Make the Most of Rising CD Rates

As the Federal Reserve hikes interest rates, banks have been more generous in boosting yields on certificates of deposit.

(Image credit: THANANIT)

As the Federal Reserve hikes interest rates, banks have been more generous in boosting yields on short-term certificates of deposit than on other types of deposit accounts. Even brick-and-mortar institutions—which lag internet banks when it comes to pushing up rates on deposit accounts—are loosening the CD purse strings.

Recently, with a $5,000 minimum deposit you could earn as much as 2.5% on a nationally available one-year CD, compared with 2% on a money market deposit account. Or, with a deposit of only $500, a one-year CD from Marcus by Goldman Sachs yields 2.2%. If the published rate on the Marcus CD rises within 10 days after you open an account, you’ll get the higher rate as long as you fund the CD in that period.

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Lisa Gerstner
Editor, Kiplinger Personal Finance magazine

Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.