16 Best Banks With the Highest-Interest CD Rates in 2020

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No investment or savings vehicle is entirely without risk, but certificates of deposit (CDs) offer more security and predictability than most. With fixed or upwardly adjustable interest rates, terms ranging from as short as one month to as long as 10 years, and FDIC insurance up to $250,000 per account, CDs are useful tools for saving funds you don’t need right away – and earning a yield in the meantime. Though prevailing rates vary widely by bank, CDs tend to have higher yields than checking, savings, or money market accounts.

The biggest drawback of CDs is that many are inflexible, with most banks charging a significant penalty if you withdraw part or all of your funds before the term ends. But some banks now offer special CDs that allow you to make midterm interest – and, in some cases, interest and principal – withdrawals without paying a penalty.

If you’re on the hunt for above-average CD rates, take a look at these banks.

Best Banks for High-Yield CDs

These are the best banks for high-yield CDs. Check back often, as rates and products are subject to change.

1. Marcus by Goldman Sachs (Goldman Sachs Bank USA)

Marcus by Goldman Sachs, a subsidiary of Goldman Sachs Bank USA, is an online-only outfit best known for issuing personal loans for debt consolidation and home improvement. Though it’s relatively new to the deposit account game, it’s making up for lost time with competitive CD yields. The high-yield savings account option is nothing to sneeze at, either. To maximize your interest earnings, check out Marcus’s CD laddering options.

  • Regular CDs and Rates: Marcus offers nine CD options: 6-month, 9-month, 12-month, 18-month, 2-year, 3-year, 4-year, 5-year, and 6-year. Yields range from 0.60% APY on the 6-month to 2.35% APY on the 6-year, with the heavily promoted 12-month product yielding 2.10% APY.
  • Minimum Deposit: $500 for all CDs.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw a portion of your earned interest at any time without penalty, but Marcus charges for principal withdrawals made any time before maturity. The penalty is 90 days’ interest on CDs with terms under 12 months, 270 days’ interest on CDs with terms between 12 months and 5 years, and 365 days’ interest on the 6-year CD. These policies are subject to change at any time.
  • Other Features and Considerations: You have 30 days to fully fund your CD, with the option to make multiple deposits during that time. There’s a 10-day grace period during which you can roll over your CD into a new term or withdraw principal without penalty. You’re guaranteed the best available rate during these 10 days.

2. Barclays

Barclays issues a host of credit cards, but its deposit arm, Barclays Bank, is comparatively low-key.

Don’t let that fool you, though. Barclays CDs, with terms longer than 12 months, can go head to head with CDs from virtually any competing deposit institution. If you need a more flexible option, the high-yield savings account is fantastic too. And Barclays has a nice CD laddering option for customers looking to spread their savings across multiple accounts and maximize their interest earnings.

  • Regular CDs and Rates: Barclays has nine CD options: 3-month, 6-month, 9-month, 12-month, 18-month, 24-month, 36-month, 48-month, and 60-month. Yields range from 0.35% APY on the 3-month CD to 2.25% APY on the 12-month, 18-month, and 24-month products.
  • Minimum Deposit: None, but your deposit must be sufficient to earn interest at computed rates.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw interest at any time without penalty. Barclays charges 90 days’ interest for early principal withdrawals on CDs with terms under 24 months and 180 days’ interest on CDs with longer terms. These penalties are subject to change at any time.
  • Other Features and Considerations: There is a 14-day grace period during which you can withdraw principal and interest without penalty or roll your CD over into a new term. Barclays has a 30-day maturity alert window, meaning you have up to 44 days to decide what to do with each maturing CD……..Read More>>

 

Source:- moneycrashers