Category: CD Rates

What to Expect When a CD Matures

A CD’s maturity date is the date when you can take your money out of the CD without paying early withdrawal penalties. The CD’s term has ended, so there are no bank-imposed withdrawal restrictions at maturity. Going forward, you’ll no longer earn the same amount of interest that you were earning...
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Best Jumbo CD Rates

Jumbo certificates of deposit (CDs) usually require a large amount of money (think $100,000) and can sometimes offer even higher interest rates than regular CDs, but usually only within a given bank. However, banks and credit unions often compete more for the best CD rates for regular, non-jumbo CDs, and so—as you’ll see...
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Why Are CD Interest Rates So Low

Certificates of deposit (CDs) are usually some of the highest-paying options available at banks and credit unions. But interest rates plummeted as a result of the coronavirus pandemic, leaving CD investors with few attractive options. So, what should you do with your savings? Does it make sense to lock...
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CD Penalties Work and Avoid Paying Them

CDs are great investments for those who prefer to keep their money safe. Funds can be FDIC-insured, and you’ll earn more interest than you would from a savings account. But CDs are designed to be longer-term investments. Unlike your checking account—which allows multiple deposits and withdrawals—CDs are meant to be left alone....
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Best CD Rates

We review more than 150 banks and credit unions each weekday to find the best certificates of deposit (CD) rates available nationwide. The top picks have the highest rates for a particular term based on annual percentage yield (APY) and are available to the public. We also look at certificates of deposit with...
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Disadvantages of CDs

CDs aren’t for everyone, and they might not fit your specific needs. Some of the reasons to steer clear include: Early withdrawal fees: The main disadvantage is that your money is tied up for the life of the certificate. You pay a penalty if you need to withdraw your money...
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Advantages of CDs

Before deciding whether or not to invest in a CD, consider your specific needs. Some of the reasons to consider a CD include: Your money is insured: The FDIC insures CDs up to $250,000. The federal government guarantees you will never lose your principal. For that reason, they have less...
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CDs vs. Savings Accounts

If you’re sitting on a lump sum of cash in a traditional savings account and you’re reasonably sure you’re not going to need that money for a while, putting it in a CD could be just the thing for you. It almost certainly will allow you to earn more...
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Building a CD Ladder

If you’re interested in using CDs as a key part of your savings plan, you might consider a ladder, a common CD investing strategy. The process involves first buying several CDs with different terms so they’ll mature at regular intervals and then reinvest the money into longer-term CDs as the...
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Types of CDs

Liquid or No Penalty CDs Liquid CDs allow you to withdraw your funds early without paying a penalty.5 This flexibility enables you to move your funds to a higher-paying CD if the opportunity arises, but it comes at a price. Liquid CDs may pay lower interest rates than CDs...
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