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.
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.
Alabama Credit Union now offers the best 18-month CD rate of 5.66% APY, surpassing the previous top rate of 5.55% APY, as the overall leading rate for the best nationwide CDs reached 6.00% APY.
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%.
First Harvest Credit Union has taken the top spot for 18-month CDs, offering a rate of 5.75% APY for a 15-month term, while American 1 Credit Union continues to offer the leading nationwide rate of 6.00% APY for 12 months.
Despite the current rise in interest rates, experts predict that CD rates will remain relatively stable in 2023, with the possibility of a slight increase, but a downward trend is expected for 2024.
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.
USAlliance Financial is now offering a 6-month CD with a competitive rate of 5.75% APY, joining five other CDs with the same rate, but with different durations ranging from nine to 15 months.
Despite a six-way tie for the leading rate on nationally available CDs at 5.75% APY, the number of options in the elite group has grown to 16, with the addition of a new 12-month CD from CFG Bank, while the probability of a Fed rate hike in November or December is estimated to be 30-40%.
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.
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.
CDs and money market accounts are both savings options that offer higher interest rates, but they have different advantages: CDs are best for disciplined savers who want higher yields and don't plan to touch their money, while money market accounts are better for savers who want easy access to their funds and slightly higher returns than a standard savings account.
Many financial advisors warn that relying too heavily on high-yield savings accounts and certificates of deposit (CDs) instead of investing in the stock market can result in missed opportunities for higher returns, as well as the negative effects of inflation and potential tax disadvantages.
The recent pause in rate hikes by the Fed suggests that savings rates have reached their peak and are unlikely to go much higher, making it a good time to lock in a CD term and diversify short- and long-term savings.
Credit Human is offering a record rate of 6.00% APY on a nationally available CD for terms between 12 and 17 months, with other CDs also offering high rates of at least 5.75% APY, while the Federal Reserve is considering a possible rate hike in November or December.
Summary: Opening a 1-year CD account now could be beneficial for savers due to the high interest rates, locked rates, and predictability it offers.
Investing $5,000 into a 6-month certificate of deposit (CD) is a smart move due to the attractive interest rates, low risk, and the ability to diversify investments.
Summary: Putting $5,000 into a 1-year CD account can be a wise financial move due to high interest rates, safety, predictability, and minimal effort required, although individual financial goals and risk tolerance should be considered before making the decision.
Certificate of deposit (CD) accounts are currently a popular choice for savers due to their fixed interest rate and predictable return, but it's important to ask the right questions about interest rates, term length, penalties for early withdrawal, minimum deposit requirements, potential rate changes, insurance coverage, renewal process, and any special features or add-ons before opening a CD.
Savers may be able to find certificate of deposit (CD) accounts offering rates of 7% or higher, with some financial institutions offering even higher rates for short-term CDs, although eligibility criteria and restrictions may apply.
Financial Partners Credit Union is offering a new CD with a top rate of 6.50% for an eight-month term, the highest rate among all tracked CDs, but with a $5,000 maximum deposit.
CD interest rates are predicted to remain relatively steady in 2024, with experts expecting rates to be around the same levels as they are now, although certain banks may offer slightly higher rates to attract deposits.
Despite typically short lifespans, an unusually high-yield promotional CD from Financial Partners Credit Union offering a 6.50% APY is still available after four days, with a maximum deposit limit of $5,000 and an 8-month term.
The current economic environment allows savers to potentially earn a 6% or higher return on their savings through options such as high-yield savings accounts and certificates of deposit (CDs).
Maximize your savings with one of the best 3-year CDs available, offering high rates and predictable returns on your money.
CD interest rates are expected to remain consistent or slightly higher after the next Fed meeting, offering savers the opportunity to earn more on their investments.
Financial Partners Credit Union is offering a record-high APY of 6.50% on an 8-month certificate with a maximum deposit of $5,000, while Credit Human is offering 6.00% APY on longer terms of 12 to 17 months for larger deposits, according to Investopedia's daily ranking of the best nationwide CDs.
Seattle Bank has entered the high-paying CD market with an 18-month CD offering a 5.80% APY, making it the longest duration CD with a yield of at least 5.75% APY.
