Here’s what you need to know before getting a certificate of deposit.
Savings rates for certificates of deposit, or CDs, remained high in November, with half of the leading 10 offers this month delivering an annual percentage yield — or APY — of at least 6%. And although some of the most attractive promotional offers come with some restrictive hurdles, there are still plenty of viable options out there for just about everyone.
Why are CD rates going up? For one, high inflation has encouraged the Federal Reserve to increase the national benchmark funds rate in an effort to bring consumer prices back down. But as the funds rate rises, so too have borrowing rates for consumers and financial institutions alike.
Anyone opening a CD must take a number of possible fees and restrictions into consideration. For one, just about every CD comes with an early withdrawal penalty for taking out any of your principal balance prior to the maturity date. These fees can charge a percentage of your interest or even your principal balance, depending on the institution. Find out more about CD fine print and the various types of available CDs on the market here.
Travis Credit Union: 6.00% APY The 4-month share certificate at this credit union comes in at a 6% APY. Just bring a minimum opening deposit of $500 and meet the credit union’s membership requirements. It should also be noted that deposits here are restricted to $50,000, so this may not work for everyone.
Credit Human: 6.00% Bring as little as $500 and you’re set for the high 6% APY available for 12- to 17-month share certificates at this credit union. Just be sure to meet the credit union’s membership requirements, which entails either living, working, worshiping or attending school in Credit Human’s designated service areas in San Antonio or New Orleans.
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