Latest news with #CDRates
Yahoo
2 days ago
- Business
- Yahoo
Best CD rates today, June 1, 2025 (lock in up to 4.25% APY)
Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today's economic climate, the opposite is true. Today, the highest CD rate 4.25% APY, offered by Langley Federal Credit Union on its 10-month CD. There is a $500 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners: This embedded content is not available in your region. The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. This embedded content is not available in your region.
Yahoo
3 days ago
- Business
- Yahoo
Best CD rates today, May 31, 2025 (best account provides 4.25% APY)
Find out how much you could earn by locking in a high CD rate today. The Federal Reserve cut its federal funds rate three times in 2024, so now could be your last chance to lock in a competitive CD rate before rates fall further. CD rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Generally, the best CD rates today are offered on shorter terms of around one year or less. Online banks and credit unions, in particular, offer the top CD rates. Today, the highest CD rate 4.25% APY, offered by Langley Federal Credit Union on its 10-month CD. There is a $500 minimum opening deposit required. Here is a look at some of the best CD rates available today: Ce contenu intégré n'est pas disponible dans votre région. The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. Ce contenu intégré n'est pas disponible dans votre région.
CBS News
27-05-2025
- Business
- CBS News
What's the CD account interest rate forecast for June 2025?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. CD account interest rates could change again in June, depending on several timely factors. Getty Images While certificate of deposit (CD) rates have dipped slightly over the past year, they're still elevated, with some financial institutions offering yields as high as 4.40%. However, rates could fall in the coming months if the Federal Reserve follows through on expected interest rate cuts this year. While the Fed doesn't directly set CD rates, these yields often loosely mirror Fed policy decisions. As of May 27, 2025, the CME Group's FedWatch tool shows a 94.4% chance that the Federal Reserve will hold its target rate steady at 4.25% to 4.50%, and a 5.6% chance of a 0.25 percentage point cut. Still, the Fed has previously pointed to one or two rate cuts by the end of 2025. That suggests rate cuts later this year are more likely than in the near term. If true, savers have a limited window to lock in current high yields. Knowing the direction CD rates are headed may help you make smarter decisions about when to open a CD and what term length to choose. Below, we'll dive deeper into the most likely scenarios for CD rates in June, based on expert analysis and opinion. See how much you could earn with a top CD rate here. What's the CD account interest rate forecast for June 2025? Here are three potential CD account interest rate scenarios that could occur this June, according to the experts we spoke to: CD rates could drop While most economists and rate-watchers don't anticipate the bank to cut the federal funds rate in June, it remains a distinct possibility. If that happens, CD rates could begin to decline shortly after, especially for short- and medium-term certificates, says Michael Crossley, vice president of Treasury Processing at America First Credit Union. "If the Fed were to cut rates at the June meeting, overall CD yields would start to decline," he said "When the Fed makes a rate cut, it decreases funding costs for banks and credit unions. This has a residual incentive to decrease higher yields on deposits," he adds. Still, the timing of those changes won't be the same across all banks. "CD pricing doesn't always drop overnight," Crossley said. "There can be a lag in timing when the Fed adjusts their rate and when CD rates adjust." Derik Farrar, head of Everyday Banking & Borrowing at U.S. Bank, expects banks to act fast if cuts do happen. "I expect most banks to adjust quickly, as the industry entered 2025 expecting rate cuts that haven't materialized," he said. Lock in a high CD rate before rates drop now. CD rates could stagnate This is the most likely scenario, especially since most analysts expect the Federal Reserve to pause rates at its June meeting. Late last year, the Fed signaled that rate cuts were likely in 2025, before clarifying there would be fewer rate cuts. As of May 2025, the Fed has maintained its target rate at 4.25% to 4.50%, keeping rates paused at every meeting so far this year. At its May meeting, Federal Reserve Chair Jerome Powell reiterated, "We're in the right place to wait and see how things evolve. We don't feel like we need to be in a hurry. We feel like it's appropriate to be patient." As noted, most experts project continued economic uncertainty will lead to another rate pause in June. That likely means continued stagnation in CD rates. As Farrar explains, "Consensus expectations generally drive CD pricing because banks balance their maturities with new originations." Crossley adds that CD rate movements are influenced by more than Federal Reserve monetary policy. "CD rates are not set arbitrarily. We monitor not only Federal Reserve policy, but also internal liquidity needs, loan growth, member behavior, competitive market and economic conditions. Right now, the cost of attracting deposits is high based on previous years comparison." Even though the Fed's policy plays a big role, institutions may also stick with current yields unless their own deposit needs or other market conditions incentivize them to change their CD rates this year. "Trying to guess changes in the interest rate market with any consistency is just as impossible as guessing short-term stock market returns," says David Shotwell, president of Shotwell Rutter Baer Financial Planners. "They will adjust to market forces which cannot be predicted." CD rates could increase A rise in CD rates this June is highly unlikely, and the CME FedWatch Tool gives a 0% chance of a rate hike at the next Federal Reserve meeting. Still, there is a scenario where the Fed could bump up the interest rate. Farrar, who doesn't project an increase, points out that higher inflation could shift the Fed's stance. "Inflation or inflation expectations triggering a different outlook from the FOMC would be the driver for rates to rise in June," he said. Crossley notes that banks could conceivably raise CD rates based on specific needs, such as unexpected deposit outflows, rising loan demand or balance sheet strategies. He adds that competition is always a factor. "In markets where institutions are aggressively competing for deposits, one or two may increase rates, in which others will follow suit," he says. The bottom line Understanding where CD rates may be headed can help guide your savings strategy, but that shouldn't be the only factor in your decision. It's just as important to consider the purpose of the money you're setting aside. As Shotwell explains, "We urge clients to not worry about the rate on CDs, but rather the role CDs play in their portfolio. Cash investments, which include money markets and certificates of deposit, are there for safety and liquidity rather than long term growth." Shotwell recommends creating a CD ladder to stagger maturity dates and keep your funds accessible over time. If you anticipate the Fed lowering rates in the coming months, opening a CD now could help you lock in a higher rate while it's still available.
Yahoo
26-05-2025
- Business
- Yahoo
Best CD rates today, May 26, 2025 (Lock in up to 4.4% APY)
Today's CD rates still hover well above the national average. The Federal Reserve reduced its target interest rate three times in 2024. This had a ripple effect on deposit account rates, which means now could be your last chance to lock in today's high rates with a certificate of deposit (CD). Here's a look at today's best CD rates and where you can find the best offers. As of May 26, 2025, CD rates are still competitive, particularly for shorter terms. Today, the highest CD rate 4.4% APY, offered by NexBank on its 1-year CD. There is a $25,000 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners. This embedded content is not available in your region. If you're considering a CD, these rates are some of the highest available, especially when compared to the national average rates, which are significantly lower. It's also worth noting that online banks and credit unions generally offer more competitive rates compared to traditional brick-and-mortar banks. Read more: What is a good CD rate? Here's a look at the average CD rate by term as of April 2025 (the most recent data available from the FDIC): The highest national average interest rate for CDs stands at 1.77% for a 1-year term. However, in general, today's average CD rates represent some of the highest seen in nearly two decades, largely due to the Federal Reserve's efforts to combat inflation by keeping interest rates elevated. If you're thinking about opening a CD, it's important to choose one with a high APY and term length that matches your financial goals. Here are some tips for finding the best CD rates and accounts that match your needs: Shop around: It's a good idea to evaluate CD rates from a variety of financial institutions and compare your options before settling on an account. You can easily compare CD rates online. Consider online banks: Online banks tend to have lower overhead costs, which allows them to offer higher interest rates on CDs. In fact, online banks often have the most competitive rates available. Check minimum deposit requirements: Higher CD rates might come with higher minimum deposit requirements, so make sure the amount you plan to deposit aligns with the requirements to get the best rate. Review account terms and conditions: Beyond the CD's rate, look at terms for early withdrawal penalties and auto-renewal policies. Some CDs offer better terms for flexibility, such as no-penalty CDs, which allow you to withdraw your funds without a fee before the maturity date.
Yahoo
25-05-2025
- Business
- Yahoo
Best CD rates today, May 25, 2025 (lock in up to 4.4% APY)
Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today's economic climate, the opposite is true. Today, the highest CD rate 4.4% APY, offered by NexBank on its 1-year CD. There is a $25,000 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners: This embedded content is not available in your region. The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. This embedded content is not available in your region.
