The current certificate of deposit (CD) interest rates are among the highest in over a decade due to recent rate hikes by the Federal Reserve. However, with the Fed’s target rate cut in September, it may be your last chance to secure a competitive rate.
When shopping for a CD, it’s essential to compare rates across financial institutions to ensure you’re getting the best deal. As of December 8, 2024, high CD rates are available for shorter terms, typically up to one year or less.
The highest CD rate currently offered is by Synchrony Bank on its 9-month CD, with an annual percentage yield (APY) of 4.30% and no minimum opening deposit required.
Here’s a breakdown of some top CD options:
* Synchrony Bank’s 9-month CD: 4.30% APY
* Other short-term CDs offer similar rates, such as those from CIT Bank, Ally Bank, and Discover Bank
To calculate the interest you can earn with a CD, consider the following example:
* Investing $1,000 in a one-year CD at 1.88% APY would result in a balance of $1,018.96.
* Investing $10,000 in a one-year CD at 5% APY would result in a balance of $10,511.62.
When choosing a CD, consider factors beyond the interest rate, such as:
* Bump-up CDs: Allow you to request a higher interest rate if rates rise during the term.
* No-penalty CDs (liquid CDs): Permit withdrawals before maturity without penalties.
* Jumbo CDs: Require higher minimum deposits and may offer slightly higher rates.
* Brokered CDs: May offer higher rates or more flexible terms, but also carry more risk.
Don’t miss out on this opportunity to secure a competitive CD rate. Act now before the Fed’s target rate cuts further reduce available interest rates.
Source: https://finance.yahoo.com/personal-finance/article/cd-rates-today-december-8-110023132.html