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5 CDs That Earn 5% APY or More Right Now

Locking in a CD with a great APY can help ensure you’re maximizing today’s high rates

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Continued as Federal Reserve Raise interest ratesSavers are in a great position Increase their savings balance with interest

when High Yield Savings Account Ideal option for savers who want to build one emergency fund or contribute over time, Certificate of Deposit (CD) Offer the opportunity to keep and lock your existing savings into an account Today’s great rate Long term, without worrying about future interest rate falls.

This is because CDs require you to deposit the entire balance upfront to lock in your interest rate Account Term (which usually ranges from a minimum of three months to 10 years). If you choose to withdraw your funds before the end of the term, you will usually face a penalty that can wipe out a portion (or all) of your interest earnings.

Today, many Top CD rates Around 4.00% to 4.50% or higher – although some offer upwards of 5.00% APY. Below, we’ve rounded up some of the top-yielding CDs to consider if you’re looking to increase interest on your savings.

Check out your CD options here to discover how much more you can earn.

5 CDs earning at least 5% APY

If you’re looking for the best rates on CDs today, you might want to stay tuned Short term CD option. When rates are low (and likely to rise) some banks may offer their best rates on long-term CDs lasting three to five years. But today, with rates already high, the sweet spot for the best rates is typically six-month to one-year CD terms — like the CDs on our list.

It’s also important to make sure that any financial institution you open a CD with is insured by the FDIC. This insurance protects your balances up to $250,000 per account type per institution Bank failure. Each account listed below is FDIC-insured.

Bread Savings: 5.20% APY, 1 year term

Bread Savings’ one-year CD offers one of the best interest rates on deposits you can get right now. To earn 5.20% APY, you must deposit at least $1,500 when you open your account. There are no maintenance fees for the account. If you withdraw before expiry, you will pay 180 days worth of interest.

If you’re looking for a longer CD term, the two-year CD option from Bread Savings is currently offering 5.00% APY.

Basque Bank: 5.10% APY, 6 month term

Basque Bank’s highest yielding CD has a term of just six months for a 5.10% APY rate. There are no monthly fees but there is a $1,000 minimum to open an account. If you need to withdraw early, you will face a penalty of 90 days worth of interest on the withdrawn amount.

Bask offers a slightly lower 5.00% APY and a one-year CD with the same minimum

CIT Bank: 5.00% APY, 6 months tenure

The six-month CD option from CIT Bank earns 5.00% APY after you deposit at least $1,000 upon opening. There are no fees for keeping the account, but you may incur a 3-month interest penalty for early withdrawals.

Citizen Access: 5.00% APY, 1 year term

For a minimum of $5,000, you can lock in 5.00% APY for one year with Citizen Access. There are no monthly fees on this account but you will pay a 90-day interest penalty on your balance for early withdrawals.

Synchrony Bank: 5.00% APY, 6-month term

Synchrony Bank’s six-month CD option also earns 5.00% APY on your balance. Unlike other banks on our list, there’s no minimum balance requirement, so you can earn this rate no matter how much money you deposit. Synchrony doesn’t charge a maintenance fee, but you’ll be charged a penalty worth 90 days’ worth of interest for early withdrawals.

Compare today’s top CD account rates and start earning more interest!

What to look for on a CD

Interest is one of the main benefits of CDs, but there are other things that can help ensure you’re getting the best value from your account.

That interest is one of knowing exactly how it works.

“When evaluating a CD, be sure to understand how the interest is compounded (monthly, quarterly, semi-annually or annually),” says Steve Schleupner, CFP, founder of U Tree Financial Planning. Time you have to earn interest on it later (in addition to your deposit).

Additionally, account details such as minimum deposit requirements, early withdrawal penalties and how you transfer funds in and out of the account are all important. And when the term expires, you’ll want to know your options for renewal or withdrawal

“If a CD is available, be sure to ask if it automatically renews,” says Schleppner. “It may not be something a saver wants if rates are lower at the end of the term.” If you do not wish to renew, you will generally have the option to decide within a 10-day grace period at the end of your account term.

Learn more about the best CD options available today.

Bottom line

CD is one of them Most economical option To take advantage of today’s high interest rates over the long term. If you’re thinking about putting your money in a CD, check out accounts with the best APYs and terms and minimum values savings goalsSo you can lock your money without penalty.

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