Secure Your Savings with a High-Yield CD
When it comes to storing your hard-earned savings, a certificate of deposit (CD) can be an attractive option. CDs often offer higher interest rates than traditional checking and savings accounts, making them an excellent choice for those seeking a secure and stable savings vehicle.
CD Rates: A Mixed Bag
While CD rates can vary widely, some banks are still offering competitive rates despite the Federal Reserve’s decision to cut its benchmark rate three times in 2024. Currently, top rates reach around 4% APY, particularly for shorter terms of one year or less.
Top CD Rates Available Today
NexBank leads the pack with a 1-year CD offering 4.27% APY, although it requires a substantial minimum opening deposit of $25,000. Marcus by Goldman Sachs follows closely with a 1-year term offering 4.25% APY and a $500 minimum opening deposit.
Comparing CD Rates to National Averages
The national average CD rate as of December 2024 is significantly lower than today’s top rates, highlighting the importance of shopping around for the best CD rates before opening an account.
The Benefits of Online Banks and Neobanks
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 on deposit accounts, including CDs, and lower fees. If you’re searching for the best CD rates, an online bank is an excellent place to start.
Credit Unions: Another Option
Credit unions, as not-for-profit financial cooperatives, return their profits to customers, who are also member-owners. While many credit unions have strict membership requirements, there are several that are open to anyone.
Is a CD Right for You?
CDs are a safe and stable savings vehicle, backed by federal insurance, and allow 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 today’s CD rates are high by historical standards, they may not match the returns you could achieve by investing your money in the market. If you’re saving for a long-term goal, such as retirement, a CD may not provide the growth you need to reach your savings goal within a reasonable time frame.
Finding the Best CD Rates
If you’re searching for today’s best CD rates, we’ve narrowed down some of the 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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