Four high-yield savings accounts cut their rates. Where you can still earn 4%

Median Savings Rate

3.4%

The current peer median savings rate following recent cuts by several banks.

Current 4% APY Accounts

Number of online banks currently offering a 4% annual percentage yield on high-yield savings accounts.

Last Fed Rate Cut

December 2022

The last time the Federal Reserve reduced rates, indicating a pause in rate adjustments.

§ 01 Executive Snapshot

What: Four high-yield savings accounts have reduced their rates despite market expectations that the Federal Reserve will not cut rates soon.
Who: Accounts affected include those from Apple, Ally Financial, Capital One Financial, and Marcus by Goldman Sachs.
Why it matters: The trend reflects a potential decline in deposit demand and could impact consumer savings strategies amid fluctuating economic conditions.

The peer median savings rate has decreased by 5 basis points to 3.4% according to BTIG.
The Federal Reserve has not cut rates since last December, and current market expectations suggest potential rate increases instead.
Bread Financial and LendingClub are currently offering high-yield savings accounts with a 4% annual percentage yield (APY).

Historical trends show that savings rates are typically tied to the federal funds rate, influencing bank behaviors during economic fluctuations.
The current economic environment features elevated inflation and a strong jobs report, which complicates future rate predictions and deposit strategies.

Immediate market consequences may include increased competition among banks for deposits as more applications are approved by regulatory bodies.
Long-term implications may involve shifts in consumer behavior regarding savings and investment strategies, particularly with the rise of online banks offering competitive rates.

Potential risks include regulatory changes impacting bank operations and consumer confidence in deposit products.
Competition from online banks may create pressure on traditional banks to maintain higher rates, affecting profitability.

Upcoming signals include monitoring Federal Reserve meetings for any changes in rate policy or economic forecasts.
Key indicators for the success of deposit rates will be trends in loan growth and consumer demand for savings products.

§ 07

What happened to the rates of high-yield savings accounts?

Four high-yield savings accounts have reduced their rates despite market expectations that the Federal Reserve will not cut rates soon.

Who are the banks that cut their savings account rates?

The accounts affected include those from Apple, Ally Financial, Capital One Financial, and Marcus by Goldman Sachs.

How does the current economic environment affect savings rates?

The current economic environment features elevated inflation and a strong jobs report, complicating future rate predictions and deposit strategies.

Where can I still earn a 4% annual percentage yield?

Bread Financial and LendingClub are currently offering high-yield savings accounts with a 4% annual percentage yield (APY).