Best CD Rates of July 2024

The best CD rates for July 2024 vary by term length and financial institution. Generally, online banks and credit unions offer higher rates compared to traditional banks. Check current offers from various banks to find the highest rates for different CD terms.

CD rates are the interest rates paid on a fixed-term deposit. When you invest in a CD, you agree to keep your money in the account for a period ranging from a few months to several years. In return, you earn interest at a fixed rate, usually higher than standard savings accounts.

Consider factors such as the interest rate, term length, minimum deposit requirements, and early withdrawal penalties. Higher interest rates and longer terms typically offer better returns, but make sure you can commit to the term without needing to access the funds early.

CDs offer a guaranteed return on your investment, making them a low-risk savings option. They are insured by the FDIC up to $250,000 per depositor per bank, providing a safe place to park your money while earning higher interest than traditional savings accounts.

Yes, most CDs impose early withdrawal penalties if you access your funds before maturity. Penalties can include forfeiting a portion of the interest earned or a flat fee. Be sure to review the terms and conditions of a CD before investing.