Keep in mind that the rate offered may vary with the deposit amount and CD term. You can check CD rates online or go to local banks and credit unions to see what they have to offer.

Shop around: Different banks offer different rates, so it may be worth taking time to compare offers from different institutions.

There are a few things you can do to help find a high CD rate and find the right one for you: Some financial institutions offer CDs, such as bump-up or step-up CD accounts, with rates that can fluctuate depending on changes in any of the above factors. Most CD rates are fixed, meaning they typically don't change during the term period.

When the macro rate environment moves, which may be as a result of actions by the Federal Reserve, interest rates for CDs, savings accounts and borrowed money tend to rise or fall with it. Part of this has to do with the federal funds rate - the interest rate at which banks lend money to each other overnight. Conversely, when inflation is high, interest rates are usually higher. For example, when inflation is low, interest rates tend to be lower. How banks set CD ratesĬD rates can be influenced by numerous factors, including the current economic climate, inflation and market dynamics. Contact your bank to learn more about 1-year cd rates, 5-year cd rates and rates for those extending beyond 5-years. An early withdrawal during this “term period” may result in an early withdrawal fee.

What are CDs?Ī certificate of deposit account is a type of deposit account that comes with a “term period,” which is a set length of time during which your CD rate remains fixed. Let’s explore the factors that shape CD rates and learn a few ways to help you find the highest CD rates on the market. You may already be aware that CDs usually have higher interest rates than savings accounts, but understanding the driving force behind those higher CD rates may help you make more informed decisions about where to deposit your money. If you've ever wondered, “What are CD rates?”, this refers to the interest rate earned on a CD account.

Chase bank term deposit rates