Pros

• Sallie Mae offers a range of CD terms with yields
• Competitive and significantly above the average.

Overview

Sallie Mae Bank provides a variety of financial products, including CDs with 11 different terms, a savings account, a money market account, and private student loans. Its deposit products come with competitive yields.

Founded in 2005 and headquartered in Salt Lake City, Sallie Mae Bank became a standalone consumer banking entity in 2014.

Current rates of Sallie Mae Bank

Pros

• Synchrony Bank offers many terms of CDs.
• It offers a competitive yield, and it doesn’t require a minimum opening deposit

Overview

Synchrony Bank offers a broad range of regular CDs with terms from three months to five years. Recently, they introduced a no-penalty CD and a bump-up CD. Additionally, Synchrony Bank provides IRA CDs.

Current rates of Synchrony Bank

Pros

• As rates have been rising, Marcus by Goldman Sachs has consistently adjusted its yields to remain competitive.

Overview

Marcus by Goldman Sachs provides competitive yields on its CDs, with terms ranging from six months to six years.

In addition to nine different standard CD terms, it offers three no-penalty CDs and a rate-bump CD. All CDs require a minimum deposit of $500.

Current rates of Marcus by Goldman Sachs

Pros

• Quontic offers competitive rates on its five CD terms
• You can start with just $500.

Overview

Quontic Bank provides six CD terms, ranging from three months to five years, with a minimum deposit of $500. All six terms feature highly competitive rates.

Current rates of Quontic Bank

How to choose the best CD ?

Choosing the best certificates of deposit (CDs) involves several key considerations to ensure you get the best return on your investment.

First, compare interest rates across different banks and financial institutions. Rates can vary significantly, so shopping around helps you find the highest yield for your money.

Next, consider the term length of the CD. Shorter terms offer more flexibility but usually lower rates, while longer terms typically provide higher returns but tie up your money for a longer period. Be sure to assess your financial needs and choose a term that aligns with your liquidity requirements.

Another crucial factor is understanding the penalties for early withdrawal: each CD has specific terms regarding early withdrawal penalties, which can eat into your earnings if you need to access your funds before the CD matures.

Additionally, check if the CD is insured by the FDIC or NCUA, which guarantees your investment up to a certain amount and provides added security.

Finally, take note of any special features or conditions, such as interest rate bumps or automatic renewals, that might impact your investment.

Who can get a CD ?

Certificates of Deposit (CDs) can be a suitable investment choice for various types of individuals depending on their financial goals and circumstances:

1. Conservative Investors: Those who prioritize capital preservation and are risk-averse may find CDs attractive. CDs offer a fixed interest rate and are typically insured by the FDIC or NCUA, which provides a guarantee on the principal amount up to certain limits.
2. Short-Term Savers: If you need a secure place to park your money for a specific short-to-medium-term goal—such as saving for a down payment on a house or funding a future expense—CDs can provide a higher return than traditional savings accounts, especially if you choose a term that aligns with your savings timeline.
3. Income Seekers: Retirees or others looking for a steady stream of income might benefit from CDs, as they offer predictable returns. The fixed interest payments can provide a stable source of income, particularly when interest rates are higher.
4. Diversification Enthusiasts: Investors looking to diversify their portfolios might include CDs to balance their more volatile investments. CDs offer stability and can reduce overall portfolio risk.
5. Individuals with Fixed Time Frames: If you have a set amount of money that you do not need immediate access to, and you can lock it away for a specific period, CDs can be a good option. They often provide better interest rates than savings accounts for the same period.

In essence, CDs are ideal for those who want a safe, predictable investment with a fixed return and can commit to not needing immediate access to their funds.