1-Year CD Rates Reach 5%, But Not for Long. Why You Shouldn’t Wait


Certificates of deposit savings rates are still climbing. Despite shorter terms options such as one-year CDs increasing marginally this week, experts don’t agree on where rates will go next.

Later this month, the Federal Reserve will decide whether to hold steady or raise rates, an action that could dictate whether savings rates will go even higher.

“Interest rates could go up, stay the same or go down in the future depending on what the Fed decides, and there is no way to know for sure,” said Kendall Meade, a certified financial planner at SoFi. Some experts believe that CDs are at a peak and that now is a good time to lock in a long-term CD. Others believe there’s still some room for CD rates to go even higher.

But with the average one-year CD now over 5.00% APY, now’s a good time to earn a return on the money you’re setting aside for a goal you plan to reach next year — like buying a home or new car. And rates are good for other short terms, too — with six- and 18-month CDs getting closer to 5.00% APY this week.

Here’s a rundown of the best CD rates based on popular terms that most banks offer and everything you need to know before opening an account.

What is a CD?

CD stands for certificate of deposit, a deposit account that offers a fixed interest rate for a specific period of time, called a term.

“CDs are a great place to save for future expenses like a new car you know you’ll need in a couple years, a home down payment or money set aside for retirement expenses needed in a specific year,” said Matt Hylland, a financial planner at Arnold and Mote Wealth Management. They’re also a good option for investors who want a fixed rate of interest with little to no risk of losing their money. Unlike investments in stocks and bonds, which will vary in their rate of return, this savings option provides a fixed interest rate for a set period of time and usually pays a higher annual percentage yield than checking or savings accounts.

One drawback of a CD is limited flexibility. If you need to withdraw the funds before the CD term ends, you’ll usually pay a penalty. But CDs are low-risk investments because they’re generally insured by either the Federal Deposit Insurance Corporation or the National Credit Union Association for up to $250,000 per person, per account.

Because CDs are low-hassle, they could be a good option if you want to put aside money for your children, save for a future household expense or even if you just want a “rainy day” fund separate from your emergency fund. (We don’t recommend storing your emergency fund in a CD. It’s better stashed in an account you can easily access that earns interest, like a high-yield savings account.)

CD rates remain the same this week, with a few exceptions

Most of the CD rate movement we saw this week comes from short-term CDs again.

American Express and Forbright increased their one-year CD to 4.75% and 5.30%, respectively. MYSB Direct pushed most of its short-term CDs over 5.00%. The six-month CD now sits at 5.33%, while its one-year CD has a 5.37% APY, the 18-month CD has a 5.20% APY and the two-year CD is now 4.82%. TIAA Bank’s one-year CD also reached 5.00% this week, while its 9-month CD is at 5.25%. Bask, Marcus by Goldman Sachs and Synchrony all increased rates for select short-terms, as well.

But some banks lowered rates this week — mainly for long-term CDs. CFG lowered its one-year, 18-month, three- and five-year CDs. And Synchrony lowered its six-month CD to 4.75% APY. Other CD rates from banks we track remained the same.

There’s a chance that CD rates will reach the projected federal funds rate of 5.60% by the end of the year, but it’s still unclear what that means for CDs in the coming weeks.

“While there is no guarantee, it is possible for CD rates to surpass the projected inflation rate of 5.6% by the end of the year,” said Paul Miller, a certified public accountant and founder of Miller and Company. But some experts believe that rates are as good as they’re going to get.

“We believe locking in current market yields long term is one of the best investment strategies in this economic environment,” said Adam Coons, certified financial analyst and portfolio manager at Winthrop Capital Management. “We see interest rates over the long term returning to their declining path.” Coons recommends acting soon if you’re looking to lock in a long-term CD rate.

But Miller acknowledges that the choice will vary based on your personal financial goals. “If you believe that interest rates will rise in the coming months, locking in a long-term CD at the current rates may provide some protection against potential rate increases,” he added. However, if you expect rates to rise significantly in the near future, you might consider shorter-term CDs to take advantage of potentially higher rates later, he added.

Average CD APYs

Below is a look at the average CD rates by term between the FDIC and the CD rates we track at CNET. The FDIC includes rates from major national banks — which are historically lower compared to online-only neobanks that offer higher rates.

That’s why it’s best to shop around and compare rates before opening a CD to get the best offer that meets your financial needs.

Type 6-month 1-year 3-year 5-year
FDIC-tracked 1.26% 1.63% 1.36% 1.37%
CNET-tracked 4.67% 5.01% 4.23% 4.01%
Note: APYs shown are as of July 5, 2023. CNET’s editorial team updates this information regularly. Source: FDIC.

Best CD rates

Bank or credit union 6-month 1-year 3-year 5-year
Alliant Credit Union 4.75% 5.00% 4.45% 4.35%
Ally Bank 3.50% 4.50% 4.25% 4.10%
American Express National Bank N/A 4.75% *1.15% 3.00%
Barclays N/A 4.80% 4.30% 4.35%
Bask Bank 5.25% 5.15% N/A N/A
Bread Savings N/A 5.25% 4.50% 4.25%
Capital One 3.90% 4.75% 4.30% 4.10%
CFG Bank N/A 5.25% 4.50% 4.40%
CIT 5.00% N/A *0.40% *0.50%
Forbright N/A 5.30% 3.00% 3.00%
Marcus by Goldman Sachs 4.65% 4.85% 4.30% 3.80%
MYSB Direct 5.33% 5.37% 4.76% 4.55%
Quontic 5.05% 5.15% 4.40% 4.30%
Rising Bank 5.15% 5.25% 3.85% N/A
Synchrony 4.75% 4.80% 4.30% 4.00%
TIAA Bank 4.00% 5.00% 4.10% 3.95%
*Not included in CNET’s average. Rates as of July 5, 2023.

Best CD rates by bank

Min. deposit to open
$1,000

  • High-yield and jumbo CDs. 
  • IRA CDs are also available for retirement. 
  • Terms range from three months to five years. 
  • Early withdrawal penalties range from seven days to three months of interest.


About the bank:
Alliant offers different types of checking and savings accounts — including options for teens and kids. We like that the credit union lets you open as many as 19 savings accounts and track your financial goals online. And you’ll get up to $20 reimbursed for out-of-network ATM surcharges. 

However, you’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.

Min. deposit to open
$0

  • No-penalty, bump-up and high-yield CDs.
  • Terms range from three months to five years — depending on the type of CD. 
  • Early withdrawal penalties range from two to five months of interest.
  • Loyalty reward of 0.05% for CDs you renew


About the bank:
Ally is one of our favorite banks and choices for opening a CD. It’s a full-service bank that offers several deposit accounts, including high-yield checking, savings and money market accounts. Best of all, these accounts don’t require a minimum deposit or balance required. If you’re eyeing a CD with Ally, we like that it offers a loyalty reward that boosts your APY by 0.05% when you renew. 

Keep in mind that Ally is an online-only bank so you’ll need to be comfortable managing your account online, but ATMs are available. However, cash deposits aren’t accepted.

Min. deposit to open
$0

  • Only high-yield CDs available. 
  • Terms range from one to five years.
  • 24/7 customer service is available and you can open an account online. 
  • Early withdrawal penalties range from three to 17 months of interest.


About the bank:
American Express is well-known for its premium rewards credit cards. But the bank also offers checking, high-yield savings and CD accounts with no minimum balance requirements or fees to open an account. One downside is that you won’t be able to make cash deposits. And you’ll need to have an American Express credit card to qualify for a checking account — which can be troublesome if you aren’t approved for one. 

You can enroll in American Express’ My Financial Plan for help with financial planning and tracking your goals. And even though American Express is an online-only bank, 24/7 customer service is available by phone at 800-446-6307.

Min. deposit to open
$0

  • Only high-yield CDs available. 
  • Terms range from one to five years.
  • No monthly maintenance fees.  
  • Early withdrawal penalties range from three to six months of interest — depending on the CD term.

 

About the bank: Barclays Bank is a good choice for high-yield savings accounts and CDs, but you won’t find any other options — such as checking or money market accounts. However, you can manage your accounts online or via the mobile app. We also like that Barclays also offers a few helpful tools to help you manage your money and track savings goals, including the Savings Assistant and CD calculator. 

The downside is while customer service is available seven days a week, the hours are 8 a.m. to 8 p.m. ET — not 24/7.

Min. deposit to open
$1,000

  • Only high-yield CDs available. 
  • Terms range from six months to two years. 
  • Only up to five CDs per account, which is worth noting for CD ladders.
  • Early withdrawal penalties range from three to six months of interest.  
  • No monthly fees.


About the bank:
Bask Bank only offers savings and CD accounts. With the Bask Mileage Savings Account, there’s also a chance to earn two American Airlines AAdvantage miles for every dollar saved annually. The high-yield savings account comes with a competitive rate. Occasionally, Bask may bump your CD rate to a promotional rate or allow you to choose a one-time rate bump but aren’t obligated to. 

You’ll have to manage the account online, via the mobile app or by calling customer service during available hours at 833-260-4320.

Min. deposit to open
$1,500

  • Only high-yield CDs available. 
  • Terms range from one to five years. 
  • Early withdrawal penalties range from three months to one year of interest.


About the bank:
Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit — $1,500 and $100 respectively. CDs come with a few free services that are common amongst banks, but worth noting — including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.

Min. deposit to open
$0

  • Only high-yield CDs available. 
  • Terms range from six months to five years. 
  • CDs cannot exceed $1,000,000. 
  • Early withdrawal penalties range from three to six months of interest.


About the bank:
Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees — including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.

Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.

Min. deposit to open
$500

  • Only high-yield CDs are available. 
  • Terms range from one to five years. 
  • Requires a $500 minimum deposit. 
  • CDs cannot exceed $500,000. 
  • Early withdrawal penalty of seven days of interest within six days of account opening.


About the bank:
CFG Bank offers money markets, CDs and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG also charges a few fees that are more than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10 depending on the account. 

Branches are available in Maryland — which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.

Min. deposit to open
$1,000

  • High-yield, no-penalty, jumbo and bump-up CDs available
  • Terms range from three months to five years 
  • Minimum $1,000 deposit 
  • Early withdrawal penalty is three to six months of interest


About the bank:
We like that CIT Bank offers several CD types and terms. You won’t be charged any monthly maintenance fees, but a $1,000 minimum deposit is required. We like that aside from CDs, CIT Bank also offers competitive rates for savings and money market accounts. And a checking account is available if you prefer to keep all of your money with one bank. 

Keep in mind that CIT Bank is an online-only bank and no physical branches are available. You can open and manage your account online or via the mobile app.

  • Only high-yield CDs available 
  • Terms range from three months to five years 
  • Minimum $1,000 deposit


About the bank:
Forbright is a full-service bank that offers money market, savings and checking accounts — along with CDs. It offers a competitive rate that’s on par with other banks we feature. However, opening a CD requires a $1,000 deposit and only traditional, high-yield CDs are available. There are a few branches in Maryland and Virginia, or you can open an account online if a location isn’t nearby.

Min. deposit to open
$500

  • High-yield, no-penalty and bump-up CDs available. 
  • Terms range from six months to six years — depending on the type of CD. 
  • Early withdrawal penalties range from three to nine months of interest. 
  • CD Maturity Center available 12 months before your CD matures to make changes to your CD beforehand — including withdrawing money or closing the account.


About the bank:
Marcus by Goldman Sachs offers high-yield savings and CDs. No-penalty and bump-up CDs are also available, but checking accounts are not. High-yield CDs require a minimum $500 deposit, while savings accounts don’t require any amount to get started. We like that you can make same-day transfers of $100,000 or less to and from other banks. We like that you can reach the contact center 24/7 by calling 855-730-7283. An extensive list of frequently asked questions is also available online.

However, there are some shortcomings. Marcus by Goldman Sachs doesn’t offer an ATM network, checking or money market accounts. Lastly, you won’t be able to deposit cash or mobile check deposits.

Min. deposit to open
$500

  • Only high-yield CDs available. 
  • Terms range from one month to five years. 
  • Early withdrawal penalties apply, but the amount isn’t clear.


About the bank:
M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts depending on your needs. However, it’s not the best option for a money market account since the interest rates are lower than other banks. MYSB Direct is still a solid option for most CD accounts since you’ll earn a competitive rate and it only requires a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. 

You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. Accounts can also be managed online.

Min. deposit to open
$500

  • Only high-yield CDs available. 
  • Terms range from one to five years. 
  • Early withdrawal penalties vary by term.


About the bank:
Quontic offers several checking accounts to let you earn cash rewards, interest or bitcoin on your balance. You can also open a high-yield savings, money market and CD account. We like that the deposit accounts don’t have any overdraft or monthly maintenance fees. And Quontic’s Pay Ring lets you make transactions using a wearable. 

To reach Quontic, you can have live chat or share your phone number with the bank for a phone call. Quontic’s mobile app is also available for help and managing your accounts.

Min. deposit to open
$1,000

  • High-yield, jumbo and bump-up CDs available. 
  • Terms range from six months to three years. 
  • Early withdrawal penalties range from three to six months of interest. 
  • No monthly maintenance fees.


About the bank:
Rising Bank offers competitive rates for its high-yield savings and CDs with no monthly maintenance fees attached. The bank also has an interest-earning checking account option, which makes it a solid pick if you’d like to keep all of your money with one bank. You can manage your account via the mobile app and customer service is available to help by email at support@risingbank.com or calling 888-222-9484. 

If you’re looking for a longer-term CD, such as a five-year term, it’s best to consider other options since the longest term Rising offers is three years. Or if you need to withdraw more than $550 from your account on a regular basis, you won’t be able to with Rising’s checking or savings accounts. Lastly, money markets are not available.

Min. deposit to open
$0

  • Bump-up, high-yield and no-penalty CDs available. 
  • Terms range from three months to five years — depending on the type of CD. 
  • No minimum balance or monthly maintenance fees. 
  • Early withdrawal penalties range from three months to one year of interest.


About the bank:
Synchrony offers competitive rates for all of its savings options — including money market accounts, CDs and high-yield savings accounts. You’ll also have extended customer service hours by phone and live chat online. 

However, Synchrony doesn’t allow cash deposits and a checking account option isn’t available. And Synchrony is an online-only bank, so even though it has a lot to offer, you’ll need to be comfortable managing your accounts online.

Min. deposit to open
$0

  • High-yield, bump-up and IntraFi® CDs available. 
  • Terms range from three months to five years — depending on the type of CD. 
  • No monthly account fee. 
  • Minimum deposit for CD varies based on the type of CD. 
  • Early withdrawal penalty is one-fourth of the CD term’s total interest.


About the bank:
We like that TIAA Bank offers an array of CD types to choose from and competitive rates for its deposit accounts. However, there’s a minimum deposit for most accounts and if you plan to open a checking account, the APY will depend on your daily minimum balance.  

24/7 customer support is available online and by phone at 888-882-3837. You can also manage your accounts online or in person if there’s a branch nearby. However, there aren’t many brick-and-mortar branches compared to major national banks.

Other CD options to consider 

Specialty CDs provide a workaround to some of the drawbacks associated with standard CDs. A no-penalty CD will allow you to withdraw your money without incurring an early withdrawal penalty. 

However, a no-penalty CD typically offers a lower yield than a traditional CD because it allows the individual to take their funds out of the CD before maturity, said Cooper. So it may be best to consider other options that offer a better return and more flexibility — like a money market account, Cooper added. 

A bump-up CD allows you to take advantage of a higher rate for your CD term if one becomes available after you open your CD.

In each case, the APY may be lower than a standard CD. Determine the most important factors affecting your money before establishing an account, such as unrestricted access or the highest possible growth. It also depends on the rate environment. 

“Bump-up CDs aren’t the appropriate savings vehicle in this current and future interest-rate environment,” added Cooper. The reason is inflation is starting to recede and there’s a chance that rates won’t go up much.

Here’s a look at where rates for these specialty CDs stand for now.

No-penalty CD

Bank APY Term
Ally  4.25% 11 months 
Synchrony  4.25% 11 months 
Marcus by Goldman Sachs  4.35% 13 months
Rates as of July 5, 2023

Bump-up CD

Bank APY Term
Ally  3.75% 24 or 48 months 
Marcus by Goldman Sachs  4.35% 20 months 
Rising Bank  4.90%, 4.40% or 4.35% 18, 26 or 36 months 
Synchrony  4.00% 24 months 
TIAA Bank  4.10% 42 months 
Rates as of July 5, 2023.

Read more: Types of Certificates of Deposit

How to choose a CD

When you’re ready to open a CD, here are a few factors you should consider:

  • Term: How long can you leave the money deposited in a CD account? If you think you’ll need your funds sooner, look for shorter CD terms or consider a no-penalty CD.
  • APY: Look for the highest yield available for the terms you’ve selected.
  • Type: While a high-yield CD generally offers a more attractive savings rate, a specialty CD product like a bump-up CD lets you lock in a higher rate if rates rise, while a no-penalty CD lets you withdraw your funds early without forfeiting high interest fees. Consider all options before choosing the CD type that works best for your money.
  • Penalties and fees: What are the early withdrawal penalties if you need to withdraw money before the CD matures or the term ends? Are there any other fees required to get started or maintain your account?
  • Minimum deposit: Is there a requirement for how much money you need to give to open the account? If hitting this number will eat into your emergency savings, consider an account with a lower (or no) deposit requirement.

Here are steps you can take to help narrow your search: 

You may start looking for a CD at a local bank with physical branches for convenience and trust. But lesser-known online banks that are FDIC- or NCUA-insured may be just as good — if not better. Online banks tend to offer better APYs since they often have lower overhead costs and can pass some of the savings to customers in the form of better savings rates. Just make sure you’re comfortable funding your account online.

To determine how much you’ll need to deposit to earn the return you want, a CD interest calculator can help. Some calculators let you put in the term, how often interest accrues and you can adjust how much your deposit will be to help you estimate the right return before opening an account.

Last, check all of the boxes to make sure it’s the best CD for you. Ask yourself if you’re comfortable with the minimum deposit and early withdrawal penalties. You may also choose a bank with shorter CD terms but lower rates to maintain flexibility instead of chasing yield.

Pros and cons of CDs

Pros

  • CDs offer consistent, fixed-rate growth with a guaranteed return — as long as you don’t withdraw your funds early

  • FDIC- or NCUA-insured up to $250,000 per institution, per person and account category

  • Variety of terms and types of CDs, depending on the financial institution 

  • You can open multiple CDs to build a CD ladder for more flexibility and take advantage of higher rates

  • Some CD terms and types offer higher APYs than other savings options

Cons

  • Early withdrawal penalty if you withdraw funds before the CD term matures, or ends

  • Less flexibility to withdraw and deposit funds regularly compared to other savings options 

  • If rates go up, you’re locked into a lower APY — unless you have a bump-up CD

How to buy a CD

You can get a CD at your local physical branch or online. Most retail banks and credit unions also offer CDs or share certificates, as do neobanks. These are online banks that don’t have banking charters but offer financial services. Make sure the bank or credit union you choose is FDIC- or NCUA-insured to protect your funds. All the banks we track above are FDIC- or NCUA-insured.

When you’re ready to open an account, you’ll choose the CD type and term you want. Just like a checking or savings account, you’ll fill out an application that requires your personal information, including your name, birth date, Social Security number and address. You may also be required to fund your account right away. Keep in mind that traditional CDs only allow a one-time deposit. You won’t be able to make any additional contributions, so you should only open the CD when you have the funds you want to deposit. 

After you’ve set up your account, you’ll begin earning interest on your fund. You can keep track of your CD account online, and once your CD matures or the term ends, you can withdraw your funds or reinvest them into another CD.

What is a CD ladder?

Because CDs require you to lock up your money for a period of time, you may be reluctant to set aside the funds for a long period of time. But a CD ladder can give you more flexibility with money coming back to you as each term expires. This lets you stagger multiple CDs over a period of time. You can build a CD ladder with long or short-term CDs. 

Short-term rates are higher than most long-term CD rates right now, but it’s still worth considering longer terms. Here’s an example of how a CD ladder can work with a six-, nine- and 12-month CD if you deposit $1,000 into each account:

CD Term  Amount deposited APY  Return Balance at maturity 
6-month  $1,000 4.67% $23.08 $1,023.08
9-month  $1,000 4.65% $34.68 $1,034.68
12-month  $1,000 5.01% $50.10 $1,050.10
APYs as of July 5 2023.

Although you could earn more interest by investing directly into the 12-month CD, this strategy helps you get some of your funds back sooner — the first term ends after six months — so you can reinvest them in another CD or use them as needed. If rates increase, having your funds available sooner can help you lock in higher rates, while still earning a good return on your initial CD deposits.

Is a CD, money market or high-yield savings account better?

Between high-yield savings, money market and CD accounts, each one is best for different types of savings goals. Even though rates won’t rise by much, there’s still a chance for a slightly better rate or that we’ll see high CD rates for a while. For now, the best strategy is to stay flexible. 

“Look for ‘no-penalty’ CDs, which allow you to take money out before the end of the term with no loss of interest,” said Gary Grewal, a certified financial planner and author of Financial Fives. You may also find money market or high-yield savings with comparable rates, he added. Some banks are offering close APYs near 5.00% for now.

If you’re considering a long-term CD, it’s time to start shopping for rates and locking in. There’s no telling how long the high rates will be around, but we shouldn’t expect them to go much higher, experts have told CNET. But in the rare case that inflation goes back up, chances are rates will increase, too. And your CD rate will be lower than what other banks are offering. “In this scenario, money market funds or I Bonds would have been the better choice,” said Hylland.

Determining whether a CD is better than a savings account depends on individual goals and uses for each account. A CD can provide better returns compared to savings accounts, however, access to the deposited funds will be restricted for a period of time. A CD is ideal if you don’t want to risk losing any money in a volatile stock market, but want to earn a little more over a period of time. For instance, you may put money in a CD for a down payment on a home or a new car. But make sure it’s money you won’t need before the CD term expires. 

Comparatively, a high-yield savings account offers more liquidity, giving you the flexibility to withdraw, deposit and transfer money when needed. You can withdraw funds and make recurring transfers to the account regularly, often without paying a fee. That’s why this option works well for money you may need on a whim — such as an emergency fund. But the account has a variable rate.

“It can make sense to lock in a CD now to guarantee that you can lock in that rate versus a high-yield savings account where the rate could go down or up,” said Meade. You won’t lose money on your deposits with a high-yield savings account, but your return won’t be as great if APYs dip.

Another option is a money market account, which may offer higher rates than a traditional savings account while providing some checking account features. A money market account usually calls for a higher minimum deposit or balance, but it may be a good option if you need to make transactions frequently or withdraw cash since most come with a debit card and ATM access. However, money market account rates are still lower than most CDs and high-yield savings accounts — though they’re higher than most high-yield checking accounts, depending on your balance.

FAQs

Early withdrawal penalties vary between banks and the CD term. There isn’t a standard calculation for early withdrawal penalties. Most are calculated by a loss of interest or dividends for a certain period of time. A longer CD term will generally have a greater penalty for early withdrawal.

Some may require you to withdraw the entire amount of the CD account, while others will charge a penalty only on the amount of a partial withdrawal. In some cases, if the early withdrawal penalty exceeds the interest you’ve earned, you’ll lose money on your principal investment.

Many banks tie the APY that CDs earn to the federal funds rate established by the Federal Reserve. The federal funds rate is the rate that banks use to lend and borrow money. The rates on CDs can rise and fall based on the actions taken by the Fed to regulate the health of the economy.

For instance, when the Fed stops raising rates, banks may keep their rates untouched — instead of raising them. When the Fed drops rates, expect savings rates to follow.

If you withdraw money from your CD before its term ends, there’s a chance you’ll pay early withdrawal penalty fees that are higher than the interest you’ve earned.

Otherwise, there’s no way you can lose money if your CD is insured by the FDIC or NCUA. This insurance protects your deposits up to $250,000 per person, per account in case of a bank failure or loss. CDs purchased through investment firms or brokers as brokered CDs, however, don’t always enjoy the same protections.

You should leave your money in a CD until the term expires. When your term ends, you can renew it for the same period of time, or choose another term or bank altogether. And if you were saving for a goal, you can also withdraw and use your funds. 

If your term ends and you do not withdraw your money, some CDs are set up to automatically renew — but you might get locked into a lower interest rate. CDs generally offer a grace period of a few days so you can decide to withdraw the money or renew the CD, depending on the new rates and your financial goals. It’s a good idea to have a plan for your funds once the CD term ends.

Methodology

CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for five-year terms from among the organizations we surveyed, and considered rates for shorter terms if five-year terms were identical or unavailable.

Banks surveyed include: Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Barclays, BMO Harris, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Citizens Access, Colorado Federal Savings Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, First Internet Bank of Indiana, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Nationwide (by Axos), Navy Federal Credit Union, NBKC, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Vio Bank, and Wells Fargo.

The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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