Compare CD Rates for May 2024
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CD rates are at a high - don't miss out! Explore the top CD accounts for secure investments and guaranteed returns. Grow your savings now.
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- Sallie Mae Bank:
27-Month High-Yield CD - 3.75% APY - Western Alliance Bank:
12-Month High-Yield CD - 3.30% APY - Western Alliance Bank:
6-Month High-Yield CD - 3.50% APY - Sallie Mae Bank:
4-Month High-Yield CD - 4.00% APY
| Best Short Term | Sallie Mae Bank: |
| Best Long Term | Sallie Mae Bank: |
| Best No-Penalty | Sallie Mae Bank: |
| Most Popular | Western Alliance Bank: |
Explore CD Offers
Highest CD Rates By Popular Terms
Here are some of the top CD rates by term:
| Term | Bank and Yield Rate |
|---|---|
| 3 Month | Western Alliance Bank: |
| 6 Month | Western Alliance Bank: |
| 9 Month | Western Alliance Bank: |
| 1 Year | Western Alliance Bank: |
- Compare 3-month CD Rates
- Western Alliance Bank:
3-Month High-Yield CD - 3.80% APY
- Western Alliance Bank:
- Compare 6-month CD Rates
- Western Alliance Bank:
6-Month High-Yield CD - 3.50% APY
- Western Alliance Bank:
- Compare 9-month CD Rates
- Western Alliance Bank:
9-Month High-Yield CD - 3.40% APY
- Western Alliance Bank:
- Compare 1-year CD Rates
- Western Alliance Bank:
12-Month High-Yield CD - 3.30% APY
- Western Alliance Bank:
- Compare 2-year CD Rates
Don't Want to Lock In Your Funds? Try a No-Penalty CD
A No-Penalty CD lets you take out your money early with no early withdrawal fees. This lets you:
- Preserve capital and earn guaranteed returns without tying up funds
- Retain flexibility to move your funds if you see a better investment opportunity
- Access your funds if there's an emergency
So if there's a chance you might need your funds, try a No-Penalty CD for the same stability, but without the commitment.
- Raisin:
No-Penalty CD - Up to $2,000 Bonus - Mission Valley Bank:
3-Month No-Penalty CD - 3.80% APY - Sallie Mae Bank:
14-Month No Penalty CD - 3.40% APY - Sallie Mae Bank:
10-Month No Penalty CD - 3.30% APY - CIT Bank No Penalty CD:
3.25% APY
Why Open a CD Account?
CDs are a secure way to earn interest. You'll get the benefits of:
- Stability & Guaranteed Returns
Your interest rate is locked in for the duration of the CD term. Even if interest rates fall in the economy, you'll still keep your same APY. (But this also means you could miss out if interest rates rise.) - High Interest Rates
CDs often offer higher interest rates than regular savings accounts. It's an easy way to grow money that you don't need right away. - Many Term Options
Most banks offer CDs with a variety of term options to suit your timeline. They can be from just 1 month all the way up to 10 years.
6-Month High-Yield CD - 3.50% APY
- No fees
- $1 minimum deposit
- 24/7 online access
- FDIC insured
What's the Catch?
CDs can be a great investment, but before you jump in, there are some cons to be aware of:
- Early Withdrawal Penalties
Withdrawing your money early before the term is up will cost you. It's usually a few months' worth of interest, and sometimes, can even dip into the principal.Like mentioned above, if you're not sure about committing your funds, it's best to open a no-penalty CD.
- No Additional Deposits
Unlike savings accounts, you typically can't add more deposits to your CD once it's opened. If you have more to save, you have to open a new CD.
What to Look for in a CD Account
- Term: You want a CD term that fits your financial goals. For example, if you're planning to buy a house in a year, look for CD terms around 1 year.
- Interest Rate: You want the highest APY to earn bigger returns. Make sure to look around and compare rates.
- Minimum Deposit: Some banks may require $500 to $2,500 to open a CD. However, many online banks and credit unions have no minimums or require only a few dollars.
Is a CD Right for Me?
If you have a chunk of money to keep safe, a CD could be a great option since there's very little risk and you get stable returns.
But since CDs lock in your funds for a fixed amount of time, it's best to make sure you really won't need the money.
If there's any chance at all you might need it, look for a special kind of CD called a "no-penalty CD." This CD is more flexible and lets you withdraw early without a fee.
- Mission Valley Bank:
3-Month No-Penalty CD - 3.80% APY - Sallie Mae Bank:
14-Month No Penalty CD - 3.40% APY
Alternatives to CDs
Not sure if a CD is right for your goals? Here are other investment options you can consider:
High-yield savings accounts
A high-yield savings account lets you add more deposits or withdraw money when you need to. These savings accounts are currently offering APYs just as high as CDs, but the rate is not fixed.
- Western Alliance Bank:
High Yield Savings Account - 3.90% APY - Mission Valley Bank:
High Yield Savings Account - 3.86% APY - Valley National Bank:
High-Yield Savings Account - 4.03% APY
Money market accounts
Some money market accounts come with a debit card, ATM access, and a checkbook. They can also offer competitive rates but they can change over time, unlike CDs.
High Yield Savings Account - 3.90% APY
- No fees
- $1 minimum deposit
- 24/7 online access
- FDIC insured
High Yield Savings Account - 3.86% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
High-Yield Savings Account - 4.03% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
Bottom Line
A CD is one of the safest ways to grow your money with steady, guaranteed returns. And plus, rates are at a high right now, so it's a great time to open an account.
Just make sure that you're ok with tying up your funds for money for the specific term. Or if you think you might need the money, go for a no-penalty CD because you can withdraw early if you need to.
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