Today’s Highest CD Rates: June 26 — Earn Up To 5.75% APY
One of the quickest ways to grow your money is to let it work for you, rather than 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 great alternative. Certificates of deposit (CDs) are an excellent way to invest your funds with a clear understanding of the returns by the end of the term.
If you’re seeking more than a standard high-yield savings account, a CD is a solid option. For instance, Farmers Insurance Federal Credit Union offers a 3-year CD with an impressive 5.75% APY, requiring a minimum deposit of $1,000. This could be a great choice for those wanting a secure way to grow their money.
When looking for CDs with high annual percentage yields (APY), you want to ensure the interest earned justifies the investment duration. Remember, accessing your funds before the CD matures usually incurs a fee. Fortunately, many CD options at local banks or credit unions offer rates above the national average.
Here are some of the top CD rates available today:
– 3-month: National average APY 1.28%, highest APY 5.50% at Shoreham Bank
– 6-month: National average APY 1.81%, highest APY 5.40% at Merrick Bank
– 1-year: National average APY 1.97%, highest APY 5.40% at NexBank
– 18-month: National average APY 1.90%, highest APY 5.15% at Notre Dame FCU
– 2-year: National average APY 1.71%, highest APY 5.39% at Dover FCU
– 3-year: National average APY 1.62%, highest APY 5.75% at Farmers Insurance Federal Credit Union
– 4-year: National average APY 1.50%, highest APY 4.70% at BMO Alto
– 5-year: National average APY 1.62%, highest APY 4.80% at BMO Alto
Rates are current as of June 26, 2024.
The economy has been unpredictable, and CD rates have changed significantly over the past decade. In the early 2010s, rates were low due to the aftermath of the 2008 financial crisis, with banks offering CD rates below 0.42%. Rates began to rise slowly in the mid-2010s but remained modest, barely reaching 0.60% for longer-term CDs by the end of 2019. Since 2022, rates have surged past 5.00%, driven by the Federal Reserve’s actions to combat inflation and stabilize the economy. 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 in previous years.
Some of the best CD rates today include Shoreham Bank’s 3-month CD at 5.50% APY and NexBank’s one-year CD at 5.40% APY.
CDs are a type of savings account with a fixed interest rate and a set maturity date. 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. Here are some key points:
– CDs offer fixed interest rates for the entire term, providing a predictable investment.
– Common CD terms include 3, 6, 12, and 18 months.
– CDs at banks are insured by the FDIC, and those at credit unions are insured by the NCUA, protecting your money up to $250,000 per depositor.
There are different types of CDs available:
– No-penalty CD: Allows access to your funds before maturity without a penalty, offering flexibility.
– 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 unusual term length, often used by banks and credit unions to attract new customers and deposits.