Best CD Rates to Consider in 2023
When it comes to securing a good return on your savings, now is a promising time to explore Certificates of Deposit (CDs). Let’s dive into the highest rates currently available and what you should keep in mind as you consider locking in your savings.
Top Rates to Watch
Currently, Newtek Bank is offering an impressive 4.60% APY on a 9-month CD, which is the highest rate you can find nationally. This means your money is locked in at this rate until March 2026. If you’re looking for additional options, Rising Bank has a 4.51% APY for a 6-month guarantee, while PenAir Credit Union offers a 4.50% APY for terms up to 21 months, securing your rate until March 2027.
Also, for those interested in longer commitments, consider Lafayette Federal Credit Union, which features a consistent 4.28% APY across terms ranging from 7 months to 5 years. This allows you to secure a solid rate until June 2030.
Why Choose Longer Terms?
Given the current economic climate, locking in a rate for a longer period might be wise. Speculation suggests that the Federal Reserve may start lowering interest rates, likely impacting the returns banks offer. By securing a CD now, you can benefit from higher yields for the duration of the term, even if rates decrease later.
The Safety of CD Investments
It’s important to remember that your deposits in CDs at FDIC-insured banks or NCUA-insured credit unions are protected by the government—up to $250,000 per person, per institution. This means that your hard-earned money is safe even in the unlikely event of a bank failure.
Jumbo vs. Standard CDs: Know the Difference
For those considering larger investments, jumbo CDs might catch your attention. These require higher minimum deposits but can offer better rates. Currently, some jumbo CDs outperform standard ones. For example, Hughes Federal Credit Union provides 4.50% on a 17-month jumbo CD, while the top standard offering is at 4.30% for an 18-month term.
Quick Recap of Jumbo CD Advantages:
- Typically higher rates for larger deposits.
- Enhanced returns in select terms compared to standard CDs.
What’s Next for CD Rates?
The Federal Reserve’s recent decisions significantly affect CD rates. Currently, rates have remained stable after cuts were introduced last year. However, as the Fed hints at potential reductions in the coming months, now may be the best time to lock in your rate before they start to decline.
Daily Updates for Best Rates
Keep in mind that the "top rates" highlighted here come from extensive daily research across hundreds of banks and credit unions, ensuring you have the most competitive options available to you. This is crucial as national averages often downplay the premium rates you can access by shopping around.
Final Takeaway: If you’re looking to maximize your savings, consider exploring the current top CD rates. With several institutions offering high returns and the added security of federal insurance, now is a solid time to invest in a CD that suits your financial goals.
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Bio: Priya specializes in making complex financial and tech topics easy to digest, with experience in fintech and consumer reviews.