
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated
Depositing $250,000 or more in a single CD or savings account can help you qualify for the best interest rates and terms, but you could also pay higher penalties for withdrawing from a CD early or lose some of your money if the bank fails.
Competitive savings accounts and certificates of deposit, or CDs, often use tiered interest rates — the higher your balance, the higher your rate. Setting aside $250,000 or more in a single account can help you qualify for the highest interest rate.
When choosing an account to park your savings, look at:
Keeping over $250,000 in one account comes with risks, including:
Putting $250,000 or more into a single account lets you take advantage of the highest interest rates — but it also limits which accounts you’re eligible for and could put some of your money at risk if the bank fails.
It also means that even small differences in interest rates and account terms can have a huge impact on how much you earn, so take the time to compare savings accounts and CDs before choosing.
Picture: Shutterstock
Convert your 401(k) to a Roth IRA to make tax-free withdrawals at retirement. Learn more.
Smart strategies that homeowners can use to get rid of Private Mortgage Insurance (PMI).
If you don’t need your money right now, consider investing in an HSA, blue chip stocks and more.
A Roth IRA is a retirement savings account with special tax benefits. Learn more.
You need to be a member to access this credit union’s high interest rate options.
Fight food waste, eliminate junk mail, track your carbon emissions and more with these popular apps.
SogoTrade pays you for qualifying limit orders. Learn more.
No monthly fees and a competitive APY from this high-yield savings account.
TAB Bank’s high-yield savings account has a competitive APY, but it’s probably best for truckers.
This business account supports in-person payments and lets you manage employee spending.