In today’s world, with its ups and downs in the market and economic uncertainty, where can smart investors find the best returns on their savings? The answer is in term deposits, also known as certificates of deposit (CDs). But how do you find the best CD rates to make sure you’re getting the most from your savings? Are you sure you’re making the most of your savings?

Key Takeaways

• Discover the top banks offering the highest CD rates, ranging from 4.25% to 5.35% APY¹
• Learn about the latest trends in high-yield savings accounts, with APYs reaching as high as 5.27%²
• Understand the impact of Federal Reserve policy on term deposit rates and how to stay ahead of the curve
• Explore the pros and cons of CDs and alternative savings options to find the best fit for your financial goals
• Gain insights into the research methodology used to compile the most up-to-date and reliable term deposit rate information

Best CD Rates from Top Banks

Looking for the best CD rates? Many people check out top banks and credit unions. Popular Direct and America First Credit Union are great examples. They offer some of the best CD rates for different term lengths³.

Popular Direct

Popular Direct is an online bank known for its great CD rates. You need to put in $10,000 to start earning high APYs. For instance, you can get 5.35% on a 6-month CD⁴. They offer rates from 4.50% to 5.45% on various CDs⁵.

Thanks to their online-only setup, Popular Direct can give you these great rates. They don’t have physical branches, which saves them money.

America First Credit Union

America First Credit Union is a big name in Utah and some other places. They have a low $500 minimum deposit for CDs. You can get rates from 3 months to 5 years, like 5.15% APY on a 1-year CD³.

They also offer 4.15% APY on a 3-year CD³. Popular Direct and America First Credit Union show how top banks and credit unions offer great CD rates. Using online banking and credit union membership helps you get the most from your savings.

Recent News on CD Rates

The banking industry is buzzing with news about CD rates. The Federal Reserve’s moves have greatly affected CD rates⁶.

FDIC data shows the average 12-month CD now earns 1.86% as of June 2024, up from 0.13% in January 2022⁶. Two-year and five-year CD rates have also gone up. The best rates for one-year CDs are now over 5.00% APY, and for two-year and five-year CDs, they’re over 4.50% APY⁶.

The Federal Reserve’s decisions have driven these changes in CD rates⁷. The central bank raised rates seven times in 2022 and several times in 2023. Now, the federal funds rate is between 5.25% to 5.50%, the highest in over 20 years⁸. Markets predict the rate could be between 4.50% and 5.25% by December 2024⁶. Yet, there’s almost a 96% chance of a rate cut by year’s end⁶.

CD rates change with the federal funds rate⁶. Data from 2009 to 2023 shows how CD rates react to policy changes, inflation, and economic trends⁶. During the pandemic, the Federal Reserve lowered the federal funds rate to help the economy, affecting CD rates⁶.

As the banking industry changes, people are watching CD rates closely to get the best returns⁷. The latest news on CD rates shows why it’s key to stay updated and make smart choices with savings⁶.

CD Term	Average APY	Competitive Rates
6 months	5.24%	5.13% – 5.35%
1 year	5.28%	5.25% – 5.30%
3 years	4.46%	4.30% – 4.61%
5 years	4.35%	4.20% – 4.50%

The table shows the current CD rates, including the national average and competitive rates from banks⁷. This info helps people pick the best CD for their needs⁶.

The latest on CD rates shows how the banking world changes and why staying informed is key. By watching these trends, people can get the best returns on their savings⁶.

Current Promotional CD Rates

Today, smart savers are looking for the best promotional CD rates and limited-time CD offers. California Coast Credit Union offers a great chance with its high-yield CD special, the Celebration Certificate⁹.

California Coast Credit Union Celebration Certificate

The California Coast Credit Union Celebration Certificate has a great 9.50% APY for a 5-month term⁹. This special deal aims to boost savings but has certain rules. To get it, you need a $500 to $3,000 deposit and an active account or new money at the credit union⁹.

This California Coast Credit Union CD rate is much higher than many others. But, it’s key to check if you qualify before jumping in⁹.

If you can grab this offer, the Celebration Certificate from California Coast Credit Union is a great way to grow your savings. It offers a standout promotional CD rate in today’s market⁹.

Compare top CD rates today by term

When you want to grow your savings, it’s key to look at CD rates by term. CDs are a solid choice for saving money, and the rates change based on how long you keep your money locked in. Let’s explore some of the best CD rates for different terms.

For short-term savings, Barclays Online CD offers a 5.00% APY for a year with no minimum deposit¹⁰. Discover® Bank also has a great 1.5-year CD with a 4.40% APY, needing a $2,500 deposit¹⁰.

Looking at 1-year CDs, Western Alliance Bank has a top 5.25% APY with a low $1 deposit¹⁰. Quontic CD and LendingClub CD also offer strong rates of 4.50% and 4.20% APY, with $500 and $2,500 minimums, respectively¹⁰.

For 6-month CDs, Synchrony Online CD has a competitive 4.80% APY with no minimum deposit¹⁰. Marcus by Goldman Sachs High Yield CD also offers a 4.60% APY for 1.5 years, with a $500 deposit¹⁰.

Bank	CD Term	APY	Minimum Deposit
Barclays Online CD	1 year	5.00%	$0
Discover® Bank CD	1.5 year	4.40%	$2,500
Western Alliance Bank CD	1 year	5.25%	$1
Quontic CD	1 year	4.50%	$500
LendingClub CD	1 year	4.20%	$2,500
Synchrony Online CD	6 months	4.80%	$0
Marcus by Goldman Sachs High Yield CD	1.5 year	4.60%	$500

These examples show some of the best CD rates today. By comparing rates by term, you can pick the best option for your savings goals¹⁰.

term deposit rates

People looking to grow their money are turning to term deposit rates. Climate First Bank and TotalDirectBank offer great options. Let’s look at what they have to offer and the benefits for smart investors.

Climate First Bank 6 Month No Penalty CD

Climate First Bank’s 6 Month No Penalty CD is a great choice for those who want flexibility and good rates. It doesn’t have early withdrawal fees¹¹. This is perfect for people who might need their money soon but still want to earn interest.

TotalDirectBank 3 Month CD and TotalDirectBank 6 Month CD

TotalDirectBank has two short-term CD options for those with more savings. The 3 Month and 6 Month CDs have high interest rates and a $25,000 minimum deposit¹². They’re for people who can keep their money locked in for a bit longer to earn more.

Remember, the rates from these banks can change due to market shifts and rules¹³. It’s key to keep up with rate changes and compare options to make smart choices for your money goals.

If you want the ease of a no-penalty CD or the chance for higher returns with a short-term CD, consider Climate First Bank and TotalDirectBank. These options can help you save better and plan for a brighter future¹¹¹²¹³.

How to choose the best CD for you

Choosing the right CD means looking at several key factors. The term length is crucial, ranging from 3 months to over 5 years¹⁴. Think about when you need your money and how long you can keep it in the CD to pick the best term.

Also, consider the minimum deposit needed. Some CDs don’t require any money, while others ask for $100,000 or more¹⁴¹⁵. Make sure you have enough money and know how it fits with your investment goals.

Don’t forget about early withdrawal penalties. These can be steep, especially for longer terms¹⁴¹⁶. Think about how often you might need your money and the cost of getting it back early.

Online-only banks often have higher CD rates¹⁴. This makes them a good choice for those wanting to earn more. CD laddering¹⁶ is another strategy to consider. It lets you have access to money when you need it while still earning top rates.

When picking a CD, weigh factors like term length, minimum deposit, and penalties against your financial goals and how much risk you can take¹⁴. By considering these, you can choose a CD that meets your savings goals. Explore different CD types¹⁵ like no-penalty, add-on, and IRA CDs to find what’s best for you¹⁴¹⁶¹⁵.

Who should get a CD?

A Certificate of Deposit (CD) is a good choice for some people with specific financial goals¹⁷. These accounts offer rates that are often three to four times higher than the average¹⁷. They’ve seen a big increase in rates from 2021 to 2023¹⁷. So, who should consider a CD, and how can it help them save money?

CDs work best for those with a clear savings goal and a long-term plan¹⁷. They’re great for saving for a house, education, or retirement¹⁷. The Federal Reserve’s actions affect CD rates¹⁷. The Federal Open Market Committee changes rates every six to eight weeks, which impacts CD rates¹⁷.

People who prefer a safe investment might like CDs more than stocks¹⁷. Jumbo CDs with higher deposits offer better rates, but not always¹⁷. It’s important to compare rates from banks and credit unions to find the best deal¹⁷.

CDs also offer protection for your money¹⁷. Up to $250,000 is insured by the FDIC or NCUA if a bank fails¹⁷. Spreading your money across different banks helps protect more than $250,000¹⁷.

CDs are a good fit for many savers, from young people to retirees¹⁸. Forbes Advisor looked at 142 CD accounts from 84 institutions¹⁸. Higher rates and better features ranked higher on the list¹⁸. Understanding CDs can help you see if they fit your financial goals and risk level.

In summary, CDs are great for those with specific savings goals, a long-term plan, and a preference for low risk. They offer a guaranteed return, FDIC/NCUA protection, and higher rates than traditional savings accounts. This makes them a solid choice for many savers.

“CD rates are some of the highest they’ve been in over a decade, ranging from 4% to nearly 6%.”¹⁹

Factors to Consider for CD Investors	Impact on CD Suitability
Savings Goal	CDs are well-suited for those with specific savings objectives, such as a down payment, education, or retirement.
Investment Horizon	CDs are better suited for those with a longer investment timeline, as early withdrawal penalties may apply.
Risk Tolerance	CDs offer a lower-risk alternative for those seeking a more stable and predictable return on their investments.
Deposit Protection	Up to $250,000 in CD deposits are insured by the FDIC or NCUA, providing a safeguard for investors.
CD Rates	CD rates have risen significantly in recent years, making them a more attractive option for savers.

By looking at these factors, you can decide if a CD is right for you¹⁸. The Forbes Advisor analysis shows the importance of checking APY, deposit requirements, and interest schedules when picking a CD¹⁸.

Pros and Cons of CDs

Certificates of Deposit (CDs) are a popular way to save money. They offer both advantages and drawbacks. On the plus side, CDs give a secure and predictable return, with APYs from 2.00% to 4.70% for Discover® Certificates of Deposit²⁰. You need to put in at least $2,500, and they come in terms from 3 months to 10 years²⁰. Plus, they’re insured by the FDIC up to $250,000, making your savings safe²⁰.

But, CDs also have downsides. One big issue is their lack of liquidity. Taking out your money early usually means losing some interest, often for several months²¹. This can be a big problem if you need your money fast. Also, CDs don’t let you take advantage of rising interest rates because their rates are fixed for the term²⁰.

Another thing to think about is the opportunity cost of using CDs. They might offer higher interest than regular savings accounts²². But, they might not beat inflation or grow as much as other investments, like stocks²⁰. This is something to consider if you’re looking at CDs for long-term goals.

Deciding on a CD should match your financial goals, how much risk you can handle, and how quickly you might need your money. CDs can be good for short-term saving or adding to a mix of investments. But, it’s key to look at the pros and cons to see if they’re right for you²¹.

“Certificates of Deposit can be a great way to earn a guaranteed return on your savings, but it’s important to consider the limitations and potential drawbacks before investing.”

Knowing the advantages of CDs, like their safety and steady returns, and the disadvantages of CDs, like limited access and costs, helps you decide if they fit your financial plans and how much risk you’re okay with²²²⁰²¹.

Alternatives to CDs

With rising interest rates, investors might look beyond traditional certificates of deposit (CDs) for better returns. CDs are still good for those who prefer low risk. But, there are other savings options that could offer more competitive rates and flexibility²³.

High-yield savings accounts are a good choice. They can earn up to 5.40%, much higher than the usual 0.59% for regular savings accounts²⁴. Money market accounts also offer attractive rates, reaching up to 5.25%²⁴.

For those ready for a bit more risk, short-term bonds or treasury bills could be an option. Since 2012, five-year municipal bonds have only defaulted 0.1% of the time²³. Corporate bonds have seen a 7.2% default rate²³. Series I savings bonds offer a fixed 0.30% plus a variable rate tied to inflation, for a total yield of 4.30%²³.

When looking at these options, think about liquidity, how much risk you can handle, and how long you plan to invest. CDs lock in a fixed rate for the term, unlike I bonds and high-yield savings accounts which can have variable rates²³. It’s important to balance yield, risk, and access to find what suits your financial goals²³²⁴.,

By looking at a wider range of alternatives, investors can potentially increase their savings and returns. This helps diversify their portfolio beyond just traditional deposit products²³²⁴²⁵.,,

Research Methodology

Our team works hard to give you the latest and most accurate term deposit rate info. We keep an eye on over 100 financial institutions for changes in interest rates. This ensures the info we share is up-to-date and reflects the market²⁶.

We get our data from direct bank partnerships and our own rate surveys. This lets us see how rates have changed over time and compare them to national averages. We use this info to find the best CD rates and track market trends²⁷.

We look at how interest rates affect deposits and how accounts stay or switch. This helps us make predictions and give advice on managing risks²⁷.

Since March 2022 to September 2023, the impact of changing interest rates has been huge. It’s like adding $4.5 trillion in 10-year Treasury securities to bank balance sheets. Most of this is from discounting and 40% from dynamic betas²⁸.

Our detailed research and focus on transparency help our readers make smart choices about their savings. This article covers everything from the latest CD rates to strategic tips. It’s all to help you save more²⁶²⁷.

Conclusion

We’ve looked into term deposit rates and shared key insights to help you save more. We talked about how CDs from top banks and credit unions can offer better interest rates²⁹. We also covered how you can choose between different payout options and the risks of taking out your money early²⁹.

Choosing the right CD means thinking about your need for easy access to money, how much risk you can handle, and how inflation and interest rates might change³⁰. By keeping up with market trends and special rates, you can make choices that fit your financial situation³⁰. CDs are great for short-term savings, but other investments might be better for long-term growth³¹.

We suggest keeping an eye on term deposit rates and finding the best deals to save more. By working with your bank and following market news, you can make sure your savings grow. The goal is to find a balance between easy access, risk, and returns. This article has shown how term deposit rates can help you achieve that balance.

FAQ

What are the best CD rates from top banks?

Popular Direct and America First Credit Union offer great CD rates. Popular Direct needs a ,000 minimum deposit. America First Credit Union has CDs with a 0 minimum deposit. Both banks have competitive rates for their CDs.

What is the latest news on CD rates?

CD rates change due to the Federal Reserve’s policy, economic conditions, and bank competition. The article talks about the latest trends in CD rates. It explains how these changes affect savers’ choices when picking a CD.

What are some current promotional CD offers?

California Coast Credit Union has a 9.50% APY 5-month Celebration Certificate. This offer has strict rules, like a 0 to ,000 deposit and an active account. It’s a limited-time deal.

How can I compare the top CD rates today by term?

The article compares CD rates from 3 months to 5 years. It lists the highest APYs, minimum deposits, and rates. This helps readers pick the best CD for their savings goals.

What are some specific term deposit rates highlighted in the article?

The article talks about the Climate First Bank 6 Month No Penalty CD and TotalDirectBank’s 3 Month and 6 Month CDs. The Climate First Bank CD has a great rate with no early withdrawal penalties. TotalDirectBank’s CDs offer higher rates but need a ,000 deposit.

How do I choose the best CD for my needs?

When picking a CD, think about the term length, minimum deposit, early withdrawal penalties, and the rate. Consider your savings goals and financial needs. This will help you find the best CD for you.

Who can benefit the most from opening a CD?

CDs are good for those with a savings goal, a long investment time, or a need for a guaranteed return. They suit different ages and income levels.

What are the pros and cons of investing in CDs?

CDs offer security, predictable returns, and can have higher yields than savings accounts. But, they have drawbacks like early withdrawal penalties, limited liquidity, and missing out on rising interest rates.

What are the alternatives to CDs for high-yield savings?

Other options include high-yield savings accounts, money market accounts, and online savings accounts. These may offer competitive rates and better access. Investment alternatives like short-term bonds or treasury bills can also provide returns, but with more risk and less liquidity.

What is the research methodology used to gather the information in the article?

The article tracks CD rates from over 100 financial institutions. It looks at historical rate changes and compares national averages. The data comes from direct bank partnerships and proprietary surveys for accuracy and reliability.

Source Links

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