Investing in CDs: Get Higher-than-Average Yields with FDIC/NCUA Insurance up to $250,000

Savers have a lot of options when it comes to investing their money. Risk-averse investors or those looking to invest for the short-term may want to consider certificates of deposit (CDs).[0] CDs are a safe way to save, backed by the full faith and credit of the U.S. government up to $250,000, and can offer higher-than-average yields. Banks and credit unions offer CDs with terms ranging from a few months to five years, with the longer terms typically offering higher yields.

The Federal Reserve has been on a mission to slow the pace of inflation, and the central bank raised rates seven times in 2022 and once so far in 2023, with a quarter of a percent increase on February 1.[1] This has driven up the cost of borrowing, to the point where once-affordable options like home equity and personal loans may be less attractive these days.[1] In response, CD rates are now offering the highest yields seen in over a decade — with many paying more than 4.5%.[2]

For savers looking for the best CD rates, online banks can offer competitive yields across 14 terms, including 10 terms that are less than two years.[3] Eleven-month, no-penalty Certificates of Deposit and two-year, bump-up CDs are[4] Popular Direct offers CDs in eight terms, from three months to five years, with a $10,000 minimum deposit to open.[0] Synchrony Bank also offers a bump-up CD and a no-penalty CD.

When considering a CD, carefully consider your needs before putting your money in.[4] Take into account your short- and medium-term financial objectives when considering when you may need the funds.[5] By understanding your requirements, you can make an informed decision about which type of account is most suitable for your finances.[5] While a three-year CD can feature a higher interest rate than shorter-term CDs and liquid savings accounts, it often has a lower yield than what you’d see if you were willing to tie up your money for a longer term.

Overall, CDs are a safe way to save, with an FDIC or NCUA insurance up to $250,000 per depositor. CDs can offer higher-than-average interest rates, but it’s important to compare your savings options and consider liquidity as well as yield.

0. “Want to earn a guaranteed 4%-4.75% on your money? While this savings vehicle hasn't been that popular in recent …” msnNOW, 1 Feb. 2023,

1. “The Fed's Interest Rate Hikes Continue: Here's What That Means for Your Savings Account” The Motley Fool, 1 Feb. 2023,

2. “CD Rate Trends, Week of January 30: Rates hold” Investopedia, 31 Jan. 2023,

3. “Best 5-year CD rates – February 2023” Yahoo! Voices, 2 Feb. 2023,

4. “Best 18-month CD rates – January 2023” Yahoo! Voices, 31 Jan. 2023,

5. “Best 3-year CD rates – February 2023” Yahoo! Voices, 1 Feb. 2023,