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Today’s interest rate environment isn’t beneficial for those looking to borrow money. On the other hand, if you’re a saver, today’s high interest rates are likely welcomed. After all, the high interest rate environment gives you more opportunities to earn a meaningful return on your idle cash. And certificates of deposit (CDs) are a compelling way to do so.
But today’s high rates won’t last forever. Interest rates typically rise and fall in response to macroeconomic changes. One of the biggest economic drivers of interest is inflation. In fact, today’s high rates are the product of the Federal Reserve’s response to high COVID-era inflation – inflation that has, since, cooled.
Though the inflation rate hasn’t yet fallen to the Federal Reserve’s 2% goal, that figure came in at 3.2% in February; a significant improvement over the 9.1% rate seen in June of 2022 shortly following the Federal Reserve’s first rate hikes. As such, most experts expect that the Fed will start cutting rates later this year.
Fortunately, CDs allow you to lock in today’s high interest rates for the entire term of your account.
But as with any savings vehicle, it’s important to compare your CD options to make sure you get the best rate possible. So, which CD accounts have the best rates this April?
Open a CD now to lock in today’s competitive interest rates.
12 best CD accounts to open in April 2024
If you want to lock in today’s high interest rates before any potential rate cuts, consider opening one of the following accounts this April:
- America First Federal Credit Union 1-year CD – 5.30%: This account has a $500 minimum opening deposit. The early withdrawal penalty on this account is equal to 60 days of interest.
- Popular Bank 6-month CD – 5.30%: This account has a $10,000 minimum opening deposit. The early withdrawal penalty on this account is equal to 120 days of interest.
- TAB Bank 1-year CD – 5.27%: This account has a $1,000 minimum opening deposit. The early withdrawal penalty on this account is equal to 90 days of interest.
- Vio Bank 6-month CD – 5.25%: This account has a $500 minimum opening deposit. The early withdrawal penalty on this account is equal to 1% of the amount withdrawn plus $25.
- Bread Savings 1-year CD – 5.25%: This account has a $500 minimum opening deposit. The early withdrawal penalty on this account is equal to 180 days of interest.
- LendingClub 1-year CD – 5.15%: The minimum deposit to open this account is $2,500. The early withdrawal penalty on this account is equal to 60 days of interest.
- Synchrony Bank 6-month CD – 5.15%: There is no minimum opening deposit amount on this account. The early withdrawal penalty on this account is equal to 90 days of interest.
- Alliant 1-year CD – 5.15%: This account has a $1,000 minimum opening deposit. The early withdrawal penalty on this account is equal to the value of interest for the number of days the account is open up to a 90-day maximum penalty.
- CapitalOne 10-month CD – 5.10%: This account doesn’t come with a minimum opening deposit. The early withdrawal penalty on this account is equal to 3 months of interest.
- BMO Alto 1-year CD – 5.05%: This account doesn’t come with a minimum opening deposit. The early withdrawal penalty on this account is equal to 90 days of interest.
- Marcus by Goldman Sachs 14-month CD – 5.00%: This account has a $500 minimum deposit. The early withdrawal penalty on this account is equal to 90 days of interest.
- Barclays 1-year CD – 5.00%: This account doesn’t come with a minimum opening deposit. The early withdrawal penalty on this account is equal to 90 days of interest.
Don’t wait for rates to fall before you open a CD. Compare your options now.
The bottom line
Today’s high interest rate environment, combined with the fact that interest rates may soon fall, make CDs compelling savings vehicles. And considering that rates are locked, meaning that you can earn high returns even if the overall rate climate soon changes, it makes sense to get started quickly. Lock in today’s high rates with a CD now.
