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What are current CD yields?

Published in CD Investments 2 mins read

Current CD yields vary depending on the financial institution and the term length of the CD, but here's a snapshot of some available rates from different sources:

Current CD Yield Examples (October 26, 2023)

Here are a few examples of CD yields offered by different institutions, showcasing the range of rates available:

  • Marcus by Goldman Sachs High-Yield CD: 4.20% APY for a 1-year term (Member FDIC).
  • Capital One 360 CD: 4.50% APY for an 11-month term (Member FDIC).
  • Alliant Credit Union Certificate: 4.25% APY for a 1-year term (Federally insured by NCUA).
  • Discover® CD: 4.10% APY for a 1-year term (Member FDIC).

Factors Affecting CD Yields

Several factors influence the CD yields offered by banks and credit unions:

  • Term Length: Generally, longer-term CDs offer higher yields than shorter-term CDs, but this isn't always the case, especially in fluctuating interest rate environments.
  • Economic Conditions: Overall economic conditions, including inflation and the Federal Reserve's interest rate policy, have a significant impact on CD rates. When the Fed raises rates, CD yields tend to increase, and vice-versa.
  • Competition: Financial institutions adjust their CD rates to remain competitive with other institutions in the market.
  • Financial Institution's Needs: A bank or credit union's need for deposits can also affect CD rates. If an institution wants to attract more deposits, it may offer higher yields.

Finding the Best CD Yield

To find the best CD yield for your needs, it is important to:

  1. Shop Around: Compare rates from multiple banks and credit unions.
  2. Consider Term Length: Determine the appropriate term length based on your investment goals and liquidity needs.
  3. Check FDIC/NCUA Insurance: Ensure that the institution is FDIC-insured (banks) or NCUA-insured (credit unions) to protect your deposits.
  4. Look for Special Offers: Some institutions may offer promotional rates or bonuses to attract new customers.

Keep in mind that rates are subject to change, so it's always a good idea to check the current rates directly with the financial institution before opening a CD.

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