Best CD Rates
Mar 11, 2023 By Kelly Walker

Are you looking for a secure way to save your hard-earned money? With Certificate of Deposits (CDs), you can safely allocate funds to low-risk savings vehicles backed by the federal government.

CDs allow investors of all levels to earn higher yields than what is available with standard savings accounts and other traditional investments. They offer a unique option for earning interest on your deposited funds over fixed terms.

This blog post will explore why CDs are great investments and how to shop for the best CD rates when investing today!

What is CD?

A Certificate of Deposit (CD) is a financial product that pays out interest over fixed terms, usually at higher rates than traditional savings accounts. CDs are backed by the Federal Government and offer low-risk investment opportunities for investors of all levels. They allow you to safely allocate funds in an account and earn interest on your deposited money.

Comparing rates from various financial institutions and banks is important when shopping for CDs. While the Federal Government guarantees these investments, the amount of interest you earn will vary depending on the terms of your CD and the specific rate offered by your chosen institution.

Finding the Best CD Rates

The best way to find the highest CD rates is to shop around and compare offers from different banks, credit unions, and other financial institutions. Many CD rates are negotiable, so you should always ask for the best rate and be prepared to switch providers if another can offer a better deal.

Top CD Rates

When looking for the best CD rates, it's important to keep an eye on the market. Many banks and credit unions offer promotional offers or higher-than-average rates, which can greatly maximize your returns. Below you'll find some of the top national CD rates available right now:

• Ally Bank – 1.50% APY

• American Express National Bank – 1.60% APY

• Capital One Bank – 2.00% APY

• CIT Bank – 2.05 % APY

• Discover Bank – 1.75 % APY

• Marcus by Goldman Sachs – 2.10 % APY

• Synchrony Bank – 2.15 % APY

When shopping for CDs, compare the rates offered by each financial institution and ask if they will negotiate their rate before committing to any one provider.

By researching and taking advantage of promotional offers, you can ensure you get the best CD rates available on the market and maximize your returns. With a little diligence, you can earn higher yields with CDs today!

National average interest rates for CDs

• three months CD - 0.10%

• six months CD – 0.15%

• 12 months CD – 0.25%

• 24 Months CD – 0.45 %

• 36 Months CD – 0.55%

The line is that CDs are a great way to start investing your money and take advantage of higher yields than traditional savings accounts. When shopping for CDs, you should compare different financial institutions' rates and be open to negotiating a better rate. With that in mind, you can start earning more with CDs today!

How to choose a CD

Choosing the right Certificate of Deposit (CD) can be daunting, but it doesn't have to be:

  1. You should decide what type of CD suits your needs and goals.
  2. Research the various financial institutions and banks to compare their CD rates and terms.
  3. Negotiate with the bank or credit union for the best rate and terms.

When selecting a CD, consider the length of the term and the type of interest payments you prefer. Short-term CDs are typically ideal for those who want easy access to their money and don't need long-term commitments. Longer-term CDs may be better for those looking for a higher rate of return.

Once you've decided which type of CD is right for you, it's time to shop around. Compare the yields and terms offered by banks, credit unions, and other financial institutions. Also, look out for promotional offers or special rates designed to attract new customers. You can negotiate a better rate with your chosen institution.

When selecting a CD, it's also important to consider the risk factor. CDs are generally considered low-risk investments since the federal government backs them. However, some institutions may be more stable than others, so do your due diligence and research each option before committing to a CD.

Types of CDs

  • Certificates of Deposits (CDs) are a great way to save money and earn higher yields than traditional savings accounts. There are a variety of different types of CDs available, each with its own set of features and benefits.
  • Savings CDs are the most basic type of CD and typically offer lower interest rates than other CDs. Savings CDs generally do not require a minimum balance or regular deposits, and they are an ideal option for those who want to start saving money immediately.
  • Jumbo CDs are another type of CD that offer higher interest rates than standard savings accounts. These certificates typically require a larger opening deposit, usually $100,000 or higher, and the interest rates can vary depending on the length of maturity.
  • Money market CDs are available in some banks and credit unions. They offer a higher rate of return than savings CDs but require a minimum balance to earn the highest possible interest rate. Money Market CDs also allow multiple deposits and withdrawals throughout their term, making them an attractive option for savers looking for a higher return.
  • No-penalty CDs are ideal for those who may need access to their funds during the term of the CD. These certificates generally do not have withdrawal penalties and allow you to access your funds without losing interest earnings. However, they usually come with slightly lower interest rates than other CDs.
  • Traditional CDs are ideal for those looking for long-term investments. They require a minimum deposit and usually have higher interest rates than CDs. Traditional CDs also have fixed maturity dates and are not subject to any penalty if you withdraw the funds before maturity.
  • IRA CDs are designed to offer retirement savers an attractive way to save for their future. These certificates offer higher interest rates than traditional savings accounts and are typically exempt from early withdrawal penalties.

Pros and cons of CDs

Pros

  • CDs are backed by the federal government and provide a low-risk investment option.
  • CDs offer higher yields than traditional savings accounts.
  • CDs allow investors to earn interest on deposited funds over fixed terms.
  • Most certificates come with no withdrawal penalties, allowing savers to access their funds when needed without losing any of their interest earnings.

Cons

  • CDs usually require a minimum deposit, making them less accessible for those with a limited budget.
  • Early withdrawal penalties can be costly and may reduce the total return on investment.
  • Variable-rate certificates can be riskier than fixed-rate certificates due to fluctuations in the market.

FAQs

Who has the highest-paying CD right now?

The best CD rates are always changing, so shopping around and comparing different options is important before investing. Generally, online banks offer the highest rates as they don't have the same overhead costs as traditional banks.

It's also helpful to read reviews from other customers and look for bonus offers from different banks. You can also use a CD calculator to compare different banks and determine which will give you the highest return on your investment.

What is an FDIC-insured CD?

An FDIC-insured Certificate of Deposit (CD) is a deposit account insured by the Federal Deposit Insurance Corporation (FDIC). When you open an FDIC-insured CD, your deposits are backed by the full faith and credit of the U.S. government in case of bank failure. FDIC-insured CDs offer reliable safety for your money while offering competitive interest rates and other benefits.

Who has the highest 12-month CD rate?

The highest 12-month CD rate is always changing, so shopping around and comparing different options is important. Generally, online banks offer the highest rates as they don't have the same overhead costs as traditional banks. You can also use a CD calculator to compare different banks and determine which will give you the highest return on your investment.

Conclusion

Certificates of Deposit (CDs) are a great way to save money and earn higher yields than what is available with standard savings accounts. When shopping around for the best CD rates, consider online banks, which often offer the highest returns. It's also important to read reviews from other customers and look for bonus offers from different banks. With a little research, you can find the right CD for your needs and start earning on your savings today!