William Huston, AIF®, AIFA®

Best CD Rates for October 2023

William Huston, AIF®, AIFA®

William Huston, AIF®, AIFA®

Best CD Rates for October 2023

growing CD rates

If you're looking for a low-risk investment option with a guaranteed return other than a money market account, a certificate of deposit (CD) might be the right choice for you.

CDs are offered by many banks and credit unions, including Beth page Federal Credit Union and Marcus by Goldman Sachs, and they are an excellent way to save for a future goal, like a down payment on a home or a child's education.

As we approach the middle of October 2023, it's important to stay informed about the latest CD rates being offered by different banks and credit unions.

In this blog post, we'll be diving into some of the best CD rates available in October 2023 from various banks and credit unions, so you can make an informed decision about where to invest your money.

Whether you're a seasoned investor or just starting, this post will provide you with the information you need to climb the CD ladder. You can also access personalized investment guide with our trusted financial advisor.

Key Takeaways
  • A certificate of deposit (CD) is a low-risk investment option with a guaranteed return that is ideal for saving for future goals, such as a down payment on a home or a child's education.
  • Various types of CDs, such as fixed-rate, variable-rate, bump-up, and liquid CDs, offer different advantages and disadvantages depending on your financial situation and goals.
  • The interest rates offered by CDs depend on the amount and term duration, and it is essential to research and compare options before deciding on the best CD type and bank or credit union for your investment.

The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on financial planning, financial management, and real estate here. More on disclaimers here.

The Best CD Rates at Banks and Credit Unions

CD returns

Looking to earn more on your savings? Check out these lists of the best CD rates available at banks and credit unions.

Top CD rates by term

While we can't guarantee that these CD rates will make your heart skip a beat, we're confident that they're among the most competitive in the market and worth considering if you're looking to earn more on your savings.

What are current CD rates?

The interest rates offered for a CD depends both on the amount and the term duration.

What are the best CD rates going on right now?

These are some of the best 1-Year CD rates:

Premier Members Credit Union5.25% APY
Premier Members Credit Union5.25% APY
Forbright Bank5.25% APY
Bread Savings5.20% APY
CFG Bank5.17% APY
TotalDirectBank5.16% APY
Colorado Federal Savings Bank5.15% APY
Synchrony Bank5.15% APY
Spectra Credit Union5.15% APY
BMO Harris5.10% APY
Limelight Bank5.10% APY
My eBanc5.10% APY
Genisys Credit Union5.09% APY
First Internet Bank5.06% APY

What are the best CD interest rates for three years?

investment terms and rates
Credit Human4.90% APY
Summit Credit Union4.85% APY
Quorum Federal Credit Union4.85% APY
Lafayette Federal Credit Union4.84% APY
MYSB Direct4.76% APY
CFG Bank4.60% APY
Hughes Federal Credit Union4.60% APY
Seattle Bank4.60% APY
U.S. Senate Federal Credit Union4.60% APY
Crescent Bank4.55% APY
First Internet Bank4.54% APY
Mountain America Credit Union4.50% APY
5star Bank4.50% APY
Langley Federal Credit Union4.50% APY
Apple Federal Credit Union4.50% APY
Pima Federal Credit Union4.50% APY
Signature Federal Credit Union4.50% APY
Bread Savings4.50% APY
Utah First Credit Union4.50% APY
The Federal Savings Bank4.50% APY

The rest of this blog describes common types of CDs people purchase, and provides other useful information on CDs.

What are the most common CDs?

CD returns

The prevailing type of CDs typically entail the exchange of bonds for their par value. However, an alternative settlement method is also possible, which involves a cash payment equivalent to the disparity between the market value and par value of the bonds.

In terms of rate and liquidity, the most common types of CDs are fixed-rate, variable-rate, bump-up, and liquid CDs.

1. Fixed-rate CDs

Fixed-rate CDs offer a guaranteed interest rate for the entire term of the CD. This means that the interest rate will not change, regardless of market conditions. This can be beneficial if you're looking for a predictable return on your investment.

2. Variable-rate CDs

Variable-rate CDs offer an interest rate that can fluctuate throughout the term of the CD. This means that your return is tied to market conditions and can be higher or lower depending on how the market performs.

3. Bump-up CDs

Bump-up CDs allow you to "bump up" your interest rate if rates increase during the term of the CD. This can be a great option if you're concerned that interest rates may rise in the future.

4. Liquid CDs

Liquid CDs allow you to withdraw your funds penalty-free before the maturity date. However, they typically offer lower interest rates than traditional CDs and may require a larger minimum deposit.

Each of these CD types has its own set of pros and cons, and the right one for you will depend on your individual financial situation and goals. For example, if you're looking for a guaranteed return and don't want to risk your principal, a fixed-rate CD may be the best choice for you.

On the other hand, if you're willing to take on some risk for the potential of a higher return, a variable-rate CD may be more appealing. Ultimately, it's important to do your research and compare your options before making a decision.

Why is a certificate of deposit considered a safe investment?

investments funds in a safe

A certificate of deposit (CD) is considered a safe investment because it is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor, per insured bank or credit union.

This means that even if the bank or credit union were to fail, the depositor would not lose their money up to the insured limit. Additionally, CDs offer a fixed interest rate for a set term, which provides investors with a guaranteed return on their investment.

This makes them a low-risk option for investors who want to earn a predictable higher return (compared to traditional savings accounts, such as money market accounts or high-yield savings accounts) without risking their principal.

How safe are online CDs?

Online CDs are generally considered safe investments since they too are typically issued by FDIC-insured banks or credit unions, just like traditional CDs.

As long as you choose a reputable, FDIC-insured online bank or credit union and carefully read the terms and conditions of the CD, online CDs can be a safe and convenient option for investors.

How to choose the best CD

weighing investment choices

In addition to ensuring that you look for reputable FDIC insured banks and credit unions, when choosing the best CD for your needs, consider these other factors:

1. Interest rates

The interest rate is one of the most important factors to consider when choosing a CD. Compare CD rates and look for a CD with a competitive interest rate that will provide you with the best return on your investment.

The greater the APY, the greater your earnings will be. Although the APYs and simple interest rates for CDs generally correspond, prioritizing the APY is still crucial since some accounts may compound more frequently.

2. Term length

CDs are available in a variety of term lengths, ranging from a few months to several years. Choose a term length that fits your financial goals and needs. Keep in mind that longer-term CDs generally offer higher interest rates, but may not be the best option if you need access to your funds in the near future.

3. Minimum deposit requirements

Many CDs require a minimum deposit to open the account. Make sure you choose a CD with a minimum deposit requirement that you can afford.

4. Early withdrawal penalties

CDs typically have early withdrawal penalties if you withdraw your funds before the maturity date. Make sure you understand the penalties and restrictions associated with the CD before investing.

5. Bump-up or add-on features

Some CDs offer bump-up or add-on features that allow you to increase your interest rate or deposit additional funds during the term of the CD. These features can be beneficial if you think interest rates may rise in the future or if you want to add to your investment over time.

By considering these factors, you can choose the best CD that fits your financial goals and needs. Remember to compare your options and do your research before making a decision.

Useful CD tips

Check below for more useful information on CD rates.

How Do 1-Year CD Rates Work?

By keeping your funds invested in a one-year CD for its entire term, you're certain to receive a 4 percent yield on your initial deposit. Generally, the longer the CD term, the higher the interest rate, although there are exceptions. Additionally, banks may provide higher promotional rates for particular terms.

How do I withdraw money from a CD account?

After your CD reaches its maturity date, you can instruct your bank or credit union to roll the funds over into a new CD, deposit them in a different account, or issue a cash payment. Failing to provide specific instructions during the grace period, however, may result in the bank or credit union automatically renewing your CD.

Who offers No-Penalty CD rates?

Ally Bank and CIT Bank are two of the few financial institutions that offer no-penalty CDs rates.

How the Federal Reserve Affects CD Rates

In an effort to counteract inflation, the Federal Reserve has consistently increased interest rates. This usually results in higher interest rates on your high yield savings account and CDs as they tend to follow the trend set by the Fed's hikes.

What are the advantages of certificates of deposit?

profitable investments
1. Low-risk investment

CDs are considered to be a low-risk investment because they are FDIC-insured up to $250,000 per depositor, per institution.

2. Guaranteed return

CDs offer a guaranteed return, which means you know exactly how much money you will make at the end of the term.

3. Fixed interest rate

The interest rate on a CD is fixed for the entire term, which means you don't have to worry about changes in the market or fluctuations in interest rates.

4. Easy to open

CDs are easy to open and can be opened online, over the phone, or in person at a bank or credit union.

5. No fees

CDs typically don't have any fees associated with them, so you won't have to worry about paying any maintenance or transaction fees.

What are the disadvantages of certificates of deposit?

investment costs
1. Limited liquidity

CDs have limited liquidity, which means you can't access your money until the CD matures without incurring a penalty.

2. Lower returns

CDs typically have lower returns compared to other types of investments such as stocks, mutual funds, or real estate.

3. Opportunity cost

By locking your money into a CD, you miss out on the potential for higher returns from other investments.

4. Inflation risk

CDs are vulnerable to inflation risk, which means the purchasing power of your money may decrease over time if the inflation rate exceeds the interest rate on the CD.

5. Early withdrawal penalty

If you need to withdraw money from a CD before the maturity date, you will usually have to pay a penalty, which can negate any interest earned.

Diversify Your Investments

While CDs are great saving and investment avenues, diversifying your portfolio is crucial for optimal investment performance. Hence, it is important to with a financial advisor. Reach out to our team of experts today; for a investment purposes including real estate investment.

Bay Street Capital Holdings

Bay Street Capital Holdings

Bay Street Capital Holdings is a financial planning, wealth management, and investment advisory firm based in Palo Alto, California. The company's primary goal is to manage portfolios while maintaining and increasing total assets and income. However, unlike many other advisors who prioritize maximizing returns, Bay Street Capital Holdings focuses on managing total risk and volatility to provide its clients with better investment options.

William Huston, the company's founder, established Bay Street Capital Holdings after working for 13 years as a support for the United States' largest retirement plan, the Thrift Savings Plan. He is one of Investopedia's Top 100 Financial Advisors for 2021. In California, only two out of nineteen firms, including Bay Street Capital Holdings, are recognized as Black-owned firms.

Ekenna Anya-Gafu CFP, AAMS, based in Scottsdale, Arizona, is recognized as one of the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and detail. Bay Street Capital Holdings was established to support diverse and emerging fund managers and entrepreneurs. The company was selected as a finalist in the Asset Manager for Corporate Social Responsibility (CSR) category out of more than 900 firms across the United States in 2021.










Let's Talk

Schedule a complimentary consultation with one of our advisors to learn more about Bay Street and how we can help you achieve your goals for your financial future.

form img