The top three rates for certificates of deposit in October have reached 6% APY and higher.
Certificate of deposit rates continue to climb, with three of the top offers reaching and even surpassing an annual percentage yield, or APY, of 6% (though, to be fair, these extra-high offers often come with some hoops to jump through). See some of the best CD rates you can get now here.
And while gaining access to these often exclusive savings products can require some hurdles, experts say that if you’re looking for guaranteed returns and can afford to tie your money up for a bit, a CD may be worth a look.
Here’s what to know about the CDs with the best annual percentage yield, or APY, in October 2023, and we list some of our top finds below.Why are certificate of deposit rates going up, and will CD rates continue to rise? Savings rates for many deposit accounts have continued to climb over the past year. In the past year, 12-month CDs have climbed to 1.76% APY on average through Sept. 18 from just 0.60% this time last year, according to the Federal Deposit Insurance Corporation, or FDIC. Even shorter term CDs such as those with 6-month terms have reached an average of 1.36% APY from as low as 0.07% and 0.34% last year, respectively. So why have savings rates climbed so much in such a short period of time? For starters, elevated inflation has triggered persistent rate hikes from the Fed. Over the past 12 months, the central bank has increased the benchmark funds rate to 5.25%-5.5% from nearly zero a year ago. Because a higher funds rate means bank and credit union debt obligations have become more costly, Hamrick says many smaller institutions have responded by making savings products increasingly lucrative to new depositors with hopes of rolling them into their various accounts along the way. Indeed, now you routinely find certain CDs paying 5% or higher, and you can see some of the best CD rates you can get now here.
““There’s no guarantee CD rates will continue to climb, so people should utilize these peculiarly high rates while they’re available.” ”
— NerdWallet personal finance writer Elizabeth A …