Certificate of Deposits are commitments to give money to a bank in exchange for interest on that money. Also, know as a CD (for certificate of deposit), the accounts are different from your traditional savings account. They require bank customers to leave their money for a predetermined amount of time. Known as the term length, the duration of this time can justify higher or lower CD rates. In this post, we’ll explain what are the best CD rates available today.
1 Year CD Rates For Quick Withdrawal
If you would like to put your money into a CD account for just 12 months, there are many CD accounts with various rates. Since 12 months is closer to the minimum term for a CD account, the interest rates are lower than the best deals. In any case, you can find 12 month CD rates for as low as 1.50% interest and as high as 2.00% interest. These CD rates also depend on the minimum deposit you are willing to make. For a 1 year CD term, you would have to invest over $25,000 to be eligible for some higher rates.
2 Year CD Rates Offer Flexibility
Slightly longer, 2 year certificate of deposit plans offer a little more value and flexibility. The CD rates are dependent upon term and deposit. At the 24 month period, the minimum deposit decreases quite dramatically while interest rates improve. On average, banks are offering 2 year CD rates between 1.75%-2.00%. The best rates today are still 2.0%. But, they are a little more accessible with lower deposit minimums. These might be the best CD options for people who want to withdraw their money after just two short years.
3 Year CD Rates Might Have Best Value
Depending on your financial situation and future planning, the 3 year or 36 month CD offer can give you even more interest. This might be the best value without having to lock into a 5 year commitment. At 3 years, the best CD rates increase above 2.00% (which is comparable to the return when you sell a house by owner). Of course, there are some lower CD rates between 1.75% and 2.00%. They may have flexible terms, penalties and rules so still give them some consideration. Or, to get the best CD rates available on shorter terms, 3 year agreements could be as high as 2.20% or even 2.68%. For the 2018 top CD rates, this is a great deal to take advantage of.
5 Year CD Rates Offer Best Rates Period
Certainly, the longest term CD rates offer the highest interest rates around. Shopping around for CD accounts, you can find 5 year terms with interest rates upwards of 2.50%. In fact, some banks are now offering the best CD rates available today at 2.80% and 3.00%. These CD offers may have additional eligibility restrictions and substantially high minimum deposits over $5,000. However, the interest rate can be highly attractive if you have capital that you want to save long term anyways. You might as well earn the highest interest possible.
10 Year CD Rates For The Super Long Term
If you really want to put money away long term, some banks offer 10 year CD accounts. The best rates for these accounts don’t actually meet the range, availability or maximum of the 5 year plans. The lower rates may be due to less banks offering 10 year term lengths. On the positive side, these long term CD accounts allow you to receive higher interest rates at 2.70% with lower minimum deposits required. For long term planning, 10 year CD rates can complement your financial strategy or business continuity plans.
An investment in certificate of deposit accounts can secure a standard return on your capital. These accounts are much more stable than the returns on NFL futures. It certainly depends on your financial planning. Depending on the number of years you are interested in saving for, you can find the best CD rates available today. Commonly, 1 year is the shortest term to get started and 5 years is the longest term with the highest rates. Plan ahead to determine which term length will yield the best CD rates for you.
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