Clear Choice: Hi-Def Radio
AM and FM without the snap, crackle and pop, but with a $200-plus price tag.
Terrestrial broadcasters have a new weapon to keep listeners from defecting to satellite radio: high-definition digital radio. Now broadcast on close to 1,000 U.S. stations, HD Radio promises to bring CD-quality sound to FM and FM-like clarity to AM.
Digital technology lets broadcasters send multiple channels over the same frequency, delivering more channels to FM. In addition, stations will be able to use spare HD bandwidth to stream weather and traffic reports across radio text displays.
"Multicasting" may be a draw in the future, but for now HD Radio's biggest plus is its improved audio quality -- and free broadcasts. Satellite-based rivals Sirius and XM charge about $13 per month for well over 100 digital channels of music, news, sports and talk. With HD, you get local stations and a multicast (HD2) channel or two.

Sign up for Kiplinger’s Free E-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.
But just as with satellite radio, you'll need to spring for new hardware. An HD receiver for a car goes from $200 to more than $1,000, while a quality tabletop HD home model runs $270 to $600. Of course, HD Radio also comes in some home receivers and other audio equipment. Walkman-size receivers aren't practical yet because HD Radio needs more power than batteries can provide.
We tested the Boston Acoustics Recepter Radio HD ($300), a compact desktop unit with one built-in speaker and a separate speaker for stereo sound. HD FM clarity was excellent. We'd rate it as near-CD quality, but your experience will vary based on several factors, including terrain (hills wreak havoc on FM reception) and distance from the station's FM transmitter. HD AM was far clearer than its creaky analog ancestor, and without the cracks and pops that annoyed even your great-grandfather. As the song says, no static at all. Another plus: HD radios display song titles and artist names, a cool feature that was made popular by satellite receivers.
Most people listen to the radio in their cars, not at home. Only BMW currently offers a factory-installed HD option. The aftermarket business is more competitive and includes players such as Alpine, JVC, Kenwood, Panasonic and Sanyo.
Although HD Radio is advertised as the free alternative to satellite, that could change. Broadcasters may feel compelled to reap profits from HD, which could mean subscription-based channels, pay-per-listen events or additional fees for stations with enhanced audio.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
$177 Million AT&T Settlement Announced — Are You Eligible for a Payout?
Millions of current and former AT&T customers may be eligible for payments after two 2024 data breaches exposed personal information.
-
Social Security Turns 90 — Five Important Things to Know
Social Security has become a cornerstone of the American retirement system and works to keep over 16 million retirees above the poverty line. Here are five key facts about the program as it turns 90.
-
Texas Sales Tax-Free Weekend 2025
Tax Holiday Here's what you needed to know about the Texas sales tax holiday.
-
Alabama Tax-Free Weekend 2025
Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online Bargains
Feature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Best States to Buy Chocolate Candy Tax-Free
State Taxes There’s something spooky this Halloween, and it’s not just the ghouls. Find out if your state’s sales tax takes a bite out of sweet savings.
-
Florida Back-to-School Tax-Free Holiday 2025
Sales Taxes Everything you need to know about the two-week tax-free holiday in Florida.
-
Roth IRA Contribution Limits for 2025
Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.