There’s a lot that’s uncertain these days, but one thing that is certain? How much you can earn with a certificate of deposit. Unlike savings accounts, whose rates can change at any time, CDs have a fixed rate that’s locked in when you open the account. And with rates more than twice the national average for some terms, the best CDs can help you maximize your returns regardless of what happens in the larger economy.You can earn up to 4.65% annual percentage yield, or APY, with today’s top CDs, but that won’t be the case forever. Read on to see some of the highest CD rates available now and how much you could earn by depositing $5,000.Today’s best CD rates 6 months 4.65%CommunityWide Federal Credit Union$114.931 year 4.45%CommunityWide Federal Credit Union$222.503 years 4.15%America First Credit Union$648.695 years 4.25%America First Credit Union$1,156.73 Experts recommend comparing rates before opening a CD account to get the best APY possible. Enter your information below to get CNET’s partners’ best rate for your area.What’s going on with CD rates?The Federal Open Market Committee meets eight times a year to set the federal funds rate based on the health of the US economy. The Fed may raise interest rates to try to slow down inflation or lower them to stimulate spending. After cutting interest rates in 2024, the Fed paused rates at its January meeting amid signs that inflation was inching back up again.While the Fed doesn’t directly set CD rates, banks generally set APYs according to the federal funds rate. CDs offer a fixed rate for a set period of time, so locking in a higher rate now can help protect your earnings if the Fed decides to lower interest rates in coming months, as experts expect it will.But you should be careful to choose a term that fits when you’ll need to access your money. If you have to cash out the CD before it matures, you could be hit with early withdrawal fees.”Going with the highest APY makes a lot of sense, although you’ll want to make sure you pick a maturity date that aligns with your situation,” said Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning.💰You can earn up to 5% APY on the best high-yield savings accounts. Check out top savings rates now.How CD rates have changed over the past week 6 months 4.10%4.09%-0.24%1 year 4.07%4.08%+0.25%3 years 3.55%3.56%+0.28%5 years 3.56%3.56%No change How to choose the best CD for youA competitive APY is important, but it’s not the only thing you should consider. To find the right CD for you, weigh these things, too:When you’ll need your money: Early withdrawal penalties on CDs can eat into your interest earnings if you need your money before the term ends, so choose a timeline that makes sense. Alternatively, you can select a no-penalty CD, although the APY may not be as high as you’d get with a traditional CD of the same term.Minimum deposit requirement: Some CDs require a minimum deposit to open an account, typically $500 to $1,000. Knowin
Gio. Feb 13th, 2025
