Want to learn about the best CD accounts? We'll tell you everything you need to know, such as who should open a CD account and what the benefits are.
A Certificate of Deposit (CD) is a safe and secure way to save money for the future. It is an FDIC-insured deposit account that pays a fixed rate of interest over a specified period of time, such as six months or five years. CDs are offered by banks, credit unions, and other financial institutions. They can be used to build savings for short-term goals like vacations or long-term ones like retirement.
With their low risk and solid returns, CDs are an attractive option for savers who want reliable growth without taking too much risk with their investments.
Who Should Consider Opening a CD Account and Why
CDs are ideal for those who want a safe and secure way to save money for the future. They offer a fixed rate of return, making them an attractive option for savers looking for reliable growth without taking too much risk with their investments. CDs are also good options for people who may not have the time or energy to actively manage their investments.
Benefits of CDs Compared To Other Savings Options
One of the biggest advantages of CDs over other savings options is their ability to earn higher interest rates than most traditional savings accounts. Additionally, since CD deposits are FDIC-insured up to $250,000 per depositor per institution, they provide an extra layer of protection against market fluctuations. While withdrawals from CDs are subject to penalties, there is no risk of loss of principal.
Best CD Accounts Available Today
When shopping for a CD account, it’s important to consider the best rates available. Some of the most popular CD accounts include:
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Ally Bank’s High Yield CD: Bank virtually anywhere with Ally Bank. This account offers a 2.20% APY and only requires a minimum deposit of $0 and has no minimum balance offers available. They also have high yield CD rates available.
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Marcus by Goldman Sachs Jumbo CD: This account earns up to 2.60% APY with no minimum deposit required.
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Discover Bank’s 5-Year No Penalty CD: This account offers an interest rate of up to 2.50% APY, with no early withdrawal penalties for withdrawals after one year.
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First Republic Bank CD: Up to 2.70% APY with a low minimum deposit of only $1,000 and flexible terms available from 6 months to 5 years.
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CIT Bank: Up to 2.45% APY with no minimum deposit requirements, flexible terms from 3 months to 5 years, and a maximum balance of $250.
Costs Associated With Opening A CD Account
Most financial institutions charge a fee or commission for opening a certificate of deposit account, although some offer accounts with no fees at all. Be sure to check the fine print before signing up, as there may be other fees and costs associated with the account.
A Certificate of Deposit (CD) is a safe and secure way to save money for the future. It offers higher interest rates than most traditional savings accounts, as well as FDIC-insured protection against loss of principal. Bank Virtually Anywhere has high-yield CD rates available on terms ranging from six months to five years with no minimum balance required. Opening a CD account with them is quick and easy – start putting away money for the future today.