Banks Battle for Your Deposits With Higher Interest Rates on CDs
- Standard checking accounts earn little interest while some CDs offer rates up to 5% APY.
- Interest rates on 1-year CDs are currently higher than longer-term CDs.
- Online banks may offer the highest rates.
- CDs require a lump sum deposit and charge penalties for early withdrawals.
- CD rates are fixed for the term while savings account rates can change.