{"id":300,"date":"2025-07-21T10:02:04","date_gmt":"2025-07-21T10:02:04","guid":{"rendered":"https:\/\/wernikovlaptu.com\/?p=300"},"modified":"2025-07-21T13:05:55","modified_gmt":"2025-07-21T13:05:55","slug":"cd-rates-today-july-21-2025-take-home-up-to-4-94","status":"publish","type":"post","link":"https:\/\/wernikovlaptu.com\/index.php\/2025\/07\/21\/cd-rates-today-july-21-2025-take-home-up-to-4-94\/","title":{"rendered":"CD Rates Today: July 21, 2025 \u2013 Take Home Up To 4.94%"},"content":{"rendered":"<div class=\"key-takeaways-wrapper\">\n<h2 class=\"key-takeaways-wrapper__title\">Key Takeaways<\/h2>\n<div class=\"key-takeaways-content block-contents\">\n<ul>\n<li>Today&#8217;s highest CD rate is 4.94% for a jumbo 6-month CD.<\/li>\n<li>CD rates from online banks are commonly twice as high as the national average rates.<\/li>\n<li>CD ladders let you leverage high rates without locking up all of your money long-term.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<p>The best interest rates on CDs (certificates of deposit) currently top out at 4.94%, depending on the term. Here&#8217;s a look at how CD rates are trending, along with an overview of the best rates for various terms.<\/p>\n<div id=\"embed-ui-widget-iframe-687e2bd6e943b-container\" style=\"width:100%;overflow:hidden\" data-ecom-container=\"{&quot;componentTitle&quot;:&quot;&quot;,&quot;componentType&quot;:&quot;Embed UI Widget&quot;}\"><\/div>\n<h2 class=\"wp-block-heading\">Highest CD Rates Today by Term<\/h2>\n<p>!function(){&#8220;use strict&#8221;;window.addEventListener(&#8220;message&#8221;,(function(a){if(void 0!==a.data[&#8220;datawrapper-height&#8221;]){var e=document.querySelectorAll(&#8220;iframe&#8221;);for(var t in a.data[&#8220;datawrapper-height&#8221;])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[&quot;datawrapper-height&quot;][t]+&quot;px&quot;;e[r].style.height=i}}}))}(); <\/p>\n<p>A CD is a specific type of <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;savings account&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>savings account<\/a><\/span> (known as a time deposit account) that comes with a fixed interest rate and a maturity period. CDs, depending on the yield, typically offer better yields than high-yield savings accounts. The tradeoff is that you can&#8217;t access your cash until the CD matures, otherwise you&#8217;ll owe a withdrawal fee. The longer the term, the harsher the early withdrawal penalty. It&#8217;s not unusual to <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;lose one full year&#039;s worth of interest or more&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>lose one full year&#8217;s worth of interest or more<\/a><\/span> if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.<\/p>\n<h2 class=\"wp-block-heading\">Average CD Rates<\/h2>\n<p>!function(){&#8220;use strict&#8221;;window.addEventListener(&#8220;message&#8221;,(function(a){if(void 0!==a.data[&#8220;datawrapper-height&#8221;]){var e=document.querySelectorAll(&#8220;iframe&#8221;);for(var t in a.data[&#8220;datawrapper-height&#8221;])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[&quot;datawrapper-height&quot;][t]+&quot;px&quot;;e[r].style.height=i}}}))}(); <\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 3-Month CD Rates<\/h2>\n<p><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Three-month CDs&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Three-month CDs<\/a><\/span> are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.3%, but the highest rate is 4.62%. The average rate is unchanged from a week ago.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 6-Month CD Rates<\/h2>\n<p>A <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;six-month CD&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>six-month CD<\/a><\/span> offers a nice blend of high yields and short-term time commitment, and the highest yield you can find is 4.94%, about the same as last week. The current average <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;APR&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>APR<\/a><\/span> for a six-month CD is 1.76%.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 1-Year CD Rates<\/h2>\n<p>The highest interest rate currently available on a 12-month CD\u2014one of the most popular CD terms\u2014is 4.64%. If you discover a rate in that vicinity, you&#8217;ve found a good deal. That rate hasn&#8217;t changed much since last week.<\/p>\n<p>The average APY, or annual percentage yield, on a one-year CD is now 1.84%, unchanged from a week ago.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 2-Year CD Rates<\/h2>\n<p>If you can hold out for two years, <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;24-month CDs&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>24-month CDs<\/a><\/span> today are being offered at interest rates as high as 4.52%. That&#8217;s the same as this time last week.<\/p>\n<p>The average APY for the CD is 1.64%, flat to last week&#8217;s average.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 3-Year CD Rates<\/h2>\n<p>Today, the highest rate on a <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;three-year CD&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>three-year CD<\/a><\/span> stands at 4.26%, so you&#8217;ll want to shop around for that rate or something near it. The average APY is 1.57%.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s 5-Year CD Rates<\/h2>\n<p>The highest rate available today for a <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;five-year CD&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>five-year CD<\/a><\/span> is 4.26%. The average APY is 1.58%, similar to last week.<\/p>\n<p>If you opt for a five-year CD, make sure you&#8217;re aware of the early withdrawal penalty. It&#8217;s not unusual to <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;lose one full year&#039;s worth of interest or more&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>lose one full year&#8217;s worth of interest or more<\/a><\/span> if you break open a five-year CD before it matures.<\/p>\n<h2 class=\"wp-block-heading\">Today&#8217;s Jumbo CD Rates<\/h2>\n<p>The best rate today on <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;jumbo CDs&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>jumbo CDs<\/a><\/span> is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.81%.<\/p>\n<p>Most jumbo CDs require a minimum deposit of $100,000\u2014and some even require $250,000. However, there&#8217;s no universally agreed-upon definition regarding what qualifies as a &#8220;jumbo&#8221; CD. Some banks and credit unions slap the label &#8220;jumbo&#8221; on CDs you can open with $50,000, $25,000 or even less.<\/p>\n<h2 class=\"wp-block-heading\">Other Top CD Rates by Term<\/h2>\n<ul>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best 4-Year CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best 4-Year CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best 10-Year CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best 10-Year CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best 18-Month CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best 18-Month CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best Jumbo CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best Jumbo CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best IRA CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best IRA CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Best No-Penalty CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Best No-Penalty CD Rates<\/a><\/span><\/li>\n<\/ul>\n<p><strong>Related:<\/strong> <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;CD Interest Rates Forecast: How Good Will They Get?&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>CD Interest Rates Forecast: How Good Will They Get?<\/a><\/span><\/p>\n<h2 class=\"wp-block-heading\">Best CD Rates Offered by Banks in July 2025<\/h2>\n<p>Digital banks tend to have an edge over traditional outfits thanks to lower overhead costs and the need to offer top-of-market yields to attract new customers.<\/p>\n<p>Take Chase Bank (traditional), Capital One (hybrid) and Synchrony Bank (online).<\/p>\n<ul>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Chase Bank CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Chase Bank CD Rates<\/a><\/span> range from 0.02% to 4.00%<\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Capital One 360 CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Capital One 360 CD Rates<\/a><\/span> range from 3.50% to 4.00%<\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Synchrony Bank CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Synchrony Bank CD Rates<\/a><\/span> range from 0.25% to 4.15%<\/li>\n<\/ul>\n<p>Be sure to compare a few options with the types of banks you&#8217;re most comfortable with.<\/p>\n<p>Other top CD rates by banks include:<\/p>\n<ul>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;PNC Bank CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>PNC Bank CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Citibank CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Citibank CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Wells Fargo CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Wells Fargo CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Truist CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Truist CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Ally Bank CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Ally Bank CD Rates<\/a><\/span><\/li>\n<li><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Capital One 360 CD Rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Capital One 360 CD Rates<\/a><\/span><\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">How Do CDs Work?<\/h2>\n<p><span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;Opening a CD account&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>Opening a CD account<\/a><\/span> requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements, ranging from a few hundred to several thousand dollars.<\/p>\n<p>Once your account is open, your principal starts earning the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you&#8217;ve earned.<\/p>\n<p>Since the goal is to let your money grow, avoid tapping your cash before the term expires. Doing so will result in an early withdrawal penalty in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties.<\/p>\n<h2 class=\"wp-block-heading\">Are CD Rates Worth It?<\/h2>\n<p>If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;best high-yield savings accounts&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>best high-yield savings accounts<\/a><\/span> and <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;best money market accounts&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>best money market accounts<\/a><\/span>. You will have to do without the money for as long as the term lasts; otherwise you&#8217;ll owe an early withdrawal penalty.<\/p>\n<p>Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?<\/p>\n<p>The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going &#8220;poof&#8221; over the course of a year. Not a happy thought, is it?<\/p>\n<p>CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don&#8217;t need immediately, while stocks provide solid long-term returns. You don&#8217;t want to risk cash you&#8217;re depending on.<\/p>\n<p>The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;National Credit Union Administration&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>National Credit Union Administration<\/a><\/span> insures your money up to the same limit.<\/p>\n<div class=\"blockquote blockquote-wrapper block-contents\">\n<p>CD rates generally fluctuate the most following the Federal Reserve&#8217;s decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets.<\/p>\n<\/div>\n<p><strong>Related:<\/strong> <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;CD Interest Rates Forecast: How Good Will They Get?&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>CD Interest Rates Forecast: How Good Will They Get?<\/a><\/span><\/p>\n<h2 class=\"wp-block-heading\">Methodology<\/h2>\n<p>Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student\/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.<\/p>\n<h2 class=\"faq-title\" id=\"\">\n\tFrequently Asked Questions (FAQs)<br \/>\n<\/h2>\n<div class=\"main-faqs\">\n<div class=\"faqs\">\n<div class=\"faq-question\">\n<div class=\"plus-minus\"><\/div>\n<h3 class=\"question-text\">How do you build a CD ladder?<\/h3>\n<\/div>\n<div class=\"faq-answer wysiwyg-content\">\n<p>You build a <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;CD ladder&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>CD ladder<\/a><\/span> by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.<\/p>\n<p>Follow this plan and you&#8217;ll have one better-yielding five-year CD maturing each year. If you&#8217;re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.<\/p>\n<p>Comparison shop to track down the <span data-ecom-container=\"{&quot;componentTitle&quot;:&quot;best CD rates&quot;,&quot;componentType&quot;:&quot;Incontent Link&quot;}\"><a>best CD rates<\/a><\/span>. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.<\/p>\n<\/div>\n<\/div>\n<div class=\"faqs\">\n<div class=\"faq-question\">\n<div class=\"plus-minus\"><\/div>\n<h3 class=\"question-text\">Do CDs cost anything?<\/h3>\n<\/div>\n<div class=\"faq-answer wysiwyg-content\">\n<p>CDs usually come with zero fees, meaning your money won&#8217;t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.<\/p>\n<p>You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won&#8217;t need access to your cash in the meantime.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Today&#8217;s highest CD rate is 4.94% for a jumbo 6-month CD. CD rates from online banks are commonly twice as high as the national average rates. CD ladders let you leverage high rates without locking up all of your money long-term. The best interest rates on CDs (certificates of deposit) currently top out at 4.94%, depending on the term. Here&#8217;s a look at how CD rates are trending, along with an overview of the best rates for various terms. Highest CD Rates Today by Term !function(){&#8220;use strict&#8221;;window.addEventListener(&#8220;message&#8221;,(function(a){if(void 0!==a.data[&#8220;datawrapper-height&#8221;]){var e=document.querySelectorAll(&#8220;iframe&#8221;);for(var t in a.data[&#8220;datawrapper-height&#8221;])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[&quot;datawrapper-height&quot;][t]+&quot;px&quot;;e[r].style.height=i}}}))}(); A CD is a specific type of savings account (known as a time deposit account) that comes with a fixed interest rate and a maturity period. CDs, depending on the yield, typically offer better yields than high-yield savings accounts. The tradeoff is that you can&#8217;t access your cash until the CD matures, otherwise you&#8217;ll owe a withdrawal fee. The longer the term, the harsher the early withdrawal penalty. It&#8217;s not unusual to lose one full year&#8217;s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment. Average CD Rates !function(){&#8220;use strict&#8221;;window.addEventListener(&#8220;message&#8221;,(function(a){if(void 0!==a.data[&#8220;datawrapper-height&#8221;]){var e=document.querySelectorAll(&#8220;iframe&#8221;);for(var t in a.data[&#8220;datawrapper-height&#8221;])for(var r=0;r&lt;e.length;r++)if(e[r].contentWindow===a.source){var i=a.data[&quot;datawrapper-height&quot;][t]+&quot;px&quot;;e[r].style.height=i}}}))}(); Today&#8217;s 3-Month CD Rates Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.3%, but the highest rate is 4.62%. The average rate is unchanged from a week ago. Today&#8217;s 6-Month CD Rates A six-month CD offers a nice blend of high yields and short-term time commitment, and the highest yield you can find is 4.94%, about the same as last week. The current average APR for a six-month CD is 1.76%. Today&#8217;s 1-Year CD Rates The highest interest rate currently available on a 12-month CD\u2014one of the most popular CD terms\u2014is 4.64%. If you discover a rate in that vicinity, you&#8217;ve found a good deal. That rate hasn&#8217;t changed much since last week. The average APY, or annual percentage yield, on a one-year CD is now 1.84%, unchanged from a week ago. Today&#8217;s 2-Year CD Rates If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 4.52%. That&#8217;s the same as this time last week. The average APY for the CD is 1.64%, flat to last week&#8217;s average. Today&#8217;s 3-Year CD Rates Today, the highest rate on a three-year CD stands at 4.26%, so you&#8217;ll want to shop around for that rate or something near it. The average APY is 1.57%. Today&#8217;s 5-Year CD Rates The highest rate available today for a five-year CD is 4.26%. The average APY is 1.58%, similar to last week. If you opt for a five-year CD, make sure you&#8217;re aware of the early withdrawal penalty. It&#8217;s not unusual to lose one full year&#8217;s worth of interest or more if you break open a five-year CD before it matures. Today&#8217;s Jumbo CD Rates The best rate today on jumbo CDs is 4.94% for a 6-month term. As with non-jumbo, various term lengths are available. The average APY for the 6-month CD is currently 1.81%. Most jumbo CDs require a minimum deposit of $100,000\u2014and some even require $250,000. However, there&#8217;s no universally agreed-upon definition regarding what qualifies as a &#8220;jumbo&#8221; CD. Some banks and credit unions slap the label &#8220;jumbo&#8221; on CDs you can open with $50,000, $25,000 or even less. Other Top CD Rates by Term Best 4-Year CD Rates Best 10-Year CD Rates Best 18-Month CD Rates Best Jumbo CD Rates Best IRA CD Rates Best No-Penalty CD Rates Related: CD Interest Rates Forecast: How Good Will They Get? Best CD Rates Offered by Banks in July 2025 Digital banks tend to have an edge over traditional outfits thanks to lower overhead costs and the need to offer top-of-market yields to attract new customers. Take Chase Bank (traditional), Capital One (hybrid) and Synchrony Bank (online). Chase Bank CD Rates range from 0.02% to 4.00% Capital One 360 CD Rates range from 3.50% to 4.00% Synchrony Bank CD Rates range from 0.25% to 4.15% Be sure to compare a few options with the types of banks you&#8217;re most comfortable with. Other top CD rates by banks include: PNC Bank CD Rates Citibank CD Rates Wells Fargo CD Rates Truist CD Rates Ally Bank CD Rates Capital One 360 CD Rates How Do CDs Work? Opening a CD account requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements, ranging from a few hundred to several thousand dollars. Once your account is open, your principal starts earning the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you&#8217;ve earned. Since the goal is to let your money grow, avoid tapping your cash before the term expires. Doing so will result in an early withdrawal penalty in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties. Are CD Rates Worth It? If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you&#8217;ll owe an early withdrawal penalty. Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle? The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going &#8220;poof&#8221; over the course of a year. Not a happy thought, is it? CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don&#8217;t need immediately, while stocks provide solid long-term returns. You don&#8217;t want to risk cash you&#8217;re depending on. The Federal Deposit Insurance Corp. provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the National Credit Union Administration insures your money up to the same limit. CD rates generally fluctuate the most following the Federal Reserve&#8217;s decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets. Related: CD Interest Rates Forecast: How Good Will They Get? Methodology Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student\/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation. Frequently Asked Questions (FAQs) How do you build a CD ladder? You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, you might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD. Follow this plan and you&#8217;ll have one better-yielding five-year CD maturing each year. If you&#8217;re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD. Comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate. Do CDs cost anything? CDs usually come with zero fees, meaning your money won&#8217;t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts. You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won&#8217;t need access to your cash in the meantime.<\/p>\n","protected":false},"author":1,"featured_media":299,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/300"}],"collection":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/comments?post=300"}],"version-history":[{"count":1,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/300\/revisions"}],"predecessor-version":[{"id":301,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/posts\/300\/revisions\/301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/media\/299"}],"wp:attachment":[{"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/media?parent=300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/categories?post=300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wernikovlaptu.com\/index.php\/wp-json\/wp\/v2\/tags?post=300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}