CD Rates Today: December 8 — Earn 5.55% APY
Lending Club is offering 5.55% APY for a 12-month certificate. A $2,500 minimum deposit is required. The Lehi-based credit union is the 12th-largest in the state of Utah and the 184th largest in the nation. Lending Club was established in 1987.
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Before you invest in this special CD — or any other — here are some basics about purchasing one:
CDs have Locked rates. A certificate of deposit, more commonly known as a CD, is an investment that earns interest over a set period of time at a locked-in rate. Once you open a CD, you cannot close it without penalty, so ensuring you get the best rate is essential.
Credit unions offer higher rates. Every bank and credit union offers its own rate, with credit unions typically having higher percentages. A longer investment period will typically offer higher rates.
Your investment is insured. CDs are typically federally insured for up to $250,000 whether you invest in a bank (FDIC) or credit union product (NCUA) — just double-check the fine print.
Quick Tip
Certificates of Deposit offer a way for people to beat inflation with something known as inflation-protected CDs. Unlike regular CDs that have a fixed interest rate, these special CDs have their rates tied to inflation, which means the interest rate can adjust over time.
If inflation rises, the interest rate on the CD goes up too, helping to ensure that your savings don’t lose their purchasing power. This feature safeguards against the eroding effects of inflation, making it a smart choice for individuals looking to preserve the value of their savings over the long term.
Here are the top CD rates for today:
Best CD Rates Today
TERM | APY % | MIN. DEPOSIT | WHERE TO INVEST |
|---|---|---|---|
6 MONTH | 5.55% | $1,000 | Bask Bank |
12 MONTH | 6.18% | $100 | Bayer Heritage FCU |
18 MONTH | 5.80% | $1,000 | Seattle Bank |
24 MONTH | 5.52% | $2,000 | Luana Savings Bank |
36 MONTH | 5.50% | $500 | Workers Credit Union |
48 MONTH | 5.00% | $1,000 | Farmers Insurance FCU |
60 MONTH | 5.12% | $5,000 | The Federal Savings Bank |
National Average CD Rates for December 2023
TERM | RATE (APY) |
|---|---|
12 MONTH | 1.74% |
24 MONTH | 1.47% |
36 MONTH | 1.38% |
48 MONTH | 1.46% |
60 MONTH | 1.43% |
How CDs Work
CD Basics
CDs have set rates and investment periods during which money cannot be removed. Typical time periods for investing are three, six, 12 or 18 months.
You can invest up to $250,000 per CD, and there is no federal banking regulation on how many you can open. There could be limits set by financial institutions, however.
CDs are federally insured when you open one in a bank (FDIC) or credit union (NCUA).
Compared to stock investments, a CD is a more secure way to invest.
Pros To Opening a CD
Earnings are guaranteed.
Rates are set and will not fluctuate, unlike stocks.
There is less temptation to remove money than with a traditional savings account.
CDs are FDIC insured up to $250,000 per depositor.
There are no monthly fees.
Cons To Opening a CD
Invested money cannot be removed before the term is up without penalties, even in case of an emergency.
Rates will not increase as interest rates go up.
Earnings may be less than investing in stocks.
Auto rollover settings could lock you into a longer term than you desired.
You may need a minimum amount of money to open a CD.
Are CD Accounts Worth It?
If you are looking to tuck away a lump sum of money for a large purchase or future investment, a CD is a low-risk way to do just that. However, if you are looking to make more money faster, a CD may not be the right fit for you. Before making any investment, doing research and even speaking to a financial advisor is always a good idea.
Compare CD Rates
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of December 8, 2023.
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This article originally appeared on GOBankingRates.com: CD Rates Today: December 8 — Earn 5.55% APY
