Banks offer competitive interest rates on checking and savings accounts as Federal Reserve cuts rates

Interest rates for bank accounts are changing as the Federal Reserve has cut rates three times recently. This shift may affect the high interest rates that consumers have come to expect for deposits. As of December 29, 2024, several banks are offering competitive rates. For example, Quorum QBoost Checking offers 4.00% APY on balances up to $5,000, while SoFi Checking and Savings provides up to 4.00% APY with qualifying deposits. High-yield savings accounts and CDs are currently attractive options. Six-month CDs are offering rates in the mid-5% range, while one-year CDs are popular for their competitive rates. No-penalty CDs are also available, allowing early withdrawals without fees.