CD accounts are a popular way to earn interest on cash that won’t be used immediately. With the Federal Reserve’s recent rate cut, it is expected that savings rates will continue to fall. By locking in a CD rate now, individuals can ensure that their cash continues to grow. Some of today’s best CD rates offer up to a 4.70% annual percentage yield, which is more than twice the national average for certain terms.
Experts recommend comparing rates before opening a CD account in order to secure the best APY possible. By entering your information, you can receive the best rate for your area from CNET’s partners. Despite the likelihood of falling rates, it is still advisable to lock in a high APY with one of today’s top accounts. The Federal Reserve’s actions play a significant role in influencing where banks set their CD and savings account APYs. While the days of sky-high CD rates may be over, it is still wise to take advantage of the current high rates.
By considering factors such as early withdrawal penalties, minimum deposit requirements, fees, federal deposit insurance, and customer ratings and reviews, individuals can ensure that they select the right CD account for their needs. Some CDs require a minimum deposit to open an account, while others do not. It is important to assess how much money you can set aside and consider any maintenance or other fees that may be charged. Additionally, ensuring that the bank is an FDIC or NCUA member can protect your money in case of bank failure.
CNET reviews CD rates based on the latest APY information from issuer websites, evaluating CDs from over 50 banks, credit unions, and financial companies. The current banks included in CNET’s weekly CD averages offer competitive rates for various terms. It is important to keep in mind that the APY is not the only factor to consider when selecting a CD account, and individuals should also assess their savings timeline and financial goals. By locking in a fixed rate for a specified term with a CD account, individuals can protect their earnings from fluctuations in interest rates.
