January 24, 2016
Ever since the Federal Reserve lowered interest rates in 2008 to lessen the blow of the Great Recession, it’s been hard to earn much on your savings.
The Fed finally began raising rates last month. But since banks are slow to react, and more substantial hikes by the Fed will be rolled out slowly over the next several years, better yields are still ahead of us.
So where should you put your hard-earned cash in the meantime?
With the typical savings account paying a pathetic 0.10% APY, it’s definitely worth your time to find higher-paying options, such as certificates of deposit.
Nationally available bank CDs are paying as much as 2.30% APY this winter, while credit unions and community banks are offering local deals that pay nearly 3% APY.
There are also a number of strategies for smart CD investing, like starting out with small, regular investments or choosing a CD that allows you to earn a higher return if rates go up.
Let’s begin with the banks offering the best nationally available deals on three of the most popular CD terms: 1 year, 2 years and 5 years.
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