Can you get 6% on a CD?

You can find certificates of deposit (CDs) with rates as high as 6% . However, these rates are currently only available through credit unions and not traditional banks. Typically, these high 6% CD rates come with maturities of 12 months or less. Pros of a 6% CD include locked-in interest rates and high returns.

What is a certificate of deposit CD account?

A certificate of deposit, or CD, is a type of savings account offered by banks and credit unions . You generally agree to keep your money in the CD without taking a withdrawal for a specified length of time. Withdrawing money early means paying a penalty fee to the bank.

Can you get 7% on a CD?

There's one CD paying 9.50% APY for balances up to $3,000, but there are eligibility limitations. Since the Federal Reserve indicated it will cut rates, rather than increase them, by the end of 2024, it's unlikely that CDs or savings accounts offer CDs of 7% APY or more without significant restrictions .

What is the biggest negative of putting your money in a CD?

Banks and credit unions often charge an early withdrawal penalty for taking funds from a CD ahead of its maturity date. This penalty can be a flat fee or a percentage of the interest earned. In some cases, it could even be all the interest earned, negating your efforts to use a CD for savings.

How much money do you make on a $5000 CD?

Depending on the bank, a $5,000 CD deposit will make around $25 to $275 in interest after one year.

How high will CD rates go in 2024?

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Why should you put $15,000 into a 1 year CD now?

In summary, a certificate of deposit gives you steady and safe returns. Investing $15,000 in a CD could lead to substantial gains, regardless of the CD's length . However, make sure you won't need that money while the CD is active because withdrawing early usually incurs hefty penalties.

Do you pay taxes on CDs?

Interest earned on CDs is considered taxable income by the IRS , regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

What is a disadvantage of buying a certificate of deposit CD )?

CD rates may not be high enough to keep pace with inflation when consumer prices rise . Investing money in the stock market could generate much higher returns than CDs. CDs offer less liquidity than savings accounts, money market accounts, or checking accounts.

How many CDs can you have at one bank?

There's no limit on the number of CDs you can have, and it's possible to have multiple CDs at the same bank or different financial institutions. Whether it's appropriate for you to have more than one CD depends on your financial goals and needs.

What is the highest CD rate at bank of America?

The highest Bank of America CD rate is a 5.00% APY , which is for its seven-month featured term. The bank's one-year flexible CD offers a competitive rate and penalty-free withdrawals. The 13-month featured CD guarantees a 5.00% APY.

Certificate of Deposit - View CD Rates and Account Options (2024)

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	Featured CD account Early withdrawal penalty applies. See details below. Learn more Get started with Feature CD Accountlayer	Fixed Term CD account Early withdrawal penalty applies. See details below. Learn more Get started with Fixed Term CD Accountlayer	Flexible CD account Early withdrawal penalty applies. See details below. Learn more Get started with Flexible CD Accountlayer
Minimum opening deposit	$1,000	$1,000	$1,000
FDIC insured?	Deposits are insured by the FDIC up to $250,000 per depositor.	Deposits are insured by the FDIC up to $250,000 per depositor.	Deposits are insured by the FDIC up to $250,000 per depositor.
Term	Choose from multiple options: 7 month to 37 month. See available terms and rateslayer	Choose any term: 28 days to 10 years. These products will automatically renew for the same term. See available terms and rateslayer	Open a 12 month term online.
Annual percentage yield (APY)	For Featured CD AccountXXXX–XXXX%^adatext depending on balance and term	For Standard Term CD AccountXXXX–XXXX%^adatext depending on balance and term	For Flexible CD AccountXXXX–XXXX%^adatext depending on balance and term
Auto Renewal	At maturity, 7, 10, 13, 25 and 37 Month Featured CD accounts will automatically renew into a Fixed Term CD account with the same term length unless you make a change during the 7-day grace period. Today's APY of these Fixed Term CDs is 0.03%. Your rate will be determined at maturity.	At maturity, Fixed Term CDs renew into Fixed Term CDs of the same term length unless you make a change during the 7-day grace period.	At maturity, a 12 Month Flexible CD will automatically renew into a 9 Month Flexible CD unless you make a change during the 7-day grace period. Today’s APY of the 9 Month Flexible CD is 0.01%. Your rate will be determined at maturity.
Additional deposits allowed?	For Featured CD Account No additional deposits until maturity	For Standard Term CD AccountNo additional deposits until maturity	For Standard Term CD AccountNo additional deposits until maturity
Early withdrawal penalty?	An early withdrawal penalty applies to any withdrawal you request outside of the grace period, which begins on the maturity date of your CD. If your account has not earned enough interest to cover an early withdrawal penalty, we deduct any interest first and take the remainder of the penalty from your principal. For more detail about the penalty calculation and how grace periods are determined, see Deposit Agreements and Disclosures and Deposit Rate Sheet.	An early withdrawal penalty applies to any withdrawal you request outside of the grace period, which begins on the maturity date of your CD. If your account has not earned enough interest to cover an early withdrawal penalty, we deduct any interest first and take the remainder of the penalty from your principal. For more detail about the penalty calculation and how grace periods are determined, see Deposit Agreements and Disclosures and Deposit Rate Sheet.	We will waive the early withdrawal penalty except in connection with any withdrawals you request within the first 6 days of the account term (or the first 6 days following any partial withdrawal). See Deposit Agreements and Disclosures and Deposit Rate Sheet for more detail about the penalty calculation.

Get more details about our CDs

What is a CD (Certificate of Deposit)?

A CD (certificate of deposit) is a type of deposit account that’s payable at the end of a specified amount of time (referred to as the term). CDs generally pay a fixed rate of interest and can offer a higher interest rate than other types of deposit accounts, depending on the market. These accounts typically provide security for longer-term savings and no monthly fees, but at the cost of access and liquidity of the funds.

What you'll get with any CD account

Locked rates

Once you've chosen a term and made your deposit, your rate is fixed for the length of your term. Early withdrawal penalty applies.

FDIC insurance

FDIC insurance up to the applicable limits.

Learn more about FDIC insurance

Automatic renewals

We’ll automatically reinvest your funds at the end of the term. You’ll get a maturity notice beforehand in case you'd rather redeem your CD.

Other savings accounts available

Everyday savings

A more flexible account with faster access to cash

Learn more about savings accounts

Retirement planning

Consider an IRA to help maximize your returns

Learn more about IRAs

Why choose Bank of America?

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Savings or CDs –

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How do CDs work?
Saving and investing: From under the mattress to an IRA

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Before we open your Fixed Term CDFeatured CDFlexible CD, choose your:

Terms available for Fixed Term CDFeatured CD:

Term Select menu for Term

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For deposits over $250,000, visit a financial center to open your account.

Fixed Term CDFeatured CDFlexible CD ()

Amount	Interest Rate	APYAnnual Percentage Yield (APY)

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Term Select menu for Term

Opening deposit amount Select menu for Opening deposit amount

For deposits over $250,000, visit a financial center to open your account.

Amount	Interest Rate	APYAnnual Percentage Yield (APY)

Rates

Choose the desired term, then the deposit amount to see rate options.

Term Select menu for Term

Opening deposit amount Select menu for Opening deposit amount

For deposits over $250,000, visit a financial center to open your account.

Amount	Interest Rate	APYAnnual Percentage Yield (APY)

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Certificate of Deposit - View CD Rates and Account Options (2024)