APY GUY: Maximize Your Savings & Earnings

Barclays Bank CD Rates – Up to 0.80% APY!


[Update December 2021: Barclays mid and long term CD rates have risen quite substantially over the course of 2021. Their 5 year term deposits, in particular, rose over 3x – starting the year at 0.25% APY and ending at 0.80% APY. Their short term CDs, 3 – 9 months, provided a yield of just 0.10% APY all year and did not fluctuate.]

image credit: Unsplash, Christin Hume

The online-only, US division of Barclays Bank has a simple set of bank deposit accounts that feature some noteworthy yields.

Their current product suite consists of an online savings account and 9 regular term CDs ranging from 3 months to 5 years. The current yields on their certificates of deposit are higher than the national average for each term.

Barclays CDs can be opened online in minutes and their products are available to US citizens and residents over the age of 18 in all 50 states.

Barclays Bank CD Rates + Account Details

Barclays Bank is federally insured by the FDIC. All deposits are insured up to $250,000 per depositor or $500,000 for joint accounts.

Barclays Bank CD Rates

TermAPY
3 months0.10%
6 months0.10%
9 months0.10%
12 months0.55%
18 months0.60%
24 months0.65%
36 months0.70%
48 months0.75%
60 months0.80%

To put these offers in perspective the current national average on a 12 month CD and a 60 month CD sit at just 0.13% and 0.28% APY, respectively, according to recent FDIC data.

Given the fact that Barclays Bank has static yields on terms ranging from 12 to 60 months, their 12 month CD is going to be more competitive when compared to the national average than the 5 year CD – although both beat it handily.

How is Interest Calculated and Paid

All Barclays CDs compound interest daily and credit it monthly to your account. You can choose to have these funds kept in your deposit to compound further, transferred to a Barclays online savings account or transferred to an external account.

Fo those that would like the interest transferred, here’s how to set that up:

  1. Select the Account detail tab,
  2. Go to the Additional Details section.
  3. Under CD interest disbursement, select the Edit option.

Please note that you’ll need the wiring information and bank account number to where the funds will be disbursed.

Early Withdrawal Penalties

Watch out for early withdrawal penalties. Barclays bank doesn’t offer any promotional, one-time early withdrawal option that some other online banks do.

If you need access to your funds prior to your CD’s maturity you can expect to pay the following:

  • For a CDs with terms less than 24 months, a penalty equaling 90 days simple interest on the dollar amount withdrawn subject to penalty will be imposed,
  • For CDs with a term of more than 24 months, a penalty equaling 180 days simple interest on the dollar amount withdrawn subject to penalty will be imposed.

What Happens When Your Barclays CD Matures

Barclays gives you ample time to decide what to do with your funds when your CD matures. They will send you an email alert notifying you of your upcoming CD maturity roughly 30 days prior to the maturation date. At this time you may login to your account and make your maturity selection. You can choose to do nothing and have the CD renewed, withdraw some or all of the funds, or change the term of your CD.

Upon maturity you will be allotted a 14 day grace period in which you can withdraw funds (or add them) without any penalty. To withdraw funds, you’ll need to contact them in writing or by phone before the grace period is over. For more detailed instructions, call the Barclays Customer Care team at 888-710-8756, 7 days a week from 8:00 am to 8:00 pm ET.

If nothing is done during this 14 day grace period, your CD will automatically renew into the same term deposit with whatever yield is currently being offered at that time.

⏰ Remember: Be sure to set up your own alerts as these emails can be accidentally sent to your junk mail.

Final Thoughts

Barclays Bank specializes in great online savings rates, both for variable and fixed rate deposit accounts. Their deposit product selection all currently feature above average yields.

That said, while Barclays CD rates certainly beat the national average(s) for their respective terms, higher yields can be found on many shorter term CDs through other online banks and nationally available credit unions.

Blue Federal Credit Union – Savings Rates up to 5.0% APY!


Headquartered in Cheyenne, Blue Federal Credit Union has the most members of any credit union in Wyoming. It was founded and federally chartered in 1951 by employees of the F.E. Warren Air Force Base. Today, Blue Federal Credit Union has 19 branch locations across Colorado and Wyoming and is open to military members and civilians.

Blue Federal Credit Union is known for its many different savings accounts including multiple high-interest deposit accounts and CDs.

Learn more about each of these here to decide which one is right for you.

Rewards for Life

Before we get into the savings accounts, we want to talk about Rewards for Life since many accounts we’re going to cover qualify for reward points.

The Rewards for Life program awards points to members using three criteria: how long you’ve been a member of the credit union, how many different deposit accounts and Blue Federal products you have, and your combined balance across all accounts.

You get at least one point just for being a member and can earn up to three rewards points for a longer relationship with the credit union:

  • 0-5 years: 1 point
  • 5-15 years: 2 points
  • 15+ years: 3 points

You may also qualify for points when you open certain accounts or purchase certain products. Accounts/products that qualify for one reward point each include:

  • Any checking account
  • Any credit card
  • Any Investment at Blue account
  • Any Money Market account
  • Any Individual Retirement account
  • Any Term Share certificate account
  • Any first mortgage/bridge loan
  • Any second mortgage/HELOC/Finish Line
  • Any auto/RV/other secured loan
  • Any unsecured loan/line of credit

Finally, you earn points for your combined balance across all of your accounts:

  • Less than $5,000: 0 points
  • $5,000 – 25,000: 1 point
  • $25,000 – $75,000: 2 points
  • $75,000+: 3 points

Your points total determines your Rewards Level. The higher your tier, the more perks you qualify for, with Sapphire being the most elite tier. Here are the Rewards tiers and the benefits at each:

 SilverGoldSapphire
 0-5 points6-8 points9+ points
Consumer loan rate discountNone-0.25% APR-0.50% APR
Extreme checking rate (up to $15,000)1.00% APY1.50% APY2.0% APY
Paper statement fee$2/eachFreeFree
IRA annual fee$10FreeFree
Official check fee$3$3Free
Coin/coin machine fee3%FreeFree
Domestic outgoing wire fee$25$25Free
Incoming wire fee$5$5Free
Credit card rewards1 point per $11.5 points per $12 points per $1

If you’re not sure how many reward points you qualify for, you can use their Rewards for Life Calculator to get a better idea. You should automatically start receiving benefits as soon as you qualify for a higher tier.

Note that Investments at Blue balances and first mortgages/bridge loans do not count toward your combined balance. Also, the consumer loan rate discount applies to auto, ATV, motorcycle, and recreation vehicles.

Accelerated Savings

The first savings account we’re going to cover is the Accelerated Savings account. This account offers an APY of 5% on up to $1,000. This is the best savings rate Blue Federal Credit Union pays. On balances over $1,000, your APY decreases as your balance increases.

Accelerated Savings Rates

BalanceAPY
$0 – $1,0005.0%
$1,000.01 – $5,0001.80% – 5.0%
$5,000.01 – 10,0001.15% – 1.80%
$10,000.01 – 50,0000.43% – 1.15%
$50,000.01+0.15% – 0.43%

You will earn 5% APY on your first $1,000, then a lower rate on everything above that. The current national average rate on a savings account is 0.06%. Unlike some high-interest savings accounts, this account doesn’t reward you for saving more.

There is no minimum opening balance required for this account, but you must maintain an average daily balance of at least $25 to earn interest.

You can open only one Accelerated Savings account. Interest is compounded and credited monthly.

You can make up to six withdrawals per month per Federal Regulation D.

Accelerated Savings account balances count toward your combined balance and qualify for Rewards for Life points.

Sky High Savings

The Sky High savings account is another version of a “high-interest” savings account available at this credit union. It pays 0.35% interest on all balances and there is no minimum balance required to earn interest. Dividends are compounded and credited monthly to your account.

There is no minimum opening balance required for this account. While much better than the national average, the earnings rate for this account is not that competitive compared to many financial institutions (and we certainly wouldn’t consider it “sky high”).

Christmas Club Savings

The Christmas Club savings account is designed to help you save for holiday spending. It allocates a portion of your money for an end-of-year lump sum withdrawal and earns interest for as long as the money is locked. This account earns 1.25% interest on balances up to $5,000.

Christmas Club Savings Rates

BalanceAPY
$25 – $5,0001.25%
$5,000.01+0.10%

You must maintain an average daily balance of at least $25 to earn interest.

This account is free to open but limited to one per customer. Interest is compounded daily and credited quarterly to your account. Your balance is paid out automatically in October. If you withdraw your funds before this, you will incur an early withdrawal penalty.

Other Savings

Besides these three accounts, there are two other more basic options: Membership Share savings and Supplemental savings.

Membership Share savings is exactly what it sounds like. Your deposit into this account doubles as your membership fee with the credit union, so you need to keep this account open if you want to remain a member.

This account earns an APY of 0.10% on all balances. The minimum average daily balance to earn interest is $25 for this account. Interest is compounded daily and credited quarterly into your account.

The Supplemental savings account is intended to be used for specific purposes. You can open this additional account to save for big purchases or create buckets for designated spending such as grocery or clothes shopping.

There is no minimum balance required to open a Supplemental savings account and you can open multiple. You need to maintain an average daily balance of at least $25 to earn interest. The interest rate for this account is also 0.10% for all balances. Interest is compounded daily and credited quarterly.

Both of these savings accounts also help you earn Rewards for Life points by counting toward your combined balance. They do not have fees.

Money Markets

Blue Federal offers both traditional and Ultra Money Market accounts. A traditional MMA requires an opening deposit of $1,000 and this is the average daily balance you must maintain to earn interest. Here are the rates for this account by balance tier.

Money Market Account Rates

BalanceAPY
$1,000 – $14,999.990.10%
$15,000 – $24,999.990.15%
$25,000 – $74,999.990.20%
$75,000 – $99,999.990.25%
$100,000+0.30%

The average rate for a money market account is sitting at about 0.06% right now. There are better rates out there and these are especially not ideal if you don’t have a lot of cash to deposit.

The ultra money market accounts pay higher dividends and require a much higher balance of at least $100,000 to open and earn interest.

Ultra Money Market Account Rates

BalanceAPY
$100,000+0.35%
$2,500 – $99,999.990.10%

You will earn the 0.35% APY on any balance over $100,000 and 0.10% on any balance less than this. You must maintain a balance of at least $2,500 to earn interest on this account.

Don’t choose this account unless you know for sure that you will be able to maintain a balance of at least $100,000 because otherwise, you will earn less than you would with the traditional MMA.

Interest is compounded and credited monthly back into your account unless you specify otherwise for both types of money market accounts.

You can make unlimited withdrawals and transfers from this account by visiting a branch, and you can make unlimited deposits at any time in person or online. There are no monthly service fees or fees for excessive withdrawals.

Term Share/Certificate of Deposit Accounts

The final deposit account we’re going to cover is the Term Share or Certificate of Deposit account. Choose from a decent selection of traditional and IRA CDs.

These accounts earn tiered APYs. Take a look at the interest rates for a traditional CD by term length and balance.

Regular CD Rates

Term Length$1,000 – $49,999.99 APY$50,000 – $99,999.99$100,000+
6 months0.15%0.20%0.25%
12 months0.30%0.35%0.40%
24 months0.45%0.50%0.55%
30 months (expandable)0.50%0.55%0.60%
36 months0.55%0.60%0.65%
48 months0.70%0.75%0.80%
60 months1.00%1.05%1.10%

Right now, the national average rate for a 12-month CD is sitting at 0.14%. These rates from Blue Federal are competitive and certainly some of the best we’ve seen offered by a credit union.

Blue Federal CDs require a minimum opening deposit of $1,000. Interest is compounded and paid monthly back into your CD.

The 30-month expandable CD allows you to deposit more money into your account after opening it, unlike other CDs. There are no fees for doing this.

Taking your money out before your certificate matures will cost you. Here are the fees you can expect for each term:

  • Early withdrawals from CDs of less than one year incur a penalty equal to 90 days’ interest
  • Early withdrawals from CDs of between one and three years incur a penalty equal to 180 days’ interest
  • Early withdrawals from CDs greater than three years incur a penalty fee equal to 240 days’ interest

The grace period during which you can make a withdrawal after your account expires and renews without being penalized is 10 days.

There are both regular and IRA certificates of deposit available.

How to Join Blue Federal

You must become a member to open an account with this institution, but anyone can become a member by joining the Blue Foundation and making a deposit of $10. $5 will be used to open your first account and $5 will be donated on your behalf to the Blue Foundation, an organization that supports community service efforts. Once you join, you’re a member for life.

You can also join through a family member, eligible employer or organization in Wyoming or Colorado, or through the F.E. Warren Air Force Base or U.S. military (if you or a family member are in active-duty service).

Final Thoughts

You should have no problem finding a savings account to help you meet your goals at Blue Federal Credit Union. While these aren’t the best savings rates we’ve seen, they’re good, especially compared to other credit unions. And when you factor in the perks you can get from the Rewards for Life program, this credit union becomes a pretty attractive option for saving and low-risk investing. Overall, the accounts are pretty flexible, and they’re not bad for people with lower net worths.

You’ll probably want to steer clear of the Money Market accounts and instead choose a CD or Accelerated Savings account for the highest earning potential.

Copper Banking Teen Debit Card – See how it compares


Launched in April 2019 and headquartered in Seattle, Washington, Copper is quickly becoming a popular option for teens and parents.

This debit card often ranks among the top debit cards for kids and teens because of its app, which features an extensive selection of tools and learning resources that are free to all users.

Copper banking sets itself apart from other debit cards for kids and teens by putting more focus on teaching users financial literacy skills. This app and debit card were created specifically for teens—educational resources are intended to be engaging and helpful to young audiences, and the app. In this article, we’ll address many of the things you may be wondering about this product.

Who is it For?

Average age: teenagers (13 – 19)

Good candidate: teenagers who want financial independence and are going to take advantage of educational resources available to them.

Copper is great for teens between the ages of 13 and 18, but Copper doesn’t actually specify a minimum or maximum age required for this account. Rather, only those 18 years old or older may open an account and all others must have an authorized user, a parent or guardian. With that said, teenagers are the target audience for this product.

Features and Benefits

Fees: no monthly service fee or subscription fee, no low balance fee, no ATM fee for in-network ATMs, no transfer fees, no overdraft fees

One of Copper’s main hooks is that it is a financial literacy app as much as it is a safe debit card for teens. On the teen side, the app is full of educational material carefully curated by financial literacy experts. And unlike other products that also offer resources of this kind, Copper’s tools are not reading-heavy (which may cause many teens to lose interest).

And there are resources for parents as well. Published author and Certified Financial Planner Liz Frazier is the Executive Director of Financial Education at Copper, and her articles are available to all Copper users to help parents and guardians support their children in learning critical money management skills.

A Copper debit card may be used almost anywhere Mastercard is accepted, with restrictions on certain merchant types. 

Parents and teens have their own accounts with Copper. Here’s what that looks like.

For Parents

A parent account is the funding account, which is linked to an existing checking account with another bank. This account is referred to as the Copper wallet. Parents may choose to fund this account on an as-needed basis or set up auto reloads from their linked checking account into their Copper wallet. 

If they choose this option, they can choose what balance they want to trigger auto funding (e.g. if their wallet balance drops below $50). These deposits may take a few days to process.

Transfers out of the Copper wallet and into a teen’s account are easy and fast. A parent can instantly transfer Parents can use Copper to set up recurring transfers for allowance and other regular payments.

Parents can see all of their teen’s transactions from the Copper app and can optionally set up push notifications for every time their child uses their debit card.

There is no maximum dollar limit on ACH, direct deposit, or wire transfers from an external account into a Copper wallet as long as these transfers are initiated by the outside institution. However, if initiated by Copper, there is a $500 daily deposit limit on both ACH transfers and credit/debit card deposits.

Each Copper account holder may add up to five kids to their account at no additional charge. They will each get their own card, and adding kids to an account can be done through the Copper app.

Financial literacy resources available to parents cover topics including kids and their relationship with technology, money and mental health, and financial fundamentals useful to parents and teens alike.

For Kids

There are a couple of ways that teens can get more money into their Copper account. They can request this money from their parent(s) through the app, leaving a note about what the money’s for and how much they need; set up direct deposit from their job, if they have one; or make cash deposits at select retailers (those within the Green Dot network).

Copper also has a rewards program that often gives users bonuses when they refer friends and family members to use the product. Currently, this offer is only good for an extra $3 in your account, but this promotion is subject to change. Money earned through promotional offers is automatically deposited into a teen’s account.

Teens can also set savings goals for themselves with Copper and track their progress. They will be notified when they reach a goal and they can see a visualization of how their withdrawals and deposits over a period of time have contributed to a savings goal. 

Teen users can create savings categories or buckets and have these funded automatically when money is deposited into their account at certain percentages or dollar amounts. Alternatively, they can just transfer money into these buckets as needed. Savings categories can be for their own personal goals or for goals shared by their family. 

Copper does not grant account bonuses when savings goals are reached, but parents may choose to establish these themselves. A Copper checking account earns 0.001% interest across all balances.

And of course, Copper teens can learn about debt, budgeting, investing, and saving with Copper’s vast library of resources. These financial literacy lessons, called Cheat Codes, are short, engaging, and interactive. Much of this content is in video format as visual learning has proven to be effective for the majority of teens. After studying a topic, users can test their understanding by taking a short quiz (parents can take these quizzes too!).

The real-world topics covered in Copper’s financial literacy “lessons” may include anything from mortgage payments to interest accrual.

There are many ways to use a Copper debit card to spend. This card can be used in person, online, and through mobile payment services and wallets such as Venmo and Apple Pay (see “Benefits of Copper Over Competitors”). A $2,000 daily spending limit is placed on Copper debit card transactions.

Users can withdraw funds from their Copper account for free at more than 50,000 MoneyPass and Allpoint ATMs. Users may reset their PIN or request a new card from the Copper app at any time, and these services do not cost anything.

How Much Does the Copper Checking Account Cost?

A Copper checking account is free to open and use. There are no subscription fees.

The only fees associated with a Copper checking account or debit card come from the following transaction types: 

  • Withdrawals from out-of-network ATM withdrawals – fees assessed by third-party ATM owners)
  • Card reloads at retail store registers – Copper users can reload their debit cards at retailers that are part of the GreenDot network, but these retailers have the right to charge up to $4.95 per transaction for this service
  • Processing foreign transactions – fees for processing international transactions and converting them are assessed by Mastercard International and fall within wholesale currency market rates
  • Card not present transactions – purchases made using a debit card’s number only, which may come with fees

In other words, Copper users may incur fees on their account charged by third parties for optional services. 

Benefits of Copper Over Competitors

There are a number of things that may make Copper more appealing to you and your teen compared to other products like it.

For one, Copper offers a little more payment flexibility than most. A Copper debit card can be linked with both Google Pay and Apple Pay. Many debit cards for kids and teens prohibit the use of these digital wallets. Copper users can also link their card to Venmo and Cash App. Copper users appreciate how easy it is to access their money and make transfers.

Another great feature of Copper is that it permits multiple authorized users. There can be up to five authorized users per Copper checking account, and it doesn’t cost anything to add people to an account.

Copper also allows users to set up direct deposits. So if your teen is already earning money for themselves, they can be paid right into their personal checking account. Not many products allow this.

Potential Drawbacks

Some users may be put off by the daily and monthly funding limits on Copper accounts as well as daily spending limits mentioned above. If you think it’s likely that you or your teen would exceed these, Copper may not be for you. 

Copper also does not pay interest on account balances, which can be disappointing. Another potential downside is that each teen an account holder opens a Copper account for needs to have their own phone. This is required for account verification.

Users may also be bothered by the fact that this online-only bank prefers to handle its customer service via chat rather than phone calls or in-person visits (e.g. text, email, social media, etc.).

Consumer Sentiment

The Copper app itself is one of the highest-rated financial apps on the market. It has a rating of 4.5 stars on Google Play and 4.8 stars on the App Store.

The app is well-designed, with interesting and helpful graphics for teen and parent users and straightforward features. You don’t have to be especially tech-savvy to use the Copper app successfully, making this a great choice for those with little experience navigating technology.

As for the quality of customer support users can expect from this digital challenger bank, there is little information available. This is certainly something to be aware of. But to get in touch with customer service, text (202) 831-0684 or send an email to support@getcopper.com. There is also a chat feature right in the app.

You can also reach out for non-urgent inquiries through social media—@CopperBanking on Facebook, Twitter, and Instagram and @getcopper on TikTok and Snapchat.

Is It Safe?

All Copper checking accounts are FDIC insured up to the federally allowed limit of $250,000 and protected by Fraud Monitoring services. 

Accounts are also covered by Mastercard’s Zero Liability Protection policy, which exempts users from making payments they did not authorize.

Transactions are prohibited at certain retailers, including those that sell liquor, gambling venues, and merchants that sell illicit goods or services.

How to Sign Up

Submit your phone number to get started! image credit: getcopper.com

To sign up for a Copper account, just navigate to their website, submit your phone number and click download now.

Anyone over the age of 18 with a social security number or tax identification number with a checking account in good standing is eligible to sign up for a Copper checking account. You and your teen (or teens) need phone numbers of your own.

To fund an account, the account owner just needs to link a checking account and transfer funds. This can be done via ACH transfer or debit card payment; debit card payments are instant but may incur a small fee. There is no minimum opening balance requirement. Accounts can also be funded via PayPal, Venmo, or Cash App or linked to direct deposits from a parent or teen.

Upon sign up (and after completing any necessary steps such as taking a quiz, leaving a review of the app, etc.), users may receive a small account bonus of between $5 and $10.

Copper the Company

As mentioned GetCopper, the company, launched in Seattle, Washington in 2019. However, their product didn’t hit the market until 2020.

When it did, it made quite the splash and was quickly adopted by consumers.

In just two months after their launch, they had surpassed 100,000 users. Here’s their CEO and Co-Founder Eddie Behringer making the announcement on LinkedIn:

Today, they have over 300,000 users (and counting) and have raised over $13 million to help them achieve their mission of creating the “first financially successful generation.”

Final Thoughts

Overall, Copper is a great debit card for teens of the modern world. Copper offers more convenient ways to pay and transfer money than many debit cards and apps for teens out there, and it doesn’t charge hidden fees. This free debit card also comes with many complimentary educational resources. So to really get the most out of Copper, you and your teen should take advantage of the financial literacy resources available to you. 

I Bonds – Current Rates (Now 7.12%!) and Where to Buy Them


You don’t need to be told that we’re living in unprecedented times. From sharp GDP growth to record inflation rates, we’re living in an economy that is expanding and changing rapidly.

If you’ve been following the bond market at all, you know that the Treasury Department made a shocking announcement about I bonds in November of this year.

Here, we’re going to answer questions you may have about I bonds from what they are to how to buy them.

Let’s dig in.

What Are I Bonds?

Series I savings bonds or I bonds are government-issued debt securities that accrue interest at a rate adjusted for inflation twice a year. Rather than having a single interest rate used to determine your return, I bonds have two: an inflation rate that changes every six months with the economy and a fixed rate that will not change throughout the entire life of the bond. These rates combine to give you a composite rate.

On November 1st of this year, the U.S. Treasury Department announced that I bonds will earn a variable rate of 7.12% for the next six months.

This new rate will apply to all new I bonds issued in the next six months before it is adjusted again at the beginning of May, at which time the variable rate may increase or decrease.

These bonds are considered to be incredibly safe investments because there is no risk of value depreciation. Interest accrues and compounds semiannually (every six months) for up to 30 years or until cashed out. Earnings are automatically deposited back into the bond. I bonds do not require high minimum purchases and offer tax advantages and protection against inflation.

Current Rates

The variable semiannual inflation rate for I bonds is 7.12% and the fixed rate is 0.00% (which has been the case for the past several years). This makes the composite rate 7.12%, the highest rate we’ve seen since 1998 and the second-highest rate on record.

All new bonds issued between now and April 2022 and existing bonds less than 30 years old will earn 7.12% interest. This rate is unheard of for I bonds and interest-earning deposit accounts. As of December 2021, the national average rate for an interest-bearing savings account is 0.06% and for a 1-year CD is 0.14%. At the top digital banks, the best you’ll get on a 1-year CD is about 0.65%.

As you might expect, there is no way to tell for sure what the inflation rate will be six months or a year from now. May 2022 may bring a much lower earnings rate depending on inflation, which is expected to slow in the next six months.

Who Are I Bonds for?

If you are looking for somewhere safe to park your cash, these bonds may be for you. Many financial advisors and investment experts are recommending these securities to help hedge against inflation. If you can afford to lock some money up for at least five years (to avoid the early withdrawal penalty), an I bond is a good way to guarantee a small return.

Series I savings bonds tend to be best for investors seeking low-risk investments, but they shouldn’t be your only investment. They are good for medium- or high-net-worth individuals who want to diversify their portfolio and lower net worth individuals who want to secure a small portion of their wealth after maxing out contributions to a retirement account.

You are eligible to purchase an I bond if you meet one of the following requirements:

  • You are a United States citizen living in the country or abroad
  • You are a United States permanent resident
  • You are a civilian employed by the United States anywhere in the world

Children under the age of 18 may qualify to own an I bond if purchased on their behalf by an adult. Parents and adult custodians can open a TreasuryDirect account for a child and use that to purchase I bonds, making the child becomes the bond’s beneficiary.

It is common for I bonds to be used to help pay for education and retirement or gifted to younger individuals. Using I bonds to pay for education comes with tax benefits. Any bonds you purchase for yourself count toward your own annual purchase limit but bonds purchased as a gift do not. When you buy a bond as a gift for someone else, it counts toward their limit.

There are electronic and paper bonds. Electronic bonds are available in penny increments of $25 or more and paper bonds are available in denominations of $50, $100, $200, $500, and $1,000.

Advantages

The main advantage of I bonds over other investment vehicles is that they freeze your money and thus protect it from losing value due to inflation for as long as it is still earning interest.

I bonds are also one of the most secure investments you can make. The U.S. Treasury has never defaulted on bonds before, so there is virtually no risk of bond holders losing their principal.

Another pro is that you do not have to pay state and local taxes on interest and you can avoid federal taxes too. There are no fees associated with purchasing or cashing out I bonds.

I bonds are an ideal method for saving for education. In fact, many people consider them to be good alternatives to 529 savings plans.

I Bonds vs. EE Bonds and Treasury Inflation-Protected Securities

Another type of bond you can purchase from the U.S. Treasury is a Series EE savings bond or EE bond. EE bonds share many similarities with I bonds: they mature after 30 years, are sold at face value, and earn interest monthly.

The biggest difference between EE bonds and I bonds is that EE bonds earn a fixed interest rate and I bonds earn a variable interest rate that is dependent on inflation. EE bonds guarantee a return equal to double your principal investment after 20 years (adjusted if needed by the Treasury Department), but I bonds offer no earnings guarantees.

Which Treasury bond is best depends on the market. If inflation rates are high or expected to increase, I bonds will likely end up earning more interest over their lifetime. But if inflation rates are fairly low, EE bonds will likely earn more interest. Given how much inflation has increased this year, I bonds holders are coming out on top.

Treasury Inflation-Protected Securities or TIPS are also similar to I bonds. TIPS are designed to hedge against inflation as well, but they differ from I bonds in several important ways.

First, TIPS are riskier because the principal is adjusted for inflation and deflation. You lose principal if the U.S. economy goes into a deflationary period and gain principal if the U.S. economy goes into an inflationary period. TIPS are available in terms of 5, 10, and 30 years and purchased at auction rather than at face value. You can purchase between $100 and $5 million. Rates for TIPS change and you must visit a Treasury auction to bid.

Rather than earning interest monthly, TIPS earn interest just twice a year at a fixed rate. Interest is paid on the adjusted principal until the account reaches maturity. Unlike I bonds, you can sell TIPS before they mature. TIPS and their interest are exempt from state and local tax but subject to federal tax.

Considerations

There are a few important considerations to keep in mind when purchasing I bonds

The first is that I bonds have a low minimum purchase requirement. You can open an electronic I bond with as little as $25 and a paper I bond with as little as $50 (note that you can no longer purchase paper bonds at banks).

You can purchase up to $10,000 in electronic I bonds per calendar year and up to $5,000 in paper bonds. If you purchase an I bond as a gift, that amount will not count toward your annual purchase limit. Instead, it will count toward the recipient’s limit, and they will also be the one who is responsible for paying taxes on it.

Series I savings bonds are issued at cash value. Your bond will never be worth less than you paid for it and it is not possible to lose money on this investment. (There is no guarantee that you will earn money, but you will not lose any.)

If you decide to cash in your I bond before it matures, you may do so without incurring a penalty if you wait five years to do so. If you choose to cash out within five years of opening the bond, you will pay an early withdrawal penalty equal to the last three months’ interest. You can keep your bond open for as long as you like, but it will not continue to earn interest after 30 years. You must keep your bond for a minimum of one year, at which time it becomes liquid.

I bonds themselves are tax-exempt but the interest you earn is subject to federal income tax. You may enjoy additional tax benefits if you use your bond to finance education under the Education Savings Bond Program.

How to Buy I Bonds

Ready to join the wave of people purchasing I bonds for the first time at this incredible rate?

First, decide whether you will purchase an electronic or paper bond.

To purchase an electronic bond, visit the U.S. Treasury website at TreasuryDirect.gov.

You will need to create a TreasuryDirect account using your tax identification number and an email address.

At this time, you will link a bank account and personalize your profile. From your account, navigate to the bonds purchasing page and enter the amount you would like to purchase. Register the I bond in the name of its intended recipient (if you are purchasing for someone other than yourself, provide their information).

To purchase a paper bond, you will need to use your IRS tax refund. This is the only way to purchase paper I bonds. You will use Form 8888 to allocate your refund to be used for the purchase of a U.S. Treasury bond and specify that you want an I bond. You used to be able to purchase paper I bonds at banks and credit unions, but this is no longer possible.

You can purchase up to $10,000 in electronic I bonds per year and use your tax refund to purchase up to $5,000 worth of government I bonds per year. These limits can be combined for a total of $15,000 in I bonds.

How to Cash Out

When you’re ready to cash out your electronic I bond, visit the TreasuryDirect site again and navigate to the ManageDirect page. From there, link the bank account you would like to send the funds to and transfer the money.

To cash out your paper I bond, visit a bank or credit union and present your bond and identity verification documents.

Final Thoughts

While you won’t get rich from an I bond alone, this investment is a sound one, especially at the current earnings rate. We recommend I bonds to anyone looking for a safe investment to add to their portfolio. This type of security is ideal for conservative investors, not aggressive investors looking for an opportunity to grow their wealth dramatically. You do not risk losing your investment when you purchase an I bond.

The more you can afford to spend at the current earnings rate of 7.12%, the better, but any amount will likely be a worthwhile investment. When the bond turns liquid after a year, you’ll probably end up with more cash than you would have with another deposit account if you choose to cash out.

Bank of America CD Rates – Are they Worth Opening in 2022?


[Update December 2021: Bank of America has yet to change their CD rates in 2021 as the year comes to a close. The APY remains a flat 0.05% for their “featured CDs” and 0.03% APY for “standard CDs.” This is true for all terms and deposit amounts. We wouldn’t be surprised to see Bank of America’s CD rates tick upwards at some point next year though, as the FED tapers its asset purchases and rates slowly begin to rise.]

image credit: Unsplash, Christin Hume

Bank of America hardly needs any introduction. They’re the second largest bank in the United States by assets, with over $2.61 trillion in total and they are the third largest bank in the country by branch locations with roughly 4,559 across all 50 states.

That said, their savings rates – both fixed and variable – leave much to be desired and lag the current national average(s) for their respective terms by considerable margins.

This isn’t unique to Bank of America though, as all the big banks at the moment offer abysmal rates to savers. Both Citibank and Chase Bank have kept their savings rates significantly under the national averages for all of 2020.

For those considering opening a fixed-rate, certificate of deposit with Bank of America continue reading our full review below.

Bank of America CD Rates + Account Details

Bank of America CDs are federally insured by the FDIC up to the applicable limits. These are $250,000 per depositor or $500,000 on joint accounts.

Bank of America has two sets of certificates of deposit available to consumers currently: “Featured CDs” and “Standard CDs.”

The Featured CDs come with a higher minimum deposit requirement of $10,000 compared to just $1,000 for the Standard CDs. Bank of America’s Featured CDs also offer five oddball terms to choose from. These are:

  • 7 months
  • 10 months
  • 13 months
  • 25 months
  • 37 months

Bank of America Featured CD Rates

TermAPY
7 months0.05%
10 months0.05%
13 months0.05%
25 months0.05%
37 months0.05%

To put these yields in perspective the current national average for a 12 month CD and a 60 month CD sits at 0.22% APY and 0.47% APY, respectively. There are also several nationally available credit unions with CD rates still above the 1.0% APY mark for longer terms.

Their Standard CDs have much more flexible terms ranging from 1 month to 10 years (120 months). Consumers may choose the exact number of months within that range. Current rates, however, are flat across the board for all terms.

Bank of America Standard CD Rates

TermAPY
1 month (28 days)0.03%
3 months0.03%
6 months0.03%
12 months0.03%
2 years0.03%
3 years0.03%
4 years0.03%
5 years0.03%
6 years0.03%
7 years0.03%
8 years0.03%
9 years0.03%
10 years0.03%

Interest is compounded and credited monthly on both featured and standard CDs.

In normal interest rate environments two variables may affect the overall APY (annual percentage yield) applied to your CD from Bank of America. These are:

  1. Your Location
  2. Your Deposit Amount

While these variables do not change your rate at the moment, Bank of America still requires you to select these before disclosing the yields they offer on their website.

Your location is determined by the zip code you reside in and the deposit amount is broken up into four ranges for the Featured CDs and three ranges for Standard CDs. For Featured CDs, the deposit ranges are:

  • Less than $10,000
  • $10,000 to $100,000
  • $100,000 – $1m
  • $1m +

For all of Bank of America’s Standard CDs the deposit ranges are:

  • Less than $10,000
  • $10,000 to $100,000
  • $100,000 +

Early Withdrawal Penalties

Bank of America’s early withdrawal penalties vary by length of the term of the deposit. Below is a breakdown of what you can expect to pay if you need to make an early withdrawal to your CD. You should note that for CDs with terms of 60 months (5 years) or greater, fees can potentially add up to more than the overall interest earned if withdrawals happen often enough.

CD TermPenalty
90 days or less7 days’ interest
90 days – 12 months90 days’ interest
12 months – 60 months180 day’s interest
60 months +365 days’ interest

The interest penalties above are applied to the amount withdrawn.

Grace Period

The grace period is the brief window of time after your CD matures and before it gets renewed in which you have the ability to add or withdraw funds penalty free.

Bank of America’s grace period is slightly lower than the standard 10 days at just 7 days.

Bank of America’s CDs also automatically renew, so if nothing is done within this 7 day period your CD will automatically renew with the same terms and whatever the current APY happens to be at that time.

Bank of America will send you reminders leading up to the grace period of your deposit but be sure to set up your own notifications as well.

Final Thoughts

While banking with large institutions such as Bank of America has its advantages such as easy in-person branch access, vast network of ATMs, and a wide range of financial products, their current CD rates are simply not competitive at this time.

In normal interest rate environments having both featured CDs with higher APYs and standard CDs with customizable term lengths is a major advantage, however Bank of America’s current yields make these standout features inconsequential today.

If you’re after a high yield CD, a nationally available credit union or online bank is going to be able to provide you with much better rates.

American Express Personal Savings Account 0.40% APY + 0.55% APY CDs


[Update December 2021: Yields remain the same for both variable and fixed rate deposit accounts at American Express National Bank. Interest rate hikes, however, may come next year according to recent FED statements which may benefit savers looking for FDIC insured deposit products.]

image credit: Unsplash, Christin Hume

American Express National Bank is the 25th largest bank in the U.S. by asset size with just over $130 billion.

Known by most as a credit card company—American Express—this financial corporation was approved to become a commercial bank with the name American Express National Bank in 2008 and has been a part of the digital banking sector ever since.

Within this relatively short period of time, American Express National Bank has racked up over $78 billion in consumer deposits.

Their current deposit suite consists of a personal high yield savings account and seven standard term CDs (certificates of deposit). The personal savings account comes with an APY that consistently places within the top yields from FDIC-insured, online banks with nationwide acceptance.

American Express National Bank is an online-only bank, so there are no physical branches. If you’re considering opening the personal online savings account from American Express, be sure you are comfortable with online banking. They also have no native apps available on IOS or Android so you will have to use a web browser on your PC, tablet or smartphone to manage your account(s).

To learn more, read our complete review of their personal savings account and certificate of deposit products below.

American Express Personal Savings Account Details + APY

The personal high yield savings account by American Express National Bank comes with zero monthly maintenance fees, and no minimum balance or deposit requirements. American Express Bank is member FDIC and all consumer deposits are federally insured up to the applicable limits.

American Express Personal Savings Account APY

Minimum BalanceAPY
$00.40%

To put this offer in perspective, the current national average for savings accounts sits at just 0.06% APY. However, a number of online institutions still offer slightly higher APYs such as the Citi Accelerate savings account, but remember, rates on these accounts are variable and can change at anytime without notice.

Fees, Minimum Balance Requirements, and Compounding Interest

The American Express Personal Savings account does not charge monthly maintenance fees nor does it require an average daily minimum balance. To earn the advertised interest rate and APY, you just need to maintain a balance of $1 or more.

There is no minimum opening deposit required either, but accounts that remain with a $0 balance for 180 days will be closed. These flexible terms put this savings product within reach of just about anyone, regardless of net worth or income.

Dividends on this high-yield account are compounded daily and credited monthly to your account.

You can make no more than 6 withdrawals or deposits into this account per month, per federal regulation D.

How to Open a Savings Account with American Express Bank

The online application is a 4-step process that can be completed in minutes.

The account opening process is simple and straightforward. To get started, navigate to the high yield savings account page on the American Express Bank website (link above).

From here you will click on the blue “Apply” button, then it is a four step process that can be completed in minutes. If you have already begun the process you will also be able to access your saved application here.

The steps are:

  1. Account set up.
  2. Going through the terms and conditions.
  3. Funding the account.
  4. Online access set up.

For step 1, you will need the following information:

  1. Full name and date of birth (drivers license)
  2. Address
  3. Phone number
  4. Email
  5. Social security number

Once you arrive at step 3 you will need a few pieces of information from the bank in which you will be funding the savings account.

This information includes:

  1. Routing number of bank
  2. Your account number

Once your account is activated and funded you’ll be ready to start earning interest on your balance. As time goes on you will likely need access to these funds. You can learn more about your account access and monitoring your funds below.

Accessing and Monitoring your Funds

You can access your account online either on a desktop, tablet or phone 24 hours per day, 7 days per week. If you’re using your mobile phone you may use the web browser to access your account. American Express does not currently have an IOS or Android app for their savings account. They do, however, for credit cards, but those accounts are not in any way linked to the banking side. More on that below.

For moving funds about, you’ll want to link an external bank account. American Express allows you to link up to 3 external bank accounts. If you initiate this through American Express, this will take 3 or more business days. If you initiate this through the bank from which funds are being pulled, this will take just 1 or 2 business days.

A standard verification process will take place where American Express will send you small micro payments (typically two) in which you will then confirm to complete the syncing of your accounts. After this is completed, you’ll be able to transfer or deposit funds from or into your American Express savings account. Just keep in mind it generally takes one to three business days for new funds to be reflected in your account.

American Express Bank CD Rates + Account Details

American Express certificates of deposit aren’t nearly as competitive as the American Express Personal savings account with their rates, but they do offer APYs that sit well above the national average for their respective terms.

American Express CD Rates

CD TermAPY
6 months0.10%
12 months0.20%
18 months0.30%
24 months0.40%
36 months0.45%
48 months0.50%
60 months0.55%

To put these yields in perspective, the national average for a 12 month CD and a 60 month CD sit at just 0.14% and 0.24% APY, respectively according to recent FDIC data.

American Express’s certificates of deposit still feature ascending rates with ascending terms – meaning the longer you lock up your funds, the higher the rate you will receive. While this is standard and to be expected in normal market conditions, it is not what we presently see with a number of online banks and credit unions.

There is no minimum deposit or balance requirement to open and maintain an American Express CD. Any positive balance will earn the fixed APY on the account and you’ll never be charged a fee. You just need to deposit funds within 30 days of being approved for an account. 

Dividends are compounded daily and credited monthly. Your interest will default to being deposited back into the certificate account, but you can choose instead to have it transferred automatically to your:

1) American Express Personal Savings account,

2) transferred automatically to a linked external account, or

3) mailed to you by check monthly, quarterly, or annually.

Partial withdrawals are not permitted. Early withdrawal policies for this bank are strict and the fees high, so do your best to wait until your certificate matures to withdraw funds or do so within the permitted window. There is a 10 day grace period within which you may deposit more money after issuance and make changes to your account after renewal. Here are all possible early withdrawal charges:

  • 90 days’ interest for terms of less than 12 months
  • 270 days’ interest for terms greater than 12 and less than 48 months
  • 365 days’ interest for terms greater than 48 and less than 60 months
  • 540 days’ interest for terms greater than 60 months

Keep in mind also that American Express reserves the right to deduct the difference from your principal if your CD does not have enough interest to pay the early withdrawal fee.

American Express Banking Experience + Customer Satisfaction

You won’t be able to withdraw or deposit savings account funds at in-network ATMs because an American Express Personal Savings account does not come with an ATM card and there is no Amex checking account. So really, these ATMs are for credit card users only. 

The digital bank’s customer satisfaction is rather high. Out of 266 reviews on DepositAccounts, American Express Bank scored a rating of 4. Many reviewers go out of their way to mention the superior customer service—helpful representatives, reasonably short wait times, easy process, etc.—they have received with this bank and express their appreciation for the user-friendly online banking platform. Most have only good feedback for the company.

Unfortunately for those hoping to conduct their banking through a mobile app, the Amex mobile app is also only for credit card customers. Hopefully, though, you will agree with the majority of other users that say that the American Express online portal is convenient and easy to use.

To contact customer service—available 24 hours a day, 7 days a week—call 1-(800)446-6307, fax 1-(800)-542-0779, or send checks/correspondence to the below address: American Express National Bank P.O. Box 30384 Salt Lake City, Utah 84130

Are American Express Credit Cards associated with American Express National Bank?

A common question among current American Express credit card holders is whether or not their account and information are tied (or will be tied) to American Express National Bank if they choose to open a personal savings account or CD.

The answer to that is NO.

American Express Credit Cards and American Express National Bank accounts like the Personal Savings Account or any of their CDs are offered by two separate entities.

On top of that, the login credentials for your Amex card(s) and the login credentials for your personal savings account or CD will be separate and used for two different websites. These systems do not share any personal information, balance or transaction data with one another.

Final Thoughts

American Express Bank isn’t trying to replace your other banks by becoming your number one.

It doesn’t offer a checking account and it doesn’t have in-person branches. In fact, this institution will likely be more supplementary than anything else.

With that said, their longer term deposit accounts and personal savings accounts are fee-free and competitive, so if you’re after higher than average yields American Express National Bank may be worth considering.