CD Rates Today: August 2 — Long-Term Rates Remain High

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While short-term rates for CDs are relatively high right now, sometimes a longer-term certificate at a lower rate can be more stable over the years of the investment. If you’re looking to tuck away some money for a long investment, First National Bank of America is offering 48-month and 60-month CDs at 4.65%. A minimum deposit of $1,000 is required and interest is compounded quarterly.

Before you invest in this special CD — or any others — here are some basics about purchasing one:A certificate of deposit, more commonly known as a CD, is an investment that earns interest over a set period of time at a locked-in rate.

Once you open a CD, you cannot close it without penalty, so ensuring you get the best rate is essential. Every bank and credit union offers its own rate, with credit unions typically having higher percentages. A longer investment period will also typically offer higher rates.

CDs are typically federally insured for up to $250,000 whether you invest in a bank (FDIC) or credit union product (NCUA) — just double-check the fine print.

Here are the top CD rates for today:

Best CD Rates Today

6 MONTH5.55%$500First Commonwealth Federal Credit Union
12 MONTH5.92%$1,000 Merchants Bank of Indiana
18 MONTH5.70%$500USALLIANCE Financial
24 MONTH5.92%$1,000Merchants Bank of Indiana
36 MONTH5.92%%$1,000 Merchants Bank of Indiana
48 MONTH4.85%$500GTE Financial
60 MONTH4.66%$500M.Y. Safra Bank
Rates current as of Aug. 2, 2023
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National Average CD Rates for August 2023

12 MONTH1.55%
24 MONTH1.33%
36 MONTH1.28%
48 MONTH1.40%
60 MONTH1.33%
Data from (as of Aug. 1, 2023)

How CDs Work

CD Basics

  • CDs have set rates and investment periods during which money cannot be removed. Typical time periods for investing are three, six, 12 or 18 months.
  • You can invest up to $250,000 per CD, and there is no federal banking regulation on how many you can open. There could be limits set by financial institutions, however.
  • CDs are federally insured when you open one in a bank (FDIC) or credit union (NCUA).
  • Compared to stock investments, a CD is a more secure way to invest.

Pros To Opening a CD

  • Earnings are guaranteed.
  • Rates are set and will not fluctuate, unlike stocks.
  • There is less temptation to remove money than with a traditional savings account.
  • CDs are FDIC insured up to $250,000 per depositor.
  • There are no monthly fees.

Cons To Opening a CD

  • Invested money cannot be removed before the term is up without penalties, even in case of an emergency.
  • Rates will not increase as interest rates go up.
  • Earnings may be less than investing in stocks.
  • Auto rollover settings could lock you into a longer term than you desired.
  • You may need a minimum amount of money to open a CD.

Are CD Accounts Worth it?

If you are looking to tuck away a lump sum of money for a large purchase or future investment, a CD is a low-risk way to do just that. However, if you are looking to make more money faster, a CD may not be the right fit for you. Before making any investment, doing research and even speaking to a financial advisor is always a good idea.

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Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Aug. 2, 2023.

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