What Are the Best CD Rates Offered by Banks?
Emma MarroneCDs, or certificates of deposit, are a type of savings account offered by banks that offer higher interest rates than traditional savings accounts. In this article, we will explore the best CD rates offered by banks, and provide some tips for investing in CDs.
Top CD Rates
1. Marcus by Goldman Sachs - Marcus by Goldman Sachs offers a 6-month CD with an APY of 0.65%, a 12-month CD with an APY of 0.70%, and a 5-year CD with an APY of 0.90%.
2. Ally Bank - Ally Bank offers a 6-month CD with an APY of 0.50%, a 12-month CD with an APY of 0.60%, and a 5-year CD with an APY of 0.85%.
3. Discover Bank - Discover Bank offers a 6-month CD with an APY of 0.50%, a 12-month CD with an APY of 0.60%, and a 5-year CD with an APY of 0.80%.
Investing in CDs
When considering investing in CDs, it's important to keep a few things in mind:
1. Consider the term - CDs come in a variety of terms, ranging from a few months to several years. Consider your financial goals and needs when choosing a term.
2. Shop around - Different banks offer different CD rates, so it's important to shop around and compare rates before investing.
3. Understand penalties - CDs come with penalties for early withdrawal, so make sure you understand the terms and fees before investing.
Investment Strategies
CDs can be a good addition to a well-diversified investment portfolio. Here are a fewinvestment strategiesto consider:
1. Laddering - Laddering involves investing in multiple CDs with different terms, so that they mature at different times. This can provide a steady stream of income and liquidity.
2. Barbell strategy - The barbell strategy involves investing in both short-term and long-term CDs, while avoiding intermediate-term CDs. This can provide a balance between liquidity and higher yields.
3. CD ladder with a high-yield savings account - Combining a CD ladder with a high-yield savings account can provide liquidity while still earning a higher rate of return than a traditional savings account.
Investment Experience
When investing in CDs, it's important to have a long-term perspective and a disciplined approach. Remember that CDs are not a get-rich-quick scheme, but rather a safe and reliable way to earn a higher rate of return on your savings. By doing your research, shopping around, and understanding the terms and fees, you can make informed decisions and build a strong investment portfolio.
Article review