With Interest Rates Rising, These Are the Top 7 CD Rates of November 2022

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KEY POINTS

  • The current 12-month CD rate is 0.71%, an increase of 500% from last year.
  • Some banks are offering these CDs with rates as high as 4%.
  • High-yield saving accounts are as high as 5.25% and I bonds are returning 6.89%.

The average CD rate has increased 500% in the past year.

As interest rates begin to rise, savers are searching for the best CD rates to ensure their money is earning the most possible. The average 12-month CD rate a year ago was 0.14%. The current rate is 0.71%, an increase of 500%. So if you're looking for a CD with a high yield, take a look at these top 12-month CD rates of November 2022. With rates this high, you can be sure your money is working hard for you.

Top 12-month CD rates

Bank Interest Rate Minimum Amount
Barclays Online CD 4.00% $0
Discover High Yield CD 4.00% $2,500
Marcus by Goldman Sachs High Yield CD 4.00% $500
Bread Savings CD 3.60% $1,500
Quontic CDs 3.35% $500
Capital One 360 CD 3.25% $0
Sallie Mae CD 3.25% $2,500
Data source: FDIC.gov

What are the pros and cons of CDs?

A certificate of deposit, or CD, is a type of savings account that typically offers a higher interest rate than a traditional savings account. In exchange for this higher rate, you agree to leave your money in the account for a set period of time, usually ranging from six months to five years. CDs are FDIC insured and offer a safe way to grow your savings.

One downside is that you may face penalties if you need to withdraw your money before the end of the term. CDs can be a good option if you have money that you don't need immediate access to and you want to earn more interest than what a savings account offers. However, they may not be the best choice if you need flexibility with your money.

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Is now the time to invest in a CD?

CD rates have been low for years due to low interest rates. With the Fed increasing rates six times this year, the fastest cycle in history, some banks are offering CD rates as high as 4%. If interest rates continue to go up, CD rates will also likely continue to rise. So if you lock in at a lower rate, you could potentially miss out on greater returns down the line.

There are currently high-yield savings accounts with returns close to 4% without having to tie up your money. Currently the UFB Secure Savings Account has an interest rate of 5.25%. However, if the Fed drastically lowers rates in the near future, then savings account rates will also most likely go down, so locking in a 4% may be to your advantage. Another option is investing in an I bond, which is also backed by the government and currently returning 6.89%.

Ultimately, the decision to invest in a CD depends on your personal finances. With interest rates at a 15-year high, many banks are offering higher CD rates as well as savings account rates. If you want a fixed rate without worrying about changes in interest, then a CD may be right for you.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

Two of our top online savings account picks:

Rates as of Apr 15, 2024 Ratings Methodology
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SoFi Checking and Savings Western Alliance Bank High-Yield Savings Premier
Member FDIC. Member FDIC.
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APY: up to 4.60%

APY: 5.36%

Min. to earn APY: $0

Min. to earn APY: $0.01

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