The Best CD Rates of 2022! (Rates Are Finally Up) - YouTube

Interest rates have finally started to go back  up for savings accounts and it's also happening  

for cd accounts as well so i did quite a bit of  research and i found the top cd accounts out there  

that you can park your money in and that's exactly  what we're going to be going over in this video  

now i am going to start by talking about some  of the pros and cons with having a cd account  

so if you already know everything about them  and you know about early withdrawal penalties  

and everything like that then go ahead and just  skip forward in this video because i will leave  

chapters that way you can just get right to the  bank accounts that you're looking for but we are  

going to talk about cd accounts first here okay  so if you're wondering what a cd account is it's  

called a certificate of deposit and most banks  offer these types of accounts and basically it's  

just an easy way that you can lock up a certain  amount of money for a certain amount of time at a  

fixed interest rate that's generally a lot higher  than what you can get in just your savings account  

because you're keeping it locked up so for  instance you could set up a cd account for  

two years with ten thousand dollars and let's  say you get a two percent interest rate well  

that two percent is going to accumulate for that  entire two years so at the end of the term you're  

going to get that ten thousand dollars back plus  the interest that you made for the two percent  

and it's all risk-free because it's fdic insured  through your bank you're never going to beat the  

average return of the stock market with a simple  cd account but they are nice to have if you're  

saving up for something big like maybe a house or  a car and you don't want to risk that money in the  

stock market because you're planning on using it  within the next few years and that's where a cd  

account can come in very handy now you also need  to understand that when you set up a cd account  

you can't add money to the account and you can't  withdraw money from the account without a penalty  

so you really want to set aside only a certain  amount of money that you're not going to need  

and for a certain amount of time that doesn't  feel like it's too far into the future and if  

you do end up needing to withdraw money from the  cd account you can't take out partial withdrawals  

you have to take out the entire amount so if you  put in ten thousand dollars into the cd account  

and you only needed a thousand bucks you can't do  that you've got to take out the entire 10 000 or  

leave it in for the entire period now if you do  have to withdraw your money early you are gonna  

have to pay a penalty fee but it's not the end  of the world because most banks will charge you  

about 90 days worth of interest for closing out  the account within a year and then anything from  

about a year all the way up to five years is 180  days worth of interest now obviously you are gonna  

have to check your own terms for the specific  bank that you've signed up for a cd account with  

because they are going to have different rules  but generally that's about what you're looking at  

if you have to make an early withdrawal and  if interest rates are on the rise like they  

are right now then i probably wouldn't  lock my money up for five years anyway  

i would just do a two-year term that way in two  years interest rates might be a lot better and in  

that case you could then reset up a new cd account  with a higher interest rate that way you're not  

locked in at a lower rate for that long period of  time rates also fluctuate quite a bit so whenever  

you're ready to sign up for a cd account make sure  that you do your own research because even though  

the information is accurate right now as of the  posting date of this video it is going to change  

quite a bit so if you're watching this  video in six months or a year from now  

do your own research because a lot of  those numbers have probably shifted by then  

now i'll start talking about the top cd accounts  that i found and the first one goes to marcus  

by goldman sachs and this one specifically i  want to talk about their two-year cd account  

because this one is extremely competitive because  it's only two years long and it currently pays an  

interest rate of two percent and you only need a  minimum account balance of five hundred dollars to  

get it set up marcus has a lot of cd accounts to  choose from starting really low at only six months  

and then they go all the way up to six years with  their highest interest rate right now paying out  

two point five five percent on the six six-year  term so overall i feel like they have a very good  

variety of cd accounts to choose from and their  rates are extremely competitive but specifically  

that two-year product that one is really really  good all of their accounts only require a 500  

minimum balance so it's really easy to  get started with any of the accounts  

and then on top of that once you set up an account  you have 30 days to contribute more money to the  

cd account before it's actually locked and that's  really cool because a lot of other banks don't  

offer that feature so overall i feel like marcus  has a really good variety of cd accounts to choose  

from that are extremely competitive and then on  top of that the minimum balance really isn't that  

hard to meet with just 500 bucks now if you easily  want to compare different cd rates then definitely  

check out bankrate.com i've got an affiliate link  for them in the description below so check them  

out if you have an interest because you can sift  through different banks and different cd rates and  

find the one that's going to be best for you okay  the next rate that i found goes to synchrony bank  

and the reason these guys made my list is because  they have a special offer right now and honestly  

i'm not sure when it expires but they are offering  a 16-month cd rate at 1.85 percent which is really  

good considering you're only locking up the money  for 16 months rather than 24 months at marcus at 2  

so right now that is a very very good offer and  on top of that synchrony's minimum balance is  

zero so it is very easy to get into any of  their cv accounts and honestly with all the  

research i've done when you're looking at a 16  month cd account at 1.85 percent that's pretty  

much as good as you can get for a short-term cd  account their cds start at three months and then  

they go all the way up to five years but based  on my research their one to two year range is  

kind of their sweet spot but obviously rates do  fluctuate so you'll want to do your own research  

and make your own decision there synchrony also  offers a 24-month bump up cd where you'll start  

at a lower rate at 1.4 percent but during the  term you're allowed to ask for one increase so  

if rates happen to go up then that could be a good  thing based on if they go up quite a bit or not  

so overall i feel like synchrony bank has quite  a few cd options that are worth considering  

so definitely check them out when you're  doing your research next on my list goes  

to capital one because they're a very large bank  and because a lot of people already bank with them  

it makes getting a cd a lot easier because you can  just have it in one place with who you're already  

banking with for a one year term with capital  one you're currently looking at point two five  

percent and then you're looking at one point  seven percent for a two year and two point two  

five percent for a five year so overall they're  not the most competitive but because they're a  

big bank sometimes it's worth giving up a little  bit of interest if you're already banking with  

them and they also require a zero minimum balance  so obviously it makes it very easy to get into any  

of their cd accounts and then one feature that  really stood out with capital one is they give  

you the option of how your interest is paid out so  you can get paid out your interest monthly yearly  

or at the end of the term like everyone else so  if you do choose to be paid out monthly you will  

lose a little bit in compound interest but this  is a feature that i've never seen with other cd  

accounts so if you do want to get paid monthly you  can with capital one now if you're simply looking  

for the highest cd rate that's out there the  bank that i found with the highest rate goes to  

first national bank of america with a five-year cd  account that's paying out 2.8 percent in interest  

but you do have to have a thousand dollar minimum  balance to get started which isn't the end of  

the world but that's the highest rate that i  found for all of the banks out there right now  

so obviously there's a lot of pros and cons  when it comes to the different banks out there  

that offer cd accounts but really what it comes  down to is you just need to do your own research  

and find out which one is specifically  going to be best for you and your money