Investing in a certificate of deposit might be a step in the right direction if you’re feeling like your basic savings account interest rate just isn’t high enough. In exchange for higher interest, the bank or credit union will hold onto your money for longer, and if you withdraw money prematurely, you will be subject to additional charges. You want to find the CD rate with a high yield to maximize the amount of money you are getting. Fixed CD rates are available and excellent options for those who are looking to save up to meet their retirement funds goal. There are various options for your CD, so we’ve put together a short list of the top 5 CD rates to help you out!
Source: Trak.in
1. Synchrony Bank
1 year certificate of deposit
$2,000 minimum balance for APY
1.25% APY
2. BBVA Compass
1 year certificate of deposit
$500 minimum balance for APY
1.25% APY
3. Sallie Mae Bank
1 year certificate of deposit
$2,500 minimum balance for APY
1.25% APY
4. CIT Bank
1 year certificate of deposit
$1,000 minimum balance for APY
1.22% APY
5. First Internet Bank
1 year certificate of deposit
$1,000 minimum balance for APY
1.21% APY
Terms To Know
The vocabulary thrown around can be overwhelming and confusing if you’re not too familiar with it, but let’s break down the most commonly used terms:
- Early withdrawal penalties: A fee is charged if you take out your money before the CD reaches it’s full maturity. The fee is highly variable, but it isn’t recommended for those to invest in a certificate of deposit if they expect they will need to withdraw money before the set time.
- Fixed CD rates: The APY remains constant from the time the account is opened until the end of it. This could be considered an advantage or a disadvantage. Other rates may fluctuate.
Sourced from: Nerdwallet
Featured image: Thinkstock/KevinAlexanderGeorge