High Interest Rates Lead to Record CD Rates; High-Yield Checking Accounts Emerge as Attractive Option

Record CD rates reaching as high as 6.5% with high-yield checking accounts offering similar returns, creating favorable opportunities for savers amidst high interest rates.

• High interest rates have led to record-breaking CD rates, with the Financial Partners Credit Union offering an 8-month CD at 6.50% APY and Credit Human providing an up to 17-month term with a 6.00% APY.
• High-yield checking accounts are also emerging as an attractive option for savers due to their higher returns than regular checking accounts, ease of use, and possibly further increasing interest rates.
• 2-year CDs are being highlighted as a smart investment option at present, offering a balance between high earning potential and easier access to cash.
• Long-term CDs like 5-year CDs could provide savers with protection from potential future rate drops and can discourage impulsive spending by having early withdrawal penalties.
• Recent economic conditions due to inflation and attempts by the Federal Reserve to temper it through interest rate hikes have created a favorable environment for high earning opportunities on both high-yield savings and certificate of deposit (CD) accounts.
• By shopping around and exploring options online, savers can maximize their returns on their CD accounts and protect their savings from fee-associated erosion.

6 Articles

Investopedia CBS News CBS News CBS News CBS News CNBC