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Ensuring your money works for you is key to any sound financial plan. One way to do that is by maximizing your interest-earning potential with a certificate of deposit. A CD is a low-risk way to earn a guaranteed return for a specific time period, or term, and the best rates still top 5% annual percentage yield, or APY.
CD rates are on the way down, but you can still lock in a competitive rate for the entire term. So even if rates fall, your rate won’t change until your CD matures. If you have some cash sitting in a low-yielding account and you can afford to set it aside for a specific period, now’s the time to open a CD.
For example, if you have $2,000 to deposit, let’s take a look at how much you could earn by investing in one of the top-yielding CDs: CommunityWide Federal Credit Union’s one-year CD.
If you deposit $2,000 in CommunityWide Federal Credit Union’s one-year CD — which has one of the highest APYs available right now at 5.00% APY — you’ll earn $100 when your CD term ends. But keep in mind that your return will vary depending on how much money you deposit and the length of the term.
Other deposit amounts
Here are a few more examples should you deposit more or less than $2,000 in CommunityWide Federal Credit Union’s one-year CD. (Note: CommunityWide Federal Credit Union’s minimum deposit requirement is $1,000 for all its CD terms.)
| CD term | Amount deposited | APY | Interest earned | Balance at maturity |
| 1-year | $500 | 5.00% | $25.00 | $525.00 |
| 1-year | $1,000 | 5.00% | $50.00 | $1,050.00 |
| 1-year | $2,000 | 5.00% | $100.00 | $2,1060.00 |
| 1-year | $5,000 | 5.00% | $250.00 | $5,250.00 |
| 1-year | $10,000 | 5.00% | $500.00 | $10,500.00 |
Other CD terms
CommunityWide Federal Credit Union offers five longer-term CDs, including an 18-month, 36-month and 60-month CD. Here’s how much you could earn in each if you deposit $2,000:
| CD Term | Amount deposited | APY | Interest earned | Balance at maturity |
| 18 month | $2,000 | 4.50% | $136.51 | $2,136.51 |
| 24 months | $2,000 | 4.25% | $173.61 | $2,173.61 |
| 36 month | $2,000 | 4.00% | $249.73 | $2,249.73 |
| 48 months | $2,000 | 3.80% | $321.77 | $2,321.77 |
| 60 month | $2,000 | 3.60% | $386.87 | $2,386.87 |
Other high-interest CDs to consider
CDs offer benefits in any rate environment. However, today’s top CD rates are likely the highest they’ll be all year, but you can still secure a high APY and protect your earnings from future rate changes. If you have money earmarked for a specific goal that you won’t need access to for a few months or years, now’s the time to lock in a high rate.
Here are a few other high-interest CDs to consider. We’ve listed how much you’d earn when the CD matures if you deposit $2,000:
| Term | Highest APY | Bank | Interest Earned | Balance at maturity |
| 1-year | 4.91% | Connexus Credit Union | $98.20 | $2,098.20 |
| 1-year | 4.90% | Limelight Bank | $98.00 | $2,098.00 |
| 1-year | 4.90% | Bask Bank | $98.00 | $2,098.00 |
| 1-year | 4.80% | America First Credit Union | $96.00 | $2,096.00 |
How to choose the right CD for you
When you’re ready to open a CD, you should look at more than just the APY. Here are a few factors you should consider when comparing CD accounts:
- When you’ll need your money: In order for a CD to work well with your money goals, you need to think about how long you can leave your money deposited. If you need to withdraw money from your CD before the term ends, you’ll pay an early withdrawal penalty that can equal a few weeks or months of interest. This can eat away at your interest earnings, so be sure to choose a CD term that fits your savings timeline.
- Minimum deposit requirement: Some banks require a minimum balance that can range from $500 to $1,000. But some banks don’t. Look for a bank that works well with how much you have to deposit.
- Fees: Most online banks don’t charge monthly maintenance fees because they have fewer overhead costs than brick-and-mortar banks. Still, read the fine print so you aren’t hit with any surprise fees after opening a CD.
- Federal deposit insurance: CDs at banks insured by the Federal Deposit Insurance Corporation and credit unions insured by the National Credit Union Administration are protected for up to $250,000 per person, per account category. Make sure the bank you’re considering is FDIC- or NCUA-insured so your money is protected if the bank or credit union fails.
Are CDs still worth the hype?
CD rates have steadily increased since March 2022 as the Federal Reserve raised the benchmark federal funds rate to fight record inflation. When the Fed raises this rate, banks tend to follow suit to remain competitive and boost their cash flow. As a result, savers have been able to enjoy high rates on consumer products like CDs and savings accounts. At one point, the top CD rates we track at CNET were as high as 5.65% APY for select terms.
However, after 11 rate hikes, the Fed paused interest rate increases in July 2023 as inflation started to show signs of cooling, and it’s held them steady since. In response, CD rates started to plateau and have trended downward since the fourth quarter of 2023.
With the latest Consumer Price Index Report showing inflation is nearing the Fed’s 2% target, experts predicted a cut at the Fed’s Sept. 17-18 meeting — a prediction that proved true. As a result, APYs — which have been falling more rapidly in recent weeks as banks anticipated a cut — are likely to fall further.
However, since your rate is locked in when you open a CD, opening a CD can protect your earnings against future rate drops.
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