Interested in boosting your financial gains? Dive into the realm of Certificates of Deposit (CDs) to secure steady returns while keeping your funds locked in for a set period. Explore the options provided by banks and credit unions offering competitive CD rates to make the most of this low-risk investment opportunity.
Certificates of Deposit (CDs) operate similarly to online savings accounts or money market accounts, offering attractive returns with minimal risk. The distinguishing factor is that CDs require you to keep your money invested for a specific duration, with penalties for early withdrawal.
Despite offering less liquidity than traditional checking or savings accounts, CDs can potentially provide higher returns. Opting for a longer-term CD, such as a 60-month instead of a 12-month, can yield even greater results.
According to the Federal Deposit Insurance Corporation (FDIC), national average CD rates range from 1.33% to 1.84%, depending on the term, at the time of writing.
While national averages provide a baseline, many banks offer significantly better CD rates. We’ve researched and compared various institutions to pinpoint the leading CD rates available today. If you’re seeking a high-yield CD, start your search here.
Key Considerations for Certificate of Deposit Accounts
- CDs are designed for long-term savings, locking your funds for a specific term (typically 12 to 60 months), making them less suitable for short-term needs.
- CDs provide a secure way to grow your funds, backed by FDIC insurance to protect your investment.
- Check for any CD fees, particularly penalties for early withdrawal, to understand the potential costs associated with accessing your funds prematurely.
- Online banks might offer more competitive rates than traditional banks. Compare offerings from brick-and-mortar institutions and online banks to find the most favorable CD rates.
If you’re aiming to secure a top-notch short-term investment, exploring the best CD rates can be beneficial. We’ve analyzed numerous financial institutions and online banks to identify options with enticing rates and terms.
Discovering the Best CD Rates from Banks and Credit Unions
Evaluate and compare the leading certificates of deposit (CDs) rates based on the highest Annual Percentage Yield (APY) across various terms, including 3-month, 6-month, 1-year, 2-year, and 5-year options.
The following banks have made our list due to their competitive interest rates and additional features.
- PNC
- CIT Bank
- Discover®
- Marcus by Goldman Sachs
- Synchrony Bank
Top Certificate of Deposit Accounts – Reviews
Several considerations come into play when selecting where to open a certificate of deposit. Factors to assess include whether you prefer in-person or online interaction, the rates and terms offered, and any fees associated with early withdrawals.
The following reviews delve into the CD rates of each featured bank and provide essential details for informed decision-making.
PNC Bank
PNC Bank offers a range of popular banking products, including certificates of deposit. Their CDs feature no monthly maintenance fees, enable online monitoring through the BBVA mobile banking app, and offer terms spanning from 7 days up to 10 years. Longer-term CDs tend to yield higher rates, with penalties applicable for early withdrawal.
CD Rates: PNC Bank’s online CDs with terms from 11 to 36 months currently offer up to 5.04% APY.
CIT Bank
CIT Bank is renowned for its high-yield savings account, Savings Builder, and also presents a variety of CDs with favorable terms. Their 11-month no-penalty CD stands out for its competitive return rate, with no penalties for early withdrawal. CIT Bank offers term CDs across different durations, including jumbo CDs for deposits exceeding $100,000, without any account opening or maintenance fees.
CD Rates: CIT Bank’s APY on CDs ranges from 0.30% to 3.50%, with their 18-month CDs offering 3.00% APY. They currently have an attractive 11-month No-Penalty CD providing 3.50% APY.
Discover
Discover allows you to open CDs ranging from three months to 120 months, with no account opening or maintenance fees, although a minimum opening deposit of $2,500 is required. Discover stands out for its reasonable penalties for early withdrawals, making it an appealing option for savers. Their 120-month CD offers a rewarding 3.75% APY, while a 12-month commitment can secure a rate of 4.70% APY.
Marcus by Goldman Sachs
Marcus by Goldman Sachs is known for its online presence in personal loans and high-yield savings accounts, and they also offer appealing CDs. Their CDs range from seven months to six years, with a minimum deposit of $500 to commence. Marcus by Goldman Sachs includes a 10-day guarantee allowing rate adjustments if advertised rates increase on the purchased CD within this timeframe.
CD Rates: Marcus by Goldman Sachs offers attractive rates on their 9-month CDs at 5.10% APY. They also present limited-time promotions, such as the 5.25% APY on an 18-month CD.
Synchrony Bank
We’ve highlighted Synchrony Bank due to their competitive CD rates without imposing a minimum balance requirement. Their 15-day guarantee enables you to raise your rate if advertised rates increase shortly after your CD purchase. Synchrony Bank offers terms ranging from three to 60 months, with reasonable early withdrawal fees.
CD Rates: Synchrony Bank offers a 60-month CD with a 4.00% APY and a 36-month CD with a 4.30% APY. They also present a 16-month CD providing 5.40% APY.
Methodology Behind Discovering the Best CD Rates
Identifying the top CD rates is essential for maximizing savings, considering various factors before opening an account. Our selection criteria included:
Rates and Terms
Preference given to banks offering competitive rates across different CD terms, focusing on those providing an APY at least double the national average.
Account Fees
Inclusion of banks not charging fees for opening a CD account and avoiding monthly maintenance fees.
Early Withdrawal Penalties
Selection of banks with reasonable penalties for early withdrawal, with priority given to accounts without such penalties.
FDIC Insurance
Inclusion of institutions providing FDIC insurance, safeguarding CD funds up to $250,000 per account holder.
Essential Considerations for Certificates of Deposit
- CDs offer superior rates compared to other deposit products, with national averages highlighting substantially better returns for longer-term CDs.
- Longer CDs often provide higher yields, underscoring the advantage of committing to extended timelines for increased returns.
- CD rates are subject to fluctuations based on the prevailing interest rate environment, highlighting the potential for improved rates when benchmark interest rates rise.
- Considerable APYs can be secured on larger deposit amounts, particularly through “jumbo CDs” for deposits exceeding $100,000.
Summary: Top CD Account Rates as of September 2024
| BEST FOR | AVAILABLE CD TERMS | BEST RATE OFFERED | |
|---|---|---|---|
| Raisin (SaveBetter) | Short-term, no penalty | 1 month to 14 months | 5.15% |
| PNC | Long-term CD options | 1 month to 10 years | Up to 0.04% APY |
| CIT Bank | 11-month, no-penalty CD option | 1 month to 5 years | 3.50% APY |
| Discover | Reasonable penalties for early withdrawals | Three months to 10 years | 5.20% APY |
| Marcus by Goldman Sachs | Low minimum deposit requirement | Seven months to six years | 4.30% APY |
| Synchrony Bank | 15-day rate guarantee | Three months to five years | 5.00% APY |
The Bottom Line – Securing the Best CD Rates
Delve into the realm of certificate of deposits (CDs) for a secure method to grow your savings. With guaranteed returns and minimal risk, CDs offer a reliable option to diversify your portfolio and capture higher interest rates. It’s crucial to compare APYs and terms across different institutions to identify the best rate. Whether exploring promotional offers or seeking advice from financial advisors, a thorough review can lead to selecting the optimal CD tailored to your financial goals.
Key considerations when hunting for the best CD rates include term length, early withdrawal penalties, and minimum deposit requirements. Comparing the Annual Percentage Yields (APYs) of various products is essential to ensure optimal returns on your investment.
CD rates may fluctuate periodically with shifts in interest rates. Keeping abreast of market conditions can help capitalize on higher rates by investing in CDs when rates are favorable.
Securing a higher APY than advertised rates is feasible, especially through negotiation with banks or exploring offerings from online institutions. Promotional offers and special deals could further enhance your returns on CD investments.
When comparing CD rates, assess factors like term duration, early withdrawal penalties, minimum deposits, and the Annual Percentage Yield (APY), which encompasses compounding for an accurate reflection of the interest rate.
While advertised rates are typically fixed, certain banks, especially online ones, may offer room for negotiation or present promotional rates. Conducting thorough research and exploring the offerings of online banks can potentially lead to securing competitive CD rates.
