If you're searching for a risk-free way to grow your money, certificates of deposits are a wise option to consider.
With them, you'll received a fixed interest rate that doesn't change throughout the term, and they offer guaranteed returns.
Use our Bankrate tool to find the best CD rates available:
Best 3-month CD rates
Short-term CDs, such as 3-month or 6-month CDs, can be good options for individuals who don’t want to commit to having their cash tied up for long periods of time. If you have shorter savings goals, such as a vacation or purchases you don't want to use credit for, you can earmark money now for those goals.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, it’s important to compare rates across accounts to be sure you’re getting the best return on your cash. For instance, you're likely to get a similar, or even higher, APY when opening a high-yield savings account or money market account.
With these more flexible savings vehicles, you won’t have to wait long to withdraw funds from your account. But they can have a downside: It's easier to make impulse purchases with cash in a high-yield savings account than cash that is tied up in a CD.
Account | APY | Min. Opening Deposit |
|---|---|---|
4.40% | $500 | |
4.40% | $1,000 | |
4.40% | $10,000 | |
4.35% | $1,000 | |
4.00% | $1,000 | |
3.75% | $500 |
Best 6-month CD rates
Account | APY | Min. Opening Deposit |
|---|---|---|
4.50% | $5,000 | |
4.41% | $25,000 | |
4.40% | $2,500 | |
4.20% | $5 | |
4.20% | $1,000 | |
4.15% | $500 | |
4.00% | $500 |
Best 1-year CD rates
One-year CDs are smart vehicles if you want to park your money and forget about it, while you wait to see how the market goes moving forward.
Remember: You won’t be able to access your cash once it’s put into a CD account (unless you opt for a no-penalty CD account). For this reason, cash you’ll need to access, such as savings in an emergency fund, should be saved elsewhere.
You might also want to open a number of CDs with varying maturity dates if you’re building a CD ladder. With this strategy you stagger, or "ladder," maturities so that some are always coming due in the near future.
For example, if you have $10,000 to invest, you could split it equally into five “rungs,” putting $2,000 into CDs with maturity dates a year apart: $2,000 in a 1-year CD, $2,000 in a 2-year CD and so on.
When each CD matures, you’ll invest your cash, plus any earned interest, into another 5-year CD. You’ll then have five 5-year CDs, with one maturing each year, providing a consistent cash flow.
See Kiplinger's full list of top earning 1-year CD rates.
Account | APY | Min Deposit |
|---|---|---|
4.40% | $5,000 | |
4.35% | $25,000 | |
4.30% | $1,000 | |
4.25% | $500 | |
4.25% | $25,000 | |
4.21% | $1,000 | |
4.20% | $500 | |
4.20% | $1,000 |
Best 2-year CD rates
Account | APY | Min. Opening Deposit |
|---|---|---|
4.28% | $500 | |
4.00% | $500 | |
4.00% | $5,000 | |
3.97% | $100 | |
3.50% | $0 | |
3.50% | $2,500 |
Best 3-year CD rates
See Kiplinger's full list of top earning 3-year CDs.
Account | APY | Min Deposit |
|---|---|---|
4.00% | $0 | |
4.00% | $200 | |
3.95% | $5,000 | |
3.91% | $500 | |
3.87% | $1,000 | |
3.85% | $1,000 | |
3.75% | $500 | |
3.60% | $1,000 |
Best 4-year CD rates
Account | APY | Min. Opening Deposit |
|---|---|---|
4.28% | $500 | |
4.20% | $500 | |
4.20% | $500 | |
3.90% | $500 | |
3.90% | $1,000 | |
3.80% | $5,000 |
Best 5-year CD rates
A major benefit of opening a long-term CD is that you’ll be able to lock in rates while they’re high. Keep in mind that CDs come with fixed interest rates, so even if the Fed cuts rates in the future, the rate you lock in will stand throughout your term.
Furthermore, five years is a great benchmark for midlevel savings goals. Whether you're helping your children save for a down payment on a home or taking that dream vacation, 5-year CDs can help you reach those goals.
See Kiplinger's full list of top earning 5-year CDs.
Account | APY | Min. Deposit |
|---|---|---|
4.28% | $500 | |
4.25% | $500 | |
4.25% | $500 | |
4.06% | $500 | |
3.95% | $1,000 | |
3.91% | $500 | |
3.90% | $1,000 | |
3.80% | $5,000 | |
3.75% | $500 | |
3.75% | $500 | |
3.75% | $1,000 |
Bottom line
The Federal Reserve didn't cut interest rates at its meeting last week. However, some economists forecast there could still rate cuts this year, meaning now is an excellent time to get a CD while rates are higher.
The only thing to consider is you won't have access to cash during the term. If you make a withdrawal at any point during the term, the penalty fee could offset any interest earned. That aside, CDs are an effortless way to earn more.
Related Content
-
Trump’s Tax Bill Could Kill Chance at ERC RefundsTax Credits Millions of small-to-mid-size businesses could be denied the pandemic-era Employee Retention Tax Credit under Trump’s tax agenda.
-
Best Places For Living Single In RetirementFrom cost of living to health care access, here are three states you may want to consider if you are single and retired.
-
Seven Habits Rich People Swear By to Build and Maintain WealthUnlock the secret to lasting financial success by adopting the wealth-building habits of a high-net-worth individual.
-
A Smart Way to Combat Economic Rollercoasters: CD LaddersSavings With rates on CDs remaining high for now, a CD ladder allows you to maximize your returns with flexibility to your cash when you need it.
-
The $425 Million Capital One Settlement: Find Out Who’s Eligible for a Payout and What HappenedCapital One agreed to a $425 million settlement with former and existing customers. Here’s what you need to know.
-
Rich, Single and Saving Smart: How to Maximize Your MoneyHigh-net-worth individuals often have plenty of cash on hand, but to truly maximize your income, that money needs to work for you. Here’s how.
-
Does Your State Make it Easier to Save Money?The state you live in can influence how well you're able to save money. See which states make saving easier.
-
Worried About Stock Market Volatility? Here’s Where to Put Your Money InsteadLearn how to use high-yield savings accounts, CDs, Treasury securities, annuities and dividend stocks to stay steady in uncertain times.
-
What Happens To Mortgage and Savings Rates If Trump Fires Jerome Powell?President Donald Trump expressed his desire to remove Fed Chair Jerome Powell. If the president is successful, how would it impact your savings accounts?
-
Use This One-Year CD if You’ll Owe Taxes Next YearA one-year CD allows you to set money aside now for taxes you'll owe next year. We'll show our best choice.
