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What is a good CD interest rate?

CDs offer significantly higher interest rates than conventional savings accounts.

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in recent times Increase in interest rates Hitting potential home buyers, as well as homeowners looking to refinance, the news isn’t all bad. Because Fed activity, its advantages High yield savings And Certificate of Deposit (CD) Accounts grew rapidly.

Both account types come with unique benefits and advantages, many of which are particularly attractive in today’s economic climate. Many account holders may be looking for any edge they can get and considering that the average savings account interest rate is around 0.33%, they are not getting the help they need by keeping their money untouched.

luckily, A certificate of deposit account Can help protect and grow your money, assuming your interest rate is favorable. To get the most value from these types of accounts, it helps to first understand what a good CD interest rate is

You can easily check today’s CD interest rates to see if it makes sense for you, or use the table below to explore some local options.

What is a good CD interest rate?

As with interest rates on savings and high-yield savings accounts, the higher the interest rate, the better. Compare what CDs are currently offering with what you can get with a regular savings account to determine what a “good” rate is.

Savings accounts are currently around 0.33% while interest rates on CDs are around 3.5% to 4.5% or more depending on the lender and other factors. This makes now a great time to open a certificate of deposit account. Simply put: If you’re not putting some money away in a CD or other high-interest account, you’re leaving money on the table.

Just make sure to shop before signing on the dotted line. By researching all viable options you will improve your chances of securing the highest rate out there. But don’t forget to look at the fine print. Some banks may charge you fees or penalties that can potentially eat into your interest rate. It can be the difference between a lender that offers a higher rate and one that offers a lower rate with no fees.

Explore your CD options online now to see how much more you can earn

Know the benefits of CDs

High interest rate is not the only benefit certificate of deposit account offers. Here are two other major benefits anyone considering a CD should know:

  • Lock in your rate: You may be able to earn more interest with a high-yield savings account or some other savings vehicle, but this will likely only be temporary. That’s because interest rates on high-yield savings accounts aren’t locked in and will go up or down based on market and Fed activity. A CD doesn’t work that way – the interest rate you secure when you open the account will be honored throughout the term of the CD. So don’t worry about market movements, with a CD your money will earn interest no matter what happens in the market.
  • Protects your money by: A CD will not only protect you from an adverse rate environment, it will also protect your policy by locking in your money for the entire term. Account holders will not be able to access the money unless they are willing to pay a penalty to get it. So, if you have trouble saving money, a CD might be worth it. The amount you deposit at the end of the term will be the same amount (regardless of how much interest you have accrued).

Explore your CD options now to get started!

Bottom line

Those looking to both protect and grow their money should strongly consider opening a CD. These types of accounts currently offer exponentially higher interest rates than traditional savings accounts. But the benefits don’t end there. They are also reliable because the interest rate you get when you sign up will be the interest rate throughout the life of the CD. And since you won’t be able to access it without penalty, you can rest assured that your money is safe (and growing) without a hitch.

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