Best Cash Cow Cd Rates (2024)

FAQs

What is the highest paying CD rate right now? ›

The best CD rate right now is 5.35% APY from DR Bank for a 6-month term. That APY is nearly three times the FDIC's national average rate of 1.82% on a 6-month term and is one of 15 or more top-ranked offers you can find in our best CD rankings below.1 The best CD rates range from 5.20% APY to 5.35% APY.

FAQ: 6% CD rates

No banks are currently paying 6% APY on a CD. However, you can find some credit unions offering 6% CD rates. You can also get 5% CD rates at some banks or use alternative savings approaches, such as a high-yield savings account or money market account, to maximize the return on your investment.

While there aren't any financial institutions paying 7% on a CD right now, there are other banks and credit unions that pay high CD rates. Compare today's top CD and savings rates.

See how we rate banking products to write unbiased product reviews. A 7% interest savings account is hard to come by. The only institution we found offering such a high rate is Landmark Credit Union.

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

Higher interest rates

A $500 deposit into a CD with 5.5% APY would only grow to $527.50 over 12 months. But a $1,000 deposit would grow to $1,055, and a $5,000 deposit would increase to $5,275.00. That's almost $300 more earned simply by moving your money out of one account and into another.

The cons of CDs

With a savings account, the money is easily accessible in case of a financial emergency or a change in spending priorities. With CDs, you typically can't withdraw the money whenever you want—at least not without paying a penalty.

Which bank gives 8% interest? ›

What are the current CD rates at Chase Bank? The current rate for a standard CD at Chase is 0.01% APY, no matter the term or balance. However, relationship rates range from 0.02% to 4.25% APY, depending on the term and balance.

5 tips for keeping your money in CDs insured

Stay at or under $250,000. Ensure your CD deposit and the expected interest will total less than the $250,000 limit. Open CDs at different banks or credit unions. This approach might take more work, but you can utilize CDs at different rates and terms.

Since jumbo CDs require a much higher minimum deposit, banks and credit unions typically reward savers with higher interest rates than for smaller accounts. Longer terms also earn higher interest rates.

Yes, you may be able to negotiate rates on jumbo CDs depending on how much you deposit, the term and the financial institution offering the CD. It doesn't hurt to attempt to negotiate a better interest rate for your jumbo CD.

In summary, a certificate of deposit gives you steady and safe returns. Investing $15,000 in a CD could lead to substantial gains, regardless of the CD's length. However, make sure you won't need that money while the CD is active because withdrawing early usually incurs hefty penalties.

By June 1980, CD rates dropped to 8.49%, but the Fed would soon raise rates again to try to curb inflation. CD rates reached a historical high of 18.65% in December 1980. As inflation continued and unemployment rose, the country faced a major recession from July 1981 to November 1982.