Finding the Best CD Rates

Finding the Best CD Rates

Shopping

by James S

Finding the Best CD Rates

Finding the Best CD Rates

If you’re in the market for a Certificate of Deposit (CD), then you want to get the best rate possible. But the number of banks that are in business today can make it hard to narrow it down. A CD is a financial product that many banks and credit unions offer, and they’re similar to savings accounts because they can give you a way to put money away for a period of time. However, you won’t be able to make a withdrawal before the end of the term without paying a penalty, which makes saving money easier for some people. Accounts with a larger principal balance will earn more interest, and personal CD accounts will typically have higher interest rates than business CD accounts. You can also get a higher interest rate if you get an account with a longer term, and most CD accounts will have a minimum deposit. The top three banks to look at for the highest CD rates are Capital One, Marcus by Goldman Sachs and Synchrony Bank. In addition, Bankrate is an invaluable tool in helping you find the best rates around. Interested? Keep reading to learn more!

If you’re in the market for a Certificate of Deposit (CD), then you want to get the best rate possible… cont. 

But the number of banks that are in business today can make it hard to narrow it down. A CD is a financial product that many banks and credit unions offer, and they’re similar to savings accounts because they can give you a way to put money away for a period of time. However, you won’t be able to make a withdrawal before the end of the term without paying a penalty, which makes saving money easier for some people. Accounts with a larger principal balance will earn more interest, and personal CD accounts will typically have higher interest rates than business CD accounts. You can also get a higher interest rate if you get an account with a longer term, and most CD accounts will have a minimum deposit. The top three banks to look at for the highest CD rates are Capital One, Marcus by Goldman Sachs and Synchrony Bank. In addition, Bankrate is an invaluable tool in helping you find the best rates around. Interested? Keep reading to learn more!

Capital One has a 2.65% interest rate for a CD that has a five-year term, and there is no minimum deposit required, which is great news for people with very little to start their CD account with. Capital One is also a member of the FDIC, so your money will be fully insured, and has been a trusted name in credit and banking products for a long time. This is a great option for people just starting out with a CD account, and offers one of the highest interest rates on the market right now.

Marcus by Goldman Sachs is also protected by the FDIC, and they have several plans with good interest rates. Marcus by Goldman Sachs offers a five-year CD account with a 2.5% interest rate for a minimum deposit of $500, and the three-year and four-year plans have a 2.3% interest rate (also with a $500 minimum deposit). Capital One offers a three-year CD for the same interest rate, but there is no minimum deposit. If you want a shorter term, you can get a two-year or eighteen-month CD from Marcus by Goldman Sachs for a 2.15% or a 2.1% interest rate respectively. Capital One offers a 2.2% interest rate for a two-year CD, and you can get an eighteen-month term for a 2.05% interest rate (also with no minimum deposit).

If you can afford to put a bit more into that proverbial nest egg, Synchrony Bank has a five-year CD at a 2.5% interest rate with a $2,000 minimum deposit. And they have four-year accounts at a 2.2% interest rate. You can sign up for a two-year term for a 2.1% interest rate. And like Capital One and Marcus by Goldman Sachs, they’re insured by the FDIC. While the higher minimum deposit required by Synchrony may be off-putting to some, it's important to keep in mind that the higher your starting balance, the more money you'll earn on your CD account. If you can swing the $2,000 opening deposit, this is an excellent way to go.

Ally Bank offers CD accounts with a minimum deposit of $25,000, and you can get a five-year term for a 2.5% interest rate. A three-year term from Ally Bank will put you at a 2.1% interest rate, and the company is also FDIC-insured. These are some of the examples of some the top CD rates on the market. But if you want to do more comparison shopping, be sure to go to Bankrate to get a list of accounts with all the features that they offer.

Bankrate researches about 4,800 banks and credit unions on a regular basis, so they offer the most comprehensive comparison tool on the web. When you shop for a CD or any other financial product on Bankrate, you can be sure to get information on solid companies that are backed by the FDIC or the NCUA. You want to find the best CD rate by looking at the term, the minimum deposit, and how much you’ll earn on the account every year. And you want to pay attention to what the penalties are for early withdrawal. Be sure to take the time to look for the best CD accounts for your specific needs before deciding on which bank is best for your needs.