Or maybe you’re saving for next year’s vacation, in which case putting your cash in a 1-year CD account will help you maximize your savings with little effort. For example, if you know you’ll purchase a new vehicle in three years, then keeping your cash in a 3-year CD makes sense. Minimum deposit: $1,000 Best 6-month CD ratesĬDs are good options for particular savings goals, like future purchases or events. Since the APY of a CD account is fixed, your savings won’t be affected. You may also opt for a short-term CD if you predict falling interest rates. But this can have a downside: it’ll be easier to make impulse purchases with cash in a high yield savings account than cash that’s tied up in a CD. And with these types of savings vehicles, you won’t have to wait any time at all to withdraw funds from your account.

For instance, you’ll likely be able to get a similar, or even higher, APY when opening a high-yield savings account or money market account. However, it’s important to compare rates across accounts to be sure you’re getting the best return on your cash. Short term CD's, like 3-month or 6-month CDs, can be good options for individuals who don’t want to commit to having their cash tied up for long periods of time.

3 year cd interest rates