Snag One of These 4.15%+ CD Rates Before They Disappear
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This Wednesday, the Federal Reserve will announce whether it plans to change interest rates -- and the markets are betting on a cut. There's a 96% chance that the federal funds rate will drop by 25 basis points, according to CME FedWatch.
When interest rates drop, certificate of deposit (CD) rates drop, too. That means now could be your last chance to lock in a high yield for a long time.
If you want to strike while the iron is hot, here are two of the all-around best CDs you can get right now.
1. LendingClub CD: 8 Months, 4.45% APY
This is one of the highest CD rates you can find today, period. The 8 Mo. term is uncommon, which means this is likely a promotional CD that won't be around long.
The 4.45% APY beats almost any short-term CD on the market right now. And the minimum deposit is only $500, whereas many banks require $1,000 or more.
The LendingClub 8 Mo. CD is perfect for anyone who wants to lock in a high APY without locking up their money for a year or more.
LendingClub CD
On LendingClub's Secure Website.
2. Synchrony Bank: 5 Year, 4.00% APY
If you want to protect your money from inflation and interest rate cuts for years, then this is the CD for you. It has the highest APY for a 5-year term that I've seen recently, excepting a couple of regional credit unions with strict membership requirements.
Five years is a long time to leave your money untouched, so before you commit, make sure you have enough cash in a savings account to cover your short-term needs. But if you can park your cash for the full term, you'll earn some serious interest. A $10,000 deposit would earn $2,255, guaranteed.
Synchrony Online CD
On Synchrony Bank's Secure Website.
Can't decide which CD to open? You don't have to
If you're unsure which CD term is best for you, then you can split your money between several CDs with different terms. CD terms generally range from 3 months to 5 years, so you can mix and match however you want. That way some of your cash will be freed up soon, while the rest can keep growing. When each CD matures, you can either withdraw your cash or put it into a new CD.
No matter how you invest in CDs, there's basically zero risk. They're FDIC-insured, so deposits up to $250,000 are safe. Your APY is fixed, so there's no risk of capital losses.
If I were in the market for a CD, then I'd open one now, because rates could drop in a matter of days. Check out our full list of the best CD rates available now for more options.
Our Research Expert
James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.