Even with the Fed swinging into action, savings rates remain minuscule, averaging just 0.16%. Yet some banks offer you much more—as much as 4%—if you follow certain rules.
Earnings for All
- Municipal Bonds: 1%-3%
- Investment-Grade Bonds: 3%-5%
- Real-Estate Investment Trusts: 2%-6%
- Foreign Bonds: 3%-6%
- Preferred Stocks: 4%-7%
- Closed-End Funds: 5%-11%
- High-Yield Bonds: 6%-8%
- Master Limited Partnerships: 5%-11%
Online-only banks usually pay more than branch-based institutions. For example, Incredible Bank, which exists only in the virtual world, pays 1.2% on savings deposits from $2,500 to $250,000. But there’s a catch: Depositors who exceed six withdrawals or other types of transactions per month start to rack up fees.
For a 4.6% yield on up to $20,000, consider opening a rewards checking account at Consumers Credit Union, based in Gurnee, Ill. Rules include spending at least $1,000 a month on a CCU credit card, conducting 12 or more debit card transactions each month, and doing some banking online. Anyone can join the credit union for a one-time fee of $5.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Rates on most CDs can’t beat high-yield checking accounts. But CDs can make sense if you “ladder them up,” says Greg McBride, chief financial analyst at Bankrate.com. Take, say, $10,000 and split it into five $2,000 chunks, buying CDs maturing in one, two, three, four and five years. As each certificate matures, buy another five-year CD with the proceeds. If interest rates increase, you can take advantage of higher yields. “The landscape for savers won’t improve dramatically in the near term,” says McBride, but rates could be higher in a year or two. One good option now: a five-year CD from First Internet Bank of Indiana, yielding 2.1%. To find more deals, go to www.depositaccounts.com or www.bankrate.com. (Returns are as of March 31.)
Next: Municipal Bonds to Earn 1% - 3%
-
Original Medicare vs Medicare Advantage Quiz: Which is Right for You?Quiz Take this quick quiz to discover your "Medicare Personality Type" and learn whether you are a Traditionalist, or a Bundler.
-
Ask the Editor: Capital Gains and Tax PlanningAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on capital gains tax rates and end-of-year tax planning
-
Time Is Running Out to Make the Best Tax Moves for 2025Don't wait until January — investors, including those with a high net worth, can snag big tax savings for 2025 (and 2026) with these strategies.
-
What Fed Rate Cuts Mean For Fixed-Income InvestorsThe Fed's rate-cutting campaign has the fixed-income market set for an encore of Q4 2024.
-
The Delayed September Jobs Report Is Out. Here's What It Means for the FedThe September jobs report came in much higher than expected, lowering expectations for a December rate cut.
-
October Fed Meeting: Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street turned into what Fed Chair Powell & Co. did about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Government Shutdown to Delay Data, Including Key Jobs ReportWhile government shutdowns typically don't impact stock returns, they can delay the release of key economic data – including the monthly jobs report.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
September Fed Meeting: Updates and CommentaryThe September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
