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CD Rates Today: May 20, 2025 – Rates Slide
- The best CD rates currently reach up to 5.02%, offering better yields than high-yield savings accounts with fixed interest rates and maturity periods.
- Withdrawal fees are incurred if cash is accessed before the maturity of the CD, resulting in a penalty that can equate to losing a year's worth of interest.
- Rates vary for different CD terms; three-month CD rates average at 1.3%, while 12-month CDs offer a high of 5.02% and two-year CDs offer rates as high as 4.52%.
- For jumbo CDs, the best rate at present is 4.94% for a 6-month term, with varying requirements for minimum deposits at different financial institutions.
- CDs generally offer higher interest rates compared to other savings options and are known for their safety as federally insured investments, providing protection up to $250,000.
- CDs have minimal risk compared to investments like stocks, real estate, or cryptocurrencies, making them a secure avenue for preserving and growing capital.
- Consider various options from traditional banks, credit unions, and digital firms to find the best CD rates, as rates can differ significantly between institutions.
- When opening a CD, be mindful of the minimum deposit required, as well as the strict penalties for early withdrawals that can impact both interest earnings and principal.
- CDs are simple savings tools that allow for compounding interest over fixed periods, making them a reliable way to grow savings without the risks associated with more volatile investments.
- Federal agencies like the FDIC and NCUA provide insurance coverage for CDs purchased from insured institutions, ensuring protection in case of bank failure.
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