Summary of Best 1-year CD rates for May 2021
CD rates should stay low in 2021
Online banks typically pay higher interest rates on CDs than national brick-and-mortar banks. Online CD rates went down in 2020, but they probably won't decrease much more in 2021, because they need to pay higher rates to compete with large banks like Chase or Bank of America.
Expect the top-yielding savings and money market account rates to end 2021 a little higher than they did in 2020 but not by much. ... That's because the Federal Reserve is planning to keep rates near zero through at least 2023.
What To Consider Before Investing In CDs in 2020. CDs are beneficial for those who have an excess amount of savings and want to invest in something low-risk. CDs have been around since the early periods of banking, and other investment options have come into existence since then.
NerdWallet's Best 1-Year CD Rates May 2021
Our guide to the highest jumbo CD rates available to anyone in the U.S.
| BEST NATIONAL JUMBO CDs | ||
|---|---|---|
| Best 2-Year Jumbo CDs | Rate | Minimum |
| Superior Choice Credit Union | 0.90% APY | $100,000 |
| Kinecta Federal Credit Union | 0.75% APY | $100,000 |
| Nuvision Federal Credit Union | 0.75% APY | $100,000 |
Best 3-Year CD Rates:
CD rates are declining
CD rates are influenced by interest rate moves by the Federal Reserve. The U.S. central bank's key rate has been pegged at zero percent since March 2020 in an effort to stimulate the economy during the COVID-19 crisis, and subsequently, CD rates are low.
Locking in your interest rate can be tempting, here's why: Mortgage rates could rise after you lock. The threat of a higher mortgage interest rate can be a strong reason to lock in a rate that you're comfortable with. Peace of mind.
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