For much of the past 15 years, thanks to low interest rates and almost nonexistent inflation, few were interested in certificates of deposit (CDs). That indifference is gone after the Federal Reserve hiked borrowing costs in a determined effort to stabilize decades-high price gains caused by federal and state governments spending unprecedented amounts following economic shutdowns that were imposed to thwart the novel coronavirus.
All of which means, CDs are now worthy of a place in your financial plan.
Annual percentage yields (APYs) and account details are accurate as of December 7, 2023.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
Best CD rates
Barclays Online Certificates of Deposit
Blueprint Rating
Via Barclay's Website
APY
4.45% to 5.40%
Minimum deposit
None
Terms
1 to 5 years
What you should know
Barclays offerings allow users to lock in high interest rates for CD terms in the range of 12 months to five years. There are six such CDs, all of which offer an APY from 4.45% to 5.40%. Combined with no minimum balance requirement and a 14-day grace period, which is four days longer than most, you’ll have more time to see what the market is doing and to decide whether to reinvest your funds into a new CD or to cash out. Those looking for extremely short or long-term CDs will need to consider other options.
Pros and cons
Pros
- No minimum balance requirement.
- A 14-day grace period upon maturity.
- High rates on six different terms.
Cons
- Maximum term length of five years.
- No short-term offerings.
- No brick and mortar locations.
Sallie Mae Bank Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
4.00% to 5.55%
Minimum deposit
$2,500
Terms
6 to 60 months
What you should know
Sallie Mae has among the highest interest rates and customer satisfaction scores we found. Its current top rate is a robust 5.55% APY on a 15-month CD term, which is part of 11 CD term options that are five years and shorter. With no account fees, savers can plunge a pile of cash into this CD term to help them meet their goals. The $2,500 minimum deposit isn’t ideal, but not particularly onerous.
Pros and cons
Pros
- Zero monthly fees.
- Great rates across terms.
- High customer satisfaction.
Cons
- $2,500 minimum deposit.
- No physical branches.
- No checking accounts and limited banking tools.
My eBanc Online Time Deposit
Blueprint Rating
On Fiona's Website
APY
4.18% to 5.50%
Minimum deposit of
$5,000
Terms
6 to 36 months
What you should know
My eBanc has an impressive top APY of 5.50% on 12-month CDs, with daily compounded interest and no maintenance fees. The APY on its other CD term options (six, 18, 24 and 36 months) are competitive as well, if that fits your savings horizon. The minimum opening deposit is rather high at $5,000, but transferring the funds can be convenient as My eBanc allows you to easily tie your CDs to the free checking and savings accounts it offers. The lack of CD terms shorter than six months means only those who won’t need their money soon should sign up.
Pros and cons
Pros
- High maximum rate of 5.50% APY.
- No monthly fees.
- Easily ties into other My eBanc accounts.
Cons
- Large opening deposit requirement of $5,000.
- Only 5 term options.
- Highest rates don’t apply to the longest terms.
Bread Savings Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
4.25% to 5.50%
Minimum deposit
$1,500
What you should know
Bread Savings is a great option for individuals looking to earn more than a few crumbs with their cash. It has a solid 4.25% to 5.50% APY range on its one-to-five-year CDs, which have a decently low minimum deposit of and high maximum balance limits—$1 million per account and $10 million limit per customer. Interest is compounded daily and credited monthly, and there are no maintenance fees. Those looking for a broader array of CD options, or even a short-term term, should consider another option.
Pros and cons
Pros
- Interest is credited monthly.
- No monthly fees.
- Low, $1,500 minimum deposit.
Cons
- Fewer available terms than competitors.
- Must transfer money to another bank account.
- Fees for statement and check requests, as well as wire transfers.
First National Bank of America Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
4.55% to 5.15%
Minimum deposit
$1,000
Terms
12 to 84 months
What you should know
First National Bank of America should be strongly considered by those interested in a long-term CD. Its 72-month and 84-month CDs offer higher yields than most competitors and there are no monthly fees to cut into your interest, which is compounded quarterly and added to the CD. Shorter term CDs ranging from 12 to 60 months are available as well.
Pros and cons
Pros
- High rates offered on a range of CD terms.
- Easily connects to existing First National Bank of America checking account.
- 10-day grace period after opening to add funds.
Cons
- No CD terms shorter than a year.
- Branch locations are all in Michigan.
- Does not offer monthly statements.
Michigan State University Federal Credit Union Certificate
Blueprint Rating
On Fiona's Website
APY
3.25% to 4.80%
Minimum deposit
Generally $500
Terms
Up to 7-year CDs
What you should know
Members have access to a wide variety of high-yielding CDs with accessible minimum deposits. Short-term savers reap a 3.25% APY on a three-month CD, while a one-year (13-month) term pays 4.25%. The minimum deposit is typically $500, which is attainable for most folks interested in CDs, and even as low as $50 for certain CDs. Though jumbo CDs are available: The one-year (13-month) jumbo pays 4.50% APY with a minimum deposit of $100,000. Membership requirements for MSUFCU are not onerous; for instance, you can become one by donating $10 to the Desk Drawer Fund.
Pros and cons
Pros
- Tons of CD term options, from 3 months to 7 years.
- Low minimum requirements.
- High yields.
Cons
- Rates decrease after 18-month terms.
- It does take time to become a member.
- Early withdrawal penalties apply.
Synchrony Bank Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
2.25% to 5.50%
Minimum deposit
$0
Terms
3 to 60 months
What you should know
Synchrony Bank offers CDs that have no minimum balance requirements and come in a variety of options, including terms between three and 60 months. The yields on these terms are among the highest in the market, including a robust 5.50% APY on a 9-month CD. For those nervous about early withdrawal penalties, there’s an 11-month Synchrony Bank no-penalty CD option, which pays out a 4.50% APY. All of Synchrony’s other CDs charge penalties to access your money early.
Pros and cons
Pros
- No minimum balance.
- Wide range of terms.
- High interest rates.
Cons
- Early withdrawal penalties.
- Limited terms for no-penalty and bump-up CDs.
PenFed Money Market Certificate
Blueprint Rating
On Fiona's Website
APY
3.00% to 5.35%
Minimum deposit
$1,000
Terms
6-month to 7-year terms
What you should know
PenFed offers nine money market certificates with term options ranging from six months to seven years. Its highest APY of 5.35% applies to terms of 12 months. The minimum requirement is a relatively affordable $1,000 and the credit union as a whole scores well on customer service. It’s easy to join—create a savings account and deposit $5. Still, some of PenFed’s terms, while competitive, aren’t top of market, and short-term savers will only find one term shorter than a year.
Pros and cons
Pros
- Nine term options.
- Low, $1,000 minimum deposit requirement.
- Strong online customer reviews.
Cons
- Early withdrawal penalties.
- Higher APYs can be found with other institutions.
- Not many short-term term options.
Discover® Certificates of Deposit
Blueprint Rating
On Discover's Website
APY
2.00% to 5.30%
Minimum deposit
$2,500
Terms
3-month to 10-year terms
What you should know
Whether you’re opening CDs from your desktop or your phone, Discover offers a user-friendly experience and 24/7 customer support, which is why the financial institution has scored highly on app store ratings and customer satisfaction surveys. Its CD options aren’t bad, either. Discover features 12 CD terms, from three months to 10 years, and its current highest APY of 5.30% applies to its 9-month term.
Pros and cons
Pros
- No maintenance fees.
- High yields across term lengths.
- Strong online customer reviews.
Cons
- A $2,500 minimum deposit.
- No brick-and-mortar branches.
- Early withdrawal penalties.
Marcus by Goldman Sachs High-Yield Certificate of Deposit
Blueprint Rating
On Fiona's Website
APY
4.00% to 5.30%
Minimum deposit
$500
Terms
6-month to 6-year terms
What you should know
Marcus by Goldman Sachs’ highest APY of 5.30% applies to its 12-month CD but all Marcus CDs come with a 10-day rate guarantee — if rates go up within 10 days of you opening the CD, you get the higher rate automatically. You can choose between nine CD terms, ranging from six months to six years, and you can withdraw any earned interest penalty-free. All CDs have a low minimum balance requirement of $500 and you have up to 30 days to fully fund it.
Pros and cons
Pros
- Low, $500 minimum balance.
- 24/7 customer service.
- 10-day rate guarantee; 30-day funding window.
Cons
- More limited terms than some competitors.
- No partial withdrawals are permitted.
- No physical branches.
Capital One 360 Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
4.10% to 5.25%
Minimum deposit
None
Terms
6-months to 5-year
What you should know
Capital One 360 CDs stand out among the best CDs as they’re great for customization. Not only is there no minimum required balance — you can choose how much money you want to use to open any length of CD account — but you also get to choose whether your interest is paid monthly, annually, or at the end of term. Capital One 360 CD terms range from six to 60 months. Short-term savers reap a frothy 4.35% APY on nine-month terms, while those with a longer perspective earn at a decent APY on any term greater than 18 months. Still, those in the market for a no-penalty option or a CD with a longer term than five years, should look elsewhere.
Pros and cons
Pros
- No minimum balance requirement.
- Choose when you are paid interest.
- Strong rates for each term.
Cons
- No terms greater than five years.
- No penalty-free CD.
- Cannot add additional funds to CDs.
HSBC Direct Certificates of Deposit
Blueprint Rating
On Fiona's Website
APY
4.50% to 5.00%
Minimum deposit
$1,000
Terms
6-month to 2-year
What you should know
HSBC CD offerings are limited, but rewarding. There are just three terms (six, 12 and 24 months), but each pays a higher yield than average. That’s especially true for the six-month CD; its 4.50% APY is on par with the typical six-month term in our data. You need just $1,000 to start saving and the CDs come with daily compounding interest. Those interested, though, should become a Premier checking account holder to avoid costly maintenance fees.
Pros and cons
Pros
- Interest compounds daily.
- Customers are covered by HSBC’s $0 Liability Online Guarantee.
- $1,000 minimum balance to open.
Cons
- Severely limited term options.
- A $50 monthly fee for non-Premier customers.
- Higher APY yields can be found with competitors.
Compare the best CDs
For easy comparison, here are all the best CDs all in one place.
| Name | Star Rating | APY on one-year CDs | APY on five-year CDs |
|---|---|---|---|
| Barclays | 4.4 | 5.40% | 4.50% |
| Sallie Mae Bank | 4.8 | 5.50% | 4.00% |
| My eBanc | 4.7 | 5.50% | N/A |
| Bread Savings | 4.6 | 5.50% | 4.25% |
| First National Bank of America | 4.6 | 5.15% | 4.75% |
| Michigan State University Federal Credit Union | 4.6 | 4.25% | 3.85% |
| Synchrony Bank | 4.6 | 5.30% | 4.00% |
| PenFed | 4.6 | 5.25% | 4.00% |
| Discover | 4.5 | 5.20% | 4.00% |
| Marcus by Goldman Sachs | 4.4 | 5.30% | 4.10% |
| Capital One 360 | 4.4 | 4.35% | 4.10% |
| HSBC Direct | 4.4 | 5.00% | N/A |
Methodology
CDs used to play an important, albeit complimentary, role in the finances of everyday Americans. Roughly a fifth of households owned a CD in 1989, according to the Fed. They were still in vogue nearly two decades later, as more than 16% used them in 2007.
In 2019, however, only 7.7% of households had a CD.
The reason? CDs used to be a much better deal. At the beginning of 1989, for instance, a one-year CD offered an 8.30% APY. By 2007, it was just 3.7%.
By 2019, a one-year CD paid just 0.92%.
The story behind drooping CD rates is complicated, and it involves: falling inflation (until recently), an aging population, technological innovations and the Federal Reserve lowering interest rates. The aftermath of the Great Recession, in which the Fed kept interest rates near zero for almost a decade as inflation continually ran under its desired level, is just the most recent trend.
That’s what has made the current moment so interesting. CD yields jumped in 2022 after the Fed raised rates by 4.25 percentage points in nine months.
The upshot, though, is the same: Americans are more likely to consider CDs if they pay more in interest, especially compared to inflation. After all, a one-year CD that pays less than 1% is hardly worth it when prices are rising at twice as high a rate.
We took this historical lesson to heart when crafting our ratings, as you can see below:
- APY: 70%.
- Customer Experience: 10%.
- Minimum Deposit: 5%.
- Compound Interest Schedule: 5%.
- Digital Experience: 5%.
- Available Terms: 3%.
- Availability: 2%.
We looked at the terms of 144 CDs offered by 84 banks and credit unions to reach our rankings. In each category we looked at a variety of factors.
For instance, to determine APY, we documented the interest rate offered on 17 different terms. To rank customer service, we documented how the financial institutions were ranked by the Better Business Bureau and JD Power.
Additionally, we valued accounts with lower minimum deposits, daily compound interest schedules (rather than monthly) and those that are available to everyone, regardless of where they live.
While non-APY factors are important, we believe that your potential earnings should reign supreme.
Why some banks didn’t make the cut
Stare at our rankings for a while and something obvious becomes apparent: a dearth of big banks.
No Chase Bank, no Bank of America, no Citi® and no Wells Fargo. The four largest financial institutions in the nation, which together own nearly $10 trillion in assets, don’t offer a competitive CD.
How come?
Well, they don’t have to.
The big banks enjoy the benefits of generations of customers and high name identification. When the typical person thinks about opening a bank account, their mind tends to drift towards at least one of the big four.
If a bank wants to make a splash, then, they need to offer higher rates.
The story is similar for the next three biggest banks: U.S. Bank, PNC Bank and Truist, regional powers all. Their offerings are either not high enough, or aren’t robust enough, to warrant inclusion.
The only top 10 banks to make the cut prove the point. Capital One and Goldman’s Marcus by Goldman Sachs each offer high rates in an effort to win business from more established banking institutions. After all, Capital One is basically a Gen Zer (it was conceived in the mid-1990
Best 1-year CD rates
One-year CDs currently occupy the sweet spot for CD shoppers, thanks to a minimal commitment and high yields. (That’s largely thanks to the Federal Reserve raising short-term rates significantly, while market observers believing the economy will slow in the years-to-come).
As of December 6, 2023, the current national high rate for a 12-month CD is 5.70% APY according to Curinos data (rates are based on a $25,000 minimum deposit).
Learn more: Best 1-year CD rates.
| Institution | Star rating | 1-year APY | Minimum Balance |
|---|---|---|---|
| My eBanc | 4.7 | 5.50% | $5,000 |
| Michigan State University Federal Credit Union | 4.7 | 4.25% | $500 |
| Connexus | 4.7 | 5.01% | $5,000 |
| Sallie Mae Bank | 4.6 | 5.50% | $2,500 |
| PenFed | 4.6 | 5.25% | $1,000 |
| Bread Savings | 4.5 | 5.50% | $1,500 |
| First National Bank of America | 4.5 | 5.15% | $1,000 |
| Synchrony Bank | 4.4 | 5.30% | $0 |
| Citibank | 4.4 | 4.30% | $500 |
Best 6-month CD rates
If you have a short time-period in which to save, consider these six-month CD options. You can earn a high yield, and get back into the market quickly should yields stay high.
As of December 6, 2023, the current national high rate for a 6-month CD is 5.59% APY according to Curinos data (rates are based on a $25,000 minimum deposit).
Learn more: Best 6-month CD rates.
| Institution | Star Rating | 6-month APY | Minimum Balance |
|---|---|---|---|
| My eBanc | 4.8 | 5.40% | $5,000 |
| Michigan State University Federal Credit Union | 4.5 | 4.15% | $500 |
| Bank5 Connect | 4.4 | 5.50% | $500 |
| Sallie Mae Bank | 4.3 | 5.10% | $2,500 |
| Synchrony Bank | 4.2 | 5.25% | $0 |
| Marcus By Goldman Sachs | 4 | 5.10% | $500 |
| TAB Bank | 4 | 5.27% | $1,000 |
| HSBC Direct | 4 | 4.50% | $1,000 |
| Dollar Savings Direct | 4 | 3.50% | $1,000 |
| LimeLight Bank | 4 | 4.50% | $1,000 |
| Bethpage Federal Credit Union | 3.9 | 4.00% | $50 |
| CommunityWide | 3.8 | 5.50% | $1,000 |
Best 5-year CD rates
You can typically earn the most interest on longer CD terms. If you don’t need to touch some cash for a while, 5-year CDs can be a great option. See the link below for more information on each CD and on how we determined the best.
As of December 6, 2023, the current national high rate for a 5-year CD is 5.20% APY according to Curinos data (rates are based on a $25,000 minimum deposit).
| Bank | Star rating | Five-year APY | Minimum balance |
|---|---|---|---|
| Sallie Mae Bank | 4.8 | 4.00% | $2,500 |
| Bread Savings CD | 4.7 | 4.25% | $1,500 |
| Synchrony Bank CD | 4.5 | 4.00% | $0 |
| Discover CD | 4.5 | 4.00% | $2,500 |
| First National Bank of America | 4.4 | 4.75% | $1,000 |
| Capital One 360 | 4.3 | 4.10% | $0 |
| Barclays | 4.3 | 4.50% | $0 |
Learn more: Best 5-year CD rates.
How to choose the best CD
Prioritize rates. The main purpose of investing is to earn money. Research the highest CD rates available, which are typically offered by online banks and smaller financial institutions.
Consider time. How long are you willing to lock away your funds? Can you afford to hand over a bundle of your cash for six months? One year? 10 years? Make sure you have a fully-financed emergency fund before you consider a CD.
Look at withdrawal allowances. If you need to, are you able to make an early withdrawal? If so, what would the penalty be? Ideally you’d want to opt for a CD that charges little in the way of fees. If you are at all concerned about needing the money in the near future, consider opting for a no-penalty CD. While interest rates are typically lower, you won’t be penalized if you need to access your cash.
Check requirements and insurance. Many CDs require a minimum balance, such as $1,000. Make sure you can meet the requirements to open the CD you desire. And be careful that any CD you open will be completely covered by deposit insurance from the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantee funds up to $250,000 for each depositor at each covered institution.
See CD types. If traditional CDs aren’t meeting your needs, look up other types. For example, no-penalty CDs allow you to make fee-free withdrawals; add-on CDs typically have low minimum requirements and allow you to increase your principal over time; bump-up CDs allow you to request an APY increase, which can be useful in a rising-rate environment.
Compare CDs. After you do all of the steps above and have a list of top CDs, look at your options and make a choice. You could also use a CD calculator.
Comparing CD rates
It’s easy to compare the face value of one CD rate to another: A higher number is better. Yet when CDs are for different terms, it can be much harder to know how one will pay off versus another.
To better judge apples to apples, use a CD calculator. It’ll determine the dollar amount you’ll earn from each CD, which may make your decision easier.
Rates are currently highest for CDs with terms between one and three years, though there are exceptions. Focus on those terms, especially if you’re considering employing a CD ladder.
National average interest rate for CDs
Here are the national deposit rates as of November 20, 2023, according to the Federal Deposit Insurance Corporation (FDIC).
| CD Term | National Deposit Rate |
|---|---|
| 1 month CD | 0.23% APY |
| 3 month CD | 1.62% APY |
| 6 month CD | 1.43% APY |
| 12 month CD | 1.85% APY |
| 24 month CD | 1.55% APY |
| 36 month CD | 1.39% APY |
| 48 month CD | 1.32% APY |
| 60 month CD | 1.39% APY |
Are CD rates going up?
Long-suffering savers got something of a break in 2022: higher CD yields.
After more than a decade of low interest rates following the Great Recession, the Federal Reserve has raised rates by more than four percentage points so far in an effort to snuff out decades-high inflation.
This resulted in the interest rates on one-year CDs, for instance, to jump by almost one percentage point to 1.07% by the end of 2022.
While prices are returning to more normal inflation levels in recent months, it appears that Federal Reserve Chair Jerome Powell will still push the central bank to increase rates, albeit at something of a slower pace.
“Powell continues to stress that the Fed is committed to getting inflation down and the market expects roughly another 60 bps of hikes in the first part of the year, followed by cuts towards the end of the year,” said Nancy Davis, founder of Quadratic Capital Management.
CD rates rise and fall with the federal funds rate, which is set by the Federal Reserve. The Fed makes rate changes in an effort to grow or suppress the economy, depending on what’s going on with inflation. Increasing the federal funds rate makes borrowing more expensive, and thereby limiting economic activity.
Because money is more expensive, you can get a higher interest rate on your deposits. The money you’re effectively lending to financial institutions commands a better APY. Exactly when CD rates will plateau and how high the rates will reach before they drop, is unknown, but here’s our CD rates forecast.
But expect CD rates to continue to look good, especially compared to where they were just a few years ago.
How to build a CD ladder
A CD ladder allows you to earn higher rates offered by longer terms without locking up your cash forever.
For example, assume you have $9,000 to invest and you make a ladder of three CDs. You put $3,000 each into one, two and three-year CDs. When the one-year CD matures, you convert it to the higher-rate, 36-month CD, then do the same with the 24-month CD. This way you end up with three 36-month CDs with high APYs, with one maturing each year.
Here are the steps to build a CD ladder of your own:
- Divide the amount of money you want to invest by however many CD terms you want.
- Research the best CDs to find the best providers and the best rates for different lengths.
- Open and set up the CD accounts you want.
- As the CDs mature, reinvest the cash into longer term CDs.
The second step, however, is crucial. Just because the Fed has raised interest rates doesn’t mean that you’ll get the same, or even similar rates, from different financial institutions on the same CD term.
“Even though rates are rising, not all banks will raise your savings interest rate accordingly,” said Tony Molina, a CPA at Wealthfront. “Make sure you move your money to an account that passes on the increased rates to you-otherwise you’re missing out on basically free money.”
A CD ladder gives you the freedom to cash out a hunk of money if you need it or reinvest your money without sweating about locking away your funds—because your next CD is maturing next year.
How are CDs taxed?
In most cases, Uncle Sam counts the money you make from your deposits as taxable income. If you earn $10 or more, a financial institution should send you (and the IRS) an annual 1099-INT form that reports your interest earnings. If you don’t receive a form, you’re still responsible for reporting the income.
If you make at least $1,500, you’ll also need to itemize your sources of interest income on Schedule B of the 1040. The good news is that there are some exceptions, but they mostly apply to investment vehicles issued by the government.
The amount you pay depends on your specific marginal tax bracket.
Income interest from treasury bills, notes and bonds, such as I Bonds, are exempt from state and local income taxes.
What happens to CDs at maturity?
When a CD matures, you have a grace period (typically seven days) in which you can either renew the CD term, or withdraw the funds entirely. Many CDs automatically renew if you do not withdraw them.
Renewing generally provides two options. You could reninvest the original amount plus the interest you’ve earned or reinvest only the original amount.
Withdrawing the funds can pay off if you use them to invest in other CDs with higher yields. In the time between your purchasing of the CD and its maturity, APYs have likely changed. Your financial needs and abilities may have altered as well. Withdrawing your mature CD to reinvest in a new deposit vehicle that better suits can be smart.
Frequently asked questions (FAQs)
CD rates change on a regular basis. But, of course, a higher CD rate is always better. As of November 20, 2023, the national average rate on a 12-month CD is 1.85% APY. However, you can find many banks offering APYs well above this national average, especially if you consider the winners in our ranking.
You’ll typically need the following pieces of information in order to open a CD: your name, address, Social Security Number, government issued identification and phone number. You can provide this information either online, or in person, though you’ll likely find the best rates on the former. Once you’re approved, you’ll be able to fund the CD either with money from a connected bank account or one not affiliated with the bank altogether.
Savings accounts allow you to make deposits whenever you want, as well as make withdrawals without penalty. They have no term limit, though you’re not guaranteed a particular interest rate. By contrast, traditional CDs require that you lock away a set amount of money for a set amount of time. If you can make a withdrawal at all, you almost always have to pay a financial penalty for doing so. The trade off is that CDs generally have higher yields; however, high-yield savings accounts can be competitive.
While it’s easy to get excited about high yields on long-term CDs, it’s still vital to confirm that a long-term investment fits within your overall financial strategy. That is, buy a high-yielding CD if it makes sense within your larger financial plan.
CD rates are expected to go up in 2023, following the trend of rising rates as the Federal Reserve continues to fight inflation.
Editor’s Note:This article contains updated information from previously published stories:
- How to find best interest rates on CDs, savings accounts
- Shouldn’t CD rates be ready to rocket?
- Money Watch: How to earn more as CD matures
- The Fed raises interest rates again, saying ‘economy is doing well’
- How Fed rate hikes affect your credit cards, mortgages, savings rates
- Are certificates of deposit worth it right now?
- Fed rate hike: What it means for your CDs
- Savings advantage? How to make the Fed rate hike work for you
Analyzing the content you provided, it covers a vast array of concepts related to Certificates of Deposit (CDs), financial institutions, interest rates, and the factors influencing the current market trends. Here's a breakdown of the concepts and information covered:
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Certificates of Deposit (CDs): A form of time deposit offered by banks or credit unions where you deposit a fixed amount of money for a specified period in return for a fixed interest rate.
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Interest Rates: Rates offered on CDs vary based on the term length and financial institution. Higher rates are often associated with longer-term CDs, though this trend may vary among different banks.
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Financial Institutions: The article highlights several financial institutions offering CDs with varying APYs (Annual Percentage Yields) and terms, emphasizing key pros and cons for each institution.
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CD Terms and Rates: It provides information about different CD terms (ranging from 3 months to 10 years) and the corresponding APYs associated with those terms from various institutions.
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Factors Influencing CD Rates: Factors impacting CD rates include Federal Reserve actions, inflation rates, market demand, and banking institution policies.
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Comparing CD Rates: The article outlines a methodology for comparing and evaluating CD rates, emphasizing APY, customer experience, minimum deposit, compound interest schedule, digital experience, available terms, and availability.
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Current CD Rates and Trends: It shares the current national average rates for different CD terms, discusses the recent increase in CD yields following Federal Reserve rate hikes, and predicts potential future trends in CD rates.
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Choosing the Best CD: Factors to consider while selecting a CD include prioritizing rates, considering the duration of investment, examining withdrawal options, meeting requirements, and understanding deposit insurance.
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CD Laddering: A strategy where multiple CDs with different maturity dates are purchased to balance liquidity and higher interest rates over time.
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Taxation on CDs: Information about how interest earned on CDs is taxable income, and the reporting requirements for this income to the IRS.
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CD Maturity and Renewal: The process of what happens when a CD matures, allowing the account holder to withdraw funds or renew the CD.
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FAQs and Additional Information: Answers to frequently asked questions about CD rates, opening CDs, differences between savings accounts and CDs, and expectations about future rate changes.
This comprehensive article provides a detailed overview of CDs, allowing readers to understand the current CD market, make informed decisions about investing in CDs, and explore various strategies related to CD investments.
