The Fed’s benchmark interest rate is currentlyafter 11 recent rate hikes — including its most recent rate increase in July. What that means is if you’re planning to borrow money right now, you’ll likely face a much higher cost than you would have a year ago on lending products, like credit cards and loans. But while that may not be ideal, the recent rate increases do offer big benefits to one group: savers.
In response to the Fed’s numerous rate hikes, many financial institutions have increased their interest-bearing accounts APYs. In turn, opening atoday can result in heftier interest earnings on your money. That’s welcome news at any time — but may be especially helpful now that the consumer goods costs is high and inflation is devaluing the dollar.
By putting your savings in a CD right now, you may be able to earn a top rate on nearly any CD term — whether it’s a 6-month CD or 3-year CD term (or higher). By doing this, you could evenin your savings by hundreds of dollars or more over the CD term and meet your savings goals quicker than expected.
Start your journey by comparing top CD rates and earn more today.
What are today’s CD interest rates?
Depending on your, terms and other details, there’s a varying range of CD rates you can qualify for today. The following CD rates are the current national averages for specific terms as of August 14, 2023, according to Bankrate.
- 1-year CD yield: 1.63% APY
- 3-year CD yield: 1.32% APY
- 5-year CD yield: 1.37% APY
These averages look much different from the actual rates available on, though. Here are some of the best CD rates by term today:
- Popular Direct: 5.35% APY
- America First Federal Credit Union: 5.30% APY
- Bank5 Connect: 5.30% APY
- Santander Bank: 5.50% APY
- Sallie Mae Bank: 5.50% APY
- Popular Direct: 5.50% APY
- Popular Direct: 4.60% APY
- First Internet Bank of Indiana: 4.59% APY
- Barclays Bank: 4.50% APY
Want the best CD for your savings? Compare top rates here and start earning more money today!
How to get a good CD rate
Use these strategies to lock in the best CD rate right now.
Look at online banks
There’s a big difference between national average savings rates and the top interest rates available. In part, that’s because different types of banks often have very different rates.
and online divisions of larger banks have fewer overhead costs to keep up their day-to-day operations, since there are no physical bank branches. Typically these are the banks with rates that have kept up with Fed changes over the past several year. Today, you’re most likely to find from online banks.
By contrast,with branches across the country — where you may keep your checking account for convenience and easy access to branches and ATMs — often have lower CD and . Many of these banks’ CDs are below average and may even still be close to zero.
Consider short-term CDs
CD terms can range from around one to three months to 10 years. But often,are the best way to get a top rate today.
But the overall economic environment has made it so(around six months to one year) have higher interest rates than longer terms right now. Bankrate’s data actually specifies that one-year CD yields have surpassed five-year yields consistently since October 2022.
The phenomenon is called the. “This means rates are highest for short term CDs and treasuries and actually are lower as you go out further in time,” says Donald F. Dempsey, CFP, founder of Dempsey Investment Management.
In order to take advantage of those high rates while also saving for the long-term, “A practical approach could be to ladder your CDs,” Dempsey says. “Buy some one year, some two years, some three years, etc.”
See all the best short-term CD rates you can qualify for here.
The bottom line
Right now, both CD rates and savings rates in general offer. You can take advantage of the opportunity to lock in a great rate with flexible terms to help you reach your savings goals more quickly. Just make sure you compare different banking options and the term lengths that work for you in order to start maximizing your balance with the best CD rates available today.