savings rate in the U.S. right now — a whopping 5.17% on its high-yield money market account.
That’s more than 20 times higher than the national average for savings accounts, which was 0.25% for the week of June 21, according to Bankrate.CFG’s offer is part of a larger trend where regional banks are competing with the big players by delivering highly competitive rates. While CFG Bank only maintains a handful of physical branches (which translates to low overhead), it’s able to reach customers nationwide with its online offerings. The attractive rates encourage new customers to deposit their money, shoring up the banks’ balance sheets.Here’s what you need to know to get in on the highest interest rates in recent memory.CFG Bank rate: Details on the high-yield money market accountCFG Bank’s high-yield money market account is available to both online and branch customers.APY: 5.17% Minimum opening deposit: $1,000Minimum daily balance to qualify for 5.17% APY: $1,000Monthly maintenance fee: $10 (if balance falls below $1,000)Daily withdrawal limit: $5,000Can you write checks: NoLearn more about CFG Bank’s high-yield money market account.Why savings account interest rates are so highThe average interest rate on savings accounts has more than quadrupled since March 2022, when the Federal Reserve began aggressively hiking the rate banks charge each other to borrow money, also known as the federal funds rate. Although the Fed doesn’t control interest rates on consumer products like savings accounts, its actions affect them. And whenever it raises the federal funds rate, other interest rates tend to follow.On top of that, deposits at banks have fallen dramatically over the past year, which means financial institutions are eager to attract new customers. Total deposits at U.S. banks fell by $472 billion during the first quarter of 2023, the greatest decline in 39 years, according to the Federal Deposit Insurance Corporation (FDIC). Robust coffers matter because they allow banks to lend money more readily — and the interest they earn on those loans, in turn, is how they make most of their revenue. Interest rates on savings products, however, are one of the best marketing tools that banks have to bring new deposits into the fold. Higher rates = more customers depositing more cash = more money for the bank to lend.Overview of interest rates at other banks
Interest rates at online banksOnline banks, as well as online offshoots of regional banks like CFG Bank, have been offering especially high rates, in part because they don’t have the overhead of the big traditional banks — limited physical branches, for example. They pass their savings on to customers in the form of excellent interest rates. Yet online banks function much like any other bank: If they’re federally insured by the FDIC, as CFG Bank is, your money will be protected up to $250,000 per depositor. (Note that a money market account is different from a money market fund. Money market accounts like the one CFG Bank offers are FDIC insured, while money market funds are not.) They may or may not have minimum deposit and monthly fee requirements. And you can withdraw and deposit money into your bank account as often as you like (though some banks charge a fee for more than six withdrawals from a savings account in a month).In the case of CFG Bank, there is a $10 monthly maintenance fee if your daily deposit balance drops below $1,000. If you maintain a balance above that, however, the fee is zero. Many money market accounts allow you to write checks, which is one of the ways they differ from savings accounts. CFG Bank, however, does not let you write checks from its online high-yield bank account. CFG instead offers several interest-bearing checking accounts.The upshot? Your experience with a money market account with CFG Bank will be in many ways almost identical to what you’d find at another online bank — except, if you live in the Baltimore area, you’ll have access to the benefits of in-person banking. One important final note: Interest rates on money market accounts are variable, so while they’re up now, they could just as easily go down in the future. That means it’s the perfect time to consider the best place to grow your savings.Other savings accounts to consider
Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].
https://www.wbaltv.com/article/cfg-bank-best-interest-rates/44360932
