You work hard for your money, so it’s important to make sure it’s working hard for you, too. That’s why it’s time to start thinking about investing in a Certificate of Deposit (CD).
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A CD is a savings account with a fixed interest rate, which means you’ll know exactly how much money you’ll be making on your investment. And the best part? You can earn these high rates without having to leave your house!
Thanks to the internet, you can now invest in a CD right from the comfort of your own home. All you need is a computer and an internet connection. And thanks to today’s technology, you no longer have to worry about lost or stolen CDs.
In this post, we’ll take a closer look at what CDs are and how you can find the best rates online. We’ll also cover some of the pros and cons of investing in a CD, so you can make an informed decision about what’s best for you.
What Is a CD?
A CD, or certificate of deposit, is a type of savings account that offers a higher interest rate than a regular savings account. A CD is like a parking spot for your money: you put your money in, and it stays there until you decide to take it out.
Unlike a regular savings account, you can’t touch your money in a CD for a set amount of time – usually six or twelve months. This is because the bank needs to be sure that it can afford to give you a high interest rate, since it’s taking on less risk by lending to you.
But don’t worry – your money is safe in a CD. The bank FDIC-insures your deposits up to $250,000. So if the bank goes under, the government will swoop in and save your money.
How Do Online Bank CD Rates Compare to Traditional Bank CD Rates?
When it comes to your hard-earned cash, it’s important to choose the right type of bank. And when it comes to bank certificates of deposit (CDs), you’ve got a couple of options: a traditional bank or an online bank.
Traditional banks offer the safety and stability of FDIC insurance, but their interest rates are often lower than online banks. Online banks, on the other hand, offer higher interest rates but don’t have FDIC insurance.
So which is the right choice for you? That depends on how much risk you’re willing to take. If you’re OK with a lower interest rate in exchange for the peace of mind that comes with FDIC insurance, go with a traditional bank. But if you’re looking for the best possible return on your money, go with an online bank.
What Are the Benefits of Investing in a CD?
When you invest in a CD, you’re essentially agreeing to let your money sleep for a certain amount of time. And during that time, you can’t touch it (unless you want to fork over some serious penalties). But what are the benefits of investing in a CD?
Well, for one, CDs offer some of the best interest rates around. This is because the bank is taking less of a risk with your money – after all, it’s locked away for a set period of time.
Another benefit of investing in a CD is that you’re guaranteed to get your original investment back, plus interest. This is unlike other investment options, which can either make you a lot of money or leave you with nothing.
So if you’re looking for a safe and secure way to grow your money, a CD might be the right option for you.
How to Choose the Best Online Bank CD Rate
You’re probably wondering how to make your money work for you. Luckily, we’re here to help. Check out our list of the best online bank CD rates and pick the one that’s right for you.
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But before you do anything, make sure to read the fine print. You don’t want to get stuck with a low-rate CD and end up losing money in the long run. So do your research and find the best online bank CD rates for your needs.
We can’t promise that choosing the right rate will be easy, but it’ll definitely be worth it in the end. So sit down, buckle up, and get ready to start saving!
The Best Online Bank CD Rates in United States
You’re probably tired of working for your money. It’s time for your money to start working for you. Check out the best online bank CD rates for September 2022 and get started on your path to financial freedom.
Bread Savings (formerly Comenity Direct), LendingClub Bank, Marcus by Goldman Sachs, Barclays Online, and Discover Bank are all offering excellent CD rates right now, so you can be sure your money is working hard for you. Check them out and see which one is the best fit for you.
About Online Bank CD Rates
Making your money work for you is one of the smartest things you can do. That’s why we’ve compiled a list of the best online bank CD rates to help you get the most out of your savings.
So what are the highest CD rates today?
According to Bankrate, they’re from Bread Savings High-Yield CD, Connexus Credit Union Share Certificate, CFG Bank Certificate of Deposit, and Crescent Bank CD, all of which offer up to 3.51% APY. And if you’re looking for a CD that matures in September 2022, the best rates are from Ally Bank, Barclays, CFG Bank, TIAA, and Sallie Mae Bank, which offer up to 3.05% APY.
The average 1-year CD rate this week is 0.20%-1 Yr. APY from Axos Bank CD. So if you’re looking for a low-risk investment with a higher yield, a CD may be right for you.
Online Bank CD Rates TX (Texas)
Texas is a big state, so that means huge interest rates. I have heard that their cockroaches are as big as skateboards and their spiders as big as cars. My favorite is the bus size Jackolopes. But I digress. Let’s look at the certificate rates.
USAA Federal Savings Bank – San Antonio, TX (FDIC # 32188)
USAA was founded in 1983. They’re about $32.6 billion and nicely profitable. Maybe it’s a Texas thing. Big states, big profit. They are based in TX. Maybe a healthy bunch of good Texas pride will help the rates. USAA FSB has a 1 year at 2.25% APY and a 2 year at 2.45% APY. Mediocre. A 4-year Jumbo IRA pays 3.00% APY. With Fed funds at practically 0%, that’s pretty good. Although USAA is not open to everyone. You must be a part of the military or a family member of someone in the military.
Comerica Bank – Dallas, TX (FDIC# 983)
First, look at the FDIC#. founded on March 5, 1849. That’s old. They were originally the Detroit Bank and Trust Company. They changed their name to Comerica Bank-detroit in 1982 (yes, with a little “d”). They swallowed almost every bank in Michigan. In 1991 they removed “-detroit”. They continued to devour banks in MI, CA, FL and TX. Finally, Comerica Bank moved to TX in 2007. They’re big, about $67.6 billion, but they’re not based in TX. They have 1.00% APY for up to 1Y and $2.00 APY for a 2-year CD to 10-year CD. However, they were profitable for the year. This is rare these days.
The American National Bank of Texas – Terrell, TX (FDIC# 23474)
I just loved the name of the bank. But hopefully it won’t become an omen for the nationalization of the banking system. ANB of TX is a fortune of about $2 billion and also profitable. From what I’ve found, TX has, for the most part, a solid line of banks. American National was founded in 1981. With a name like “The American National Bank,” I thought this would surely be an oldie. Pricing data was not available on their website.
Guaranty Bank – Dallas, TX (FDIC #32618)
Guaranty Bank has an interesting product, the JumboUp CD. It is a setup CD and only requires an initial deposit of $10,000. You have a 16-month and 24-month option. Rates increase every 4 months and 6 months, respectively. Interest rates average 2.22% APY and 2.32% APY respectively. One problem is that Guaranty Bank also has a 1-year and 16-month CD that pay a better return. However, the 24-month step-up (or jumbo-up) CD pays a higher return than the fixed 2-year term. They were founded in 1988. They are about $15 billion in assets. They have a loss of about $420 million. Ouch! That’s far less than a profit of $89 million in 2007. Stay away from the riverboats
Texas Capital Bank, NA – Dallas, TX (FDIC# 34383)
Texas Capital is one of the group’s babies. They were founded in 1997 but already have a fortune of $5.1 billion. And another profitable Texas bank. But unfortunately, the online prices are terrible. The peak rate is 1.21% APY. I’m really starting to worry here.
Conclusion
You’ve been working hard for your money, so it’s time to start making it work for you. Check out the best online bank CD rates and start saving for your future.
You can’t afford to wait – the sooner you start saving, the more money you’ll have down the road. Compare the best online bank CD rates and find one that fits your needs.
It’s time to take control of your financial future. Start saving with a CD from a top online bank.
Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
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