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Why you should open a high-yield savings account with inflation increasing again
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Inflation is on the rise again and American borrowers are likely to feel further pain. That was the sentiment on Wednesday after the latest inflation report from the Bureau of Labor Statistics showed inflation rising to 3.5% in March. That’s up from February’s 3.2% and a full percentage and a half point over the Federal Reserve’s target 2% goal. And while hope was high that the goal was in reach — and interest rate cuts would come in tandem — the new inflation report significantly reduces that likelihood.
But while high inflation and correspondingly high interest rates will keep borrowing costs high, they’ll also maintain the elevated returns savers can secure with select accounts. And one great way to earn those rates now is with a high-yield savings account. Below, we’ll detail three reasons why you should open a high-yield savings account now with inflation increasing again.
See how much more you could be earning with a high-yield savings account here now.
Why you should open a high-yield savings account with inflation increasing again
Here are three compelling reasons why you may want to open this type of savings account now:
Rates are high (and could go higher)
It’s not difficult to find a high-yield savings account with a rate of 5.30% or higher right now. Some savers may even qualify for an account with a 6% rate. That’s a significant amount of money that can be earned simply by transferring your funds from one account to another.
And those rates may go even higher now that inflation is rising again and rate increases appear more likely than they did earlier in the year. But because the rates on high-yield savings accounts are variable and subject to change, it makes sense to be aggressive to earn today’s rates while they’re still high.
Get started with a high-yield savings account here today.
You’re likely losing money
While rates on high-yield savings accounts are elevated, rates on regular savings accounts aren’t nearly as high. The average rate on a regular account now is just 0.47%. So, if you’re keeping your money in one of those accounts versus one of the high-yield ones offering exponentially more interest, you’re essentially losing money. This is a simple mistake to fix, and one that should be corrected rapidly now that inflation is likely to continue to eat away at the purchasing power of your dollars.
CDs are more restrictive
While certificates of deposit (CD) accounts are also advantageous to open right now (they may even have slightly higher rates than high-yield savings accounts) they’re also more restrictive. Savers won’t be able to access their funds quickly without paying an early withdrawal penalty to get it. And the rates on CDs are locked, so if inflation continues to be an issue — and interest rates rise to tame it — the rates on CDs won’t budge. However, high-yield savings account holders will benefit because rates on these accounts can rise (or fall) as the rate climate evolves.
The bottom line
An increase in inflation doesn’t need to be completely detrimental. With an opportunity to earn big returns with a high-yield savings account now, savers can help offset some of the costs of inflation and higher interest rates. With rates on these accounts high now, the rates on regular accounts minimal and the restrictions on CDs discouraging for many, it makes sense to open a high-yield savings account today with inflation increasing again.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.