From the vibrant rhythms of Memphis and Nashville to the scenic landscapes of Chattanooga and Knoxville, Tennessee offers many opportunities to help your savings sing. This guide serves as your concert program, orchestrating your journey as you shop and compare the best interest rates on CDs, high-interest savings account rates, money market account rates, and interest rates on fixed annuities across the Volunteer State. Whether your preference harmonizes with traditional banks, local credit unions, or the streamlined symphony of online banking, our goal is to fine-tune your understanding of Tennessee’s financial composition. By decoding the complex score of interest rates, this guide is your front-row seat to a performance of savings growth that hits all the right notes in TN.
Earn The Highest Interest Rates On Savings Today
Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.
| Term | Insurance Company | APY |
|---|---|---|
| N/A | Money Market Account – Optimum Bank | 5.26% |
| N/A | Money Market Account – FVC Bank | 5.26% |
| N/A | Savings Account – CloudBank 24/7 | 5.26% |
| 12 Months | Bread Savings CD | 5.50% |
| 48 Months | Clear Spring Fixed Annuity | 5.15% |
| 5 Years | Athene Fixed Annuity | 5.30% |
| 10 Years | Equitrust Fixed Annuity | 6.00% |
Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.
Breaking Down the Best Fixed Annuity Rates in Tennessee
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Fixed annuities are insurance products that provide a guaranteed rate of return over a specific period. They offer several advantages, including:
- Guaranteed income: With a fixed annuity, you’ll receive a guaranteed interest rate or income stream for a fixed period or for life, regardless of market conditions.
- Tax deferral: Your earnings grow tax-deferred until you begin taking withdrawals, which can help you maximize your returns over time.
- Safety: Fixed annuities are backed by the insurance company issuing them, which means your principal is protected, even if the insurance company goes bankrupt.
However, fixed annuities also have some drawbacks, including:
- Limited liquidity: You may face penalties if you withdraw your money (above the penalty-free amount) before the end of the contract term.
- Lack of control: Once you purchase a fixed annuity, you have little control over the investment and may not be able to access your money for several years.
Examining the Best CD Rates in Tennessee
3-Month CD Rates
Banks and credit unions have the highest CD rates for three months.
| Best 3-Month CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Ponce Bank | 5.30% APY | 3 Months | $1.00 |
| Oklahoma State Bank | 5.35% APY | 3 Months | $1.00 |
| Western Alliance Bank | 5.21% APY | 3 Months | $1.00 |
6-Month CD Rates
The following banks and credit unions have the highest CD rates for six months.
| Best 6-Month CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Western Alliance Bank | 5.41% APY | 6 Months | $1.00 |
| Oklahoma State Bank | 5.40% APY | 6 Months | $1.00 |
| Generations Bank | 5.41% APY | 6 Months | $1.00 |
1-Year CD Rates
The following banks and credit unions have the highest CD rates for 12 months.
| Best 12-Month CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Western Alliance Bank | 5.51% APY | 12 Months | $1.00 |
| Bread Savings | 5.50% APY | 12 Months | $1,500.00 |
| Connexus Credit Union | 5.50% APY | 12 Months | $1.00 |
2-Year CD Rates
Banks and credit unions have the highest CD rates for 24 months.
| Best 2-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Connexus Credit Union | 4.95% APY | 24 Months | $1.00 |
| Idabel National Bank | 4.90% APY | 24 Months | $1.00 |
| Bread Savings | 5.00% APY | 24 Months | $1,500.00 |
3-Year CD Rates
Banks and credit unions have the highest CD rates for 36 months.
| Best 3-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Valley Bank | 5.60% APY | 36 Months | $500.00 |
| Bread Savings | 4.75% APY | 36 Months | $1,500.00 |
| The State Exchange Bank | 4.70% APY | 36 Months | $1.00 |
4-Year CD Rates
The following banks and credit unions have the highest CD rates for 48 months.
| Best 4-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.50% APY | 48 Months | $1,500.00 |
| The State Exchange Bank | 4.50% APY | 48 Months | $1.00 |
| Barclays | 4.45% APY | 48 Months | $0.00 |
5-Year CD Rates
Banks and credit unions have the highest CD rates for 60 months.
| Best 5-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.50% APY | 60 Months | $1,500.00 |
| Barclays | 4.50% APY | 60 Months | $0.00 |
| The State Exchange Bank | 4.35% APY | 60 Months | $1.00 |
Certificates of deposit, or CDs, are savings accounts that pay a fixed interest rate for a set period, usually from one month to five years. CDs offer several benefits, including:
- Guaranteed returns: Just like with fixed annuities, the interest rate on a CD is guaranteed, which can provide peace of mind in uncertain economic times.
- FDIC insurance: CDs are insured by the Federal Deposit Insurance Corporation (FDIC), which provides added security for your investment.
- Flexibility: CDs come in various terms, so you can choose the length best fits your savings goals and time horizon.
However, CDs also have some drawbacks, including:
- Lack of liquidity: Early withdrawal from a CD may result in a penalty, reducing your returns.
- Limited earning potential: CDs typically offer lower interest rates than other investments, such as stocks or bonds.
Comparing the Best Fixed Annuity Rates in Tennessee with the Best CD Rates in Tennessee
When comparing the best-fixed annuity rates in Tennessee with the best CD rates in Tennessee, there are several key factors to consider:
- Guaranteed income: Fixed annuities offer a guaranteed interest rate or a guaranteed income stream, while CDs offer only a guaranteed rate of return.
- Liquidity: Fixed annuities have limited liquidity, while CDs offer more flexibility.
- Taxation: Fixed annuities offer tax-deferred growth, while CDs are taxed annually.
Next Steps
In summary, Tennessee residents have several options for the future regarding saving money. Fixed annuities and certificates of deposit are both great options that offer low-risk investment opportunities. However, each has its benefits and drawbacks, so it’s essential to research before deciding which one is best for you. If you’re ever unsure, consider talking to a financial advisor who can help you make an informed decision.
Planning can help ensure bright financial prospects in years to come. If our advice has been helpful, or you’d like to discuss more concrete steps toward financial planning, don’t hesitate to reach out and contact us for a quote. We provide personalized advice tailored specifically to each individual’s goals, allowing us to provide the best options available. Thank you for reading, and we hope we’ve provided some helpful information!
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