Unlock 5% CD Interest Rates Today: Boost Your Savings with Confidence!
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- Several nationwide banks and credit unions are offering CDs with incredibly attractive rates of 5% APY or higher.
- Currently, CD rates for terms under 12 months are outpacing those of longer-term CDs.
- Before you dive in and open a CD, make sure to review the account disclosures to fully understand the opening requirements and any applicable fees.
Thinking about a certificate of deposit (CD)? It’s a savvy way to secure steady growth on your savings!
Right now, the average CD rate is pegged at 1.84% APY for a 12-month term, as reported by the Federal Deposit Insurance Corporation (FDIC). But here’s the kicker: many banks and credit unions are dishing out CDs that offer significantly better returns.
You’ll be delighted to know some of the top CD rates are still clocking in at 5% APY or higher. Ready to discover where you can snag a CD with that enticing interest?
Certificates of Deposit with a Sweet 5% Interest
We’ve rounded up a stellar list of both local and national financial institutions offering CDs with interest rates of at least 5.00% APY. Remember, some credit unions may have membership eligibility criteria, and certain banks might limit account access to specific regions.
This selection focuses on terms under 12 months because short-term CD rates are currently outshining long-term options. Plus, keep an eye out for institutions that have multiple terms offering 5% APY or better!
*These financial institutions also provide other CD terms at 5% APY or above.
Uncovering the Best 5% CD Rates
The best CD rates are often hiding out at online banks and credit unions. When comparing CDs, make sure you’re looking at the same term lengths to find the highest rates, but don’t forget to consider any potential early withdrawal penalties that may apply.
As you explore different financial institutions, dive into the account disclosures to understand what’s required to open an account and any limitations you may face.
Most banks will require a minimum opening deposit of $1,000 or more for a CD. And unless you go for an add-on CD, you’ll be unable to add more funds after you’ve opened the account. Be sure you’re comfortable leaving your investment untouched for the specified term, as a high APY won’t significantly boost your earnings if you withdraw early.
CDs don’t incur monthly maintenance fees, though be aware that early withdrawal penalties do apply should you need to access your funds before the term concludes.
Maximizing Your Gains in the 5% CD Arena
Short-term CDs, or those maturing in a year or less, are currently yielding slightly better rates than their long-term counterparts.
With the Federal Reserve expected to lower rates soon, banks are offering lower APYs for longer-term CDs. You might want to consider opening a short-term CD to lock in the best rates now, and then reassess your strategy once the CD matures.
If upon maturity you find that CD rates are still higher than those of high-yield savings accounts, feel free to roll your funds into another short-term CD. Alternatively, you may choose to shift your money into the stock market for a potentially higher yield, depending on your financial goals.
5% Interest CD FAQs
Absolutely! Several online banks and credit unions are currently offering CDs with 5% APY or higher for terms under 18 months. Check out options like Allegacy Federal Credit Union and Nuvision Federal Credit Union.
Yes! CDs that are backed by the FDIC or NCUA are considered safe investments.
Not all 5% interest CDs require hefty minimum deposits! You can find several options with opening deposits as low as $500 or $1,000.
The Federal Reserve made waves by cutting interest rates in September for the first time in four years, and there’s a chance for another cut in November. With this in mind, now might be the ideal moment to lock in a relatively high interest rate with a CD before these enticing options vanish.
You’ll generally earn more interest over time with a CD compared to a high-yield savings account. However, keep in mind that accessing your money will incur a penalty. If you need easy access to your funds, a high-yield savings account may be the better choice.
