3 Great CDs to Check Out in October 2024
KEY POINTS
- CD rates have fallen a little from their peaks earlier this year, but they remain high.
- If you hope to lock in an above-average rate, it's best to act soon before the next rate cut.
- A high-yield savings account could be a better option if you aren't comfortable locking your cash away.
The Federal Reserve rate cut last month was great news for borrowers, but it's been a bit of a downer for savers. High-yield savings account and certificate of deposit (CD) interest rates have already dipped, and there are more rate cuts on the way, possibly as soon as Nov. 7, 2024.
If you're hoping to lock in a CD rate of 4.50% APY or higher, now's the prime time to do it. Here's a closer look at some of the best CD offers available now.
1. Barclays Online CD 6-Months (4.00% APY)
The Barclays 6-Month CD is one of the few CDs still paying a 5.00% APY. It's a strong contender if you're interested in a high rate but aren't comfortable locking up your cash for a long time. There's no minimum deposit, so it's also a great choice for those who don't have a lot of money to spare.
Even if you deposit just $1,000, you'd earn $25 in interest. That's not bad for leaving your money alone for a few months. If it sounds like the right fit for you, you can click here to open one online in minutes.
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of January 4, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of January 4, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
It might not be the right choice for those who hope to lock in a high interest rate over a long period, though. If you open one of these accounts today, chances are good that rates across all CD terms will be much lower by the time your six-month term ends.
2. Synchrony Online CD 5-Year (4.00% APY)
The Synchrony Bank 5-year CD is a better fit for those who want to secure an above-average interest rate for many years without risking their money in the stock market. There aren't many other banks offering a 4.00% APY on a 5-year CD term right now.
Like the Barclays CD, there's no minimum deposit, so you can open this CD with even less than $1,000. However, the more you put in, the larger your interest payments.
3. Alliant CD 1-Year (4.50% APY)
The Alliant 1-year CD is an alternative to the Barclays option above for those who want to lock in a high interest rate over a shorter time frame.
However, this account has a $1,000 minimum deposit requirement. If this isn't feasible for you, check out our other top CD picks with term lengths ranging from six months to five years with low or no deposit requirements.
What about savings accounts?
A CD's greatest advantage can also be its greatest drawback if you need your money before the term ends. Your rate is locked in, but that also means your cash is stuck there until the term ends. Early withdrawals usually cost several months of lost interest.
A savings account gives you liquidity while also letting you earn interest on your funds. These interest rates aren't locked in, but if you choose a high-yield account, you'll earn a rate that's much higher than the national average. For example, the Discover® Online Savings account pays you a 3.75% APY -- nearly nine times the national average of 0.42%. And you won't pay maintenance fees either. If you'd rather keep your cash close at hand, consider opening a Discover® Online Savings account instead.
Our Research Expert
Kailey Hagen has been covering personal finance topics, including banks, insurance, and retirement since 2013.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.