Today’s Best CD Rates: June 25 — Earn Up To 5.75% APY
One of the quickest ways to grow your money is by letting it earn for you instead of you working for it. If you prefer not to take high risks with investments like stocks or bonds, a high-yield savings product is a solid alternative. Certificates of deposit (CDs) are a great way to invest your money and know exactly how much you’ll have at the end of the term.
If you’re looking for something beyond a standard high-yield savings account, consider a CD. A standout option today is BMO Alto’s 5-year CD, which offers an impressive 4.80% APY with no minimum opening deposit required. This makes it an excellent choice for those wanting to grow their money securely.
When searching for CDs with high annual percentage yields (APYs), ensure the interest is worth the time your money is tied up. Remember, you can’t access your funds before the CD matures without paying a fee. Fortunately, many CD offerings at local banks or credit unions are above the national average.
Here are the top CD rates available today:
– **3-month:** 1.28% national average APY, 5.50% highest APY at Shoreham Bank
– **6-month:** 1.81% national average APY, 5.40% highest APY at Merrick Bank
– **1-year:** 1.97% national average APY, 5.40% highest APY at NexBank
– **18-month:** 1.90% national average APY, 5.15% highest APY at Notre Dame FCU
– **2-year:** 1.71% national average APY, 5.39% highest APY at Dover FCU
– **3-year:** 1.62% national average APY, 5.75% highest APY at Farmers Insurance Federal Credit Union
– **4-year:** 1.50% national average APY, 4.70% highest APY at BMO Alto
– **5-year:** 1.62% national average APY, 4.80% highest APY at BMO Alto
These rates are current as of June 25, 2024.
CD rates have changed a lot over the past decade. In the early 2010s, rates were low, reflecting the aftermath of the 2008 financial crisis, with banks offering CD rates below 0.42%. By the mid-2010s, rates started to rise but remained modest, barely crossing 0.60% for longer-term CDs by the end of 2019. From 2022 onwards, rates surged, with the best CD rates now exceeding 5.00% due to the Federal Reserve’s response to inflation and economic conditions. By December 2023, some banks offered rates of 5.30% or more on 12-month CDs. Today, investors can secure much higher returns on CDs than they could a few years ago.
Some of the best CD rates today include Shoreham Bank’s 3-month CD at 5.50% APY and NexBank’s 1-year CD at 5.40% APY.
CDs are a type of savings account with a fixed interest rate and a set maturity date. You agree not to withdraw your money until the term ends, which can range from a few months to several years. If you withdraw early, you’ll likely pay a penalty. Here are some key points:
– CDs offer fixed interest rates for the term, making them a predictable investment.
– Common CD terms include 3, 6, 12, and 18 months.
– CDs at banks or credit unions are federally insured (FDIC for banks, NCUA for credit unions), protecting your money up to $250,000 per depositor.
There are various types of CDs available:
– **No-penalty CD:** Allows you to access your funds before maturity without a penalty.
– **Fixed-rate CD:** Offers a set interest rate for the term.
– **Brokered CD:** Purchased through a brokerage firm rather than a bank or credit union.
– **Promotional CD:** Offers a higher-than-normal APY for a limited time or atypical term length to attract new customers and deposits.