The number of certificates of deposit (CDs) paying at least 5.50% APY has risen to 30, providing ample options for customers looking to earn a record rate.
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.
Investopedia's daily ranking of the best CD rates now includes seven more options paying at least 5.50% APY, bringing the total number of certificates in that tier to 37, which is more than double the number from when August began, and a new contender is offering the highest nationwide rate of 5.75%.
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.
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.
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.
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%.
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.
Credit Human has increased the rate on its nationally available certificate to a record-breaking 6.00% APY for a term of 12 to 17 months, while the leading rate for a nationally available 3-year CD rose to 5.25% APY.
INOVA Federal Credit Union and Credit Human are both offering a nation-leading CD rate of 6.00% APY for terms ranging from 9 to 17 months, while some lucky CD shoppers can even earn 6.25% APY with a regional offer available in five states.
CD interest rates are currently high, making it a good time for savers to move their money into a high-yield or CD account; however, rates are not expected to stay high long term, so savers should act promptly.
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.
You can still earn a record 6.00% APY with a CD ranging from nine to 17 months, as well as have 10 additional opportunities to earn at least 5.75% APY, despite the quiet CD rate movement today.
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.
If you're looking for guaranteed returns on your savings, short-term certificates of deposit (CDs) with high annual percentage yields (APYs) are currently offering some of the highest rates available.
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.
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