Secure Your Savings with a High-Yield CD
When it comes to storing your hard-earned savings, you want a secure and reliable option that will grow your money over time. A certificate of deposit (CD) can be an excellent choice, offering higher interest rates than traditional checking and savings accounts. However, with CD rates varying widely, it’s essential to know where to find the best deals.
Understanding CD Rates
Today’s CD rates are influenced by the Federal Reserve’s decision to cut its benchmark rate three times in 2024. As a result, CD rates are beginning to decline. Nevertheless, 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
NexBank currently offers the highest CD rate of 4.27% APY on its 1-year CD term, although it requires a minimum opening deposit of $25,000. Marcus by Goldman Sachs follows closely with a 4.25% APY on its 1-year CD, requiring a minimum deposit of $500.
The Importance of Shopping Around
Compared to national averages, today’s top CD rates are significantly higher. This highlights the importance of comparing rates before opening an account. Online banks and neobanks, with lower overhead costs, are often able to offer higher interest rates and lower fees. Credit unions, as not-for-profit financial cooperatives, also provide competitive rates and return profits to their customers.
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, they do come with some drawbacks. You must keep your money on deposit for the full term to avoid early withdrawal penalties, and they may not provide the growth you need for long-term goals like retirement. Consider your savings goals and whether a high-yield savings account or money market account might be a better fit.
Explore Your Options
If you’re searching for today’s best savings interest rates, money market account rates, or CD rates, we’ve narrowed down some top offers. Learn more about your options and find the best fit for your savings goals.
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