Current Prime CD Rates: April 30 — Achieve Up To 5.75% APY
Farmers Insurance Federal Credit Union, established in 1936, is now offering a 3-year Variable Rate Certificate with an attractive 5.75% APY. Members can start with a minimum deposit of just $1,000. Keep reading to see more of today’s top CD rates.
### Key Takeaways
– For 3-month CDs, Shoreham Bank has the top rate at 5.50% APY.
– Northern Bank Direct offers the highest one-year CD rate at 5.60% APY.
– CD rates today are above the national average.
### Top CD Rates Today
Here’s a snapshot of the best CD rates currently available:
– **3-month:** 5.50% APY at Shoreham Bank (National Average: 1.25%)
– **6-month:** 5.55% APY at Newtek Bank (National Average: 1.77%)
– **1-year:** 5.60% APY at Northern Bank Direct (National Average: 1.94%)
– **18-month:** 5.30% APY at Credit Human (National Average: 1.82%)
– **2-year:** 5.36% APY at Amboy Direct (National Average: 1.70%)
– **3-year:** 5.75% APY at Farmers Insurance Federal Credit Union (National Average: 1.61%)
– **4-year:** 4.70% APY at Credit Human (National Average: 1.49%)
– **5-year:** 4.55% APY at First Internet Bank (National Average: 1.61%)
*Rates are current as of April 30, 2024.*
### Quick Tip
Consider exploring inflation-protected CDs. Unlike traditional CDs with fixed rates, these adjust according to inflation, helping preserve the purchasing power of your savings.
### Top CD Rates from 2010 to 2024
CD rates have changed a lot over the past decade. In the early 2010s, rates were low due to the 2008 financial crisis, often below 0.42%. Rates slowly increased in the mid-2010s, but stayed modest, barely reaching 0.60% for long-term CDs by the end of 2019. The real change came from 2022 onwards, with rates soaring to over 5.00%, driven by the Federal Reserve’s measures to control inflation. By December 2023, some banks were offering rates of 5.30% or more on 12-month CDs. Today, investors can secure much higher returns compared to just a few years ago, showing the importance of timing and market conditions in maximizing savings.
### 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 results in a penalty. Important points include:
– CDs offer fixed interest rates, providing a predictable investment.
– Common terms include 3, 6, 12, and 18 months.
– CDs at banks are insured by the FDIC, and at credit unions by the NCUA, up to $250,000.
– CDs are safer than stocks and cryptocurrencies, offering a secure place for savings.
### Pros of Opening a CD
– Guaranteed earnings with fixed interest rates.
– Stability, as the interest rate doesn’t change.
– Helps you save more effectively since it’s harder to withdraw funds.
– Federal insurance protection up to $250,000.
– Generally no monthly maintenance fees.
### Cons of Opening a CD
– Penalties for early withdrawal.
– Fixed rates mean you might miss out on higher rates if they rise.
– Lower returns compared to other investments like stocks or real estate.
– Automatic renewal can lock you into a new term if not monitored.
– Minimum deposit requirements can be a barrier for some.
### Are CD Accounts Worth It?
CDs are a low-risk way to save for large purchases or future investments. However, if you’re looking for faster returns, a CD may not be ideal. Always consider your financial goals and consult with a financial advisor to make the best decision.
### Methodology
GOBankingRates helps you navigate your finances by analyzing deposit rates from banks and credit unions with nationwide availability, focusing on annual percentage yield. Only institutions insured by the FDIC or the National Credit Union Share Insurance Fund are listed in our daily chart.