Want a safe investment that provides a higher return than a standard savings account? A Certificate of Deposit (CD) is a special type of savings investment where you will be offered a fixed interest rate over the term of the deposit. Terms typically range from 6 months, up to 5 years. Almost every major bank and financial institution offers CD accounts, however, not every option is competitive in terms of yield.
Today you’ll learn about three of the highest yield options currently on the market, with details about what they can offer.
All three of the CDs covered here are insured by the FDIC, effectively eliminating risk and guaranteeing a return on your investment.
Capital One 360 CD
- 10% over 1 year.
- 75% Over 5 Years.
- No Minimum Deposit.
Capital One’s online CD accounts are regularly rated amongst the best in the industry. Interest rates are generous, particularly when compared to some of the largest retail banks. Even a relatively short one-year investment provides a strong yield of 2.10% over a fixed year. Shorter-term deposits are available (minimum six months), however, low yields on short-term CDs mean that 12 months should be your minimum if considering a Capital One account.
First Internet Bank High Yield Certificate of Deposit
- 20% Over 1 Year.
- 80% Over 5 Years.
- $1000 Minimum Deposit.
With yields slightly higher than the Capital One 360 CD account, First Internet bank is another option worth considering in 2018. For a minimum deposit of $1000, you’ll have access to better yields that can provide strong long term growth. Interest is compounded monthly and credited back into the CD. The highest possible yield (with compounding interest) over 5 years would be 2.84%, which is slightly higher than the market average.
Accounts are online based and can be managed through the internet and mobile banking. Visit First Internet Bank of Indiana to learn more about CD Terms.
Sallie Mae Certificates of Deposit
- 13% Over 1 Year.
- 62% Over 5 Years.
- $2500 Minimum Deposit
Sallie Mae accounts don’t offer the best long term CD yields, however, they are quite competitive in the short to mid-range. If you want good returns from a 1 or 2 year CD, then this bank is definitely worth a closer look. Actual annual percentage yield on a 1 year CD would equate to 2.15%.
Sallie Mae requires a minimum deposit of $2500, which could make it less accessible to some investors. To learn more about this option and whether it is right for you, visit Sallie Mae online.
When you are comparing your options, make sure that the interest rate is suitable for the duration of your investment. Different accounts can provide different value depending on just how long you wish to keep your money deposited. Keep in mind that rates can vary from state to state, so always check the full interest rate and fees disclosure before investing in any Certificate of Deposit account.
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