More online banks are raising interest rates on CDs. For example, First Internet Bank of Indiana raised its CD rates this week, and now pays First Internet Bank of Indiana Certificate of Deposit for its terms.

Our best CDs guide can be a useful jumping-off point for learning about CDs. But if your top goal is to find a competitive CD rate above all else, then this list is for you.

What are the interest rates for CDs today?

The FDIC keeps tabs on national rates for interest-earning bank accounts. 

For CDs, the average interest rate may depend on the term you choose. The average interest rate for a 1-month CD is 0.03% APY, and the average interest rate for a 60-month CD is 0.39% APY.

We’ve been checking over a dozen financial institutions to keep up with the new rate offerings. Our list includes accounts with much higher interest rates than the national average, since online institutions tend to offer high-yield bank accounts.

The most competitive CDs may offer up to 3% APY right now for a 5-year term. CDs usually have a fixed interest rate. This means you’ll usually be locking in a rate for a specific period of time.

The Federal Reserve also has increased the federal funds rate three times since March, so savings interest rates are expected to steadily increase throughout 2022.

Best CD interest rates

Some of the institutions on our list are also top picks on of our best CD guides, so if you’re looking for a specific CD term, consider reviewing these posts too:

Best 6-month CD guide
Best 1-year CD guide
Best 2-year CD guide
Best 3-year CD guide
Best 5-year CD guide

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That said, if you’re comfortable with a high initial deposit or don’t mind limited terms options, the following four CD options also might be suitable contenders — even though they aren’t in our best-of guides.

While the Popular Direct Certificate of Deposit didn’t make it into any of our best CD guides, it still could be great if you already intend to open a CD with more than $10,000. You’ll want to pay attention to the CD early withdrawal penalties though because some terms have high penalties.

You may like CFG Bank Certificate of Deposit if you’re searching for the following CD terms: a 12-month, a 13-month CD, an 18-month, a 36-month CD, or a 60-month CD. You also can open a CD with a low minimum opening deposit. 

Quontic Certificate of Deposit pays competitive interest rates on CDs and only requires a $500 minimum opening deposit. However, you’ll want to be mindful of the CD early withdrawal penalties. Quontic charges high penalties if you need to withdraw money before your term reaches maturity.

Alliant Credit Union stands out for its competitive interest rates and low early withdrawal penalties, but you’ll need to become a member to open an account at the credit union. 

Alliant makes it easy for anyone in the US to join. The easiest way is to …read more

Source:: Business Insider

      

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