Current CD News | Bankrate (2024)

FAQs

Who's offering the best CDs right now? ›

The takeaway

Since inflation and the Fed rate remain high, now may be the time to put some money away into CDs, especially longer-term accounts, since their fixed APY won't change even if interest rates are cut later this year.

FAQ: 6% CD rates

No banks are currently paying 6% APY on a CD. However, you can find some credit unions offering 6% CD rates. You can also get 5% CD rates at some banks or use alternative savings approaches, such as a high-yield savings account or money market account, to maximize the return on your investment.

As of August 2024, there are no banks are offering 7% interest rates on savings accounts. If you can find a savings account with a 7% APY, you'll earn about 15X more than the national savings rate. It's much more common to find a high-yield savings account with rates between 4% and 5% right now.

Yes, many online banks and credit unions are currently offering CDs paying 5% APY or more for a wide range of terms.

1. Early withdrawal penalty. One major drawback of a CD is that account holders can't easily access their money if an unanticipated need arises. They typically have to pay a penalty for early withdrawals, which can eat up interest and can even result in the loss of principal.

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Right now, there aren't any financial institutions offering 7% interest on a CD.

What is considered jumbo CD? ›

What is a jumbo CD? A jumbo CD is like a regular CD but requires a higher minimum deposit, and in exchange, it can pay a higher interest rate. Jumbo CDs usually require a deposit of at least $100,000, though some banks may require less.

Investing $50,000 in a 5-year CD at today's best rates could yield more than $10,000 in overall interest. Shorter-term CDs have higher APYs and might be better for those who can't lock up $50,000 for five years.

The bottom line. CDs are a safe investment that can net you a higher return than most savings and money market accounts. Since rates have increased over the past year, they're more appealing to some savers. But with some banks already dropping rates, it's best to lock in a rate soon.

Bank of America offers CDs with a wide range of terms and just a $1,000 minimum opening deposit. Some of these options provide higher interest rates than you'd typically see with online savings accounts. The highest Bank of America CD rate is a 5.00% APY, which is for its 13 months featured term.

In summary, a certificate of deposit gives you steady and safe returns. Investing $15,000 in a CD could lead to substantial gains, regardless of the CD's length. However, make sure you won't need that money while the CD is active because withdrawing early usually incurs hefty penalties.