PNC Bank is offering 5.25% APY for a 4-month certificate. A $1,000 minimum deposit is required. The Wilmington-based bank is the largest in the state of Delaware. PNC Bank was established in 1804.
Key Takeaways
- Andrews Federal Credit Union continues to offer the highest overall CD rate, with a 6-month 5.75% APY.
- The highest rate for a 60-month CD is currently 4.61%, offered by First Internet Bank.
- Current CD rates remain above the national average.
Quick Tip
Certificates of Deposit offer a way for people to beat inflation with something known as inflation-protected CDs. Unlike regular CDs that have a fixed interest rate, these special CDs have their rates tied to inflation, which means the interest rate can adjust over time.
If inflation rises, the interest rate on the CD also rises, helping to ensure that your savings don’t lose their purchasing power. This feature safeguards against the eroding effects of inflation, making it a smart choice for individuals looking to preserve the value of their savings over the long term.
Here are the top CD rates for today:
Top CD Rates Today
| CD TERM | Highest APY | National Average APY | WHERE TO INVEST |
|---|---|---|---|
| 3 MONTH | 5.50% | 1.24% | Home Loan Investment Bank |
| 6 MONTH | 5.75% | 1.62% | Andrews Federal Credit Union |
| 12 MONTH | 5.56% | 1.75% | Lafayette Federal Credit Union |
| 18 MONTH | 5.45% | 1.72% | Xcel Federal Credit Union |
| 24 MONTH | 5.39% | 1.49% | Dover Federal Credit Union |
| 36 MONTH | 5.10% | 1.39% | Lafayette Federal Credit Union |
| 48 MONTH | 4.73% | 1.45% | Lafayette Federal Credit Union |
| 60 MONTH | 4.61% | 1.43% | First Internet Bank |
| | | | |
Rates current as of February 23, 2024
How CDs Work
CD Basics
- CDs have set rates and investment periods during which money cannot be removed. Typical periods for investing are 3, 6, 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 ends without penalties, even in 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.
Compare CD Rates
- Best CD Rates
- Best 3-Month CD Rates
- Best 6-Month CD Rates
- Best 1-Year CD Rates
- Best 5-Year CD Rates
- Best 10-Year CD Rates
- Best No-Penalty CD Rates
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of February 23, 2024.
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