Making your money grow can feel like an uphill battle in today’s inflation, but it is doable with companies with the best CD rates of 2024. This is a safe and reliable option that is available to park your savings and earn a competitive return.
CDs have long been a favorite among risk-averse investors seeking a guaranteed return on their investment. With a CD, you deposit a fixed amount of money for a predetermined term, typically ranging from a few months to several years.
In return, the bank offers you a fixed interest rate, which is locked in for the duration of the CD. This provides peace of mind knowing exactly how much your investment will grow without the worry of market fluctuations.
However, not all CDs are created equal. With a little research, you can find a CD that offers a significantly higher interest rate than the national average. This translates to more money in your pocket when the CD matures. So, how do you find the best CD rates of 2024?
The Power of Comparison
The first step to finding the best CD rates for 2024 is to shop around. Don’t just settle for the rate offered by your current bank. With a plethora of online banks and credit unions offering competitive rates, there’s a good chance you can find a much better deal elsewhere.
Here are some resources to help you compare CD rates:
- Financial websites: Several financial websites compile and update CD rates from a wide range of banks and credit unions. Some popular options include Bankrate, NerdWallet, and Investopedia. These websites allow you to easily compare rates for different CD terms and minimum deposit requirements.
- Bank and credit union websites: Don’t forget to check the websites of individual banks and credit unions in your area. They often list their current CD rates prominently.
Factors to Consider When Choosing a CD
Once you’ve started comparing rates, there are a few key factors to consider when choosing the right CD for you:
- Interest rate: This is obviously the most important factor. Look for a CD that offers a competitive interest rate for the desired term.
- CD term: Consider how long you can comfortably tie up your money. Shorter terms offer lower rates, while longer terms typically lock in higher rates.
- Minimum deposit: Some CDs have minimum deposit requirements, ranging from a few hundred dollars to several thousand dollars.
- Early withdrawal penalties: If you think you might need to access your money before the CD matures, consider a CD with a lower interest rate and a more lenient penalty for early withdrawal.
- Account features: Some CDs offer additional features, such as the ability to add additional funds during the term or automatically renew the CD at maturity.
Best CD Rates of 2024
Here are the best CD rates of 2024 and a bit about them:
Credit Human
Credit Human offers a high-interest 18-month share certificate with a minimum opening deposit of $500, which is lower than many other institutions.
Membership eligibility:
You can join from anywhere in the U.S. by joining the American Consumer Council. You are also eligible if you live in service areas in San Antonio, Texas, or New Orleans, Louisiana, or work for a partner employer or organization.
Term options:
Terms range from 3 months to 10 years.
Early Withdrawal Penalties:
- 90 days of interest for a period of 3 months.
- 180 days of interest for a period of 6 months.
- 270 days of interest for a period of 12 months.
- 365 days of interest for a period of 36 months.
- 730 days of interest for a period of 60 months.
- 1,095 days of interest for a period of 84 to 120 months.
Best CD Rates of 2024: TotalDirectBank
TotalDirectBank offers appealing options for 3-month and 6-month CDs available nationwide.
Deposit requirements:
The CDs have a high minimum opening deposit of $25,000 and a maximum deposit of $1 million. Note that TotalDirectBank is the online-only division of the City National Bank of Florida, and it does not operate in Florida, Puerto Rico, Samoa, Guam, the Northern Mariana Islands, or the U.S. Virgin Islands.
Term options:
Terms range from 3 months to 5 years.
Early withdrawal penalties:
- 30 days of interest for a period between 30 days and up to 6 months.
- 90 days of interest for a period above 6 months and up to 1 year.
- 180 days of interest for a period over 1 year.
California Coast Credit Union
California Coast Credit Union is offering a limited-time 5-month Celebration Certificate with an impressive 9.50% APY CD rate. This rate is significantly higher than most other CDs currently available. Additionally, the minimum deposit required is just $500.
However, there are strict eligibility criteria for opening this certificate:
Maximum deposit:
You can invest a maximum of $3,000 in the CD.
Term options:
California Coast Credit Union offers terms ranging from 3 months to 5 years, including a 5-month celebration certificate, an 8-month liquid certificate, and an 18-month bump rate certificate.
Early withdrawal penalties:
- 90 days’ interest for a period of 6 months or less.
- 180 days’ interest for a period from more than 6 months to 24 months.
- 365 days’ interest for a period of more than 24 months.
Climate First Bank
Climate First Bank offers the highest rate on a 6-month no-penalty CD, alongside two other strong no-penalty CD rates. This bank is a great choice for those seeking an environmentally friendly option with a low minimum opening deposit of $500.
Term options:
Climate First Bank offers CDs with terms ranging from 6 months to 25 months.
Penalties:
None for no-penalty CDs.
Best CD Rates of 2024: USALLIANCE Financial
USALLIANCE Financial currently offers the highest rates on 1-year and 2-year CDs. This option is ideal if you’re interested in joining a credit union.
Membership eligibility:
You can join if you live in select areas of Massachusetts, Connecticut, New Jersey, or New York, work for select employment groups, or join the American Consumer Council, Arco of Westchester, Tread Lightly!, or the Council of Community Services.
Term options:
Terms range from 3 months to 5 years.
Early withdrawal penalties:
- 180 days of interest for terms under 18 months.
- 360 days of interest for terms of 18 months or more.
