<br><div><aside class="gnt_em gnt_em__fp gnt_em_vp__tp gnt_em__el" aria-label="Video - Worried about inflation? Here’s what to expect and what you can do to protect yourself."/><p class="gnt_ar_b_p">For the kitchen-table investor with a little money to spare, now might be an ideal time to consider investing in a certificate of deposit.</p><p class="gnt_ar_b_p">CD rates are as high as they’ve been in years. The best one-year CDs<a target="_blank" href="https://wallethub.com/best-cd-rates" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> offer 5.66% annual interest</a>, according to a January survey by WalletHub, the personal finance site. The best six-month CDs top out at 5.75%.</p><p class="gnt_ar_b_p">“No doubt, CDs are getting more attention these days,” said Chris Starr, head of consumer and business deposits at Wells Fargo Bank.</p><p class="gnt_ar_b_p">CDs spook some investors. In a 2023 survey by Forbes Advisor, 41% of Americans said they had<a target="_blank" href="https://www.forbes.com/advisor/banking/savings/us-savings-rate-2023-survey/?mod=article_inline" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> never opened one</a>. Some respondents said applying for a CD was “too complicated and time-consuming,” and others didn’t want to lose access to their money.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">Certificates of deposit may be unfamiliar to many, but bank officials say the application process is not, in fact, particularly complicated or time-consuming.</p><p class="gnt_ar_b_p"><strong>Learn more:</strong> <a target="_blank" rel="noopener" data-t-l=":body nav (cd)|e|auto spike click:6|${u}" class="gnt_ar_b_a" href="https://www.usatoday.com/money/blueprint/banking/cds/best-cd-rates/">Best current CD rates</a></p><p class="gnt_ar_b_p">“Opening a CD is simple and can be done from your phone or computer in a matter of minutes,” Starr said.</p><figure class="gnt_em gnt_em_img"><img class="gnt_em_img_i" style="height:449px" fetchpriority="high" data-g-r="lazy" src="https://www.usatoday.com/gcdn/authoring/images/motleyfool/2024/01/03/USAT/72093136007-person-holding-cash-bills-money-hundred-dollar-fifty-dividend-income-invest-retire-spend-getty.jpeg?width=660&height=449&fit=crop&format=pjpg&auto=webp" srcset="https://www.usatoday.com/gcdn/authoring/images/motleyfool/2024/01/03/USAT/72093136007-person-holding-cash-bills-money-hundred-dollar-fifty-dividend-income-invest-retire-spend-getty.jpeg?width=1320&height=898&fit=crop&format=pjpg&auto=webp 2x" decoding="async" alt="Interest rates on certificates of deposit are as high as they've been in years."/></figure><h2 class="gnt_ar_b_mt">How a certificate of deposit works</h2><p class="gnt_ar_b_p">When you open a CD, you agree to surrender your money to the bank for a set length of time. In exchange, the bank generally offers you a higher rate of interest than you might get in an ordinary checking or savings account.</p><aside aria-label="advertisement" class="gnt_m gnt_x gnt_x__lbl gnt_x__al"/><p class="gnt_ar_b_p">The longer the CD’s term, as a rule, the higher the interest rate. Yet, over the past couple of years, the rules have gone out the window. A campaign of<a target="_blank" href="http://www.usatoday.com/story/money/2023/12/13/fed-interest-rate-hike-live-updates/71896343007/" data-t-l=":b|e|k|${u}" class="gnt_ar_b_a" rel="noopener"> aggressive interest-rate hikes</a> by the Federal...</p></div> <style> .wrapper { text-align: center; } </style> <div class="wrapper"> <a class="button" href ="https://www.usatoday.com/story/money/2024/01/08/cd-rates-highest-2024/72124856007/">Read more <span>➤</span></a> </div>
