Latest news with #CDs
Forbes
6 hours ago
- Business
- Forbes
CD Rates Today: June 10, 2025
Today's best interest rates on CDs (certificates of deposit) are as high as 5.02%. Rates vary by term and often fluctuate, and they are expected to fall as the Federal Reserve lowers interest rates. A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you'll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can't touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year's worth of interest if you withdraw funds from a five-year CD before it reaches maturity. Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.29%, but the highest rate is 4.67%. The average rate is unchanged from a week ago. A six-month CD offers a nice blend of high yields and short-term time commitment, and the highest yield you can find is 4.94%, about the same as last week. The current average APR for a six-month CD is 1.77%. For a 12-month CD, one of the most popular CD terms, the highest interest rate available is 5.02%. That rate hasn't changed much since last week. The average APY, or annual percentage yield, on that CD now stands at 1.83%, unchanged from a week ago. If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That's the same as this time last week. The average APY for the CD is 1.65%, flat to last week's average. Today's highest rate on a three-year CD is 4.27%, so you'll want to shop around for that rate or something near it. The average APY stands at 1.58%. On a five-year CD, the highest rate today is 4.26%. APYs are averaging 1.59%, similar to last week. If you opt for a five-year CD, make sure you're aware of the early withdrawal penalty. It's not unusual to lose one full year's worth of interest or more if you break open a five-year CD before it matures. The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.82%. Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there's no universally agreed-upon definition regarding what qualifies as a "jumbo" CD. Some banks and credit unions slap the label "jumbo" on CDs you can open with $50,000, $25,000 or even less. Related: CD Interest Rates Forecast: How Good Will They Get? When looking for the best CD rates, cast a wide net. Study the offerings from traditional banks, credit unions and digital firms. You may be surprised that a credit union you've never heard of provides the highest yields. For example, PenFed Credit Union's CD rates currently range from 2.90% to 3.40% while U.S. Bank CD rates currently range from 0.05% to 0.25%. Other top CD rates by banks include: To open a CD, start by establishing an account with a bank and making a one-time, upfront payment, which constitutes your principal. Many banks require you to deposit a minimum amount—which can be anywhere from hundreds to thousands of dollars—to open a CD. At credit unions, CDs are often referred to as share certificates. The timer on your CD term begins once you deposit your principal. You begin earning interest, and the bank or credit union will provide you with monthly or quarterly statements reflecting how much you're accumulating. Since early withdrawal penalties eat into your earnings, it's in your best interest to avoid tapping your CD before the term matures. In some cases, you may even face early withdrawal penalties so stiff they cut into your principal. CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They're one of the safest places to put your money. Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected. The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit. Traditional brick-and-mortar banks have far greater operating expenses than banks that only exist online. That's why online banks are usually able to offer more attractive APYs on CDs – they have lower overhead costs, so they can afford to pay higher interest rates to customers. Related: CD Interest Rates Forecast: How Good Will They Get? Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation. You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD. Follow this plan and you'll have one better-yielding five-year CD maturing each year. If you're ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD. Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate. CDs usually come with zero fees, meaning your money won't be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts. You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won't need access to your cash in the meantime.
Wall Street Journal
7 hours ago
- Business
- Wall Street Journal
Today's CD Rates for June 10, 2025: Highest APYs Range From 4.00% to 4.75%
Certificates of deposit (CDs) often offer the best rates for savings. However, to get the highest annual percentage yield (APY), you need to agree to keep your money with the financial institution for a set time period. Right now, the best CD rates are on short-term CDs. The Federal Deposit Insurance Corporation (FDIC) reports that the average rate on a 12-month CD is 1.75%. However, the average for the top high-yield CDs is 4.69%, according to There are also six-month CDs with competitive rates, depending on the institution, as well as promotional CDs with higher rates. Top CD rates today The best CD yield from a national bank is Northern Bank Direct, with a 4.50% APY on a nine-month CD with a $500 minimum deposit requirement. The best local bank CD rate is Linkbank with a 4.50% APY on a ten-month CD with a $500 minimum to earn the APY. If you're looking for the highest yield, no matter where you live, review the top CD rates today.
CNET
a day ago
- Business
- CNET
I've Been Analyzing CD Rates for Years. Here's the Best Time to Open One
APYs are just one thing to consider when deciding if you should open a CD years, I've been monitoring interest rates on certificates of deposit, a type of low-risk savings account that grows your money over a set term. Maybe it's not the most exciting part of my job as a personal finance editor, but I've learned a thing or two about investment tools. It's all about timing. CDs offer fixed returns no matter when you open them. But being strategic about your timeframe can help you reap the biggest earnings. Here's how to decide if now is the right time for you to invest in a CD. Read more: Best CD Rates for June 2025: Lock in an APY up to 4.50% While You Still Can Open a CD when rates are high When you open a CD, your annual percentage yield is locked in for the entire term, whether it's five months or five years. Opening a CD when rates are competitive can help you maximize your earnings. If you wait too long and rates drop, you won't be able to secure a high APY. For example, in 2023, APYs for the top CDs we track at CNET soared to 5.65%. Now, the top rate is 4.50%. That's still more than three times the national average for some terms, but it means you won't earn as much as you would if you'd opened a CD when rates were at their highest. In the last decade, CDs have sometimes offered as little as 0.5% APY or lower. So, how do you know if rates are headed up or down? Keep an eye on the current interest rate news. The Federal Reserve, the country's central bank, often adjusts interest rates in an effort to stabilize prices, boost economic growth or maximize employment. If the Fed's monetary policy meeting is around the corner, check to see if the Fed plans to increase, reduce or maintain its benchmark interest rate. Other banks and financial institutions typically set savings account and CD rates based on the Fed's actions. "When the Fed hikes rates, banks offer more interest to get people to save," said Taylor Kovar, certified financial planner and CEO of 11 Financial. While the Fed held rates steady at its last three meetings, experts expect it to start cutting rates later this year, possibly after summer. "When the Fed holds or starts cutting, banks don't have to work as hard to attract deposits, so they pull those rates back. Even before the Fed makes a move, banks start adjusting based on what they think is coming," Kovar said. We're already seeing some banks quietly lower their APYs on deposit accounts. If you're looking for a low-risk investment tool now, locking in a CD at today's top rates could help you maximize your earning potential. Open a CD when you have a specific savings goal in mind CDs come in a variety of terms, ranging from a few months to several years, so you can choose a timeframe that aligns with your savings goal. If you're putting aside money for an expense with a specific date, like a wedding or vacation, a CD can be a great tool. Your funds will grow reliably until you need them, and early withdrawal penalties can discourage you from dipping into your cash prematurely. "If you invest in a CD, plan to not touch the money until the end of the term," said Noah Damsky, CFA, Principal of Marina Wealth Advisors. "Withdrawing funds early from a CD could result in penalties or foregoing earned interest." Open a CD when you want to protect your retirement funds Low-risk assets like CDs don't have the high earning potential that some stocks do, but they're also not as volatile. You won't see your savings plunge, for example. That's why experts recommend a mix of assets in your investment portfolio. If retirement is decades away, keeping a larger percentage of your money in high-risk, high-reward assets like stocks can help you grow your nest egg faster. You'll just have to ride out temporary market dips. If you're approaching retirement, however, it's time to focus less on growth and more on protecting the funds you've accumulated. Shifting a larger portion of your money into a CD can give you more stability once you stop working. If you're unsure, build a CD ladder If you know you want to open a CD now, but you also want the flexibility to take advantage of higher APYs if they emerge, a CD ladder can help. With a CD ladder, you spread your money across multiple CDs with different maturity dates. For example, if you have $10,000 to invest, you could divide it up this way: $2,000 in a one-year CD $2,000 in a two-year CD $2,000 in a three-year CD $2,000 in a four-year CD $2,000 in a five-year CD When one CD's term is up, you can withdraw the money and reevaluate how you want to use or invest it. Maybe you'll decide to roll those funds over into a new CD at an equal or better APY. Or you may open a different account somewhere else. A CD ladder allows you to keep some money available at regular intervals and jump on higher rates if they become available. Pro tip: CD rates can vary significantly from term to term and bank to bank. Always compare multiple banks and accounts to make sure you're getting the best APY for your savings timeline.
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Today's CD Rates for June 9, 2025: Highest APYs range from 4.28% to 4.60%
Certificates of deposit (CDs) often offer the best rates for savings. However, to get the highest annual percentage yield (APY), you need to agree to keep your money with the financial institution for a set time period. Right now, the best CD rates are on short-term CDs. The Federal Deposit Insurance Corporation (FDIC) reports that the average rate on a 12-month CD is 1.75%. However, the average for the top high-yield CDs is 4.70%, according to There are also six-month CDs with competitive rates, depending on the institution, as well as promotional CDs with higher rates. Top CD rates today The best CD yield from a national bank is Northern Bank Direct, with a 4.50% APY on a nine-month CD with a $500 minimum deposit requirement. The best local bank CD rate is Linkbank with a 4.50% APY on a ten-month CD with a $500 minimum to earn the APY. If you're looking for the highest yield, no matter where you live, review the top CD rates today.
Forbes
4 days ago
- Business
- Forbes
CD Rates Today: June 6, 2025 - Take Home Up To 5.02%
Today's best interest rates on CDs (certificates of deposit) are as high as 5.02%. Rates vary by term and often fluctuate, and they are expected to fall as the Federal Reserve lowers interest rates. A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you'll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can't touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year's worth of interest if you withdraw funds from a five-year CD before it reaches maturity. Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.3%, but the highest rate is 4.67%. The average rate is unchanged from a week ago. If you're interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 4.94%. The current average APR for a six-month CD is 1.77%, about the same as last week. For a 12-month CD, one of the most popular CD terms, the highest interest rate available is 5.02%. That rate hasn't changed much since last week. The average APY, or annual percentage yield, on that CD now stands at 1.83%, unchanged from a week ago. If you can hold out for two years, 2-year CDs today are being offered at interest rates as high as 4.52%. That's the same as this time last week. The average APY for the CD is 1.66%, flat to last week's average. Today's highest rate on a three-year CD is 4.27%, so you'll want to shop around for that rate or something near it. The average APY stands at 1.58%. The highest rate available today for a five-year CD is 4.26%. The average APY is 1.59%, similar to last week. The longer the term, the higher the early withdrawal penalty. It's not unusual to lose one full year's worth of interest or more if you break open a five-year CD early. Be absolutely certain you understand the penalty before you make your investment. The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.82%. Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there's no universally agreed-upon definition regarding what qualifies as a "jumbo" CD. Some banks and credit unions slap the label "jumbo" on CDs you can open with $50,000, $25,000 or even less. Related: CD Interest Rates Forecast: How Good Will They Get? CD rates are rarely the same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it's convenient or join a new bank to take advantage of higher rates. To find the right CD, look at the specific term you're interested in with a few different banks. Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example: Other top CD rates by banks include: CDs are a relatively simple savings tool: You open an account with a deposit (your principal), let your money sit for a predetermined period of months or years while you enjoy the magic of compounding interest. Many CDs (as well as share certificates offered by credit unions) require a minimum deposit (typically less than $10,000 unless it's a jumbo CD) to open your account. Some financial institutions allow you to fund an account with as little as a penny. But banks and credit unions typically won't allow you to add to your deposit once the term begins and the clock starts ticking. And they're serious about not letting you crack open your CD or share certificate too soon. Early withdrawal penalties can be so tough that they'll eat into your principal, not just take back some of your interest. If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you'll owe an early withdrawal penalty. Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle? The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going "poof" over the course of a year. Not a happy thought, is it? CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don't need immediately, while stocks provide solid long-term returns. You don't want to risk cash you're depending on. The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit. CD rates generally fluctuate the most following the Federal Reserve's decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets. Related: CD Interest Rates Forecast: How Good Will They Get? Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation. You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD. Follow this plan and you'll have one better-yielding five-year CD maturing each year. If you're ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD. Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate. CDs usually come with zero fees, meaning your money won't be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts. You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won't need access to your cash in the meantime.
