Best Online CD Rates Of 2024
Top Yielding CDs - unbeatable rates and high returns!

Top CD Rates - Secure Your Savings with High Returns
What Is a Certificate of Deposit (CD)?

A Certificate of Deposit (CD) is a type of savings account with a fixed interest rate, typically higher than standard savings accounts, and a set maturity date. CD terms range from three months to five years, locking in your money for the duration. Recently, one-year CDs have offered higher rates than five-year CDs. Most CDs do not have monthly fees but include early withdrawal penalties and do not allow additional deposits after the initial one.

CDs are insured by the FDIC, ensuring your money is safe even if the bank fails.

What You Need to Know About the Best CD Accounts

In a world where savings account interest rates can be underwhelming, CDs offer higher earning potential. But not all CDs are the same. We've curated options that stand out, whether for short-term goals or long-term growth.

In 2024, the CD market is dynamic, with rates surpassing traditional savings methods. Our selections feature CDs with favorable terms, ensuring you not only lock away your money but also reap significant benefits. Discover the best CDs in 2024 and make smart financial decisions with unbeatable rates and terms.

How Do Certificates of Deposit Work?

CDs guarantee a return if you keep your money in the account for a predetermined period. For example, with a 4% APY on a one-year CD, you'll earn 4% interest on your investment if you leave the funds in the CD for the full term. Longer-term CDs typically offer higher rates.

Upon maturity, you can withdraw your principal plus accrued interest, typically with a seven to ten-day grace period. Early withdrawals incur penalties. If not withdrawn, CDs renew automatically at the current APY offered by the bank.

What Types of Certificates of Deposit Are There?

CDs usually have a fixed rate of return and a specified period, but there are various types to choose from:

  • No-penalty CD: Allows early withdrawal without penalty but typically offers lower rates.
  • High-yield CD: Offers higher rates, often from online banks and credit unions.
  • Jumbo CD: Requires a large minimum balance ($100,000) and offers higher rates.
  • IRA CD: A CD within a tax-advantaged individual retirement account.
  • Step-up or bump-up CDs: Allow interest rate increases during the term, either on a set schedule (step-up) or by request (bump-up).
  • Brokered CD: Offered through a brokerage firm.
  • Marcus
    Marcus CD

    Member FDIC

    5.10% APY
    Term Length: 6 Months
    Min. Deposit: $500

    5.15% APY

    Term Length: 1 Year

    Min. Deposit: $500

    at Marcus By Goldman Sachs

    Barclays - CD
    Barclays CD

    Member FDIC

    5.00% APY
    Term Length: 1 Year
    Min. Deposit: $0

    at Barclays

    Synchrony CD

    Member FDIC

    5.15% APY
    Term Length: 13 Months
    Min. Deposit: $0

    at Synchrony

    Discover Bank CD

    Member FDIC

    4.70% APY
    Term Length: 1 Year
    Min. Deposit: $2500

    at Discover Bank

    How To Select The Best Certificate of Deposit

    Set Goals: Determine your financial status and goals before investing in a CD. Ensure you have an emergency fund with three to six months of living expenses in a liquid savings account.

    Choose the Appropriate Term Duration: CD terms range from one month to ten years. Select a term based on when you will need the money for specific goals.

    Look for the Best Rates: Compare rates from different banks, especially online banks, which often offer higher rates due to lower operating costs.

    Select a CD With an Affordable Minimum Deposit: Minimum deposit requirements vary. Choose a CD with a minimum deposit you can afford.

    Confirm Any Early Withdrawal Fees: Understand the penalties for early withdrawal, which can vary greatly depending on the CD term.

    Select the Appropriate CD Type: Consider various CD types, such as no-penalty, high-yield, jumbo, IRA, step-up, bump-up, and brokered CDs, to find one that best suits your needs.

    Choose a Federally Insured Bank or Credit Union: Ensure the institution is covered by the NCUA or FDIC to protect your deposits up to $250,000.

    What Are the Benefits and Drawbacks of a CD?

    Benefits: CDs offer predictability and safety, providing a guaranteed return without the risks associated with stocks and bonds. They are ideal for conservative investors looking for a secure place to grow their savings.

    Drawbacks: CDs generally offer lower returns compared to riskier investments. If the CD's interest rate is lower than the current inflation rate, the real value of your investment may decrease over time.

    The Bottom Line

    If you can lock in your money for a specific period, a CD can be a safe, high-yielding investment. Choose a term you are comfortable with, compare rates, and select a federally insured bank or credit union to get the best value for your money.

    Best Annuity Plans - Maximize Your Retirement Income with the Best Fixed Annuities

    Annuities provide a reliable income stream, ideal for retirement planning. By investing in a lump sum or making regular payments, you secure a series of future payments that can be tailored to your needs. With options like fixed, variable, and immediate or deferred annuities, you can choose the plan that best fits your financial goals.

    Our recommended annuities offer stability and growth, ensuring you enjoy financial security in retirement. Explore these options to find the perfect annuity plan to safeguard your future.

    Frequently Asked Questions (FAQs)