Today’s top CDs offer APYs of up to 4.65%, with fixed rates that protect your returns from potential drops in overall rates. Opening a CD now can shield your earnings from expected Fed rate cuts later this year. Choosing the right CD account is crucial for growing your savings, as rates can vary significantly between banks. Some of the highest CD rates available currently include 4.65% for 6 months at CommunityWide Federal Credit Union, 4.45% for 1 year, 4.15% for 3 years, and 4.25% for 5 years, both at America First Credit Union. It is advisable to compare rates before opening a CD to secure the best APY possible.
The Federal Open Market Committee meets periodically to set the federal funds rate based on the US economy’s health. While the Fed doesn’t directly control CD rates, banks generally adjust APYs in response to the federal funds rate. By locking in a higher rate now, you can safeguard your earnings against potential interest rate cuts. It is essential to select a CD term that aligns with your financial needs, as early withdrawal could result in penalties. Considering factors such as when you’ll need the money, minimum deposit requirements, fees, safety, and customer reviews can help you find the right CD for your situation.
Weekly changes in CD rates show fluctuations in average APYs, with some terms experiencing slight decreases or remaining stable. Apart from a competitive APY, other aspects to consider when choosing a CD include withdrawal penalties, minimum deposit requirements, fees, safety and security, and customer ratings. Conducting thorough research and comparing options can help you find the best CD account to suit your savings goals. Ensuring that the bank or credit union is a member of FDIC or NCUA can provide additional protection for your funds in case of a bank failure.
The methodology used to review CD rates includes evaluating information from over 50 banks, credit unions, and financial institutions based on APYs, product offerings, accessibility, and customer service. Some of the banks included in the weekly CD averages are Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Capital One, CIT, Discover, and more. Earnings based on APYs assume annual compound interest, and weekly changes in percentage values reflect fluctuations in average APYs over a specific period. By staying informed about CD rates and considering various factors, you can make an informed decision to grow your savings effectively with a certificate of deposit.
