economy
Four high-yield savings accounts cut their rates. Where you can still earn 4%
BTIG said it was surprised at the recent rate reductions from high-yield savings accounts. Here are the latest annual percentage yields.
TL;DR
- Apple, Ally Financial, Capital One Financial, and Marcus by Goldman Sachs have cut their high-yield savings account rates.
- The peer median savings rate has decreased by 5 basis points to 3.4%.
- These cuts occur despite market expectations that the Federal Reserve will not lower rates soon, and some anticipate rate increases.
- Analysts are unsure of the reason for the rate cuts, suggesting it might be due to slowing loan growth, though this is not evident from competitor financials.
- Increased competition for deposits may arise as the Trump administration approves more bank applications.
- Bread Financial and LendingClub remain the only online banks offering a 4% APY on high-yield savings accounts.
- Bread Financial also offers a 4% APY on its 1-year certificates of deposit (CDs), which lock in rates but may incur penalties for early withdrawal.