Top CD Rates — Safe Savings Made Simple

Understanding the Benefits of Certificates of Deposit (CDs)

If you’re looking for a secure way to grow your savings, certificates of deposits (CDs) can be an excellent choice. CDs offer a fixed interest rate that remains constant throughout the term, ensuring predictable returns on your investment. This makes them ideal for individuals who want to reach specific financial goals without worrying about market fluctuations.

One of the main advantages of CDs is that they help you outpace inflation. By locking in a higher interest rate, your money can grow at a pace that keeps up with rising costs. Additionally, CDs provide guaranteed returns, which means you won’t lose your principal if the bank or credit union offering the CD is FDIC or NCUA insured.

Short-Term CD Options

Short-term CDs, such as 3-month or 6-month terms, are great for those who don’t want to tie up their money for long periods. If you have a specific goal like saving for a vacation or making a large purchase without using credit, these CDs can be a good fit. However, it’s important to compare rates across different accounts to ensure you’re getting the best return on your money.

While short-term CDs may offer lower rates than longer-term options, there are other flexible savings vehicles available, such as high-yield savings accounts or money market accounts. These alternatives allow you to access your funds more easily, but they also come with a risk of impulsive spending since the money is more liquid.

Top-Performing 3-Month CD Rates

Here are some of the highest-performing 3-month CD rates currently available:

Dow Credit Union: 4.40% APY, minimum deposit $500
Popular Direct: 4.40% APY, minimum deposit $10,000
Brilliant Bank: 4.35% APY, minimum deposit $1,000
Bask Bank: 4.25% APY, minimum deposit $1,000
Merchants Bank of Indiana: 4.25% APY, minimum deposit $1,000
Digital Federal Credit Union: 4.00% APY, minimum deposit $500

Best 6-Month CD Rates

For those looking for slightly longer terms, here are the top 6-month CD rates:

Newtek Bank: 4.40% APY, minimum deposit $2,500
ableBanking: 4.50% APY, minimum deposit $5,000
TotalBank: 4.41% APY, minimum deposit $25,000
Bank5 Connect: 4.40% APY, minimum deposit $500
Bask Bank: 4.20% APY, minimum deposit $1,000
Mountain America Credit Union: 4.15% APY, minimum deposit $500
Vibrant Credit Union: 4.00% APY, minimum deposit $5

One-Year CD Options

One-year CDs are a smart option if you want to park your money and let it grow while you monitor market trends. However, it’s important to remember that once your funds are in a CD, they are typically locked in until maturity unless you choose a no-penalty CD. This means you should avoid putting emergency savings into a CD, as you won’t have immediate access to the funds.

Another strategy is to build a CD ladder by opening multiple CDs with different maturity dates. This allows you to stagger your maturities so that some CDs come due regularly, providing a steady cash flow. For example, if you have $10,000 to invest, you could split it into five CDs with one maturing each year, reinvesting the proceeds into a new CD each time.

Top-Performing 1-Year CD Rates

Some of the best 1-year CD rates include:

Colorado Federal Savings Bank: 4.40% APY, minimum deposit $5,000
NexBank: 4.40% APY, minimum deposit $25,000
Limelight Bank: 4.40% APY, minimum deposit $1,000
Prime Alliance Bank: 4.30% APY, minimum deposit $500
Bask Bank: 4.30% APY, minimum deposit $1,000
Northpointe Bank (11-Month CD Special): 4.25% APY, minimum deposit $25,000
TAB Bank: 4.10% APY, minimum deposit $1,000
Mountain America Credit Union: 4.20% APY, minimum deposit $500

Longer-Term CD Rates

For those interested in longer-term investments, 2-year, 3-year, 4-year, and 5-year CDs offer varying rates depending on the institution. These CDs can be particularly beneficial if you want to lock in current high rates before potential future rate cuts.

Best 2-Year CD Rates

Lafayette Federal Credit Union: 4.28% APY, minimum deposit $500
EFCU Financial: 4.00% APY, minimum deposit $500
Colorado Federal Savings Bank: 4.00% APY, minimum deposit $5,000
Bayer Heritage Federal Credit Union: 3.97% APY, minimum deposit $100
Synchrony: 3.00% APY, minimum deposit $0
Lending Club: 3.50% APY, minimum deposit $2,500

Best 3-Year CD Rates

Synchrony: 4.00% APY, minimum deposit $0
INOVA Federal Credit Union: 4.00% APY, minimum deposit $200
The Federal Savings Bank: 3.95% APY, minimum deposit $5,000
MYSB Direct: 3.91% APY, minimum deposit $500
All in Credit Union: 3.87% APY, minimum deposit $1,000
Securityplus Federal Credit Union: 3.75% APY, minimum deposit $1,000
EFCU Financial: 3.75% APY, minimum deposit $500
Seattle Bank: 3.60% APY, minimum deposit $1,000

Best 4-Year CD Rates

Lafayette Federal Credit Union: 4.28% APY, minimum deposit $500
America First Credit Union: 4.20% APY, minimum deposit $500
Mountain America Credit Union: 4.20% APY, minimum deposit $500
Securityplus Federal Credit Union: 3.80% APY, minimum deposit $1,000
Credit Human: 3.85% APY, minimum deposit $500
The Federal Savings Bank: 3.80% APY, minimum deposit $5,000

Best 5-Year CD Rates

Lafayette Federal Credit Union: 4.28% APY, minimum deposit $500
SchoolsFirst Federal Credit Union: 4.25% APY, minimum deposit $500
Mountain America Credit Union: 4.25% APY, minimum deposit $500
Credit Human: 4.01% APY, minimum deposit $500
Securityplus Federal Credit Union: 3.85% APY, minimum deposit $1,000
MYSB Direct: 3.91% APY, minimum deposit $500
Transportation Federal Credit Union: 4.09% APY, minimum deposit $1,000
The Federal Savings Bank: 3.80% APY, minimum deposit $5,000
Marcus by Goldman Sachs: 3.90% APY, minimum deposit $500
EFCU Financial: 3.75% APY, minimum deposit $500
CoVantage Credit Union: 3.75% APY, minimum deposit $1,000

Final Thoughts on CD Rates

As of the latest Federal Reserve meeting, interest rates have not been cut. However, some economists predict that rate cuts could still occur this year, making it a favorable time to lock in current high rates with CDs. While the downside is limited access to your funds during the term, CDs remain a reliable and low-risk way to grow your savings.