Climate First Bank is offering 5.34% APY for a 6-month certificate. A $500 minimum deposit is required. The St. Petersburg-based bank is the 46th largest in the state of Florida. Climate First Bank was established in 2021.
Key Takeaways
- Global Innovations Bank offers the highest one-year rate, with 5.61% APY.
- The highest rate for a 6-month CD is currently 5.55% APY, offered by Newtek 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% | 1.27% | Home Loan Investment Bank |
| 6-month | 5.55% | 1.65% | Newtek Bank |
| 1-year | 5.61% | 1.72% | Global Innovations Bank |
| 18-month | 5.35% | 1.78% | Life Credit Union |
| 2-year | 5.38% | 1.51% | Amboy Direct |
| 3-year | 5.75% | 1.40% | Farmers Insurance Federal Credit Union |
| 4-year | 4.59% | 1.47% | Pelican State Credit Union |
| 5-year | 4.70% | 1.42% | Pelican State Credit Union |
| | | | |
Rates current as of March 21, 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
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of March 21, 2024.
Methodology
GOBankingRates is here to help you navigate your finances. Here’s an explanation of how we choose the top CD rates each day.
GOBankingRates analyzes deposit rates from banks and credit unions with nationwide availability. We then identify the best rates among this group by focusing on annual percentage yield. Institutions listed in the daily chart are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.
There are a few things you must take into consideration when deciding on a CD. Keep in mind what you’ll use the money for and your timeline for accessing the funds. This will help you draft your financial plan and keep you from incurring penalties for early withdrawal.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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