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Bitcoin keeps on rising. The cryptocurrency’s price is knocking on $62,000, the highest level since June 2023. That’s enough to send its market capitalization above $1 trillion.
The market has shaken off its post-FTX collapse jitters wholesale, and since then, the US government has allowed for the proliferation of spot exchange-traded funds (ETFs). Offerings from the likes of BlackRock and Fidelity have raked in hundreds of millions of dollars of investment capital.….Story continues…
By: Melvin Backman
Source: Bitcoin’s market cap crossed $1 trillion again
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While high-yield savings accounts offer higher interest rates than traditional savings accounts, they may not outpace inflation, potentially eroding your purchasing power over time. As a result, they’re not typically recommended for long-term wealth-building or retirement savings.IDFC FIRST Bank offers interest rate up to 7% on balances more than Rs 10lac to less than Rs 5 crore. The new rates are effective from July 1, 2023.
Millionaires Like High-Yield Savings, but Not as Much as Other Accounts. Usually offering significantly more interest than a traditional savings account, high-yield savings accounts have blown up in popularity among everyone, including millionaires. At a 4.25% annual interest rate, your $100,000 deposit would earn a total of $4,250 in interest over the course of a year if interest compounds annually. Annual total: $104,250.
CDs typically offer higher interest rates than high-yield savings accounts — but they work a bit differently. Some high-yield savings accounts have minimum balance requirements, meaning you must maintain a certain balance to get the best interest rate. For example, if an account requires you to deposit $5,000 to earn a premium rate, but your deposits only total $3,000, you’ll earn a lower-than-advertised rate.
For savings, aim to keep three to six months’ worth of expenses in a high-yield savings account, but note that any amount can be beneficial in a financial emergency. For checking, an ideal amount is generally one to two months’ worth of living expenses plus a 30% buffer.Instead of keeping extra money in a savings account, you could direct it into investments with greater growth and income potential, such as mutual funds, bonds, stocks, and exchange traded funds, or ETFs.
These investments are riskier than a savings account, but may offer higher returns.It’s a special type of account offered by banks and building societies that rewards you with a more attractive rate of return compared to the more common current or easy-access savings accounts. As long as you’re banking with an FDIC-protected bank, you’re not risking losing your money when you deposit it into a high-yield savings account.
However, the rate of inflation can be higher than your APY, resulting in a negative real return, or the return after taxes and inflation are taken into account. Not the best choice for long-term savings – High-yield savings accounts offer much better interest rates than traditional savings accounts, but often, you won’t earn enough over the long-term to account for inflation. Investments may be a better option for a longer-term, greater yield.
Money market accounts and certificates of deposit (CDs) may provide higher yields. Peer-to-peer lending is another alternative to savings accounts. Credit union bank accounts may provide higher rates than bank accounts, but you must be a member to open one. Money market accounts and certificates of deposit (CDs) may provide higher yields. Peer-to-peer lending is another alternative to savings accounts.
Credit union bank accounts may provide higher rates than bank accounts, but you must be a member to open one. According to data from the FDIC, the average savings account earns 0.45% APY. Currently, however, the best high-yield savings accounts offer APYs of around 5.00%. If you deposit $10,000 into one of these high-yield savings accounts, you’ll earn $500 in interest in a year.
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