Updated
Updated · CBS New York · Jun 5
Savers Can Earn 4% in 3 Account Types as Traditional Savings Pay Just 0.38%
Updated
Updated · CBS New York · Jun 5

Savers Can Earn 4% in 3 Account Types as Traditional Savings Pay Just 0.38%

3 articles · Updated · CBS New York · Jun 5

Summary

  • Three account types—CDs, high-yield savings accounts and money market accounts—are offering roughly 4% or more in June, giving savers a chance to beat inflation by more than 1 percentage point.
  • Traditional savings accounts average just 0.38%, making idle cash a losing proposition in a still-high-rate environment even as inflation and other conditions soften.
  • CDs lock in a fixed rate through maturity but charge early-withdrawal penalties, while high-yield savings and money market accounts keep funds more accessible and may hold steady if rate cuts stay off the table.
  • The latest guidance builds on earlier comparisons showing a $70,000 deposit could earn about $2,877 in a 1-year CD at 4.11% or $2,870 in a high-yield account at 4.10%.

Insights

Are tax-free Treasury bills a smarter, overlooked choice for your cash than a high-yield savings account?
CDs offer fixed rates, but HYSAs have flexibility. Which one truly wins for your savings goals this year?
With interest rates expected to fall, is this the last chance to lock in high returns on your savings?