Today’s CD Rates and Savings: Check Today’s Best Rates

Today’s CD Rates and Savings: Check Today’s Best Rates

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Banks are fighting for customer dollars right now, and people with cash to spare are well positioned to benefit from a high rate environment. With rates changing so quickly, how can you be confident you’re getting the best savings account or the best CD?

We monitor rates from banks and credit unions daily to help you feel confident before you open a new account. Experts don’t expect CD rates to rise until 2024, so now might be a good time to lock in a rate if you’re ready. Here are the highest fees for popular savings accounts and CDs as of Wednesday, January 31.

Estimating Your Interest Income

Top High-Yield Savings Account Rates

Top CD Rate

Savings Account Bonus

CIBC Bank Savings Account

Earn a $250 bonus when you deposit new money between $25,000 and $49,999.99 during the funding period from an external bank and maintain at least $25,000 in new money until 3/18/24. Earn a $500 bonus when you deposit new money of $50,000 or more during the funding period from an external bank and maintain at least $50,000 in new money through 3/18/24.

See more savings account bonuses »

Top Checking & Savings Combo Account Bonus

Sofi Check and Save

Earn up to $300 bonus with qualified direct deposits for qualified customers. Earn up to 4.60% APY on savings balances (including Vaults) with direct deposit.

See more bank account bonuses »

About High-Level Accounts

High-yield savings accounts aren’t the only accounts that pay favorable rates today. You’ll typically see the highest rates at online or low-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; Online banks have lower overhead costs and are willing to pay higher rates to attract new customers.

High-Yield Savings Accounts

The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving money in pursuit of shorter-term goals, such as a vacation or large purchase. .

High-Yield Checking Accounts

The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are stable in the current rate environment. A checking account is like a hub for your money: When your paycheck is directly deposited, it’s usually into a checking account. When you transfer money to pay a bill, you usually do it from a checking account. Checking accounts are used for everyday spending and usually have checks and/or debit cards for convenience.

Cash Accounts

The best money market accounts can be considered a middle ground between checking and savings: They are used for saving money but usually provide easy access to your account through checks or debit cards. They usually offer a tiered interest rate depending on your balance.

Cash Management Accounts

A cash management account is also like a savings/checking hybrid. You’ll often find them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account does not. Money management accounts usually have a debit card for easy access, but you may pay a fee when you want to deposit money.

Certificates of Deposit

The best CD rates can be better than any of the other accounts we described above. That’s because a certificate of deposit requires you to “lock up” your money for a predetermined period of time ranging from three months to five years. To withdraw it before then, you will pay a penalty (unless you choose one of the best penalty-free CDs). The longer you let the bank hold your money, the higher the rate you’ll get. CD rates do not change; the rate you get for depositing your money is the rate you get for the duration of your term.

About CD Terms

Locking your money in an account in exchange for a higher interest rate can be a big decision. Here’s what you need to know about common CD terms.

Penalty-Free CDs

Most CDs charge you a fee if you need to withdraw money from your account before the end of the term. But with a penalty-free CD, you don’t have to pay an early withdrawal penalty. The best no-penalty CDs offer rates slightly higher than the best high-yield savings accounts, and can offer better interest rates than traditional brick-and-mortar savings accounts.

6-Month CDs

The best 6-month CDs offer interest rates in the mid-5% range. Six-month CDs are best for those looking for high rates on their savings for short-term gains, but are uncomfortable with limited access to their money in the long term. This can be a good option for those who are just starting to save, or don’t have a large emergency fund for unexpected expenses.

1 year CDs

The best 1-year CDs tend to offer some of the highest CD rates, and are a popular choice for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term costs.

2 year CDs

The best 2-year CD rates are slightly lower than 1-year penalty-free CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a fixed rate. It is best used as part of a CD ladder strategy, or for those who are concerned about a market rate decline in the near future.

3 year CDs

The best 3-year CDs tend to have rates comparable to 2-year CDs. This is generally not very popular for your average investor, but can be an important lever for diversifying investments and hedging against the risk of bad rate markets in the long term.

5 year CDs

The best 5-year CDs offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can provide substantial income for three years and beyond – even if rates fall elsewhere.

Products in this post: BrioDirect High-Yield Savings Account, Customers Bank High Yield Savings Account, UFB Secure Savings, CIT Bank Platinum Savings, TotalDirectBank 6 Month CD, Popular Bank CD, Valley Direct 3 Year Variable CD, BMO Alto 5 Year High Yield CD, CIBC Agility Online Savings Account, SoFi Checking and Savings, Mission Valley Bank 3 Month No Penalty CD

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