Secure Your Savings with a High-Yield CD
When it comes to storing your savings, a certificate of deposit (CD) can be an attractive option. CDs often provide higher interest rates than traditional checking and savings accounts, making them an excellent choice for those looking to grow their wealth.
CD Rates: A Mixed Bag
Currently, CD rates are experiencing a decline due to the Federal Reserve’s decision to cut its benchmark rate three times in the latter part of 2024. However, some banks are still offering competitive rates, with top rates reaching around 4% APY for shorter terms of one year or less.
The Best CD Rates Available Today
Marcus by Goldman Sachs is currently offering the highest CD rate at 4.25% APY on its 1-year term, with a $500 minimum opening deposit required. Other top contenders include:
- [List of top CD rates]
Why Online Banks and Credit Unions Stand Out
Online banks and neobanks operate solely online, resulting in lower overhead costs. These savings are then passed on to customers in the form of higher interest rates and lower fees. Credit unions, as not-for-profit financial cooperatives, also offer competitive rates by returning profits to their member-owners.
Is a CD Right for You?
CDs are a safe and stable savings vehicle, backed by federal insurance and allowing you to lock in today’s best rates. However, there are some drawbacks to consider. 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.
Weighing Your Options
While CDs provide a safe haven for your savings, they may not match the returns you could achieve by investing in the market. If you’re saving for a long-term goal like retirement, a CD might not provide the growth you need to reach your goal within a reasonable time frame.
Explore Your Options
If you’re searching for the best CD rates, we’ve narrowed down some top offers. Learn more about CD rates today and discover where to find high-yield CDs with the best rates available.
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