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Exclusive video shows Steve Buscemi moments before random attack in NYC
Video shows Steve Buscemi moments before getting punched in NYC Video shows Steve Buscemi moments before getting punched in NYC 02:05 NEW YORK -- Actor Steve Buscemi appeared to be looking at his phone moments before he was randomly punched in New York City, exclusive video obtained by CBS New York shows. Buscemi was attacked in Manhattan last week, according to his publicist.Police on Tuesday identified the suspect as 50-year-old Clifton Williams. They are still looking for him. Suspect appeared to be talking to himselfVideo shows the 66-year-old "Boardwalk Empire" actor walking south on Third Avenue just before noon on May 8. Then, he looks up to greet someone before crossing East 27th Street. Police said a man wearing blue punched Buscemi moments after he crossed the street. It was unprovoked. "I feel like it's crazy, but it's believable it happens. I live right around here and I hear it all the time," said Juliana Tronconi. More exclusive video shows the suspect appeared to be talking to himself while walking north on Third Avenue moments before the attack.Buscemi, a Brooklyn native and former FDNY firefighter, was taken to Bellevue Hospital for bruising, swelling and bleeding to his left eye.Photos have emerged showing Buscemi with a bruised face. He declined an on-camera interview. "Another victim of a random act of violence in the city"On 9/11, Buscemi went to Ground Zero to help his former engine company, and he received keys to the city in 2021.A rep for Buscemi said he's now "another victim of a random act of violence in the city.""He is OK and appreciates everyone's well wishes, though incredibly sad for everyone that this has happened to while also walking the streets of New York," the rep added. The NYPD says felony assaults in New York City are up 15 percent year-to-date, and misdemeanor assaults have increased by about 7 percent."It's horrible actually. I got attacked right here too, years ago," said Richard Robbins of Kips Bay. "I was walking down the street and somebody came by and smacked me in the back of my head and knocked me down." "It's a reflection of the leadership of our country and our city," another man said. "They'd arrest you but you'd be out the next day or that afternoon. So why not punch out Steve Buscemi?" Former NYPD Deputy Commissioner Rich Esposito told CBS New York random attacks can be challenging for law enforcement, because "they're not predictable." "We are seeing an uptick, and of course that's scary to all of us, but it doesn't mean it's a trend that's going to continue," he said.Buscemi the latest actor attacked in NYCBuscemi's "Boardwalk Empire" co-star Michael Stuhlbarg was also attacked at random while on a run on the Upper East Side in March. A suspect was arrested. In 2020, actor Rick Moranis was randomly attacked on the Upper West Side. Prosecutors said that suspect was facing charges in several other incidents. Anyone with any information on the suspect in Buscemi's case is asked to call the NYPD's Crime Stoppers hotline at 1-800-577-TIPS (8477), or for Spanish, 1-888-57-PISTA (74782). You can also submit a tip via their website or via DM on Twitter, @NYPDTips. All calls are kept confidential.
These are travel must-haves, according to a flight attendant
Why you can trust usWe may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change. Britt RossUpdated May 15, 2024 at 9:58 AMThese are travel must-haves, according to a flight attendantSome thoughts for those of you planning spring or summer getaways (which, we hope, is all of you): Expecting the unexpected is part of traveling, but some surprises are more welcome than others. Even fun trips feature occasional headaches, from flight delays to confusing local customs.So, yes — some things will always be out of our control, but we can preempt some of our biggest travel pet peeves before leaving for the airport. And who better to ask about that than someone who travels for a living? I reached out to my friend Emily, who's been a flight attendant since 2012. Having flown all over the globe for over a decade, she knows a thing or two about travel prep. These are her essentials for ensuring your trip goes as smoothly as possible — and they're all $25 or less.
These are the Walmart deals we’re adding to our carts this week — save up to 75% on our top picks
Why you can trust usWe may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change. Carrie McCabe and Katelyn MullenUpdated May 15, 2024 at 8:58 AMThese are the Walmart deals we're adding to our carts this week — save up to 75% on our top picksWith Mother's Day behind us, we're another week closer to summertime. Our fancy brunch dishes are washed and put away, and now we're laser-focused on freshening up our patio space. Memorial Day Weekend is on the horizon, so we're fully in backyard prep to make sure our space is ready for those warm summer nights. We've got our sights set on some garden improvements and a new outdoor griddle for cookouts. As we were searching for the best deals on those, we also stumbled upon a comfy patio furniture set that's down to just $220. The Walmart deals section won't disappoint this week, so be sure to shop soon before the price drops stop.Best Walmart garden deals
Savings interest rates today: Grow your savings at higher yields with today’s top rates — May 15, 2024
Why you can trust usWe may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change. Kelly Suzan WaggonerUpdated May 15, 2024 at 8:10 AMHighest savings rates for Wednesday, May 15, 2024 (nattanitphoto via Getty Images)After yesterday's discouraging data that showed a higher-than-expected spike in wholesale prices for April, an indicator of sticky inflation, all eyes are on today's consumer prices data — which could set the direction for the Federal Reserve to hold its ground on rate cuts this year.Decades-high rates aren't great news for borrowers. But for savers, it spells an opportunity to continue earning significant interest with high-yield accounts offering 5.00% APY or higher, no matter your balance — more than nine times the national average 0.46% offered by traditional savings accounts.You'll find the most competitive rates at digital banks and online accounts that work like a brick-and-mortar account but pay higher rates, helping you to build on your balance faster. Even well-known brands like American Express and Discover support HYSAs at 4.25% APY.Here's where to find the best APYs to support your everyday banking, get closer to a financial goal, bulk out your nest egg or build up a reliable fund for the unexpected.High-yield savings account rates for May 15, 2024Today’s highest savings rates are at FDIC-insured digital banks and accounts offering yields of up to 5.55% APY with a minimum $500 opening deposit at My Banking Direct and Western Alliance and more than 5.00% APY with no minimums at Jenius Bank, EverBank and Lending Club, among others, as of Wednesday, May 15, 2024.Not all of these digital accounts and online-only banks are familiar names, but they partner with FDIC-insured banks to offer deposit accounts that are insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) — just like those at your neighborhood bank.And while the Federal Reserve once limited transactions and withdrawals from high-yield savings accounts to six a month, that limitation is permanently suspended in the wake of the pandemic, with many banks no longer restricting how often you can move money in and out of your account.Traditional savings account ratesThe Federal Deposit Insurance Corporation tracks monthly average interest rates paid on savings and other deposit accounts, like certificates of deposit, that offer insight into the interest you might receive at your local bank or on traditional accounts.Here's how FDIC national deposit rates on a $10,000 minimum deposit compare between April and March 2024 on traditional low-interest deposit accounts.Pulling back on rate changes over the past year shows modest movement on most traditional savings accounts and certificates of deposit between May 2023 and April 2024.The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts. New data is due for release on May 20, 2024.What is a savings account?A savings account is a type of deposit account designed for storing money you don’t expect to use for regular expenses, like paying bills or buying groceries. These accounts don't typically offer check-writing privileges or debit cards, though you can find limited checking with a high-yield money market account.Saving accounts earn you interest on your balance — anywhere from a modest 1% APY with a traditional account to a lucrative 5% APY and higher for high-yield accounts — compounding what you earn and helping your savings to grow faster.Simple interest vs. compound interestSimple interest refers to the interest you earn on your principal balance only. Let's say you invest $10,000 into an account that pays 3% in simple interest. After three years, you’d have earned $900 in interest — $300 each year — for a total of $10,900 in your account.Now let's say you invest $10,000 in an account that pays 3% compounded annually. At the end of the first year, you'd have earned $300 in interest, for a total of $10,300 in your account. If you left your account as is for another year, you’d have earned another $309 in interest — $300 on your initial deposit and another $9 on the interest reinvested from year one — for a new total of $10,609. Year three, you’d earn another $318.27 in interest — $300 on your initial deposit and another $18.27 on the interest you earned. At the end of the same three years, you'd have earned $927.27 in interest for a total of $10,927.27 in your account — and that's without additional contributions to that initial $10,000.Savings accounts can compound daily, monthly or quarterly, depending on the bank and account. The more frequent the compounding, the more you can earn — so read your account's disclosure statements to understand how often your interest is compounded and credited to your account. Larger balances over longer periods can add up to even more significant savings.Compounding and crediting disclosure for Capital One 360 Performance Savings (Capital One)High-yield savings accounts vs. traditional savings accounts: What's the difference?There’s no official definition for either of these accounts. Rather, each is a type of deposit account that can earn you incremental interest on your balance, helping you to grow your savings. The money you save in these accounts is federally insured up to $250,000 by the FDIC or the NCUA for up to $250,000 per person, per account, protecting your nest egg against risk.Your earning potential is the most important difference between an HYSA and a traditional savings account. A high-yield savings account can earn you significantly more interest than a traditional savings account, with digital banks and online accounts offering the strongest rates, able to pass along overhead savings in the form of high yields — up to 10 times the national average when compared to a traditional account. The best of these digital banks and online accounts come with no fees and no minimum deposits, removing any challenges to maintaining your account over the long term.Dig deeper: High-yield savings vs. traditional savings account: Why it’s worth the switchHow to compare the best savings accountsDigital banking opens up more competitive rates and fewer fees than your neighborhood brick-and-mortar bank, and robust apps make it easy to keep an eye on your balance, manage money among everyday accounts and deposit checks from your smartphone or tablet.Yet while it's tempting to choose an account based only on its highest advertised APY, interest rates on savings accounts are variable — meaning rates can fluctuate after you open one and change over time. And you could be earning a lower rate if the Fed cuts its benchmark interest rate later this year.Instead, look for an account that fits the way you like to bank, weighing factors that include:Promotional rates. Today's high-yield accounts can earn 5% APY and higher. Yet some accounts advertise promotional or limited-time rates to entice you to sign up before adjusting to a lower rate based on market conditions.Low or no minimums. The best savings accounts require no minimum deposit or balance to earn interest, though you might be required to open with a minimum deposit or maintain a specific monthly balance to avoid monthly maintenance or service fees.Ease of accessing your money. Look for flexibility that includes ATMs and mobile apps that accept checks for deposit — or branch access, if you prefer in-person banking.FDIC or NCUA protections. Savings accounts are federally insured for up to $250,000 per account, per person — which means your money is safe up to the limit.Dig deeper: Can you lose money in a high-yield savings account? What to know about the $250K insurance limit, fees and other risksOther deposit accounts to save and grow your moneyA savings account can offer flexible access to your money, but it isn’t the only safe place to store your savings and earn interest on your balance. Look to these alternatives that offer steady returns at APYs that can outpace traditional accounts.Certificate of deposit. A CD guarantees a high fixed rate of return on a principal deposit at the end of an agreed-on term. CDs differ from savings accounts in that you risk a withdrawal penalty if you need to access your money before the CD matures — though a short-term CD ladder can help you leverage high-rates with rolling returns while interest rates are strong.Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts, with the same access to your money.High-yield checking account. A high-yield checking account is like a money market account in that it combines high APYs with checking benefits, but with unlimited debit and check-writing privileges you won't find with an HYSA or MMA.Dig deeper: High-yield savings account vs. money market account: Which high-APY account is best for your nest egg?Savings rates and high-interest accounts in the newsSavings rates strongly correlate with the target interest rate set by the Federal Reserve, the country’s central bank. This Fed rate is the benchmark that affects interest rates set for deposit accounts, loans, mortgages, credit cards and other financial products. As the Fed rate rises, so do APYs on savings accounts, CDs and money market accounts — with today’s rates on the best high-yield savings accounts topping 5% APY.The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.May 1, 2024: Fed holds benchmark rate unchanged for sixth time since July 2023At the conclusion of its third rate-setting policy meeting of the year on May 1, 2024, the Federal Reserve left the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed's held the benchmark rate unchanged since July 2023.In its post-meeting statement, the Federal Reserve maintained "there has been a lack of further progress toward the 2 percent inflation objective." The Federal Reserve is focused on a 2% inflation goal that's ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed cautioned in its May statement that its rate-setting committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."What to expect at the Fed's June policy meetingIt's too early to predict what the Fed will decide at its next policy meeting on June 11 and June 12, 2024.On one hand, the pace of inflation has fallen from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The May 3 jobs report fell short of employment expectations, showing 175,000 positions added in April — significantly lower than the 315,000 positions added in March — signaling a slowing job market that could relieve inflation worries.Yet discouraging Producer Price Index data released on May 14 showed a 0.5% spike in wholesale prices, or the prices paid to producers of goods and services — its highest rate in a year. All eyes are on Consumer Price Index data due for release today, which, if it indicates a setback in the inflation rate, could influence the Fed's decision to hold on any future rate cuts. April's inflation data prompted a growing group of economists and strategists to doubt whether the Fed can cut interest rates at all this year.The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on June 12, at 2 p.m. ET.Dig deeper: When’s the next Federal Reserve meeting? The FOMC — and how it affects your financesKey terms to knowAnnual percentage yield. Called the APY, this is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage.Member FDIC. When a bank or financial institution is advertised as a member of the FDIC, it means that your money is protected by the Federal Deposit Insurance Corporation. Funds held by member FDIC institutions are insured and federally protected for up to $250,000 per depositor, offering a layer of protection if the bank were to go out of business.Maintenance or service fee. Some banks charge fees each month for simply holding your money, but many of the best high-yield savings accounts charge no monthly maintenance fees if you can meet account requirements.Minimum deposit. As with monthly fees, some banks require you to deposit a minimum amount of money when opening your account as a way for them to profit from fees if required balances aren't met. The best high-yield savings accounts require no minimum balances to earn high rates of interest.Variable APY. APYs can be fixed or variable, depending on the type of deposit account. Fixed rates don't fluctuate when, say, the Fed rate changes, while variable APYs do. Confirm the type of rate for the account you're interested in to understand whether the rate is fixed or variable.Federal Reserve. The Federal Reserve — or Fed — is the central bank of the United States and the anchor of the financial system. Its Board of Governors is appointed by the president and confirmed by the Senate with the goals of maximizing employment, stabilizing prices and moderating long-term interest rates.Frequently asked questions about savings accountsLearn more about how savings accounts work when narrowing down the best for your budget, lifestyle and financial goals.How does an HYSA interest rate compare to a traditional savings account?High-yield savings accounts provide significantly higher earning potential when compared to traditional savings accounts that average 0.46% nationally, allowing your money to grow more substantially over time. They offer the convenience of online accessibility and minimal fees, giving you a secure and efficient way to manage your money.What is compound interest?Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage, with many HYSAs compounding daily or monthly.Do I need to pay taxes on a savings account?Yes. Interest you earn on your savings account is considered taxable income by the IRS. If you earn more than $10 in interest in a calendar year, your bank or financial institution will send you a Form 1099 to file with your annual tax return.How do banks make money on savings accounts?Banks charge higher interest rates on money they lend out to borrowers than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money.Online banks and digital accounts don't require the overhead of brick-and-mortar branches, allowing them to pass along savings to you in the form of even higher APYs than you might find in your neighborhood.Is my money safe with an online-only neobank or digital account?Yes. Neobanks are fintech — or financial technology — companies that partner with more recognizable FDIC-insured banks to offer deposit accounts protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the neobank or fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options.Are high-yield savings accounts safe?Yes. Look for high-yield savings accounts that are FDIC-insured up to the maximum limit, providing a level of security for deposited funds. For accounts at credit unions, the National Credit Union Administration insures balances up to a specific amount per share owner.Editor's note: Annual percentage yields shown are as of Wednesday, May 15, 2024, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.Sources
Best CD rates today: Beat inflation with fixed CD rates that guarantee high returns — May 15, 2024
Why you can trust usWe may earn commission from links on this page, but we only recommend products we believe in. Pricing and availability are subject to change. Kelly Suzan WaggonerMay 15, 2024 at 8:09 AMBest CD rates for Wednesday, May 15, 2024 (dontree_m via Getty Images)All eyes are on today's consumer prices data — which, along with yesterday's higher-than-expected spike in April wholesale prices, could set the direction for the Federal Reserve to hold its ground on rate cuts through the end of the year.That's sweet news for savers looking to lock in today's top-paying rates on certificates of deposit into the future, no matter what the Fed decides.CDs are a safe way to grow your money toward a short-term budgeting goal, contribute to a retirement fund or build emergency reserves to cushion unexpected expenses. TFixed rates can also protect your money from market fluctuations, offering the potential to balance out riskier investments or diversify your portfolio as you build toward a short-term financial goal, contribute to your retirement or build a cushion for unplanned expenses.Best CD rates for May 15, 2024The best rates of return are offered by FDIC-insured digital banks and online accounts, with the highest yield of 5.40% APY at NexBank on a 12-month term with a minimum $25,000 deposit and 5.00% APY and higher with no or low requirements on terms of up to 12 months at Lending Club, BMO Alto, EverBank and Barclays as of Wednesday, May 15, 2024.These online-only banks partner with FDIC-insured banks to offer deposit accounts that are federally insured, like those at your neighborhood bank. Your money saved in these accounts is insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).Dig deeper: I'm a personal finance expert: Here's why you need to invest in a CD todayHow a certificate of deposit worksA CD is a type of savings or deposit account that's offered by banks, credit unions and other financial institutions. Unlike a traditional savings account, a certificate of deposit holds your money for a fixed period of time — terms of one month to five years or longer — paying out the interest your deposit amount earns only after the term expires or "matures."Typical CD rates are fixed, which means you're guaranteed a rate of return that doesn't change. While you can't add to or access your cash until the CD matures, the trade-off is a safe, stable way to earn a much higher yield than you'd find with a traditional savings account.Dig deeper: When is it worth it to break a CD? A finance expert's thoughts on early withdrawals and breaking evenCD rates in the newsCD rates strongly correlate with the key interest rate set by the Federal Reserve, the U.S.'s central bank. This Fed rate is the benchmark that affects rates on deposit accounts, loans, mortgages, credit cards and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts — surging up to 4.5% and higher today to accelerate your savings.The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.May 1, 2024: Fed holds benchmark rate unchanged for sixth time since July 2023At the conclusion of its third rate-setting policy meeting of the year on May 1, 2024, the Federal Reserve left the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed's held the benchmark rate unchanged since July 2023.In its post-meeting statement, the Federal Reserve maintained "there has been a lack of further progress toward the 2 percent inflation objective." The Federal Reserve is focused on a 2% inflation goal that's ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed cautioned in its May statement that its rate-setting committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."What to expect at the Fed's June policy meetingIt's too early to predict what the Fed will decide at its next policy meeting on June 11 and June 12, 2024.On one hand, the pace of inflation has fallen from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The May 3 jobs report fell short of employment expectations, showing 175,000 positions added in April — significantly lower than the 315,000 positions added in March — signaling a slowing job market that could relieve inflation worries.Yet discouraging Producer Price Index data released on May 14 showed a 0.5% spike in wholesale prices, or the prices paid to producers of goods and services — its highest rate in a year. All eyes are on Consumer Price Index data due for release today, which, if it indicates a setback in the inflation rate, could influence the Fed's decision to hold on any future rate cuts. April's inflation data prompted a growing group of economists and strategists to doubt whether the Fed can cut interest rates at all this year. It's not great news for borrowers, but super for savvy savers looking to earn decades-high rates throughout the fall.The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on June 12, at 2 p.m. ET.Dig deeper: When’s the next Federal Reserve meeting? The FOMC — and how it affects your financesFDIC averages on CD products: Rates steady or up on most terms in AprilThe Federal Deposit Insurance Corporation tracks monthly average interest rates paid on certificates of deposit and other savings accounts. Created by Congress, the FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.Here's how FDIC national deposit rates on a $10,000 minimum deposit compare between April and March 2024, showing an increase in the rate on terms of six months as well as terms of 24 months and longer.The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts. New data is due for release on May 20, 2024.How to compare CDsWhen choosing the best certificate of deposit for your budget, compare these key factors against your specific savings or financial goals.Term length. A CD is ideal for saving toward a specific goal with money you’re not likely to need until the account matures. Look to shorter terms for saving toward, say, a family holiday or new appliances. Terms of one to five years or longer can help you lock in today’s highest APYs before interest rates are expected to drop.Rate of return. Look for the highest APY for the term you’re interested in. The APY is the amount of interest the CD earns in a year — including compounding. Unlike a savings account, CD rates are fixed, meaning they won’t change over your term.Minimum deposit. While you can find CDs without minimum starting deposits, most CDs require $100 to $1,000 to open an account. Generally, if you have the money for a higher initial deposit, you can earn a higher APY — just be sure that amount isn’t a hardship on your budget.Type of bank or financial institution. Today’s best interest rates are offered by digital banks, with few exceptions among traditional brick-and-mortar banks or credit unions. If you aren’t comfortable with an online-only bank, look to a high-yield savings account or money market account offering a high rate without withdrawal penalties.Penalties and fees. Life happens, and you might find yourself needing to tap into your money before the CD matures. Early withdrawal penalties are typically expressed in months of interest you’re giving up — for example, 90 days of interest for CD terms of up to 24 months. Often the longer the term, the higher the penalty fee.Benefits of a certificate of depositGuaranteed returns. With a CD, you make one deposit and earn a guaranteed interest rate over your term that’s yours after the CD matures.Higher rates than traditional accounts. Many banks and financial institutions offer CDs at rates that are higher than you’ll earn with the average savings or money market account — with digital and online banks offering the highest rates on average.Range of CD terms. You can find CD terms of three months to five years or more to fit your financial goals. Rates for six-month CDs can outpace the average bank account, and longer terms offer rates comparable to the best high-yield savings accounts.Drawbacks of a certificate of a depositPenalty for early withdrawals. If you need to access your money before your CD term expires, you face fees equal to several months of interest — as much as three to six months’ worth, depending on the account.Not the highest investment returns. CDs are a safe way to steadily earn interest, but you stand to earn more over the long term through stocks, bonds or securities. And by locking your money in a CD, you could miss out if average rates increase.You can’t add more money. After your CD locks, you aren’t able to add to your balance until after the CD matures — at which point, you can move your money to another account or roll it over to a new CD.Alternatives to a certificate of depositA certificate of deposit isn’t the only low-risk way to earn interest on your savings. Look to these alternatives that offer safe, steady returns — with the flexibility to add to or withdraw your money without penalty.High-yield savings account. An HYSA offers a way to quickly grow your savings investment at variable rates of 4.5% APY or higher with no penalty for withdrawals.Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts, with the same flexible access to your money.Higher-risk investments. Stocks, index funds and mutual funds average higher returns than CDs, though with higher potential losses.Highest savings rates today: Grow your savings at higher yields with today's top ratesFrequently asked questions about CDsLearn more about how certificates of deposit work when comparing the best for your budget and financial goals.How does a CD compare to a high-yield savings account?CDs can attract higher rates of return than a high-yield savings account in exchange for locking up your money, while HYSAs can earn you more than a traditional savings account with greater access to your money than a CD. Compare how CDs and HYSAs differ in access, flexibility and type of interest earned before deciding on the best for your investment.How do banks make money with a CD?Banks charge higher interest rates on money they lend out than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money. Unlike a traditional savings account that allows for flexible movement of your money without penalty, a CD requires you to lock in your deposit over a specified period of time, returning your principal plus interest after the account matures. That lock-in period — and penalties that discourage your early withdrawal — allows a bank to better plan how long it has to make money off your deposit, and it’s typically willing to pay a little more for that reliability.Is my money safe with an online-only bank like Lending Club or SoFi?Yes. These fintech (short for financial technology) companies are either FDIC-insured chartered banks or partner with more recognizable banks to offer deposit accounts that are protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options.What is compound interest?Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage.What is a no-penalty CD?A no-penalty CD — also called a liquid CD — is like a traditional CD through which you lock in a deposit for a guaranteed rate of return over a stated period of time, but with the flexibility of withdrawing your money without penalty before the CD matures. This flexibility comes with trade-offs, however, including lower rates of return than a traditional CD. With rates at historic highs, a high-yield savings account may offer comparable or even higher rates than a no-penalty CD with the same flexibility.What is a CD ladder?A CD ladder is a savings strategy designed to spread out your money across multiple CDs to leverage high rates without tying up your full investment into one long-term CD. The result of CD laddering is access to a portion of your investment at regular, timed intervals. With rates at all-time highs, a short-term CD ladder combines the high rates of return of a long-term CD with the flexible access to your money that a shorter-term CD offers.Learn how a short-term CD ladder can help you lock in today's highest rates while enjoying rolling returns — before rates drop.Editor's note: Annual percentage yields shown are as of Wednesday, May 15, 2024, at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.Sources
