The getting is still good for savers hoping to earn some money on idle cash: Bread Financial recently boosted its savings account annual percentage yield to 4.9%, an increase of 15 basis points. The Columbus, Ohio-based bank isn’t alone, either. An analysis by Stephens showed that a handful of institutions boosted yields on savings products this week. Synchrony Financial hiked its savings account yield by 20 basis points to 4.5%. SLM – known as Sallie Mae – lifted its yield to 4.25%, up 15 basis points, and SoFi Technologies raised its rate on savings account to 4.4%, an increase of 10 basis points. (1 basis point equals 0.01%.) “This week represents a return to significant online bank deposit rate increases, following a month of relative quiet,” said Vincent Caintic, an analyst at Stephens, in a Monday report. The Federal Reserve’s tightening campaign – wherein it boosted interest rates 10 times since March 2022 – had the side benefit of lifting yields on a range of “safe” investments, spanning from Treasurys to money market funds and online savings accounts. Now, the question is whether banks will continue to jockey for deposits even as the central bank may be nearing its peak on rates. Market participants anticipate a 97% chance that policymakers will boost rates by another quarter point at their July 25-26 meeting, according to the CME FedWatch Tool . When it comes to shopping for online savings accounts, investors shouldn’t just look for the highest yields, especially because banks can adjust what they’re willing to pay. Be cognizant of minimum account balance requirements and monthly maintenance fees. Some banks also impose transfer limits to deter savers from moving cash too frequently from their savings accounts. – CNBC’s Michael Bloom contributed to this report.
