Today’s Best CD Rates From 423 Banks And Credit Unions (Up To 4.80% APY)

Shawn Plummer

CEO, The Annuity Expert

Compare the best CD rates today (September 2022) from 423 local banks, online banks, and credit unions across the United States. Learn how to earn up to 4.80% a year with liquidity guaranteed.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings ranging from 3 months to 10 years, all in one place.

The Best CD Rates At Banks and Credit Unions

Compare and sort certificates of deposit rates by term, including 3-month, 6-month, 1-year, 2-year, and 5-years.

Disclaimer: Interest rates change daily, and we’re doing our best to keep you updated. Please double-check with your bank or credit union!

Highest Guaranteed Interest Rates

Fixed annuities work almost identically to CDs but offer more benefits to you. Compare current cd rates with today’s highest fixed annuity rates.

TermCompany/BankCDAnnuity
12 MonthsSaveBetter3.00%N/A
14 MonthsSallie Mae (No-Penalty)3.05%N/A
24 MonthsAmerico Fixed Annuity3.55%
36 MonthsCanvas Annuity4.60%
48 MonthsOxford Fixed Annuity4.30%
60 MonthsCanvas Annuity4.60%
72 MonthsOceanview Annuity4.80%

Disclaimer: This is a review. These banks and credit unions are not affiliated with The Annuity Expert. On the other hand, fixed annuities may be purchased at most financial institutions in their local branches. Our objective is to assist you in obtaining the best possible interest rates for your retirement funds.

The Best 3-Month CD Rates

The following banks and credit unions have the highest CD rates for three months.

Best 3-Month CD RatesRateTermMinimum
Synchrony Bank1.50% APY3 Months$0.00
Popular Direct1.75% APY3 Months$10,000.00
TIAA Bank0.90% APY3 Months$1,000.00
TotalDirect Bank2.00% APY3 Months$25,000.00
Bethpage Federal Credit Union1.75% APY3 Months$50.00
Merrick Bank2.25% APY3 Months$25,000.00
Chevron Federal Credit Union2.15% APY3 Months$500.00
Spectrum Federal Credit Union2.15% APY3 Months$500.00

The Best 6-Month CD Rates

The following banks and credit unions have the highest CD rates for six months.

Best 6-Month CD RatesRateTermMinimum
CommunityWide FCU3.00% APY6 Months$1.000.00
Quontic Bank1.70% APY6 Months$500.00
PenFed Credit Union1.50% APY6 Months$1,000.00
NASA Federal Credit Union3.55% APY9 Months$1,000.00
Synchrony Bank2.00% APY6 Months$0.01
Live Oak Bank2.50% APY6 Months$2,500.00
First Internet Bank of Indiana2.43% APY6 Months$1,000.00
Popular Direct2.35% APY6 Months$10,000.00
Merrrick Bank3.10% APY9 Months$25,000.00

The Best 1-Year CD Rates

The following banks and credit unions have the highest CD rates for 12 months.

Best 12-Month CD RatesRateTermMinimum
CommunityWide FCU3.00% APY12 Months$1,000.00
Bread Savings3.00% APY12 Months$1,500.00
First National Bank of America2.90% APY12 Months$1,000.00
PenFed Credit Union2.75% APY12 Months$1,000.00
Marcus by Goldman Sachs3.00% APY12 Months$500.00
Popular Direct3.00% APY12 Months$10,000.00
Synchrony Bank2.75% APY12 Months$0.00
Alliant Credit Union2.90% APY12 Months$1,000.00
LendingClub Bank3.00% APY12 Months$2,500.00
Merrick Bank3.60% APY12 Months$25,000.00
Merchants Bank of Indiana3.56% APY12 Months$1,000.00
Connexus Credit Union3.51% APY12 Months$5,000.00

The Best 2-Year CD Rates

The following banks and credit unions have the highest CD rates for 24 months.

Best 2-Year CD RatesRateTermMinimum
Bread Savings3.50% APY24 Months$1,500.00
Synchrony Bank3.00% APY24 Months$0.01
First National Bank of America3.05% APY24 Months$1,000.00
Pentagon Federal Credit Union3.10% APY24 Months$1,000.00
Marcus by Goldman Sachs3.10% APY24 Months$500.00
ConnectOne Bank3.60% APY23 Months$500.00
Merrick Bank3.70% APY24 Months$25,000.00
Quorum Federal Credit Union3.60% APY24 Months$1,000.00

The Best 3-Year CD Rates

The following banks and credit unions have the highest CD rates for 36 months.

Best 3-Year CD RatesRateTermMinimum
Quontic Bank3.00% APY36 Months$500.00
Bread Savings3.55% APY36 Months$1,500.00
Pentagon Federal Credit Union3.25% APY36 Months$1,000.00
Synchrony Bank3.10% APY36 Months$0.01%
First National Bank of America3.15% APY36 Months$1,000.00
Marcus by Goldman Sachs3.15% APY36 Months$500.00
Limelight Bank3.30% APY36 Months$1,000.00
Alliant Credit Union3.15% APY36 Months$1,000.00
Quorum Federal Credit Union4.00% APY30 Months$1,000.00
Merrick Bank3.75% APY36 Months$25,000.00
Connexus Credit Union3.61% APY36 Months$5,000.00

The Best 4-Year CD Rates

The following banks and credit unions have the highest CD rates for 48 months.

Best 4-Year CD RatesRateTermMinimum
Bread Savings3.60% APY48 Months$1,500.00
NASA Federal Credit Union3.85% APY49 Months$10,000.00
PenFed Credit Union3.00% APY48 Months$1,000.00
Synchrony Bank3.10% APY48 Months$0.01
First National Bank of America3.25% APY48 Months$1,000.00
Marcus by Goldman Sachs3.20% APY48 Months$500.00
Merrick Bank3.75% APY48 Months$25,000.00

The Best 5-Year CD Rates

The following banks and credit unions have the highest CD rates for 60 months.

Best 5-Year CD RatesRateTermMinimum
Bread Savings3.65% APY60 Months$1,500.00
Popular Direct3.40% APY60 Months$10,000.00
Synchrony Bank3.50% APY60 Months$0.00
PenFed Credit Union3.25% APY60 Months$1,000.00
Connexus Credit Union3.01% APY60 Months$5,000.00
First National Bank of America3.30% APY60 Months$1,000.00
Marcus by Goldman Sachs3.30% APY60 Months$500.00
Alliant Credit Union3.35% APY60 Months$1,000.00
MYSB Direct3.75% APY60 Months$500.00
Merrick Bank3.75% APY60 Months$25,000.00
KS State Bank3.70% APY60 Months$500.00

The Best 10-Year CD Rates

These credit unions and banks have the highest payouts on 10-year CDs.

Best 10-Year CD RatesRateTermMinimum
Apple Federal Credit Union2.50% APY120 Months$500.00
Credit Human2.70% APY120 Months$500.00
Discover Bank2.90% APY120 Months$2,5000
EmigrantDirect.com2.00% APY120 Months$1,000
MySavingsDirect2.00% APY120 Months$1,000
Vio Bank2.00% APY120 Months$500

Certificates Of Deposit Vs. Fixed Annuity

The Top Fixed Annuities

Fixed annuities offer a guaranteed return for a set amount of years, similar to a CD. Guaranteed crediting rates for the terms below:

  • 2-YEAR TERM: 3.55%
  • 3-YEAR TERM: 4.60%
  • 4-YEAR TERM: 4.25%
  • 5-YEAR TERM: 4.80%
  • 6-YEAR TERM: 4.60%
  • 7-YEAR TERM: 4.60%
  • Grow your money as fast as possible
  • Principal protection
  • The interest rate is locked for the term you select
  • Tax-deferred growth
  • Withdraw annually without penalty
  • Lump-sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between A Fixed Annuity And A CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 4.80%Up to 3.50%
Triple CompoundingYesNo
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured but have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations in each state where they do business. Each state insurance guarantee association protects consumers in the unlikely event the insurance company fails and defaults on its obligations to its consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

Which Deposit Accounts Offers The Best Bank Rates?

What Is A Certificate Of Deposit (CD)?

What is a CD in banking? A certificate of deposit (CD) is a deposit account you can get at banks and credit unions and earn a fixed interest rate. You invest the CD funds for a fixed number of months and can’t take the money out until the maturity date is completed; otherwise, a CD early withdrawal penalty will be applied.

The longer the period or amount of time you commit to keeping your money locked up, the higher the certificate rate. When selecting the best rate for your objectives, consider other elements such as a minimum deposit to open and early withdrawal penalties that might reduce your profits.

Typical terms on CDs range from three, six, nine, twelve, twenty-four, thirty-six, forty-eight, and sixty months.

A minimum deposit requirement is standard when buying a CD. The amount of your initial deposit also dictates the certificate of deposit interest rates.

If you want to get competitive rates, make sure that your CD account’s term is extended. Longer-term CDs mean higher rates. Sometimes rates are increased by how large the initial deposit is too.

There is a penalty if you take your money out of a CD account before it matures. However, early withdrawal penalties can often offset any interest earned and some of the principal investment.

Certificates are a guaranteed way to keep money safe. The deposit money is federally insured for up to $250,000 at banks by the Federal Deposit Insurance Corporation (FDIC) and a federal credit union by the National Credit Union Administration (NCUA). In addition, certificates don’t decrease in value when bad things happen with markets.

How Does A Certificate Of Deposit (CD) Work?

A CD in banking is a lot like a federal credit union or a bank’s high-yield savings account. You put money in it, and then you earn interest every month. After that, the interest compounds, growing your principal at a set rate (annual percentage yields) until the term length has been completed. When the term is completed, the account will automatically renew if it’s not liquidated or transferred to a new certificate.

For example, if I put $500 in a CD for five years at a rate of 1.20% annual percentage yield (APY), my ending balance at the end of 60 months would be $530.73.

CD holders can get a higher rate (also known as an annual percentage yield or “APY”) because the bank and credit union knows how long you will use your money.

The credit union or bank will charge you if you take out your money. Traditional and online CD accounts are designed to hold money for a fixed period. They have a term, and when the term ends, you can take out the money without being charged.

You get the money back that you put in, plus any interest. The bank and credit union will usually contact you before your CD accounts mature to tell you when they will mature.

Once the certificate matures, you can decide whether to take your money out, renew the current CD term, or transfer it to another. You will have a limited time for this decision, called a grace period.

What Is The Purpose Of Certificates Of Deposit?

A certificate of deposit, or CD, is a type of savings account that offers a fixed interest rate for a set period of time. Banks and credit unions issue CDs and typically have terms ranging from six months to five years. When a CD matures, the customer can choose to cash out the account or roll it over into a new CD account with a different term. One of the main reasons people choose to invest in CDs is safety.

Unlike stocks or mutual funds, CDs are not subject to market fluctuations, meaning there is little loss risk. In addition, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, making them one of the safest investment options available.

CDs also tend to offer higher interest rates than traditional savings accounts, which can help customers grow their money more quickly. For these reasons, CDs are often an appealing option for people looking for a safe and sound way to invest their money.

When Is A Good Time To Buy A CD?

It is essential to have financial stability before getting a CD. That’s because you might have to pay a lot if you take out your money before the CD account matures.

A fixed-rate CD account is a good product for people who don’t like surprises and want to know their rate of return in advance. Because they are low-risk investments, CDs usually have a reputation for being more risk-averse savers. But people of different ages can benefit from investing some cash into a CD.

CDs can be a good investment if you want to protect your money. This means that you don’t want the value of your money to go down, but you also want a better return than what you would get from a savings account.

CDs are a step above savings accounts regarding the amount of risk involved. They offer a higher return than a savings account but are less risky than bonds.

Certificates (CDs) can be an excellent way to save money for short-term savings goals, like saving up for a down payment on a new house or car. However, if you don’t want to spend the money you save prematurely, tying it up in a CD for one or two years could be an excellent way to ensure that doesn’t happen.

But if you use CD deposits to build wealth over time, it won’t work in your favor. This is because, historically, inflation has risen over time, reducing the purchasing power of money-earning a yield below the inflation rate.

For this reason, retirees shouldn’t put all their money on CDs.

CD rates went down after the Fed lowered its rates in 2020. But in 2022, CD rates have been mostly the same, with a few banks changing their rates occasionally. These changes haven’t caused CD rates to increase very much. However, the Fed is expected to increase rates several times in 2022, which may increase CD rates at certain banks.

How To Decide Which Term To Select?

There are different types of CDs with different terms. Of course, the longer the term, the higher your yield. But it is essential to consider more than just the yield when choosing a CD term. You need to consider your financial needs and what is happening in the current interest rate environment.

Consider how soon you’ll need the cashback. Consider whether you’ll require the funds for purchase within a year, and opt for shorter durations such as 3, 6, 9, or 12 months. Keep in mind that fixed-rate CDs come with hefty early withdrawal penalties.

Consider the state of the interest rate when selecting a CD term. In an improving rate environment, investing in shorter terms might help you take advantage of current rates and reinvest at a later date.

Types Of CDs

To meet various financial needs, several banks provide an extensive range of CDs. Take some time to evaluate the different types of CDs available to you.

Traditional CDs

This type of CD has a guaranteed rate for the length of the CD. You cannot add any more money to this CD after opening it. You may have to pay the penalty if you withdraw your money before the CD matures.

No-Penalty CDs

No-penalty CDs allow you to withdraw your money without paying the penalty. However, the bank may require a waiting period before withdrawing the money, usually around six or seven days. Typically, you can’t add money to no-penalty CDs. No-penalty CD rates are usually lower than regular CD rates but can be higher than some high-yield savings or money market accounts.

Jumbo CDs

These high-yield CDs are products that require a minimum deposit of $100,000 or more. They aren’t as common as they used to be, but some banks still offer them. Usually, you can find the same or even higher APYs in other CD products. But some jumbo certificates have a higher yield for people who deposit more money.

Brokered CDs

CDs sold through brokerage firms are called a “brokered CD” To buy one of these certificates, you need to have a brokerage account with a financial institution. Brokered CDs sometimes offer higher interest rates than traditional certificates from your local bank, but they also carry more risk. This is because they can be traded like bonds; if you decide to sell before the maturity date, you could take a loss. Therefore, it’s essential to make sure these banks are FDIC-insured.

Callable CDs

Callable CDs are riskier than traditional CDs but offer higher interest rates. This is because the bank that issued the CD can “call” your CD before it fully matures. This means that the bank can take back these specialty CDs early, and you might not earn all the interest you expected. You would still get your entire principal and all the interest earned; however, you would need to reinvest your money at a lower rate.

Bump-up CDs

With a bump-up CD, you can request a rate increase for the remainder of the term. The disadvantage is that bump-up CDs often pay lower initial rates than traditional CDs.

Step-up CDs

Step-up CDs are like bump-up CDs, but the bank will automatically increase the rate at certain times. So you don’t have to do anything. The disadvantage is that you usually start with a lower rate. So you might not make more money than if you had put your money in a traditional CD with a higher rate.

Add-on CDs

Add-on CDs let you make multiple deposits during the term. The number of deposits you can make varies depending on the institution.

Zero-coupon CDs

Zero-coupon CDs are when you buy a CD for less than it is worth. Then, when the CD term is done, you get the total value of the CD. They’re like zero-coupon bonds, but they are usually for people who want to invest for an extended period.

IRA CDs

An IRA CD is a CD that you can put money into for your retirement. This type of CD offers guaranteed returns. A traditional IRA doesn’t charge taxes on the money you make from the CD until you take the money out. As a result, IRA CD rates are typically the same as standard CD rates.

What Is A CD Ladder?

A CD ladder is a long-term investment strategy in which you hold short-term CDs with staggered maturity dates. This enables you to benefit from continuous reinvestment opportunities and also allows you to take advantage of higher interest rates as they become available. At the same time, you are guaranteed not to lose any capital that was initially invested since each CD matures and rolls into another CD. Using a CD ladder, you can maximize your return on investment while minimizing risk, making it the ideal solution for anyone looking for an innovative and steady way to grow their savings over time.

Jumbo CDs Vs. Regular CDs

Regarding certificates (CDs), there are two main types: jumbo CDs and regular CDs.

  • Jumbo CDs typically have a higher minimum deposit than regular CDs but offer higher interest rates. For example, a jumbo CD with a $100,000 minimum deposit might offer an annual percentage yield (APY) of 2.25%. On the other hand, a regular CD with a $1,000 minimum deposit might only offer an APY of 1%. As such, jumbo certificates can be a good choice for investors looking to maximize their returns.
  • However, it’s important to remember that jumbo CDs typically have longer terms than regular CDs, so your money will be tied up for longer.
  • Additionally, early withdrawal penalties on jumbo CDs are often more severe than on regular CDs. Therefore, it’s essential to consider all the factors before deciding which type of CD is right for you.

Does It Make Sense To Buy CDs When Interest Rates Are So Low?

Many people wonder whether buying CDs makes sense in today’s low-interest-rate environment. After all, with low rates, you’re not going to earn much interest. However, there are still a few good reasons to consider buying CDs.

  • First, they can be a great way to park your money if you’re worried about market volatility. Second, CDs are FDIC-insured, so you know your money is safe, and they offer a fixed rate of return, which can be helpful in uncertain times.
  • Secondly, CDs can be an excellent way to ladder your investments. By spreading your money across CDs with different maturity dates, you can ensure that you always have some money due, so you can reinvest at higher rates when rates eventually start to rise.

For these reasons, buying CDs can still make sense for some investors, even in a low-interest-rate environment.

What Causes CD Rates To Rise?

CD interest rates are influenced by various factors, including the yields on Treasurys, competition among banks, deposits’ desire to be secured, and the ability to lend money at a higher rate. As a result, if Treasury yields rise, some banks will probably increase their CD rates.

CD rates generally rise when the Federal Reserve raises the federal funds rate. The federal funds rate is the interest rate at which banks lend money to each other overnight, and it serves as a benchmark for other short-term interest rates like CD rates. So when the federal funds rate goes up, deposit rates follow suit. However, many other factors can also influence CD rates, so it’s essential to keep an eye on the overall economic environment and how market conditions may affect your particular financial institution.

CDs And Taxes

Yes, you will have to pay taxes on the interest earned from a CD that contains non-qualified money. This is because you have already paid income taxes on that money. However, if the money is in a traditional IRA certificate, you will not have to pay income taxes until you withdraw the money. That’s because traditional IRAs are tax-deferred accounts.

In some cases, you can deduct your CD contributions from your taxes. For example, if you can contribute to a traditional IRA certificate, you may get a full or partial deduction. Your income, marital status, and whether a retirement plan at work covers you are some things that will determine if you can get an IRA deduction.

The Internal Revenue Service says that interest earned from CDs is an example of taxable interest. If you earn more than $10 in interest, you will get a form called 1099-INT or 1099-OID. You must report all taxable and tax-exempt interest on your federal income tax return, even if you don’t receive a 1099 form. Interest may also be called dividends.

If you had never taxed the funds from a 401(k) when transferring them to a traditional IRA CD, those funds would be counted as income if you withdraw them.

Pros And Cons

  • The annual percentage yield (APY) on long-term CDs is typically higher than that of money market accounts or savings accounts (although the difference isn’t always significant).
  • CDs may be a fantastic way to keep the money you don’t want to touch and spend.
  • Deposit insurance protects you against the costs associated with bank failure, up to a maximum of $250,000. Your money at an NCUA credit union is federally insured to at least $250,000.
  • With a set rate, you may diversify your savings plan.
  • Your principal is safe if you leave your money in a CD for the entire term.
  • Your assets are in a savings account for the potential duration of several years.
  • Some CDs come with hefty penalties if you withdraw money early.
  • If rates climb significantly, you’ll be locked into a less-yielding CD. Moreover, the early withdrawal penalty may negate any advantage of withdrawing the cash and putting it in a higher-yielding CD.
  • You might make greater returns in the stock market or by investing in other securities.
  • Fixed annuity rates offer higher rates than any CD.

Certificates Vs. Savings

Certificates of deposit are bank accounts with a guaranteed interest rate for a set term. You have to keep your money invested in the CD until the end of that term; otherwise, you may need to pay the penalty if you withdraw it early.

Traditional savings accounts are a type of bank account that usually earns little interest. At the same time, certificates offer higher interest but require a minimum opening deposit, and account owners must maintain a minimum balance.

Use our compound interest calculator to compare the compounding growth.

CD Or Money Market

A market account is a type of bank account (closer to checking accounts) that pays a higher rate than a savings account.

Money markets prevail if you’re looking for the best option for money available to withdraw. The significant difference between standard savings and market accounts is that the latter have checks and debit cards.

A money market certificate is a great place to save your liquid assets at a bank or credit union while also earning interest. Then, put away enough for the long term, like retirement or college savings, and still have access to your total balance with no early withdrawal penalties.

Most money market rates are variable, not fixed, meaning the rate can change.

CD Or IRA

CD Vs. IRA: Which one is the better investment for you? When comparing a CD to an IRA, the answer depends on various factors, including your age, investment goals, and risk tolerance. For example, an IRA allows you to grow your money tax-deferred if you’re younger and just starting to save for retirement. This means you won’t have to pay taxes on your gains until you withdraw the money in retirement. This can be a significant advantage if you expect to be in a higher tax bracket when you retire.

On the other hand, if you’re closer to retirement and looking for a place to park your money where it will earn a guaranteed rate of return, a CD may be the better choice. This is because CDs typically offer higher bank interest rates than savings accounts and are backed by the full faith and credit of the U.S. government, making them a safe investment.

What Is A Variable-Rate Certificate Of Deposit?

A variable-rate certificate of deposit (CD) is an investment account that offers a higher interest rate than a traditional CD. The interest rate on a variable rate CD can change over time, depending on the market conditions. Unlike a traditional CD, which has a fixed interest rate for the duration of the account, a variable rate CD typically has an introductory interest rate lower than the current market rates. After the introductory period, the interest rate will increase or decrease depending on the market’s direction.

Can certificates of deposit lose value? A variable-rate CD can be a good choice for investors willing to take on more risk. However, it is essential to remember that the interest rate can go down and up, so there is potential for losses and gains.

How Many Certificates Can I Have At One Time?

There’s no limit to the number of CDs you can own, but there are a few things to keep in mind if you consider opening more than one.

  • First, each CD will have its interest rate and term length, so you’ll need to decide which account offers the best return for your needs.
  • Additionally, some banks may charge fees for having multiple CDs, so it’s always a good idea to check with your financial institution before opening multiple accounts.
  • Finally, remember that you’ll be locked into the interest rate and term length of each CD, so make sure you won’t need access to that money before the account matures.

Owning multiple CDs can be a great option if you’re looking for a safe and low-risk way to grow your savings. Just be sure to do your research before opening multiple accounts.

Should You Have CDs At Multiple Banks?

There is no question that CDs are a safe investment option, but the best way to maximize their benefits is by spreading your assets across multiple banks.

  • Having funds spread out allows you to leverage different interest rates to earn more money over time. It also gives you more control over your assets since you can access each account independently.
  • Furthermore, having CDs at different banks can help protect your financial security, making your funds less vulnerable if one bank should experience a problem such as fraud or significant financial instability.

Overall, there are many good reasons to have CDs at multiple banks, making this a practical and prudent choice for anyone looking to build up their savings.

How Much Money Can You Put In A Certificate?

There is no simple answer to the question of how much money you can put into a cd. The amount will depend on several factors, including the type of CD you choose, the terms of your deposit, and the bank or financial institution where you open the account. For example, some CDs are designed to hold more significant amounts of money than others, and some banks offer higher interest rates or better terms for certain types of deposits. Ultimately, it is up to you to decide how much money you want to keep in savings and how much risk you are willing to take on with an investment product.

What Is The Difference Between A Bank CD And A Credit Union CD?

At their core, bank CDs and credit union CD accounts are both investment vehicles designed to help you grow your savings over time. In addition, they both offer fixed interest rates, guaranteeing that you will earn a certain amount of interest on your CD balance throughout its lifespan. However, critical differences between these CD accounts are essential when making investment decisions.

Credit union CD accounts typically offer higher rates of return than bank CD accounts, as they are not subject to the exact fees and regulations of commercial banks. Credit unions also typically offer more flexible terms and conditions, including the ability to withdraw funds early in certain circumstances. Ultimately, choosing between a bank CD or a credit union CD will depend on your specific investment goals and priorities. But with careful research and consideration, you can find the proper account to help you meet your financial goals.

What Is A CD Interest Calculator?

CD interest rate calculator is a tool that helps investors to determine how much interest they will receive from a certificate of deposit (CD). This calculator considers various factors, such as the initial investment amount, additional contributions over time, and the length of the CD. In addition, it also considers factors like compounding rates and current market rates.

To use the calculator, you will need to input the following information: the principal amount, the interest rate, and the term of the CD. The calculator will then use this information to determine the total interest that will be earned over the term of the CD. In addition, the calculator will also provide a breakdown of how much interest will be earned each year.

Are Certificates Good Protection For A Bear Market?

One way to protect your investments during a bear market is to invest in certificates of deposit (CDs). CDs are low-risk investments that offer a fixed rate of return over a set period of time. Unlike stocks and other securities, the value of a CD is not affected by market conditions. As a result, CDs can provide a measure of stability during periods of market turmoil. In addition, CDs typically have higher interest rates than savings accounts, making them an attractive option for investors looking to preserve their capital. While CDs may not offer the same potential for growth as other investments, they can be a valuable tool for protecting your portfolio during a bear market.

What Do Beneficiaries Inherit From A Certificate Of Deposit?

When the account holder dies, the beneficiaries typically inherit the CD. Beneficiaries typically inherit the principal amount of the CD, as well as any accrued interest. In some cases, the bank may require that the beneficiaries keep the CD for the remainder of its term. In other cases, the beneficiaries may be able to access the funds immediately. Either way, inheriting a CD can be a valuable windfall for beneficiaries.

Helpful Tip: Shop life insurance quotes to provide an affordable tax-free death benefit that will not break your bank account.

How To Open A CD Account

A CD account is a great way to save money and earn extra interest. Here’s how to open one:

  1. First, find a bank or credit union that offers CDs. Then, shop around and compare rates to find the best deal.
  2. Once you’ve found the right bank or credit union, the next step is to open an account. This can usually be done online, over the phone, or in person.
  3. You’ll need to make an initial deposit when you open the account. The amount required will vary depending on the financial institution, but it’s typically between $500 and $1,000.
  4. Once your account is open, you’ll need to decide how long you want to keep your money locked up. CD terms typically range from three months to five years. Of course, the longer the term, the higher the interest rate.
  5. Finally, read the account details to understand the penalties for withdrawing your money early. For example, you’ll forfeit some of the interest with most CDs if you cash out before the term expires.

By following these steps, you can open a CD account and start saving for your future today.

How To Cash Out A CD

How long does it take to cash out a CD? First, wait for your bank, credit union, or other financial institution to send you a letter about the CD’s maturity. This generally occurs two to three weeks before the CD’s maturity date. The letter will inform you of the date when your CD will mature and how much the accrued interest will be.

At maturity, you’ll have a few options for what to do with your money. You can choose any or all of these:

  • Withdraw the money and close the account
  • Keep the money in the account and let it continue to grow
  • Withdraw some of the money and leave the rest to continue growing

If you don’t take action, your CD will automatically renew itself. You’ll keep the same interest rate and terms for another term. The terms on most CDs are fixed, so you’ll know exactly how much to expect at maturity.

If you do not wish to renew your CD, make sure that you take some action before the maturity date. Your bank or credit union will likely only mail renewal paperwork a week or two before maturity. They may charge an early withdrawal fee if you withdraw your money early.

It’s important to remember the following points when deciding what to do with your CD:

  • Don’t take out all of your money at maturity. Leaving some in the account and letting it grow is a great way to keep earning interest consistently. Consider setting up an automatic transfer to reinvest the money in another CD.
  • Having your money on hand is not necessarily better. For example, if you withdraw your money before maturity and leave it sitting in a regular savings account, you may lose out on more interest than if you had kept that amount invested in a CD through its entire term.

Conclusion

The average fixed rates on certificates are low, but they are slowly inching their way up. To get the best return on your investment, it’s essential to compare CD rates from various financial institutions. You may also want to consider investing in a fixed annuity, which can offer you returns as high as 4%. If you have money saved in an IRA or 401(k), you may be able to use that money to purchase a fixed annuity as well. Again, requesting a quote is the best way to find out how much you could potentially earn with this type of investment.

Cd Rates

Frequently Asked Questions

Which banks have the best rates?

Online banks and credit unions offer some of the most competitive CD yields (including their online savings account), especially compared to national averages.

Are CDs safe?

Yes, because certificates are savings accounts, not investment accounts. State and national banks, online banks, and federal credit unions insure your money in CD savings up to $250,000 per person.

Are bank rates going up?

The Federal Reserve cut rates in March 2020, encouraging banks, online banks, and federal credit unions to lower their savings rates. As a result, the most competitive CD account rates have fallen dramatically since then but are increasing in 2022.

CDs or high-yield savings accounts?

It depends on what is more important to the account holders. Savings accounts or a high-yield certificate deposit? Some competitive CD rates are higher than other savings account rates, but you don’t get to take out your money.

When should you buy a CD?

CDs can be an excellent way to save money for a short-term goal, like buying a car or house in the next few years. But they are not good if you want to invest your money and grow it because traditional CDs pay very little interest.

Are CDs FDIC insured?

CD stands for Certificate of Deposit, not to be confused with a Compact Disc.

What are alternatives to CDs?

Fixed annuities are the direct CD alternative. Their similarities are that they both are high-yield savings products that earn interest, protect your investment, and avoid probate if set correctly. The difference between regular CDs and fixed annuities is that CD’s interest is taxed annually. In contrast, a fixed annuity offers tax-deferred growth, these savings vehicles do not provide liquidity to withdraw income, and fixed annuities do. Finally, a fixed annuity can provide a guaranteed income for life, and a CD can not. The minimum deposit to open is much lower with certificates as well.

Are CD APYs going up in 2022?

An online-only bank typically offers higher interest rates on CDs than national brick-and-mortar banks. Likewise, credit union tends to offer higher rates than banks. Online bank rates went down in 2020, but they probably won’t decrease much more in 2022 because they need to pay higher rates to compete with large banks like Wells Fargo or Bank of America.

What are the best CD rates going on right now?

Charles Schwab has terms between 3 and 12 months, with an APY of 0.45% to 1.45%. Edward Jones has terms between 3 months and five years, with an APY of 0.40% to 2.65%. First, CommunityWide has terms between 6 months and five years, with an APY of 0.80% to 1.20%.

What is the average 5-year deposit rate?

As of September 2022, the national average APY (annual percentage yield) on a 5-year CD is 2.25% and 4.60% on a 5-year fixed annuity – depending on your risk aversion, one may be more appropriate than the other.

Why are deposit rates so low now?

Guaranteed rates are based on the Federal Reserve’s rate, which has been zero since March 2020.

What is the highest CD rate in history?

The best bank cd rates were prevalent more than 30 years ago, with an 18.65% return on three-month CDs in 1980, according to the Federal Reserve Bank of St. Louis data. At one point, consumers could buy 6% CD rates.

How much does a $10,000 CD make in a year?

You will earn $150 in interest if you invest $10,000 for five years at a 0.30% annual yield (APY).

Which credit union has the highest CD interest rates today?

CommunityWide Credit Union offers 1.20% APY with a $1,000 minimum deposit to open. PENFED Credit Union offers a 1.80% APY with a $1,000 minimum deposit. Navy Federal Credit Union offers a 0.95% APY with a $1,000 minimum deposit.

Are Bank CDs worth it?

Bank CDs are safe investments that are federally insured. CDs have no risk of losing money, except if you withdraw early.

Will deposit rates ever go up?

Rate increases could surge in the future, but how much interest will likely depend on two major factors: if inflation gets higher and interest rates increase.

What is better, a CD or IRA?

The main difference between IRA and regular CDs is that they offer tax advantages. In terms of security, the rate on an IRA CD is not determined by fluctuations in the market, so it’s safer.

What is the average CD rate now?

The average one-year CD has a rate of 0.17%, the average 5-year CD has a rate of 0.31%, and the average 1-year CD is at 0.19%. Thus, the typical certificate of deposit rate for a 5-year CD range from 0.32% to .79%.

Can you open a CD online?

You can open an account online or in person, depending on your bank.

What are CD Relationship rates?

A relationship rate CD refers to an increased rate for those with an account with the institution. Relationship CDs offer better benefits than other CDs as well.

Do credit unions have better rates than most banks?

Credit unions pay higher rates on certificate accounts than banks since they can do so without the need to maximize profits for outside shareholders. State-chartered credit unions tend to have higher deposit rates than federally chartered credit unions.

How safe are online CDs?

Is it safe to open a CD account online? An online CD is as safe as any other CD and offers the same FDIC insurance. In addition, online banking usually provides customer support by phone, but CD options are only available over an online platform rather than in a branch setting like traditional banks. Ally Bank, Synchrony Bank, and Marcus by Goldman Sachs high yield accounts are the most popular online institutions.

How much does a 10-year CD pay?

Today’s most competitive rates for 10-year CDs are around 0.70 percent annual percentage yield or lower. So you’re likely to get a higher yield by investing in shorter-term CDs or fixed annuities.

Are CDs safe if the market crashes?

CDs are a safe investment. They can provide stable income even when the stock market is doing poorly. When considering CDs or a CD ladder (multiple accounts), always consider having an emergency backup fund for future use.

What is the catch with putting your money into a CD?

Although most CDs have early withdrawal penalties, you can deposit up to $250,000 in a CD and never lose it if your account is with an FDIC-insured bank or NCUA-insured credit union.

What are the disadvantages of a CD?

From a personal finance perspective, the owner of a CD cannot access interest income as easily as someone with a savings account. In addition, withdrawals from a CD before the term come with an up-front early withdrawal penalty. Bank rates are also lower than the rate of inflation.

Is a money market account or CD better?

A money market account may be a better choice if you want a place to park your money and earn a bit of interest with more accessibility. On the other hand, a CD may be a better choice if you want to invest your money for a set period of time and earn a higher interest rate.

What happens to a CD if the bank fails?

The Federal Deposit Insurance Corp (FDIC) protects your accounts if a bank may fail.

Can I transfer my 401k to a CD?

If you want to roll over funds from a 401k into an IRA CD, you must do so within 60 days. This will help avoid paying monthly fees or early withdrawal penalties. If funds are rolled over into IRA, your money is put in what many consider a low-risk account.

Can I move a 401k to a CD without paying taxes?

If you are 59 ½ or older, withdrawing money from your traditional IRA and depositing it into a bank CD will not incur the 10% early withdrawal penalty. However, you must report the withdrawal as income on your annual tax return and pay taxes accordingly.

Can you roll a CD into an IRA?

Your CD may be eligible for an IRA contribution.

Who has the highest 60-Month CD Rate?

As of September 2022, EPCU Financial annual percentage yield (APY) on a 60-month CD is 3.75%.

What will rates be in 2022?

Rates are expected to rise but won’t keep up with inflation.

What is the shortest-term CD you can get?

The shortest term available is a three-month CD. Then, when it matures, you can withdraw the cash or reinvest your existing CD in the long term at a greater rate.

What credit union has the highest CD rates today?

Spectrum FCU, Navy Federal CU, Chevron FCU, CommunityWide FCU, and Lafayette Federal have the highest rates today.

Are there any 2% CDS?

Edward Jones is currently paying slightly over 2 percent for its 3-year, 4-year, and 5-year certificates. Additionally, investors can earn 3 percent for a 3-year and 5-year fixed annuity.

Can you lose money with CDs?

Accounts opened by the typical consumer are low risk and do not lose value because the FDIC ensures them for up to $250,000.

How much would I earn on a 1-year CD?

A one-year CD with a rate of 0.40% APY will earns $40 from twelve months of interest, while a CD with a rate of 0.20% APY earns $20.

Who has the highest 12-month jumbo CD rate?

Charles Schwab currently offers 1.10% APY for 12 months on its certificates.

What is considered a reasonable CD rate?

Terms between 6 months and five years, with an annual percentage yield (APY) of 0.70% to 2.00%, would be reasonable.

Did CD rates go up in 2021?

No. Rates remained at an all-time low with hopes to increase in 2022 through 2023.

What banks pay the most for CDs?

Currently, Chevron is paying 0.50% APY for three months. CommunityWide is paying 0.70% APY for six months. Charles Schwab is paying 1.40% APY for 12 months.

Are CD rates likely to go up or down?

The national average rates are continuing to climb at a faster pace than standard savings account rates. For example, in the first two months of 2022, the average internet savings account rate rose 3.5 basis points.

What is a certificate of deposit, and how does it work?

A certificate of deposit is a type of savings account offered by several financial institutions. When depositors purchase a CD, they agree to leave money on deposit at the bank for a specific time, such as twelve months.

What is the purpose of certificates of deposit?

A certificate of deposit, or CD, is a savings account that pays you a higher interest rate to keep your funds locked up for a specific time.

What happens when a CD matures?

You can get your money back without paying early withdrawal penalties when a certificate of deposit (CD) matures. In addition, since the CD’s term has ended, there are no bank-imposed withdrawal limitations at maturity. As a result, you have complete control over the funds but won’t earn the same interest rate if you buy another CD.

Who offers No-Penalty CD rates?

Marcus by Goldman Sachs, Ally Bank, and CIT Bank are popular institutions that offer CDs without withdrawal penalties.

What’s the difference between APY and interest rate?

Regarding different rates, an annual percentage yield (APY) is more valuable than a fixed interest rate. This is because the APY includes the compounding interest, which the rate does not. Therefore, a higher APY means a higher return for CDs of the same length.

Who has better rates, banks or credit unions?

Credit unions and online banks often offer competitive deposit rates. Credit unions are like nonprofit banks, often offering higher savings rates than traditional banks. Credit unions’ certificates of deposit work the same as at regular banks.

Should I keep my emergency funds in a CD?

No. CDs are meant when you don’t need the money immediately. If you do need the money, consider a high-yield savings account.

Do CDs have fees?

CDs don’t have monthly fees like checking or savings accounts, but they might have a penalty if you withdraw the money before the CD term expires. This early withdrawal penalty is usually several months’ worth of interest, so it’s best to wait to access the funds until after the CD expires. The exception is no-penalty CDs.

Are CD ladders worth it?

You can use a CD laddering strategy if you don’t want to put all your money in one CD and think rising interest rates will keep going up. This is when you have multiple CDs with different terms, like one year, two years, and three years. That way, part of your money is available more often than if you just had a three-year CD. Then, when each certificate matures, you can reinvest in a new one or take the money out.

What are the best 1-year CD rates?

Charles Schwab offers the highest 12-month jumbo CD rates at 1.50% for 12 months.

What are the best 10-year CD rates?

As of September 2022, EPCU Financial offers 3.75% APY on their Certificates. Athene is offering 4.60% APY on their 7-year fixed annuity.

How Do 1-Year CD Rates Work?

When you open a 1-year CD, you agree to leave your money in the account for that entire year. In return, the bank agrees to pay you a set interest rate on your deposit. The interest rate on a 1-year CD is fixed, which means it will not change for the term. However, after the CD matures, the bank may offer you a lower rate if you renew for another term.

What does CD stand for in banking?

CD stands for certificate of deposit.

What is a CD early withdrawal penalty?

You may be charged an early withdrawal fee if you need to access your money before the CD matures. Early withdrawal penalties vary depending on the bank or credit union, but they can typically range from three to six months’ worth of interest. In some cases, the penalty may be equivalent to the entire interest earned on the CD.

How do I withdraw money from a CD account?

There are a few different ways to withdraw money from your CD account. You can typically visit your bank or credit union in person and request a withdrawal, or you may be able to transfer the funds electronically via online banking. Some institutions may also allow you to write a check against your CD balance.

What entity insures share certificates?

The National Credit Union Administration (NCUA) is the federal agency that provides deposit insurance for credit union accounts. Your CD investments are typically protected by up to $250,000 per depositor, per credit union. For more information on NCUA insurance coverage, you can visit their website at www.ncua.gov.

What is a CD loan?

A CD loan is a type of loan that uses your CD as collateral. With personal loans, you can typically borrow up to the total value of your CD, minus any accrued interest. TIn addition, the interest rate on a CD loan is typically lower than that on a personal loan, making it a good option if you need to borrow money but don’t want to give up the interest you’ve earned on your CD. However, it’s essential to be aware of any early withdrawal penalties or other fees associated with breaking a CD loan, as these can cost you more than the benefits you get from taking out the loan in the first place.

Are there CDs for kids?

Yes, many banks and credit unions offer CDs specifically designed for kids. These accounts typically have lower minimum deposit requirements, making them ideal for parents who want to help teach their children about saving money and earning interest. Some CD accounts for kids also come with unique features like matching contributions from the bank or opportunities for kids to win prizes for saving their money.

Are there 20-year CDs?

No, there are currently no 20-year CDs available. However, there are 20-year fixed annuities.

What are the best cd interest rates for three years?

Merrick Bank offers the best three-year rates at 2.85% APY and Connexus Credit Union at 3.25% APY.

What are the best cd rates for one year?

Connexus Credit Union offers the best rates for 1yr. CD rates at 2.26% APY and State Bank of Texas at 2.10% APY.

Are CD IRA rates higher than standard CD rates?

Rates on individual retirement accounts are typically the same.

Where can I get 5 percent interest on my money?

There are no savings accounts that guarantee 5 percent interest on your deposited money. Currently, the highest yield savings account is from Canvas, which offers a 4.60 percent APY (annual percentage yield).

Where can I put my money to earn the most interest?

A fixed annuity account is one option that can offer higher interest rates than any bank savings account, but there are many factors to consider before investing in an annuity.

Where do you put money when CD rates are low?

Short-term fixed annuities and bonds are good options when CD rates are low. You can also ladder your CDs, investing in a series of CDs with different maturity dates so you always have one maturing and can reinvest at higher rates.

*Disclosure: Some of the links in this article may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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