If you want a safe place to park your savings and earn some extra interest, a certificate of deposit can be a great solution. CDs are a low-risk, hands-off way to grow your money at a guaranteed rate — regardless of what’s going on in the larger economy.Your annual percentage yield, or APY, is fixed when you open a CD, which means your returns stay the same throughout the CD’s term. And with the Federal Reserve expected to cut interest rates later this year, locking in your APY now can help protect your earnings. Today’s top CDs offer APYS up to 4.65% — more than twice the national average for some terms.Here are some of the highest CD rates 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.Why you should open a CD nowAPYs on CDs and savings accounts have been falling since the Fed cut interest rates three times at the end of 2024. But with inflation inching back up, the Fed chose to hold rates steady at its January meeting, and experts believe it will keep rates paused for a while. As a result, banks are hedging their bets by keeping CD rates relatively flat too, particularly given the uncertainty around the new administration’s policies.”The Fed’s goal is to bring inflation down further, and if tariffs come into play, they could have an inflationary effect,” said Chad Olivier, certified financial planner and CEO of The Olivier Group. “Because of this uncertainty, I believe the Fed will take more of a wait-and-see approach before making any moves.”By securing a high APY now, you can maximize your earning potential. Your APY is locked in when you open a CD, which means your rate of return will stay the same even when the Fed begins cutting the benchmark rate again.💰You can earn up to 5% APY on the best high-yield savings accounts. Check out today’s rates. Average CD rates from week to week 6 months 4.10%4.10%No change1 year 4.06%4.07%+0.25%3 years 3.54%3.55%+0.29%5 years 3.55%3.56%+0.28% 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. Knowing how much money you have to set aside can help you narrow your options.Fee
Gio. Feb 6th, 2025
