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US Personal Finance: Savings Interest, CDs, Debt Collection Practices and Long‑Term Care Insurance Premiums
Savings accounts in the United States typically earn around 0.42% annual percentage yield (APY), while high‑yield savings accounts have risen to about 4.5% APY, according to Jill Fopiano, CEO of O'Brien Wealth Partners. The Federal Reserve has raised its short‑term interest rates eleven times since March 2022, a move credited with boosting these rates.
Certificates of deposit (CDs) generally offer higher yields than ordinary checking or savings accounts. A one‑year CD at 4% APY on a $5,000 deposit would generate $200 in interest. National averages show checking accounts at 0.06% APY, savings accounts at 0.35% APY and CD rates ranging from 0.18% to 1.26% (as of March 2023). CDs are insured by the FDIC or NCUA up to statutory limits.
In debt‑collection practice, an agency that owns a debt may sell the account to another collector, whereas agencies acting solely on behalf of the original creditor cannot sell the debt because they do not own it.
Long‑term care insurance premiums can increase after a policy is purchased, but such hikes are not triggered by the insured’s age, health status, or claims, meaning premiums may rise for other, unspecified reasons.
Entities
Certificate of deposit · Debt collector · FDIC · Federal Deposit Insurance Corp. · Federal Reserve · Jill Fopiano · Long‑term care insurance · NCUA · O'Brien Wealth Partners · Robert Donnelly
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] High‑yield savings accounts average roughly 4.5% APY. www.cbsnews.com
- [○ 1 SOURCE] As of March 2023, the average national checking account rate was 0.06% APY, savings accounts 0.35% APY, and CD rates ranged from 0.18% to 1.26% APY. www.cbsnews.com
- [○ 1 SOURCE] Certificates of deposit offer fixed interest rates that are typically higher than those of checking or savings accounts. www.cbsnews.com
- [○ 1 SOURCE] CDs are insured by the FDIC or NCUA up to the statutory limits. www.cbsnews.com
- [○ 1 SOURCE] Typical U.S. savings accounts earn about 0.42% APY. www.cbsnews.com
- [○ 1 SOURCE] A 1‑year CD with a 4% APY on a $5,000 deposit yields $200 in interest. www.cbsnews.com
- [○ 1 SOURCE] The Federal Reserve raised short‑term interest rates eleven times since March 2022. www.cbsnews.com
- [○ 1 SOURCE] Rates on high‑yield savings accounts are expected to stay near current levels until the Fed cuts rates. www.cbsnews.com
- [○ 1 SOURCE] The average national checking account rate is 0.06% and the average savings account rate is 0.35%. www.cbsnews.com
- [○ 1 SOURCE] A one‑year CD with a 4% APY on a $5,000 deposit would earn $200 in interest. www.cbsnews.com
- [○ 1 SOURCE] Certificates of deposit generally offer higher interest rates than checking or regular savings accounts. www.cbsnews.com
- [○ 1 SOURCE] Typical savings accounts earn about 0.42% APY. www.cbsnews.com