CD and Savings Rates Today: Grow Your Savings

With banks fiercely competing for customer dollars, savers have an excellent opportunity to capitalize on the current high-rate environment. However, with rates frequently changing, it’s essential to ensure that you’re getting the best deal on a savings account or certificate of deposit (CD).

We monitor rates from banks and credit unions daily to help you make informed decisions. Financial experts predict that CD rates are unlikely to rise further in 2024, making this an opportune moment to lock in a rate if you’re ready. Below are some of the top rates available for savings accounts and CDs as of Sunday, September 1.

Featured Nationally Available Savings Account Rates

Featured Nationally Available CD Rates

Why Locking in Rates Now Could Be a Smart Move

With projections indicating that CD rates may not increase in 2024, locking in a high rate now can be a strategic choice, especially for those ready to commit funds for a fixed term. CDs provide a guaranteed rate for the duration of the term, protecting your savings from potential future rate drops. For those seeking flexibility, high-yield savings accounts offer competitive interest rates while maintaining easy access to your funds.

Whether you’re looking to save for short-term goals or invest for the long term, staying updated on current rates can help you optimize your financial strategy. Be sure to keep an eye on rate changes to ensure you’re getting the most out of your savings.

Banks are currently competing fiercely for your deposits, presenting an excellent opportunity to maximize returns on your savings. With interest rates constantly changing, it’s crucial to stay updated on the best options for savings accounts and certificates of deposit (CDs). Below are some of the top savings and CD rates available today, along with information on account bonuses and different high-yield options.

Savings Account Bonuses

Alliant High-Rate Savings Account
Earn a $100 bonus when you deposit at least $100 a month for 12 consecutive months and maintain a balance of $1,200 or more at the end of the 12-month period. (Offer expires December 31, 2024.)

SoFi Checking and Savings (Member FDIC)
Earn up to $300 with qualifying direct deposit for eligible customers. Additionally, earn up to 4.50% APY on savings balances, including Vaults, with direct deposit. (Offer expires December 31, 2024, terms apply.)

About High-Yield Accounts

High-yield savings accounts and CDs aren’t the only options offering attractive rates right now. Online banks and lesser-known institutions typically provide higher rates than national brands with physical branches due to their lower overhead costs, enabling them to attract new customers with competitive offers.

High-Yield Savings Accounts

These accounts offer the safety of traditional savings with the benefit of a high annual percentage yield (APY). They are ideal for short-term savings goals like vacations or significant purchases and are held at banks or credit unions, not investment firms.

High-Yield Checking Accounts

While these accounts may offer slightly lower rates than high-yield savings, they still provide excellent returns in today’s environment. Checking accounts serve as a central hub for your finances, handling direct deposits, bill payments, and everyday spending, often with accompanying checks and debit cards.

Money Market Accounts

Money market accounts combine features of both savings and checking accounts, offering tiered interest rates depending on your balance. They typically provide easier access to funds through checks or debit cards, making them versatile for both saving and spending.

Cash Management Accounts

Offered primarily by online banks, cash management accounts act as hybrids of savings and checking accounts. They generally allow unlimited transfers, unlike traditional savings accounts that limit monthly transactions. These accounts often come with a debit card but may require fees for cash deposits.

Certificates of Deposit (CDs)

CDs often provide higher rates than other account types by requiring you to lock in your money for a fixed term, ranging from a few months to several years. The longer you commit your funds, the higher the rate you can secure. However, early withdrawal usually incurs a penalty unless you opt for a no-penalty CD.

About CD Terms

Locking your money into a CD for a higher interest rate requires careful consideration. Here's a breakdown of popular CD terms:

No-Penalty CDs: These CDs offer flexibility by allowing you to withdraw funds before the term ends without penalty, often with rates slightly above traditional savings accounts.

6-Month CDs: Best suited for those seeking short-term returns with rates currently in the mid-5% range. These are ideal for savers who want elevated rates but need access to their cash relatively soon.

1-Year CDs: Offering some of the highest CD rates, these are popular among those building CD ladders or with sufficient emergency funds but ongoing financial concerns.

2-Year CDs: Typically offer slightly lower rates than 1-year CDs but provide stability for a longer period, making them a good fit for those wary of fluctuating rates.

3-Year CDs: Although less common, these CDs can serve as valuable components in a diversified savings strategy, particularly for hedging against long-term rate changes.

5-Year CDs: While these CDs may offer lower rates than shorter terms, they are ideal for investors looking to lock in rates for an extended period. They are considered safe investments and can yield substantial earnings if locked in during favorable rate environments.

Whether you’re saving for short-term needs or investing for the future, staying informed about current rates and account types can help you make the most of your money. Be sure to explore the latest bonuses and high-yield options to optimize your financial strategy.