CD Account Rates

Certificates of deposit offer savers a vehicle that pays more than typical savings accounts. You must, however, leave your money in a CD until it matures. For more information on CD Accounts, click here.

CDs come with many different terms, ranging from just a month to five years or more. If you think you might need your money before your CD matures, it might not be the best type of account for you. If you take your money out early you will likely have to pay a penalty.

CD rates fluctuate, so it pays to do your homework and find the best rate you can before you invest. The average rates for CDs, according to the FDIC, are:

One-month: 0.07 percent

Six-month: 0.10 percent

One-year: 0.28 percent

Two-year: 0.43 percent

Three-year: 0.55 percent

Four-year: 0.66 percent

Five-year: 0.88 percent

You have many options when it comes to investing in CDs, so take advantage of them to watch your money grow at the fastest rate possible.

For example, try CD laddering, a strategy that enables you to take advantage of short- and long-term rates. To build a CD ladder, you open a group of CDs instead of just one — and you stagger their terms and maturity dates.

For example, say you wanted to open a three-year CD ladder with $30,000. You would put $10,000 in three CD accounts that mature in one, two and three years. Doing this will give you period access to your money if you need it and you’ll get a great return on your longer-term CDs. If CDs are one of your investments of choice, make sure you’re making the most you can out of them.