Skip to main content

5% CD Rates: Too Good to Be True?

We’ve done the research, and these are the only 5% CD rates available today. Don’t waste time with low-interest CDs.

It’s true. There are 5% CD rates. These haven’t been around for long, but they’re here. You can even lock in 5% for 27 months. I might buy one myself to participate.

Can You Get 5% Interest on a CD?

Yes. Here are the current CD rates at or above 5%. If these CDs don’t work, we’ve made other suggestions below for places to save your money.

Can You Get 6% on a CD?

Not at this time. CD rates are rising. But we’re not quite at 6% yet. I will update this page if and when rates get to 6%. Won’t that be something?!

Even though we’re only at 5% interest rates, that’s still an incredible opportunity to save your money in a secure account.

Where Else to Get High Interest

These 5% CDs are some of the highest rates you’ll see in a savings product. For instance, there are some high yield savings accounts paying close to this rate.

And there are a few savings alternatives that you could consider. But by in large, these rates above are the best from a FDIC Insured product.

How CD Rates are Changing

Right now, CD rates are rising. Last month rates topped out at 4%. So rates are moving up quickly. And historically, we haven’t seen 5% rates on CDs in over 20 years. The year 2000 was the last time.

Historic CD Rates from Bankrate

While I like seeing savings and CD rates rising, I know it’s because inflation is out of control, and the Federal Reserve is raising its rates to try to squash it.

Tips for Finding the Best CD Rates

Shop around: Compare rates offered by different banks and credit unions. Online comparison tools can make this process easier, but it is also essential to check with local banks and credit unions.

Consider term length: CD rates vary depending on the term length or the length of time the deposit is held. Longer terms generally offer higher rates but also lock up your money for a longer period.

Check minimum deposit requirements: Some banks and credit unions require a minimum deposit to open a CD account. Make sure you can meet these requirements before you apply.

Compare penalties for early withdrawal: CDs typically have penalties for withdrawing the deposit before the term ends. Compare these penalties among different institutions and ensure you understand the terms before investing.

Consider online banks: Online banks often offer better CD rates than traditional brick-and-mortar banks.

Negotiate with your bank: If you have a good relationship with your bank, you may be able to negotiate a better rate.

Keep an eye on interest rate trends: Interest rates fluctuate, and it is vital to be aware of the trend to help you decide when to invest in a CD.

Consider laddering CDs: laddering CDs can help you take advantage of different interest rate environments by breaking up your investment into CDs with different maturity dates. This allows you to access your money sooner and take advantage of rising rates.

The post 5% CD Rates: Too Good to Be True? appeared first on Part-Time Money®.



from Part-Time Money® https://ift.tt/qhK7EPy
Labels:

Comments

Post a Comment

We will appreciate it, if you leave a comment.

Popular posts from this blog

How To Get Paid To Go to College: 12 Tactics to Consider

College is an exciting time for students to live on their own, make new memories, and create lasting friendships. What’s not exciting is the debt you might inherit once you graduate. In the last decade, student loan debt increased by nearly 70 percent , with over 43 million students facing outstanding student loan debt.  What if there was a way you could get paid to go to college and avoid taking out any student loans ? Sounds too good to be true, right? Well, we have twelve tactics for you to consider that just might help you go to college for free. Keep reading for our favorite tips or jump to a specific tactic below to learn more!  Submit a FAFSA Apply for Grants Research Various Scholarships Consider Community College Attend Tuition-Free College Check if You Qualify for Tax Breaks Become an RA Join the Military Get a Work-Study Job Seek Off-Campus Employment Serve in the AmeriCorps Ask If Your Employer Has Tuition Reimbursement 1. Submit a FAFSA Applying for fina
Post a Comment
Read more

Everyday Items That You Can Recycle for Money

Why toss things in the trash when you can recycle them — and make a little money in return? By diverting certain items from the waste stream and keeping them out of landfills, you can also make extra money or help out worthy causes. From scrap metal to ink cartridges, bottle caps to construction materials, you can recycle a huge variety of items in exchange for cash. We’ve also included information on how to recycle items for the sake of good will. Ready to see all the different things you can recycle for money? How to Recycle Household Items for Cash First, you’ll need to find a recycling center or collection point that is looking for what you want to get rid of. While the goal is to make money, you might settle for a donation — which could be tax deductible — if it means clearing out the garage. The collection center will also let you know how to prepare items to their specifications. Find a Collection Point To find a recycling center near you, head to Earth911.com and plug in
Post a Comment
Read more

Fizz Debit Card Review: A Credit Builder for College Students

If you’ve struggled with poor credit or are completely new to credit, you know how hard it can be to build a strong credit score. The lenders who offer the best credit products and the lowest interest rates seem only to want to deal with clients with excellent credit. But how do you build credit without debt ? To help, an increasing number of fintech companies are developing credit-builder loans and other products to help people establish or rebuild their credit. Some are more successful at it than others. In this Fizz review, I’ll explain how one company aims to help college students build credit and create healthy financial habits. But how does Fizz work, and is it safe to use? I’ll answer those questions and more in this Fizz review. Table of Contents What Is Fizz? How Does Fizz Work? How Does Fizz Make Money? Key Features of Fizz Build Credit Control Spending Earn Rewards Learn About Money Pros and Cons of Fizz Fizz Alternatives Extra Debit Card Sesame Cash
Post a Comment
Read more