Top CD Interest Rates - A Secure Method for Building Wealth Without Risk
In the current financial landscape, Certificates of Deposit (CDs) and high-yield savings accounts are popular choices for individuals looking to grow their savings while outpacing inflation. Here's a roundup of some of the highest CD rates available, catering to various savings goals and deposit amounts.
Short-Term CDs
For those with shorter savings goals, consider the following options:
- Dow Credit Union offers a competitive 4.40% Annual Percentage Yield (APY) on 3-month CDs, requiring a minimum deposit of $500.
- Prime Alliance Bank provides a 4.30% APY on 1-year CDs with a $500 minimum opening deposit.
- Mountain America Credit Union offers a 4.20% APY on 1-year CDs with a $500 minimum deposit.
One-year CDs are also smart vehicles for parking money and waiting to see how the market goes.
Medium-Term CDs
For a slightly longer horizon, these CDs might be more suitable:
- Securityplus Federal Credit Union offers a 3.85% APY on 4-year CDs with a $1,000 minimum opening deposit.
- All in Credit Union provides a 3.87% APY on 3-year CDs with a $1,000 minimum deposit.
- MYSB Direct offers a 3.91% APY on 5-year CDs with a $500 minimum opening deposit.
Long-Term CDs
For individuals looking to lock in their funds for an extended period, these long-term CDs could be appealing:
- Credit Human offers a 3.95% APY on 5-year CDs with a $500 minimum opening deposit.
- SchoolsFirst Federal Credit Union offers a 4.25% APY on 5-year CDs with a $500 minimum deposit.
- Colorado Federal Savings Bank offers a 4.00% APY on 2-year CDs with a $5,000 minimum opening deposit.
- NexBank offers a 4.40% APY on 1-year CDs with a $25,000 minimum opening deposit.
- Bask Bank offers a 4.30% APY on 1-year CDs with a $1,000 minimum opening deposit.
- Limelight Bank offers a 4.40% APY on 1-year CDs with a $1,000 minimum opening deposit.
- The Federal Savings Bank offers a 3.95% APY on 3-year CDs with a $5,000 minimum opening deposit.
- CoVantage Credit Union offers a 3.75% APY on 5-year CDs with a $1,000 minimum opening deposit.
- TAB Bank offers a 4.10% APY on 1-year CDs with a $1,000 minimum opening deposit.
- America First Credit Union offers a 4.20% APY on 4-year CDs with a $500 minimum opening deposit.
Key Considerations
It's essential to compare rates across accounts to get the best return on your cash. Additionally, remember that once your money is put into a CD account, you won't be able to access it unless you opt for a no-penalty CD account.
For short-term savings goals, money market accounts offer greater flexibility with variable interest rates and easier access to funds, while CDs provide fixed interest rates and guaranteed returns but restrict access with potential early withdrawal penalties. Your choice depends on whether you prioritize stability or flexibility in your savings.
[1] Investopedia. (2021). Certificate of Deposit (CD). [online] Available at: https://www.investopedia.com/terms/c/certificateofdeposit.asp [2] NerdWallet. (2021). Money market accounts vs. CDs: Which is better for you? [online] Available at: https://www.nerdwallet.com/blog/banking/money-market-accounts-vs-cds/ [3] Bankrate. (2021). CD rates vs. money market rates. [online] Available at: https://www.bankrate.com/banking/savings/cd-rates-vs-money-market-rates/ [4] Forbes Advisor. (2021). CD Rates vs. Money Market Accounts. [online] Available at: https://www.forbes.com/advisor/banking/cd-rates-vs-money-market-accounts/ [5] The Balance. (2021). Money Market Account vs. CD. [online] Available at: https://www.thebalance.com/money-market-account-vs-cd-4169663
In the domain of personal-finance and investing, an individual may find CDs (Certificate of Deposits) such as the one provided by Dow Credit Union with a 4.40% APY on short-term 3-month CDs attractive for growing savings, given their ability to outpace inflation. On the other hand, money market accounts could be more suitable for those seeking flexibility and variable interest rates, as demonstrated by accounts like those offered by several banks and financial institutions.
