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If you choose a savings account over a no-penalty CD, you may face these drawbacks: Variable interest rates. Unlike the fixed-term rates offered by no-penalty CDs, savings account rates can fluctuate.
"A no-penalty CD can be a great option over a high-yield savings account if you know you won't need to touch the money for a set period of time but want to keep it relatively safe from stock ...
Current rates as of August 2024 range from 4.00% to 5.00% APY on both no-penalty CDs and high-yield accounts. With no-penalty CDs, your rate is fixed–meaning it won’t change for the duration ...
The savings account offers you up to 3.80% APY with direct deposits of any amount, such as your payroll, pension or Social Security payments, while the checking account unlocks access to a debit ...
Requirement. Qualified Withdrawal. Non-Qualified Withdrawal. Age. 59½ or older. Under 59½. 5-Year Rule. Account open for five years. Account open for less than five years
However, even with the Fed considering future cuts, high-yield savings accounts are still paying much higher interest rates than traditional savings accounts — we're talking 10 to 20 times more.
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