Finding the best CD (certificate of deposit) rates is an important part of any successful savings plan. With interest rates so low, it can be hard to find a good return on your investment. Fortunately, there are still some great options for those looking for the best CD rates today. In this article, we'll explore the highest CD rates available, as well as the best interest rates for CDs. We'll also look at what factors to consider when looking for the best CD rates.
When it comes to CD rates, the term of the CD can make a big difference. Generally, the longer the term, the higher the return. For example, the best CD rate for a 6-month CD may be 4.5%, while the best rate for a 12-month CD may be 4.65%. In general, the best CD rates are typically found in longer-term CDs.
Currently, the best interest rates on CDs (certificates of deposit) pay 4.35% and higher, based on the CD's specific term. For example, the best CD rates today for 6 months are 4.5%, 12 months are 4.65%, 18 months are 4.75%, and 24 months are 4.75%.
When looking for the best CD rates, it's important to keep in mind that the highest rate doesn't always mean the best deal. It's important to consider other factors such as the bank's reputation, customer service, and fees. For example, Capital One 360 CD offers a competitive 4.5% rate on 12-month CDs, but this rate also comes with a $500 minimum deposit and a $25 fee for early withdrawal.
Another important factor to consider is the average APY (annual percentage yield). The average APY for CDs is typically lower than the highest rate, so it's important to compare the APY to make sure you're getting the best deal. For example, the highest CD rate for 6 months is 4.35%, but the average APY is 1.83%. Similarly, the highest rate for 12 months is 4.88%, but the average APY is 2.36%.
When searching for the best CD rates, it's also important to look at the current market rate. For example, in December 2021, the highest rate on a nationally available 3-year CD was 1.11%. Today, the top-paying 36-month CD rate is 0.90%. This is significantly lower than the rate in December 2021, so it's important to compare rates to ensure you're getting the best deal.
Finally, it's important to look at the individual banks offering the best CD rates. Here's a look at some of the best savings rates you'll find today:
• Capital One 360 CD: 4.5 out of 5 stars, 3.30% to 5.00%
• Connexus Credit Union: 4.3 out of 5 stars, 3.25% to 6.00%
• Marcus by Goldman Sachs: 4.2 out of 5 stars, 2.15% to 4.00%
• Ally Bank: 4.2 out of 5 stars, 0.60% to 2.20%
• Synchrony Bank: 4.1 out of 5 stars, 0.45% to 2.30%