CBS News
Why you should open a high-yield savings account after your CD matures
Getty Images
Do you have a certificate of deposit (CD) that will be maturing soon? With a CD, you deposit money into your account and agree not to touch it for the account’s entire term in exchange for a strong return. But, when your CD matures, your money becomes liquid again, making it possible to make new moves with your freed up cash. But what should you do with that newly accessible money?
If you have a CD that’s maturing anytime soon, one move you can make with your money is to deposit it into a high-yield savings account.
Unlike CDs, high-yield savings accounts don’t typically require you to lock your money up for a predetermined period of time. However, like CDs, these accounts offer impressive returns, especially in today’s interest rate environment. But, that’s not the only reason you should deposit your money into a high-yield savings account when your CD matures.
Get more out of your savings with a high-yield savings account.
Why you should open a high-yield savings account after your CD matures
CDs come with several benefits – which is why they’re such a popular financial product. However, in today’s economic climate, it may be better to deposit your funds into a high-yield savings account than open a new CD when yours matures. Here’s why:
Interest rates could rise
Interest rates are high at the moment. That’s largely thanks to the fact that the federal funds rate, the Federal Reserve’s benchmark rate, is currently frozen at a 23-year high. But, that rate could go even higher.
The Federal Reserve pushed its federal funds rate up several times as a result of high inflation. And, while higher interest rates have tampered inflation – bringing it down from 2022 highs – the downward pressure on price growth hasn’t been enough to line up with the Fed’s goal of 2% annually.
But, the most recent inflation reading showed that prices had grown 3.4% year over year in April – a far cry from the Fed’s target. If inflation doesn’t cool significantly soon, it could lead to more rate hikes. But, that may be a good thing if you have your money in a high-yield savings account. That’s because these accounts typically come with variable interest rates. So, a higher federal funds rate could result in higher returns on your savings.
Enjoy higher rates with a high-yield savings account today.
You may need access to your savings
A CD is a great way to earn a meaningful return on your savings if you know you’re not going to need your money through the account’s term. However, that may not be the case right now. As inflation persists, prices continue to grow at uncomfortable rates. And as prices grow, you may need a financial cushion. If you lock your money up in a new CD, you may be penalized for accessing it when you need it. But, you’ll have easy access to your money when you need it if you opt for a high-yield savings account instead.
You’ll lose buying power with a regular savings account
Traditional savings accounts are paying an average 0.45% annual return. That’s significantly lower than the current 3.4% inflation rate. So, if you have money in a traditional savings account, that money could be losing buying power. But, you could expand your buying power by taking advantage of a high-yield savings account. Some of the top-paying high-yield savings accounts offer interest rates ranging from 4.25% to 5.25%. So, you could turn a loss of buying power into a gain by opting for a high-yield savings account instead of its traditional counterpart.
Don’t lose buying power. Open a high-yield savings account now.
The bottom line
If you have a CD that’s set to mature soon, be ready to open a high-yield savings account when it does. The high yields on these accounts mean you may be able to grow your savings dollars without locking your funds up. And, the variable rates high-yield savings accounts come with may give you a way to take advantage of any rate hikes ahead. Compare leading high-yield savings accounts today to get more out of your savings.
Williams Sonoma
If you’re seeking restaurant-style nugget ice or just a way to make ice quickly for parties, a countertop ice maker may be right for you and your kitchen. They’re a great option if your refrigerator doesn’t have a built-in ice maker.
When shopping for a countertop ice maker, consider how much ice it can make per day, plus what types of ice it makes. When it comes to technology, some ice makers keep it simple, while others can be controlled through your smartphone. And consider how you would like to refill your ice maker. Some ice makers must be manually refilled while others come with an inlet hose.
Ahead we’ve rounded up the best countertop ice makers from GE, Frigidaire, Igloo and more brands. Say goodbye to smelly, freezer-burned ice from your ice cube tray with one of the appliances ahead. They make fresh ice much faster than your standard ice tray in the freezer.
Best ice makers of 2024
All of the options below have a 4.0 or higher review score.
Most popular ice maker: Silonn countertop ice maker
Amazon
This No. 1 bestseller on Amazon takes just six minutes to make nine bullet-shaped ice cubes and can make 26 pounds of fresh ice in just 24 hours. The Silonn countertop ice maker has more than 27,000 reviews and a 4.4-star rating.
This countertop ice maker is self-cleaning and comes with an ice scoop. It can make two sizes of bullet ice. Find the Silonn countertop ice maker in eight colors at varying prices.
This 4.4-star-rated ice maker is currently on sale at Amazon with an instant coupon.
Best splurge ice maker: GE Profile Opal 2.0 nugget ice maker with Wi-Fi
Williams Sonoma
There’s ice and then there’s nugget ice. Nugget ice is the soft, easy-to-crunch ice that’s used in some of your favorite fast food drinks. Because there’s trapped air, nugget ice lasts longer in drinks. Its softer texture, meanwhile, makes it ideal for use in summery blended drinks.
This splurge-worthy ice maker from GE is available in two colors, with the more budget-friendly option being stainless steel. You can request fresh ice from your smartphone, Alexa or Google Assistant and have it ready in 20 minutes. It makes up to 24 pounds of ice a day and comes with a scoop.
It’s rated 4.3 stars and currently on sale for $480 at Williams Somnoma.
Best budget ice maker: Countertop ice maker
Amazon
This bullet ice maker with a handle is your most affordable option and still makes up to 26 pounds of ice in 24 hours. It can make nine ice cubes in as little as six minutes. This budget-friendly ice maker has won the hearts of many reviewers, with a 4.5-star rating on Amazon.
We like that this model is self-cleaning. It comes with an ice scoop. Choose between five color options.
This 4.5-star-rated ice maker is currently on sale for $80 with an instant coupon.
Best value ice maker: Frigidaire ice maker
Amazon
This more affordable Frigidaire ice maker makes two sizes of ice. It can produce up to 26 pounds of ice per day, with the first batch ready in as little as six minutes.
“It’s cool because if you just need some ice for a small party, you can make enough within about 20 minutes,” an Amazon reviewer says. “[This machine is] also very beautiful.”
Find this ice maker in four colors. It comes with a scoop and is rated 4.5 stars.
Best ice maker for bullet ice: Kissair countertop ice maker
Walmart
This affordable ice maker with a handle makes up to 26 pounds of bullet-shaped ice. It can have nine bullet-shaped ice cubes ready in as little as six minutes.
This portable ice maker is self-cleaning and comes with an ice scoop. Its handle makes it easy to transport. It’s rated 4.5 stars, comes in five colors and is currently discounted $72 at Walmart.
Most stylish ice maker: Igloo automatic ice maker
Amazon
This Igloo ice maker comes in fun colors, as well as classic colors like white and stainless steel. It makes up to 26 pounds of ice in 24 hours or nine ice cubes in as little as seven minutes.
This ice maker produces two ice cube sizes and is equipped with a self-cleaning feature. It also includes a convenient ice scoop and has received a 4.1-star rating.
Starting next week, the price of a “Forever” stamp will increase by a nickel to 73 cents, the second time the United States Postal Service has raised the cost of postage this year.
The price of a Forever stamp has steadily climbed since they cost 41 cents when the USPS introduced them in 2007, most recently in January when the agency raised the price from 66 cents to 68 cents.
Other postage rates are also set to jump. Mailing a postcard domestically will cost 56 cents, a 3-cent increase, while the price of mailing postcards and letters internationally are both rising by a dime to $1.65. Overall, postage costs are rising 7.8% increase, USPS said in a statement in April.
“These price adjustments are needed to achieve the financial stability sought by the organization’s Delivering for America 10-year plan,” the agency said at the time.
The new postage rates take effect on July 14.
By contrast, the price of renting a Post Office Box is not going up, and USPS will reduce the cost of postal insurance 10% when mailing an item, according to the agency.
Postage prices may be rising, but customers also have more Forever options to choose from. USPS in June began offering two new Forever stamps — one that depicts baseball legend Hank Aaron and another that pays homage to Canadian-American game show host Alex Trebek.
Aaron held professional baseball’s home-run record for three decades until it was broken in 2007, while Trebek hosted Jeopardy until he died of pancreatic cancer in November 2020.
The USPS this year has also launched Forever stamps honoring former First Lady Betty Ford, University of California Los Angeles men’s basketball coach John Wooden and some of the conductors of the Underground Railroad.
Still, the postage increases are hurting mail volume as well as the USPS’ bottom line, some critics says. The agency in November reported a $6.5 billion loss for fiscal 2023 and is projecting a $6.3 billion deficit in 2024, according to Keep US Posted, a nonprofit advocacy group.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.