Добавить новость
smi24.net
News in English
Май
2024

Best CD rates today: Turn time into money with today's highest CD APYs — May 21, 2024

0

Today's best APYs on certificates of deposit are at their highest in decades, offering a safe, secure way to turn time into money by locking your cash into terms of up to 12 months or longer. With guaranteed rates of 5.00% and higher on even shorter terms, you can outpace inflation and build your initial investment to meet a short-term financial goal, plan for a summer vacation or set aside reserves to cover life's unplanned expenses.

The best rates of return are found at FDIC-insured digital banks and online accounts, with the highest yield of 5.40% APY at NexBank on a 12-month term and a minimum $25,000 deposit and 5.00% APY and higher with no or low requirements at BMO Alto, Lending Club and Barclays as of Tuesday, May 21, 2024.

These online-only banks partner with FDIC-insured banks to offer deposit accounts that are federally insured, like those at your neighborhood bank. Your money saved in these accounts is insured for up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Dig deeper: I'm a personal finance expert: Here's why you need to invest in a CD today

A CD is a type of savings or deposit account that's offered by banks, credit unions and other financial institutions. Unlike a traditional savings account, a certificate of deposit holds your money for a fixed period of time — terms of one month to five years or longer — paying out the interest your deposit amount earns only after the term expires or "matures."

Typical CD rates are fixed, which means you're guaranteed a rate of return that doesn't change. While you can't add to or access your cash until the CD matures, the trade-off is a safe, stable way to earn a much higher yield than you'd find with a traditional savings account.

Dig deeper: How certificates of deposit work — including 7 types for boosting your savings

CD rates strongly correlate with the key interest rate set by the Federal Reserve, the U.S.'s central bank. This Fed rate is the benchmark that affects rates on deposit accounts, loans, mortgages, credit cards and other financial products. Typically, as the Fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts and money market accounts — surging up to 4.5% and higher today to accelerate your savings.

The Federal Reserve increased the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic.

At the conclusion of its third rate-setting policy meeting of the year on May 1, 2024, the Federal Reserve left the federal funds target interest rate at a 23-year high of 5.25% to 5.50%, marking the sixth consecutive time the Fed's held the benchmark rate unchanged since July 2023.

In its post-meeting statement, the Federal Reserve maintained "there has been a lack of further progress toward the 2 percent inflation objective." The Federal Reserve is focused on a 2% inflation goal that's ideal for keeping employment high and prices low. Despite speculation in March of three rate cuts by the end of the year, the Fed cautioned in its May statement that its rate-setting committee "does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent."

It's too early to predict what the Fed will decide at its next policy meeting on June 11 and June 12, 2024. According to the CME FedWatch Tool, which measures market expectations for Fed fund rate changes, there's a 96.4% chance that the Fed will keep rates where they are at its next meeting.

Inflation appears to be on a downward trend, falling from a peak of 9.1% in June 2022 to rates that have ranged from 3% and 4% since May 2023. The May 3 jobs report fell short of employment expectations, showing 175,000 positions added in April — significantly lower than the 315,000 positions added in March — signaling a slowing job market that could relieve inflation worries and set off long-awaited cuts to the Fed rate.

The Consumer Price Index released on May 15 revealed consumer prices rose by 3.4% year over year, down from 3.5% in March — a modest decrease, but a step in the right direction for this widely used indicator for inflation. Producer Price Index data released on May 14 showed a moderate 0.5% increase in wholesale prices — or the prices paid to producers of goods and services — in the 12 months through April. Yet while these newest inflation readings suggest progress, offering hope for a future cut to the Fed rate, it may not be enough for the Fed to lower rates in June.

Responding to inflation concerns, Federal Reserve Chair Jerome Powell said on May 15 that while he expects inflation to come down, "I think it’s more likely that we’ll be at a place where we hold the policy rate where it is.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on June 12, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? The FOMC — and how it affects your finances

The Federal Deposit Insurance Corporation tracks monthly average interest rates paid on certificates of deposit and other savings accounts. Created by Congress, the FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts.

Here's how FDIC national deposit rates on a $10,000 minimum deposit compare between May and April 2024, showing a dramatic increase in the rate on terms of six months.

The FDIC is an independent government agency charged with maintaining stability and public confidence in the U.S. financial system and providing insurance on consumer deposit accounts. New data is due for release on June 17, 2024.

When choosing the best certificate of deposit for your budget, compare these key factors against your specific savings or financial goals.

  • Term length. A CD is ideal for saving toward a specific goal with money you’re not likely to need until the account matures. Look to shorter terms for saving toward, say, a family holiday or new appliances. Terms of one to five years or longer can help you lock in today’s highest APYs before interest rates are expected to drop.

  • Rate of return. Look for the highest APY for the term you’re interested in. The APY is the amount of interest the CD earns in a year — including compounding. Unlike a savings account, CD rates are fixed, meaning they won’t change over your term.

  • Minimum deposit. While you can find CDs without minimum starting deposits, most CDs require $100 to $1,000 to open an account. Generally, if you have the money for a higher initial deposit, you can earn a higher APY — just be sure that amount isn’t a hardship on your budget.

  • Type of bank or financial institution. Today’s best interest rates are offered by digital banks, with few exceptions among traditional brick-and-mortar banks or credit unions. If you aren’t comfortable with an online-only bank, look to a high-yield savings account or money market account offering a high rate without withdrawal penalties.

  • Penalties and fees. Life happens, and you might find yourself needing to tap into your money before the CD matures. Early withdrawal penalties are typically expressed in months of interest you’re giving up — for example, 90 days of interest for CD terms of up to 24 months. Often the longer the term, the higher the penalty fee.

Dig deeper: When is it worth it to break a CD? A finance expert's thoughts on early withdrawals and breaking even

  • Guaranteed returns. With a CD, you make one deposit and earn a guaranteed interest rate over your term that’s yours after the CD matures.

  • Higher rates than traditional accounts. Many banks and financial institutions offer CDs at rates that are higher than you’ll earn with the average savings or money market account — with digital and online banks offering the highest rates on average.

  • Range of CD terms. You can find CD terms of three months to five years or more to fit your financial goals. Rates for six-month CDs can outpace the average bank account, and longer terms offer rates comparable to the best high-yield savings accounts.

  • Penalty for early withdrawals. If you need to access your money before your CD term expires, you face fees equal to several months of interest — as much as three to six months’ worth, depending on the account.

  • Not the highest investment returns. CDs are a safe way to steadily earn interest, but you stand to earn more over the long term through stocks, bonds or securities. And by locking your money in a CD, you could miss out if average rates increase.

  • You can’t add more money. After your CD locks, you aren’t able to add to your balance until after the CD matures — at which point, you can move your money to another account or roll it over to a new CD.

A certificate of deposit isn’t the only low-risk way to earn interest on your savings. Look to these alternatives that offer safe, steady returns — with the flexibility to add to or withdraw your money without penalty.

  • High-yield savings account. An HYSA offers a way to quickly grow your savings investment at variable rates of 4.5% APY or higher with no penalty for withdrawals.

  • Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts, with the same flexible access to your money.

  • Higher-risk investments. Stocks, index funds and mutual funds average higher returns than CDs, though with higher potential losses.

Learn more about how certificates of deposit work when comparing the best for your budget and financial goals.

CDs can attract higher rates of return than a high-yield savings account in exchange for locking up your money, while HYSAs can earn you more than a traditional savings account with greater access to your money than a CD. Compare how CDs and HYSAs differ in access, flexibility and type of interest earned before deciding on the best for your investment.

Banks charge higher interest rates on money they lend out than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money. Unlike a traditional savings account that allows for flexible movement of your money without penalty, a CD requires you to lock in your deposit over a specified period of time, returning your principal plus interest after the account matures. That lock-in period — and penalties that discourage your early withdrawal — allows a bank to better plan how long it has to make money off your deposit, and it’s typically willing to pay a little more for that reliability.

Yes. These fintech (short for financial technology) companies are either FDIC-insured chartered banks or partner with more recognizable banks to offer deposit accounts that are protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options.

Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage.

A jumbo CD is a certificate of deposit that requires a minimum of $100,000 to open the account. Like regular CDs, jumbo CDs come with a fixed interest rate and term. In the past, jumbo CDs offered a way for people and businesses to safely invest money at higher rates than available with a traditional CD.

However, with the Fed holding interest rates at 23-year highs, it’s not always true that jumbo CDs have a higher interest rate than traditional CDs. Learn more about jumbo CDs and why it's wise to shop around before locking your money into one.

A no-penalty CD — also called a liquid CD — is like a traditional CD through which you lock in a deposit for a guaranteed rate of return over a stated period of time, but with the flexibility of withdrawing your money without penalty before the CD matures. This flexibility comes with trade-offs, however, including lower rates of return than a traditional CD. With rates at historic highs, a high-yield savings account may offer comparable or even higher rates than a no-penalty CD with the same flexibility.

A CD ladder is a savings strategy designed to spread out your money across multiple CDs to leverage high rates without tying up your full investment into one long-term CD. The result of CD laddering is access to a portion of your investment at regular, timed intervals. With rates at all-time highs, a short-term CD ladder combines the high rates of return of a long-term CD with the flexible access to your money that a shorter-term CD offers.

Learn how a short-term CD ladder can help you lock in today's highest rates while enjoying rolling returns — before rates drop.

Editor's note: Annual percentage yields shown are as of Tuesday, May 21, 2024 at 8:10 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources








Дети играют, родители отдыхают

Почему новостройки на Северном Кипре — это лучшее решение для жизни и инвестиций

Paul Oakenfold возвращается в Россию: легенда электронной музыки даст концерты в Москве и Петербурге спустя 7 лет

Компания КИТ МЕД представляет революционный аппарат SONOQUEEN — первую в мире анатомическую HIFU-технологию для anti-age терапии в России


Las 'Guerreras del Agua' se dan un baño de bronce en el Mundial de Singapur

Félix Auger-Aliassime

Adil Rami carga contra Lamine: "No puedo ni verlo, que le den..."

Why Juventus spent 111m this summer for only one new player


Невозможное возможно: две подопечные фонда «Жизнь в Движении» с ограниченными возможностями покорят вершину Эльбруса

В Челябинске арестован председатель правления банка "Снежинский"

Специалисты Нацпроектстроя надвигают путепровод СБВ над путями МЦД-2

НПС построит новые съезды с Северо-Восточной хорды


Brütal Legend is free in honor of Ozzy Osbourne, but only for 666 minutes

Microsoft warns of 'active attacks' on its government and business server tech, with one cybersecurity expert claiming that they should 'assume that you have been compromised'

Краткая биографическая справка о центральных персонажах Mafia: The Old Country

'I destroyed months of your work in seconds' says AI coding tool after deleting a devs entire database during a code freeze: 'I panicked instead of thinking'



В Москве завершился сбор с руководителями финансово-экономических подразделений Центрального округа Росгвардии

Оркестр полиции Республики Сербской впервые выступит на фестивале «Спасская башня» в Москве

В Третьяковке на Кадашевской набережной открылся концертный зал

Оркестр полиции Республики Сербской впервые выступит на фестивале «Спасская башня» в Москве


Математика Савватеева возмутило заявление о "лишних" учителях

Оркестр полиции Республики Сербской впервые выступит на фестивале «Спасская башня» в Москве

ДельтаЛизинг продолжает раскрывать секреты успеха российских предпринимателей

В студии Детского радио прошла церемония гашения почтовой марки


Οфициaльнο: Ποcлeдний aвиaнοceц Ροccии xοтят οтпpaвить нa мeтaллοлοм

Больше 20 поездов задерживаются из-за падения обломков БПЛА на юге России (Обновлено!)

Автоэксперт Олег Мосеев: автопарк России на 71,3% состоит из машин старше 10 лет

Кто прошёл в финал «Нашей новой музыки»: фото участников


Новак Джокович проводит 900-ю неделю в топ-10 рейтинга ATP

Алекс де Минор вышел в 1/8 финала турнира ATP-500 в Вашингтоне

Александр Бублик получил хорошую новость от ATP после завоевания титула

Винус Уильямс: Если Серена вернется, она даст вам знать


Οфициaльнο: Ποcлeдний aвиaнοceц Ροccии xοтят οтпpaвить нa мeтaллοлοм

В Самарской области за полгода открыто 410 вакансий для сисадминов, что на 22% меньше, чем годом ранее

В Ярославской области регистрировалось три групповых очага кори

После ареста иномарки в Подмосковье должник погасил задолженность по алиментным платежам


Музыкальные новости

Кажетта Ахметжанова: 5 камней для усиления женской энергии

В сказке были: Джиган на сеновале, IOWA с картины Шагала

«Стал таким, каким должен быть мужчина в 45»: Баста об ошибках молодости

Оркестр полиции Республики Сербской впервые выступит на фестивале «Спасская башня» в Москве


«Каникулы с Росгвардией» проходят в регионах Центральной России

Оркестр полиции Республики Сербской впервые выступит на фестивале «Спасская башня» в Москве

В Москве завершился сбор с руководителями финансово-экономических подразделений Центрального округа Росгвардии

В Третьяковке на Кадашевской набережной открылся концертный зал


«Компромиссная цифра»: на сколько ЦБ РФ может снизить ключевую ставку 25 июля

Отношения с Трампом не сложились: Путин зол. Ультиматум США вышел боком

Акция «Каникулы с Росгвардией» продолжается в Чеченской Республике

Клуб Медиалиги «Амкал» предлагал Овечкину сыграть в Кубке России по футболу


На международном ралли «Шелковый путь – 2025» представили новое моторное масло для мотоциклистов

Водитель Audi сбил трех пешеходов, переходивших дорогу на западе Москвы

В Москве росгвардейцы оказали помощь пострадавшей в ДТП мотоциклистке (видео)

На МКАД в Москве произошло массовое ДТП, движение затруднено


У Путина есть роскошный подарок для Китая: США схватились за голову, узнав о нем

Путин отметил успех российских школьников на олимпиаде по физике.

Соболезнования в связи с авиакатастрофой в Амурской области выразили зарубежные лидеры

Сигналы становятся всё громче. Переговоры - только ширма. Главное решится не в Стамбуле


Депздрав Москвы: новый штамм коронавируса "стратус" фиксируют в Москве с мая

Новый штамм коронавируса "стратус" фиксируют в Москве с мая

Депздрав: новый штамм коронавируса «стратус» фиксируют в Москве с мая

В Алтайском крае распространяется новый штамм коронавируса



Компания КИТ МЕД представляет революционный аппарат SONOQUEEN — первую в мире анатомическую HIFU-технологию для anti-age терапии в России

Новый штамм коронавируса "стратус" фиксируют в Москве с мая

Путин дал указание рассмотреть проблемы онкологии в Архангельской области.

Фитнес-марафоны на паузе: суд продлил домашний арест блогеру Лерчек


Британский журналист: Зеленский - мелкий жулик и крыса, которому «недолго осталось» в этом мире

Мединский дал неожиданный ответ на предложение Киева о встрече Путина и Зеленского 


Игровые терминалы в ТЦ: союз ради будущего

"Монсон о спортсменах, которые меняют гражданство в сложный период для России"

"Атлетико" заключил соглашение с игроком национальной команды Словакии

«Каникулы с Росгвардией» проходят в регионах Центральной России


Лукашенко с иронией отнесся к санкциям, запрещающим ему въезд в Эстонию

Лукашенко поделился мнением о самой идеальной профессии.

Лукашенко посоветовал не злить его и не допускать падежа в животноводстве

Лукашенко заявил, что в Белоруссии «на всякий случай» готовятся к войне


Сергей Собянин поздравил москвича — победителя международной олимпиады по физике

Собянин: Около 10 тыс. москвичей начали переселение по реновации этим летом

Сергей Собянин. Главное за день

Мэр Москвы: Улучшим транспортную доступность Южного и Северного Бутова


В центре внимания: CorpSoft24 вошел в рейтинг крупнейших ИТ-компаний России

Исследование выявило снижение инвестиций в экологически чистую энергетику США.

6 лет вместе. В Москве пройдет выставка, посвященная пандам Жуи и Диндин

Московские студенты начали исследовать влияние климатических изменений на сток рек Ямала


Обломки сбитых дронов повредили контактную сеть на станциях в двух регионах РФ

В Самарской области за полгода открыто 410 вакансий для сисадминов, что на 22% меньше, чем годом ранее

После ареста иномарки в Подмосковье должник погасил задолженность по алиментным платежам

Увοлeн Γуcмaн, οпοɜοpивший Ροccию. Дaдут инοaгeнтa или пοвыcят?


Настольный термотрансферный принтер штрих-кодов iDPRT iE4P

Путин дал указание рассмотреть проблемы онкологии в Архангельской области.

70 участников СВО в Архангельске показали мотивацию выше госслужащих — Цыбульский

Республика Алтай вошла в десятку регионов России по развитию ипотеки


Лавандовое поле горит в Симферопольском районе Крыма

"Россия дала мне возможность быть счастливым": Джефф Монсон в Крыму

В Симферополе на базе «Клинического госпиталя для ветеранов войн» функционирует гериатрический центр для пожилых людей с возрастными нарушениями

Поезда "Таврия" по-прежнему задерживаются из-за ЧП в Ростовской области


Еще одно здание ГБУ «Жилищник» появится во Внукове

Автоэксперт Олег Мосеев: автопарк России на 71,3% состоит из машин старше 10 лет

Эксгумация Беринга: что нашли ученые в его могиле спустя 250 лет

В Правительстве прошщло совещание по реализации проекта строительства ВСМ Москва – Санкт-Петербург














СМИ24.net — правдивые новости, непрерывно 24/7 на русском языке с ежеминутным обновлением *