With interest rates rising, here are the 7 best CD rates of November 2022

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The average CD rate has increased by 500% over the past year.


Key points

  • The current 12-month CD rate is 0.71%, an increase of 500% over last year.
  • Some banks offer these CDs with rates as high as 4%.
  • High-yield savings accounts reach 3.83% and I bonds yield 6.89%.

As interest rates begin to rise, savers are looking the best CD prices to make sure their money gets the most out of it. A year ago, the average 12-month CD rate was 0.14%. The current rate is 0.71%, an increase of 500%. So if you are looking for a high output CD, take a look at these best 12 month CD rates from November 2022. With rates this high, you can be sure your money is working hard for you.

Best 12 Month CD Rates

Bank

Interest rate

Minimum amount

Barclays Online CDs

4.00%

$0

Discover the high yield CD

4.00%

$2,500

Marcus by Goldman Sachs High Yield CD

4.00%

$500

Bread Savings CD

3.60%

$1,500

Quantum CDs

3.35%

$500

Capital One 360 ​​CD

3.25%

$0

CD Sallie Mae

3.25%

$2,500

Data source: FDIC.gov

What are the pros and cons of CDs?

A certificate of deposit, or CD, is a type of savings account that typically offers a higher interest rate than a traditional savings account. In exchange for this higher rate, you agree to leave your money in the account for a fixed period, usually ranging from six months to five years. CDs are FDIC insured and provide a safe way to grow your savings.

A downside is that you may face penalties if you need to withdraw your money before the end of the term. CDs can be a good option if you have money you don’t need immediate access to and want to earn more interest than a savings account offers. However, they may not be the best choice if you need flexibility with your money.

Is it time to invest in a CD?

CD rates have been low for years due to low interest rates. With the The Fed raises rates six times this year, the fastest cycle in history, some banks are offering CD rates as high as 4%. If interest rates continue to rise, CD rates will likely continue to rise. So if you lock in at a lower rate, you could potentially miss out on bigger returns down the line.

There is currently high yield savings accounts with returns close to 4% without having to tie up your money. Currently, the UFB High Rate Savings Account has an interest rate of 3.83%. However, if the Fed lowers rates significantly in the near future, savings account rates will most likely also drop, so the 4% lock-in may work to your advantage. Another option is invest in a bond Iwhich is also backed by the government and currently yields 6.89%.

Ultimately, the decision to invest in a CD comes down to your personal finances. With interest rates at their highest in 15 years, many banks are offering higher CD rates as well as savings account rates. If you want a fixed rate without worrying about interest changes, a CD may be right for you.

These savings accounts are FDIC insured and could earn you up to 18 times your bank

Many people miss out on guaranteed returns because their money languishes in a big bank savings account earning almost no interest. Our choices of best online savings accounts can earn you more than 18 times the national average savings account rate. Click here to check out the top picks that landed a spot on our shortlist of the best savings accounts for 2022.

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