Banks with highest CD rates
If you're looking for a safe place to save your money, a certificate of deposit (CD) is a great option. CDs offer a higher interest rate than traditional savings accounts, and your money is FDIC insured up to \$250,000.
When choosing a CD, it's important to compare interest rates and terms. The interest rate is the percentage of your deposit you'll earn in interest each year. The term is the length of time you'll agree to leave your money in the CD.
Generally, the longer the term, the higher the interest rate. However, you'll also have to tie up your money for a longer period of time.
If you need to access your money before the CD matures, you'll typically have to pay an early withdrawal penalty.
Here are some of the banks with the highest CD rates:
- Synchrony Bank offers a 3.40% APY on a 12-month CD.
- Ally Bank offers a 3.35% APY on a 12-month CD.
- Marcus by Goldman Sachs offers a 3.30% APY on a 12-month CD.
- American Express National Bank offers a 3.25% APY on a 12-month CD.
- Capital One offers a 3.20% APY on a 12-month CD.
These rates are subject to change, so be sure to check with the bank before opening a CD.
When opening a CD, it's important to consider your financial needs. If you need to access your money in the near future, a short-term CD is a good option. If you can afford to tie up your money for a longer period of time, a long-term CD will earn you a higher interest rate.
It's also important to consider your tax situation. CDs are taxed as interest income, so you'll need to pay taxes on the interest you earn. If you're in a high tax bracket, you may want to consider opening a CD in a tax-advantaged account, such as an IRA or Roth IRA.
With a little research, you can find a CD that meets your needs and helps you reach your financial goals.
Here are some additional tips for choosing a CD:
- Shop around. Compare interest rates and terms from different banks before opening a CD.
- Consider your needs. How long do you need to access your money? How much interest are you looking to earn?
- Read the fine print. Make sure you understand the terms and conditions of the CD before you open it.
By following these tips, you can choose a CD that's right for you.
