CDs with High Rates

Investing money in a Certificate of Deposit is a financial commitment that literally pays future dividends. Because the time periods tend to be strict when it comes to CD investments, it’s important for consumers to find the best rates for a greater return. Consumers need to carefully research the best CD terms available from different financial institutions. Some CD investment terms include minimum deposits, interest rates, and early withdrawal fees. The top three CDs with high rates include Ally Bank CD, CIT CD, and the Discover CD. For the month of March, Ally Bank CDs feature APYs of 2.65 percent and Discover CDs are at 2.45 percent. CIT Bank CDs are offered with up to 1.85 percent APYs, which is high for a short-term CD. Act now if you want to lock in one of these great rates, and consider these questions when shopping for the best CDs.

 

Frequently Asked Questions ( 8 )   Add a Question

  1. How do I know my investment is safe?
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    All investments in these accounts are insured by the FDIC up to $250,000. In addition, the reason people choose CD accounts is because it is one of the safest investments available in the marketplace.

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  2. What are the minimum deposits allowed?
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    Discover does have a higher minimum deposit of $2,500. Ally online banking, on the other hand, does not come with a minimum deposit requirement. CIT has a wide range of options but the minimum deposit tends to average about $1,000.
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  3. How long does my money need to be invested?
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    All three banks have attractive incentives for keeping your money in place for longer periods of time, but the minimum investment period is 12 months. The longer the term, the higher your rate of return. If you are not prepared to commit for a long period of time, Ally bank has some lower paying, short term options available.

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  4. What happens after the initial term?
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    Ally bank gives you a 10 day grace period to either, withdraw the funds, add funds, close the CD or change the terms. If you do not take action, Ally will automatically renew the CD with the original terms. Discover offers you a 9 calendar day grace period where you can make changes or close the CD, otherwise, it will renew under the original conditions. CIT CD will also automatically review at maturity, but they also give their customers a 10 day grace period.

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  5. Do the top rated accounts offer flexible payment options?
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    Ally Bank lets you pick your interest payment option of either monthly, quarterly, semi-annual, or on an annual basis. You can withdraw interest from your Discover CD once it is posted to your account at any time. The CIT CD will pay you interest on a monthly basis.

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  6. What are the early withdrawal fees?
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    Ally Bank is the only account that offers a CD that does not have a fee for early withdrawal. CIT and Discover will charge you between 3-12 months of interest depending on the length of the original maturity.

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  7. What do the top rated CDs pay in interest?
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    How much money you can earn is obviously the most important part of making a qualified decision on a certificate of deposit account. For CIT a 1-year term you will earn an APY of 1.25%. Ally bank offers a 1.5% APY on a one-year investment. Finally, Discover comes in at 1.15%. Longer term commitments will yield you a higher return at all three banks.
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  8. How do you open a CD account?
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    While all three accounts can be opened online you need to be prepared to provide the following: your address, your social security number, and a photo id. In addition, your first deposit into the account most likely has to be from a checking account that the bank can verify.
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