CD rates are decreasing, highest at 5.06%

Interest rates for certificates of deposit (CDs) are currently dropping. The highest rate available today is 5.06%, depending on the term chosen. For a 6-month jumbo CD, this rate is notably appealing. Online banks typically offer rates that are much higher than the national averages found at traditional banks. Many people also choose to use CD ladders, which allow them to take advantage of high rates while not locking away all their money for a long time. Today's best rates vary by term. For a three-month CD, the highest yield is 4.72%, while the average remains at 1.3%. The top rate for a six-month CD is 4.94%, with the average at 1.79%. One-year CDs can reach 5.02%, while the average sits at 1.87%. For two-year CDs, the highest available rate is 4.52%. Three-year CDs offer a peak rate of 4.65%, and five-year ones provide up to 4.26%. However, with longer terms, it's important to consider penalties for early withdrawals that can cut into earnings. When comparing rates, remember that different banks may offer different options. For instance, major banks like Chase or Bank of America usually present lower rates compared to online institutions. Rates can vary significantly, so it's advisable to shop around. To open a CD, you need to deposit a certain minimum amount. This can range from hundreds to thousands of dollars. The term starts once you make your deposit, and you earn interest during that time. Keep in mind that early withdrawal penalties can be steep. Overall, CDs can be a safe way to earn interest on savings. They typically provide better rates than basic savings accounts, but they don't always match the potential returns from stocks or other investments over time.