Secure Your Savings with a High-Yield CD
If you’re looking for a safe and stable way to grow your savings, a certificate of deposit (CD) could be an excellent choice. CDs often offer higher interest rates than traditional checking and savings accounts, making them an attractive option for those seeking to maximize their returns.
Understanding CD Rates
CD rates can vary significantly, and it’s essential to stay informed about the current market trends. Due to the Federal Reserve’s recent decision to cut its benchmark rate, CD rates have begun to decline. However, some banks are still offering competitive rates, with top rates reaching around 4% APY for shorter terms of one year or less.
Top CD Rates Available Today
Our research has identified some of the best CD rates available today:
- NexBank: 4.27% APY on its 1-year CD (minimum opening deposit of $25,000 required)
- Synchrony: 4.25% APY on its 13-month term
- Marcus by Goldman Sachs: 4.25% APY on its 1-year term
Why Online Banks and Credit Unions Offer Better CD Rates
Online banks and neobanks operate solely online, which means they have lower overhead costs compared to traditional brick-and-mortar banks. As a result, they can offer higher interest rates on deposit accounts, including CDs, and lower fees. Credit unions, as not-for-profit financial cooperatives, also return their profits to customers, who are member-owners, allowing them to offer competitive rates.
Is a CD Right for You?
Before opening a CD account, consider your savings goals. CDs are a safe and stable savings vehicle, but they come with some drawbacks. You must keep your money on deposit for the full term to avoid early withdrawal penalties. If you need flexible access to your funds, a high-yield savings account or money market account might be a better choice. Additionally, while CD rates are high by historical standards, they may not match the returns you could achieve by investing your money in the market.
Explore Your Options
If you’re searching for the best savings interest rates, we’ve narrowed down some top offers. Learn more about savings interest rates today. Alternatively, if you’re looking for the best money market account rates, we’ve got you covered. Learn more about money market account rates today.
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