Which CD terms offer the best rates and returns this September?
Summary
Certificate of deposit (CD) accounts currently offer higher interest rates than many other savings options. The highest rates this September are found in longer-term CDs, ranging from about 4.35% to 4.50%, but shorter-term CDs and alternatives like high-yield savings accounts also provide competitive options.Key Facts
- CD accounts offer fixed interest rates, usually higher than regular savings accounts.
- CD terms vary from 3 months to 10 years.
- Longer-term CDs (18 months to 5 years) have the highest rates currently, between 4.35% and 4.50%.
- Shorter-term CDs have slightly lower rates, ranging from around 3.90% to 4.30%.
- Withdrawing money before a CD matures often results in penalties that reduce earned interest.
- High-yield savings and money market accounts offer variable rates that are a bit lower than top CD rates but allow easier access to funds.
- Savers should choose CD terms that match when they can leave their money untouched.
- Expected interest rate changes from the Federal Reserve may affect future rates on CDs and savings accounts.
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