Today’s Best CD Rates: June 14 — Earn Up To 5.75% APY
Boost your savings with Merrick Bank’s 6-month CD, offering a competitive 5.40% APY. With a minimum deposit of $25,000, this account is ideal for those looking to maximize their returns. Let’s dive into today’s top CD rates.
**Key Takeaways:**
– For 3-month CDs, Shoreham Bank leads with a 5.50% APY.
– NexBank offers the highest one-year CD rate at 5.40% APY.
– Current CD rates are above the national average.
**Top CD Rates Today:**
– **3-month:** Highest APY is 5.50% at Shoreham Bank, compared to the national average of 1.28%.
– **6-month:** Merrick Bank offers 5.40% APY, while the national average is 1.80%.
– **1-year:** NexBank provides 5.40% APY, with a national average of 1.96%.
– **18-month:** Notre Dame FCU offers 5.15% APY, compared to the national average of 1.88%.
– **2-year:** Dover FCU has a 5.39% APY, while the national average is 1.71%.
– **3-year:** Farmers Insurance Federal Credit Union offers 5.75% APY, with the national average at 1.62%.
– **4-year:** BMO Alto provides a 4.70% APY, compared to the national average of 1.50%.
– **5-year:** BMO Alto also offers a 4.80% APY, with a national average of 1.62%.
Rates are current as of June 14, 2024.
**Quick Tip:**
Consider inflation-protected CDs, which adjust their rates based on inflation. This can help maintain your savings’ purchasing power over time.
**Top CD Rates from 2010 to 2024:**
CD rates have changed significantly over the past decade. In the early 2010s, rates were low, often below 0.42%, due to the aftermath of the 2008 financial crisis. By the mid-2010s, rates began to rise slightly, reaching around 0.60% by the end of 2019. A significant increase occurred from 2022 onwards, with rates now exceeding 5.00%, driven by the Federal Reserve’s efforts to combat inflation. By December 2023, some banks were offering 12-month CD rates of 5.30% or more. Today, investors can secure much higher returns, emphasizing the importance of timing and market conditions.
**How CDs Work:**
CDs are savings accounts with fixed interest rates and set maturity dates. When you open a CD, you agree not to withdraw your money until the term ends, which can range from a few months to several years. Early withdrawal usually incurs a penalty. CDs offer fixed interest rates, making them predictable and stable investments. They are federally insured, making them a safer option compared to stocks and crypto.
**Pros of Opening a CD:**
– Guaranteed earnings
– Stable interest rates
– Helps prevent impulsive spending
– Insured up to $250,000
– Generally free from monthly maintenance fees
**Cons of Opening a CD:**
– Penalties for early withdrawal
– Fixed rates might miss out on higher future rates
– Potentially lower returns compared to other investments
– Automatic renewals might lock you into new terms
– Minimum deposit requirements can be high
**Are CD Accounts Worth It?**
CDs are a low-risk way to save for a large future purchase or investment. However, if you want faster returns, a CD might not be the best choice. Always consider your financial goals and consult with a financial advisor.
**Methodology:**
GOBankingRates helps you navigate your finances by analyzing deposit rates from banks and credit unions nationwide. We identify the best rates based on annual percentage yield, ensuring institutions listed are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.