Lock In High CD Rates Before They Fall

Take Advantage of High CD Rates Before They Drop

The Federal Reserve’s recent decision to lower its target interest rate has sent ripples through the banking industry, and deposit account rates are about to feel the impact. If you’re considering a certificate of deposit (CD), now is the perfect time to lock in today’s high rates.

Competitive CD Rates Abound

As of December 23, 2024, CD rates remain competitive, especially for shorter terms. Several financial institutions offer rates around 4.00% APY for terms of a year or less. While longer-term CD rates are not as high, top offers still hover around 3.00%-4.00% APY for terms of three years and longer.

Top CD Rates Available Today

NexBank takes the top spot with a 1-year CD offering 4.27% APY, although it requires a substantial minimum opening deposit of $25,000. Synchrony and Marcus by Goldman Sachs follow closely, offering 4.25% APY for 13-month and 1-year terms, respectively.

Why Online Banks and Credit Unions Stand Out

Online banks and credit unions generally offer more competitive rates compared to traditional brick-and-mortar banks. This is due to their lower overhead costs, which enable them to pass the savings on to customers.

National Average CD Rates

As of December 2024, the highest national average interest rate for CDs stands at 1.85% for a 1-year term. While today’s average CD rates are some of the highest seen in nearly two decades, it’s essential to choose a CD with a high APY and term length that aligns with your financial goals.

Tips for Finding the Best CD Rates

  • Shop around: Evaluate CD rates from various financial institutions and compare your options before settling on an account.
  • Consider online banks: Online banks tend to have lower overhead costs, allowing them to offer higher interest rates on CDs.
  • Check minimum deposit requirements: Ensure the amount you plan to deposit aligns with the requirements to get the best rate.
  • Review account terms and conditions: Look beyond the CD’s rate and examine terms for early withdrawal penalties and auto-renewal policies.

Explore Other High-Yield Options

If you’re not ready to commit to a CD, consider a high-yield savings account or money market account to help your balance grow faster. Compare the best savings interest rates and money market account rates available today to ensure you’re earning the best rate possible.

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