CD rates are extremely important to take into consideration when it comes to savings accounts. Banks that offer higher certificate of deposit rates make for higher interest into savings. You can get a savings account from any credit union or any bank: online, local or national. When finding a savings account from the bank of your choice, there are a number of other things to think about. For one you want to pay attention to the deposit term in which you can collect interest. The other thing you want to consider is the minimum balance requirement, or rather your required initial deposit to open the account. And of course, you also want to look at the interest rate or APY which will tell you how much return you can get on your deposit. If you are interested in opening a savings account, read on to learn about the top CD rates that will help you save and earn.
Things to Know about CD Rates
Interest for a CD is accrued daily and compounded monthly. You cannot add anything to your initial deposit. However, you can open more than one CD, but there may be limits on how many accounts you can open with a particular bank. Furthermore, there may be a penalty for attempting to withdraw from your CD before the term is up.
Highlights:
- Interest accrued daily
- Can have multiple CDs
- Penalties for early withdrawal
Capital One
Capital One has some of the best CD rates in the country. They offer high interest CD rates with absolutely no risk. Returns on your deposits are guaranteed. And best of all you will have access to a range of terms, from 6 months to 60 months. While a 6 month term can give you a yield of about .40% annual percentage yield, a 60 month term will give you a whopping 2% annual return. It should also be noted that interest rates are locked for the length of the term you choose. Those banking with Capital One will also have a choice of pay out time, whether that be monthly, annually or at the end of the term.
Highlights:
- High interest with no risk
- 6 to 60 month terms
- 2% annual return for 5 year term
Synchrony Bank
Synchrony Bank also offers some excellent CD rates. They offer even more term choices from 3 months to 60 months. Every account comes with FDIC insurance of up to $250,000. A minimum deposit of $2,000 is required for this account. While a 12 month CD will deliver 1.25% return, a 60 month CD will deliver a 1.8% return. Synchrony Bank prides itself in providing award-winning options that go beyond the national average, making it a bank that truly stands out.
Highlights:
- FDIC Insurance for up to $250,000
- 60 month CD with 1.8% return
- Minimum deposit of $2,000
State Farm
State Farm bank is offering among the highest CD rates of all. Requiring only a minimum deposit of $500, a 60 month term could see you as much as a 2.10% annual return. You can open a CD with State Farm online, visiting an agent or by phone. It should be noted that there are penalties for early withdrawal. Additionally, there are outbound wire transfer fees that customers should be aware of.
Highlights:
- 2.10% annual return
- $500 minimum deposit
- Easy to open account
Conclusion
If you are looking to save some money, a certificate of deposit is the best way to do it. When setting some money aside, a good CD rate will give your money a chance to grow. Shop around for a bank with competing CD rates to help you choose the best one.