15 CDs that pay nearly 4 times the national average
Not all CDs are created equal, as today's top CDs offer rates nearly four times higher than the national average, allowing investors to maximize their returns and get the most for their savings.
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Posted 8/28/2023, 8:09:12 PM
cbsnews.com
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The number of CD options paying 5.50% or more has increased to 30, double the number available at the beginning of August, with the highest rate being 5.85% APY on a jumbo certificate.
Interest rates on CDs are currently high, and with the expectation of further rate increases, it may be advantageous to open a CD now to secure a higher rate, although there is a risk that rates could go higher or that you may need access to the funds before the CD term ends, in which case a high-yield savings account may be a better option.
Banks and credit unions are competing for customer dollars in the current high-rate environment, offering high-yield savings accounts and CDs with attractive rates, such as CloudBank 24/7 High Yield Savings Account with an APY of 5.26% and Western Alliance Bank 1 Year CD with an APY of 5.51%.
Interest rates on CDs are currently high, making it a good time to deposit money into one for the higher returns and the predictability and protection they offer compared to regular savings accounts.
Investopedia has raised the bar for their elite nationwide CD rate to 5.65% APY, with 15 CDs in their ranking currently meeting the new threshold, while the highest APY for jumbo CDs is 5.85% for a 6-month certificate with a $100,000 deposit.
The Federal Savings Bank now offers a 5.80% APY on a 1-year certificate, surpassing the previous industry-leading rate of 5.75% APY, while the top rate for 2-year CDs has decreased from 5.55% to 5.50% APY.
Opening a CD now can allow savers to earn a higher interest rate before inflation drops and interest rates decrease.
The FDIC's latest release of national averages shows that while CD rates have been on a meteoric rise for the past 18 months, the climb may be slowing, with some terms experiencing slight declines while others continue to rise.
Despite the Federal Reserve's decision to maintain interest rates, banks and credit unions are still increasing the rates offered on certificates of deposit (CDs), with the number of nationally available CDs offering rates of 5.65% or higher rising from 15 to 21 in just one week.