If you're saving money for a big expense, like a down payment on a home, a new car or a wedding, it's important that your savings earns a return that's at least equal to the current inflation rate. If not, you could be losing buying power. Amay be able to help. That's because today's leading CDs offer returns well above the current inflation rate.
However, strong current returns aren't the only reason to invest in these savings vehicles either.for the term of the CD. Moreover, they're safe investments, generally coming with FDIC or NCUA insurance on balances up to $250,000.
Start your journey by comparing top CD rates and earn more today.
What are today's CD interest rates?
Depending on your Bankrate., terms and other details, there's a varying range of CD rates you can qualify for today. The following CD rates are the current national averages for specific terms as of March 1, 2024, according to
- 1-year CD yield: 1.72% APY
- 3-year CD yield: 1.40% APY
- 5-year CD yield: 1.42% APY
These averages look much different from the actual rates available on, though. Here are some of the best CD rates by term today:
- Bask Bank: 5.35% APY
- America First Credit Union: 5.30% APY
- TAB Bank: 5.27% APY
- Alliant Credit Union: 5.40% APY
- Bask Bank: 5.40 APY
- First Internet Bank of Indiana: 5.36% APY
- First Internet Bank of Indiana: 4.76% APY
- Popular Direct: 4.55% APY
- SchoolFirst Credit Union: 4.45% APY
- First Internet Bank of Indiana: 4.61% APY
- SchoolsFirst Federal Credit Union: 4.60% APY
- Popular Direct: 4.45% APY
Want the best CD for your savings? Compare top rates here and start earning more money today!
How to get a good CD rate
Use these strategies to lock in the best CD rate right now.
Look at online banks
There's a big difference between national average savings rates and the top interest rates available. In part, that's because different types of banks often have very different rates.
and online divisions of larger banks have fewer overhead costs to keep up their day-to-day operations, since there are no physical bank branches. Typically these are the banks with rates that have kept up with Fed changes over the past several year. Today, you're most likely to find from online banks.
By contrast,with branches across the country — where you may keep your checking account for convenience and easy access to branches and ATMs — often have lower CD and . Many of these banks' CDs are below average and may even still be close to zero.
Consider short-term CDs
CD terms can range from around one to three months to 10 years. But often,are the best way to get a top rate today.
But the overall economic environment has made it so(around six months to one year) have higher interest rates than longer terms right now. Bankrate's data actually specifies that one-year CD yields have surpassed five-year yields consistently since October 2022.
The phenomenon is called the. "This means rates are highest for short term CDs and treasuries and actually are lower as you go out further in time," says Donald F. Dempsey, CFP, founder of Dempsey Investment Management.
In order to take advantage of those high rates while also saving for the long-term, "A practical approach could be to ladder your CDs," Dempsey says. "Buy some one year, some two years, some three years, etc."
The bottom line
Right now, both CD rates and savings rates in general offer best CD rates available today.. You can take advantage of the opportunity to lock in a great rate with flexible terms to help you reach your savings goals more quickly. Just make sure you compare different banking options and the term lengths that work for you in order to start maximizing your balance with the
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