Which CD term earns the best interest rate?

For savers looking to maximize their balance a Certificate of Deposit (CD) Today, one of the first steps Choose word length It is best for their goals.

Because CD charges Penalty for early withdrawal, your CD sound should align with your timeline. If you want to use your balance for a down payment in one year, for example, you don’t want to lock in a five-year CD using that deposit.

But there is another important thing to consider Interest rate you will get From various CD positions. If you have a flexible timeline but want to focus on getting the best possible rate, you may want to start your search with the highest-earning CD terms now.

Find out how much you can earn with today’s best CDs here.

CD terms with the best interest rates

Unlike what was common in the past, short CDs carry the terms The highest interest rate at the moment. Although can offer both six months and one year tenure Above 5.00% APY, many one-year CD terms, in particular, have the highest rates today. Among CDs with these term lengths, you’ll find interest rates around 5.25%, 5.30% or even 5.35% APY.

Here are some of the highest-earning one-year CD rates today:

• Indiana First Internet Bank: 5.48% APY
• Bread storage: 5.35% APY
• Popular direct: 5.35% APY
• Brio Direct: 5.35% APY
• Quantic Bank: 5.30% APY

For example, say you deposit $10,000 into one of these 12-month CDs earning 5.35% APY. When the CD matures, your new balance will be $10,535 and you can use it as you wish penalty-free.

Explore more of the best CD rates available now!

What to know about CDs today

CDs can be a great way for current savers to get the best possible yield on their balances, without any risk. These accounts are FDIC-insured up to a $250,000 balance per bank and per depositor, and interest rates are fixed throughout the term, so you can be sure you’ll lock in the rate you open. The amount you will receive After reaching maturity.

However, today’s rate environment can make your CD selection process more complicated. Some experts recommend locking in Long term CD rates now, as the Fed may be poised to pause interest rate hikes for an extended period before finally starting to cut them again. but Short term CDs Can also be a great choice because they still offer the highest rates you’ll find among low-risk savings options today.

“Because of the inverted yield curve (long-term rates are lower than short-term), it pays to lock in rates in the 1-year to 3-year range,” says Kathy Curtis, CFP, founder of Curtis Financial Planning.

Compared to one-year CDs, some of the top three-year CDs today earn 4.50% to 4.75% APY. You won’t get the same interest rate as a short term, but a long term gives you the opportunity to lock in today’s higher rate for an extended period of time. That can be beneficial If interest rates fall in the near future

“If the Fed succeeds in steering the economy and interest rates into a more stable environment, these short-term yields will come down, so it pays to lock in some higher rates now,” Curtis said.

Bottom line

If you are able to part with your deposit for the required period, Open a CD Today can be a great financial choice. And while a long-term CD rate lock can help you save on higher interest rates for years into the future, they’re not words to watch for the absolute highest rate. Based on competitive offers in the market, you will earn Best APYs Today With one year CD. Before you decide, make sure you compare the different CD terms, rates and account details that work for you. Get started by checking out today’s top rates here