Certificates of deposit (CDs) are a great way to earn interest on your savings. They allow you to lock in an interest rate for a specific period, known as the term, making it easy to predict your returns and earn the same amount even if overall rates drop.
CDs are available in short and long terms, with options ranging from a few months to several years. This can make it daunting to decide which is best for you. For many investors, one of the first ways they narrow down their choices is by which accounts pay the highest interest rate.
See today's top CD rates here and start earning more interest.
Short-term vs. long-term CD rates: Which pays more now?Here's how rates stack up between short- and long-term CDs.
Short-term CDs ratesShort-term CDs typically have a maturity period of one year or less. They can be a good option if you don't want to lock up your money for too long or you think interest rates might rise soon.
The interest rates on short-term CDs are usually lower than long-term CDs, but that's not always the case. Right now, for example, short-term CD rates are as high as 5.50%, while long-term CDs top out at 4.75%.
As of September 18, 2023, the top short-term CD rates are:
3-month CDsPopular Direct (4.75% APY): $10,000 minimum deposit; 89 days' interest early withdrawal penalty
America First Federal Credit Union (4.50% APY): $500 minimum deposit; 60 days' interest early withdrawal penalty
First Internet Bank of Indiana (4.18% APY): $1,000 minimum deposit; 90 days' interest early withdrawal penalty
6-month CDs
Bank5 Connect (5.50% APY): $500 minimum deposit; 90 days' interest early withdrawal penalty
Popular Direct (5.35% APY): $10,000 minimum deposit; 120 days' interest early withdrawal penalty
America First Credit Union (5.30% APY): $500 minimum deposit; 60 days' interest early withdrawal penalty
1-year CDs
Santander Bank (5.50% APY): $500 minimum deposit; three months' interest early withdrawal penalty
Limelight Bank (5.50% APY): $1,000 minimum deposit; 90 days' interest early withdrawal penalty
Lending Club (5.50% APY): $2,500 minimum deposit; 90 days' interest early withdrawal penalty
Compare today's best CD accounts online now!
Long-term CDs ratesLong-term CDs typically mature in three to five years, although some banks and credit unions offer other terms, including two years and 10 years. This can make them a smart choice if you want to lock in a high rate before rates fall or earn more interest over the life of your CD. Long-term CDs can also discourage you from dipping into your funds early, as many charge a penalty for withdrawing funds before the term is up.
While today's top long-term CDs don't earn quite as much as short-term ones, they still pay 12 times the national average or more:
3-year CDsBread Savings (4.75% APY): $1,500 minimum deposit; 180 days' interest early withdrawal penalty
Popular Direct (4.75% APY): $10,000 minimum deposit; 365 days' interest early withdrawal penalty
BMO Harris (4.50% APY): no minimum deposit180 days' interest early withdrawal penalty
5-year CDs
Popular Direct (4.65% APY): $10,000 minimum deposit; 730 days' interest early withdrawal penalty
Barclays Bank (4.50% APY): no minimum deposit180 days' interest early withdrawal penalty
BMO Harris (4.50% APY): no minimum deposit180 days' interest early withdrawal penalty
Check out current long- and short-term CDs offers here.
The bottom lineIn general, long-term CDs tend to pay more than short-term CDs. But it's essential to research current rates as there are times - like now - when you could earn more with a short-term CD.
Also, there are other factors to consider when choosing a CD term. In addition to the interest rate, you should also bear in mind your investment goals, when you think you may need the funds and how much you have to invest, as many CDs have minimum deposit requirements. With a little research and comparison, you can find the best CD for your needs at the highest rate currently available.
themes: Indiana
15 best CDs to help you fight inflation
Inflation can chip away at the value of your hard-earned savings, which can be especially harmful when it's also eroding your purchasing power. One way to protect your money is by opening a certificate of deposit (CD).
Unlike savings accounts, whose rates vary with the federal funds rate, a CD rate is locked in when you open the account. That means the rate stays the same for the duration of the term. And with many experts predicting CD rates may have reached their peak, now is the perfect time to open a CD to secure these high rates and preserve your earning potential for months or years to come.
Explore today's top CD rates here to see how much more you could be earning on your money.
15 best CDs to help you fight inflationThe following CD's offer high rates as of September 14, 2023:
3-month termPopular Direct (4.75% APY): $10,000 minimum deposit; 89 days' interest early withdrawal penalty
America First Federal Credit Union (4.50% APY): $500 minimum deposit; 60 days' interest early withdrawal penalty
First Internet Bank of Indiana (4.18% APY): $1,000 minimum deposit; 90 days' interest early withdrawal penalty
6-month term
Bank5 Connect (5.50% APY): $500 minimum deposit; 90 days' interest early withdrawal penalty
Popular Direct (5.35% APY): $10,000 minimum deposit; 120 days' interest early withdrawal penalty
America First Credit Union (5.30% APY): $500 minimum deposit; 60 days' interest early withdrawal penalty
Begin comparing your CD options online now.
1-year termSantander Bank (5.50% APY): $500 minimum deposit; three months' interest early withdrawal penalty
Limelight Bank (5.50% APY): $1,000 minimum deposit; 90 days' interest early withdrawal penalty
Lending Club (5.50% APY): $2,500 minimum deposit; 90 days' interest early withdrawal penalty
3-year term
Bread Savings (4.75% APY): $1,500 minimum deposit; 180 days' interest early withdrawal penalty
Popular Direct (4.75% APY): $10,000 minimum deposit; 365 days' interest early withdrawal penalty
BMO Harris (4.50% APY): no minimum deposit; 180 days' interest early withdrawal penalty
5-year term
Popular Direct (4.65% APY): $10,000 minimum deposit; 730 days' interest early withdrawal penalty
Barclays Bank (4.50% APY): no minimum deposit; 180 days' interest early withdrawal penalty
BMO Harris (4.50% APY): no minimum deposit; 180 days' interest early withdrawal penalty
Check out current CD offerings here.
The bottom lineInflation can eat away at your savings if you don't invest your money wisely to fight it. Certificates of deposit are a great way to protect your money from inflation while providing you with a decent return and low-risk investment.
The above accounts are a few of the best CDs today, but they're not the only ones. To find the CD that offers the best rate, take the time to do your research, compare multiple offers and watch for things like early withdrawal penalties that can reduce your earnings. With a little due diligence and strategy, you can keep your money safe and thriving in the face of inflationary pressures.
Discover the Top CD Rates and Beat Inflation Today!
As inflation continues to erode the value of hard-earned savings, consumers are searching for ways to protect their money and preserve their purchasing power. One option that is gaining popularity is opening a certificate of deposit (CD). Unlike traditional savings accounts, CDs offer a locked-in interest rate for the duration of the term. .....
To assist consumers in their search for the best CD rates, a list of the 15 best CDs to help fight inflation has been compiled. These CDs, offering competitive interest rates as of September 14, 2023, cater to both short-term and long-term investment goals. For those looking for a short-term investment, the following CDs are recommended:
1. Popular Direct: With an impressive APY of 4.75%, a minimum deposit of $10,000 is required, and an early withdrawal penalty of 89 days' interest applies.
2. America First Federal Credit Union: This CD offers an APY of 4.50% with a minimum deposit of $500 and an early withdrawal penalty of 60 days' interest.
3. First Internet Bank of Indiana: With an APY of 4.18%, this CD requires a minimum deposit of $1,000 and has an early withdrawal penalty of 90 days' interest.
4. Bank5 Connect: Offering a high APY of 5.50%, this CD requires a minimum deposit of $500 and has an early withdrawal penalty of 90 days' interest.
For individuals looking for a longer-term investment, the following CDs are recommended for a one-year term:
1. Santander Bank: This CD boasts an impressive APY of 5.50% with a minimum deposit of $500 and an early withdrawal penalty of three months' interest.
2. Bread Savings: With an APY of 4.75%, a minimum deposit of $1,500 is required, and an early withdrawal penalty of 180 days' interest applies.
While the above CDs are highlighted as some of the best options available, it is important to note that they are not the only ones. Conducting thorough research, comparing multiple offers, and considering factors such as early withdrawal penalties are essential steps in finding the CD that offers the highest rate and best suits individual needs.
CDs provide individuals with a secure and low-risk investment option that protects their money from the damaging effects of inflation. By investing in a CD, individuals can enjoy a decent return on their investment while safeguarding their savings. Additionally, CDs often offer higher interest rates than traditional savings accounts, making them an attractive choice for those looking to maximize their earnings.
To assist individuals in their search for the ideal CD, a comprehensive list of today's best CD rates categorized by deposit amount has been compiled. By considering CDs that align with their budget, individuals can narrow down their options and find the CD that best suits their financial goals.
For example, Ally Bank offers an APY of 4.85% for a one-year term, with an early withdrawal penalty of 60 days' interest.
With numerous options available for any deposit amount, consumers are encouraged to explore current CD offerings to determine how much they could potentially earn on their savings.
While the CDs mentioned above provide an excellent starting point, it is crucial to explore all available options to find the highest-paying CD that meets individual needs. Comparing rates, early withdrawal penalties, and other fees will ensure individuals make an informed decision.
In conclusion, CDs offer a secure and guaranteed way to earn interest on savings while combating the effects of inflation. With competitive rates available, individuals are urged to take advantage of the current market conditions and open a CD to protect their hard-earned money. By conducting thorough research, comparing multiple offers, and considering various factors, individuals can make the most of their savings by securing a high-rate CD and preserving their financial well-being in the face of inflationary pressures.