Certificate Deposit (CD) is a document procured from a bank when you deposit an amount for a certain period of time, restricting on early withdrawals. Unlike the olden days, CDs these days are handed over electronically and have the ability of automatic renewal if you opt for it. Once the CD matures, you can withdraw the entire amount including the interest earned on the same. Despite the restrictions on withdrawal, you can always break a CD before your maturity date by paying a penalty amount. If you are looking for a better interest on deposit according to today’s highest CD, rates given by online banks are always a good option. This is because they offer much better rates than traditional banking systems. Let us say a 12-month-old CD at the Bank of America requires a minimum of $10,000 and pays interest at only 0.07%, while online banks could give you at 1.40% with a required minimum deposit of $2000. Hence, today’s highest CD rates are always available online with much better interest rates.
Let us look at the accounts with the highest CD rates as per July 2017 report.
- Synchrony Bank
The required minimum deposit is $2000 and the annual per year interest is at 1.40%. They were formerly part of GE and were already a large business in credit cards. Synchrony Financials gather all online deposits to fund their own card business, and the deposits are insured by FDIC to the maximum. This is related to the one-year CD. - Goldman Sachs Bank
Another online banking being one of the largest investment banks in United States. As for today’s highest CD rates, the deposits are well insured by FDIC and they keep varying based on the competition. The minimum required deposit can be $500 as well. Hence, the money pressure is hardly there as compared to other banks. Here, the rate is also same as synchrony with 1.40% for one year, 1.55% for two years, 1.90% for three years and so on until 2.40% at six years. - Discover Financials
These banks are known for cash back credits and have been into the internet banking sector for ages, offering savings accounts, CDs, checking accounts, etc. They have also invested in mobile banking unlike other banks and have a good rapport with the client relationship management sector. Their APYs keep changing on the basis of the cross checkpoints of competition and the duration. If mobile banking is far easier for you than net banking, you should choose Discover as they have tapped into the technology advent much before any other banks. The advantage of Discover Financials has a wide range of maturity timelines and one of the highest CD rates today for a duration as short as three months at 0.35% and as long as 10 years at 2.35%. - Popular Direct
This is an online bank of BANCO Popular North America. They have stringent rules on CD rates. This is essential for upper-class people who are ready for higher deposits. Here, we are talking about one year at 1.55% APY with a minimum deposit of $10,000 all insured under FDIC. - PenFed Credit Union
This bank offers competitive APYs. If you are a kith to military or a government affiliation, this is a free credit union and you can benefit their products. However, if you are a layman, you can join the Voices for America’s Troops, costing you $14.00 be a member of PenFed and including a certificate online. Once you are a member, you can deposit up to $5000, which is insured by the National Credit Union Administration (NCUA). If you are willing to evade mobile technology for banking services, then this is a good option for a 1.31% APY at a $1000 of minimum deposit. - Connexus Credit Union
Make a donation of $5 to the Connexus association and you are part of the Connexus Credit Union. The minimum deposit of $5000 is insured by NCUA and offered by the credit union for benefitting from the different products. This being one of the best APY at 2% for a 3 Year CD is an amazing offer. - EverBank
Have a minimum deposit of $5000 to start an account and you get 2% APY on an average of $5000 with a minimum CD rate of three years. The deposit is FDIC insured and has been acquired by TIAA-Cref. You can even have an APY of 2.00% on $1000000.
With a certificate of deposit, both the banker and customer have a great bond. The banker always keeps the deposit intact for your specified period and interest rates on the CD are guaranteed. Always opt for an online CD for today’s highest CD rates if you are confident enough of not having to withdraw the amount as the interest tied to the amount is always a multiple income.
