✓ Predictable returns
✓ Highest APYs
Opening a Certificate of Deposit (CD) account can be beneficial for several reasons. Firstly, CDs offer a fixed interest rate, which means you know exactly how much you will earn over the term of the CD. This predictability can be a significant advantage over other investments that may fluctuate in value. Secondly, CDs often provide higher returns than traditional savings accounts. Banks typically reward CD account holders with a higher yield in exchange for keeping their money in the account for a set term.
Moreover, CDs are considered one of the safest savings options. Like checking and savings accounts at federally insured banks, CD accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC) up to the allowable limits. This means that even if the bank fails, your investment is protected. Lastly, many banks offer various CD options, including those that allow you to receive the earned interest more frequently or invest in CDs of increasing lengths. This flexibility can help you tailor your CD account to your financial needs and goals.
Valley Direct is an online division of Valley Bank that offers a high-yield online savings account and competitive CDs. It provides a hassle-free, smarter, and easier way for customers to reach their savings goals, with the added benefit of being FDIC-insured.
Bread Savings is an online-only bank that offers a high-yield savings account and certificates of deposit (CDs). The bank does not offer checking accounts, ATM cards, or debit cards. You must transfer funds to a linked external bank account to access your money.