“How to Choose the Right CD for Your Financial Goals”

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Maximizing Your Savings with Certificates of Deposit (CDs)

A certificate of deposit (CD) can offer a higher interest rate than a savings account and be a safe place to keep your short- to medium-term savings. However, while opening a CD with your current bank or credit union might be the simplest option, it won’t necessarily earn you the most interest. Here are four steps you can follow if you want to find the best certificate of deposit based on your goals.

Earn Money Faster

Find High-Yield CDs

To maximize your earnings, it’s essential to find high-yield CDs. Here are some options:

• FastBreak™️: Guaranteed Annuity – 6.00% APY for 3 years, $1000 minimum deposit
• Discover® Bank: Certificate of Deposit – 4.50% APY for 1 year, $2500 minimum deposit
• Synchrony Bank: Certificate of Deposit – 4.80% APY for 9 months, no minimum deposit
• Marcus by Goldman Sachs: Certificate of Deposit – 4.60% APY for 1 year, $500 minimum deposit
• Quontic Bank: Certificate of Deposit – 5.10% APY for 6 months, $500 minimum deposit
• Barclays: Certificate of Deposit – 5.00% APY for 1 year, no minimum deposit
• Valley Direct: Certificate of Deposit – 5.00% APY for 6 months, $500 minimum deposit

Steps to Find the Best CD

1. Learn About the Different Types of CDs

First, you’ll want to consider the pros and cons of the various types of CDs:

• Regular CDs: Set aside money and earn interest. Early withdrawal penalties may apply.
• High-yield CDs: Regular CDs with higher interest rates.
• Jumbo CDs: Higher minimum deposits but offer higher interest rates.
• Brokered CDs: Purchased through a brokerage account, sometimes with higher yields.
• IRA CDs: Part of an individual retirement account (IRA) with tax advantages.
• Bump-up CDs: Start with a lower rate but allow for a rate increase request.
• Step-up CDs: Start with a low rate that increases over time.
• No-penalty CDs: Allow early withdrawal without penalties.
• Add-on CDs: Allow additional deposits while maturing.

2. Consider When You Need the Money

Your total earnings can depend on the CD’s term, features, and when you need the money. If you won’t need the money soon, consider regular, jumbo, or brokered CDs. If you might need the money soon, consider no-penalty CDs or high-yield savings accounts.

3. Know Where to Look

You can open a CD with various financial institutions:

• Banks: Traditional and online banks offer CDs, with online banks often providing higher rates.
• Credit Unions: Sometimes offer higher rates but require membership eligibility.
• Brokerage Accounts: Can offer higher rates by buying CDs in bulk.

4. Find the Best CD Given Your Criteria

Decide which type of CD makes the most sense given your budget, timeline, and goals. Use online tools to compare options, but also check with local banks, credit unions, or your brokerage account.

Keep CDs in Mind When Managing Your Finances

CDs are a relatively safe and easy way to earn money on your savings. Understanding how they work and how to find the best CD can be an important part of managing your finances. Consider CD laddering and compare interest rates on high-yield savings and money market accounts to CD rates.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you find the best financial solutions!

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