3 Great CDs to Check Out in July

Certificate of deposit (CD) yields remain near generational highs, but there's no such thing as a CD that is a perfect fit for everyone. If your goal is to create an income stream from your CDs, the ideal fit might be different than if your goal is to compound your money over the long run.

With that in mind, here are three excellent CDs for three different situations. Which is the best for you?

1. If you're worried about rates falling

As of this writing, shorter-term CDs tend to have the highest interest rates, but the problem is that if rates fall over the next year, you could be out of luck if you want to renew your CD at an acceptable rate. So if your primary goal is to lock in a high interest rate for a longer period of time, a 5-year CD could be the best option.

One of the highest-paying 5-year CDs in the market right now is offered by Quontic Bank. While its CDs have a $500 minimum deposit requirement, they also have some of the highest rates on the market. Quontic also offers an excellent high-yield savings account as well as online checking accounts, which can make it easy to keep all of your money in the same bank.

Our Picks for the Best High-Yield Savings Accounts of 2024

Capital One 360 Performance Savings APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings Member FDIC.	APY 4.25% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
American Express® High Yield Savings APY 4.25% Rate info 4.25% annual percentage yield as of July 5, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings Member FDIC.	APY 4.25% Rate info 4.25% annual percentage yield as of July 5, 2024	Min. to earn $1
Citizens Access® Savings APY 4.50% Min. to earn $0.01 Open Account for Citizens Access® Savings Member FDIC.	APY 4.50%	Min. to earn $0.01

2. If you want to create a CD ladder

CD ladders can be an excellent tool for maximizing income while maintaining financial flexibility. Essentially, the idea is that you take your money and invest one-fifth of it in a 1-year CD, one-fifth in a 2-year CD, and so on. If you do this, some of your money will mature each year, and you can choose to use it or roll it into a new 5-year CD. And with a CD ladder, the majority of your money will be locked into longer-term interest rates at all times.

The Capital One 360 CD can be the best choice if you're looking to create a CD ladder. It offers competitive interest rates and a variety of term lengths. And with no minimum deposit, you could potentially create a CD ladder with a relatively small sum of money. Plus, customers can choose to have their interest paid to them every month, once a year, or in a lump sum at the CD's maturity term, so there's a lot of flexibility for income-seekers.

3. If you want to create an income stream

When you put money into a CD, one of two things can happen with the interest it earns. The standard is to leave all of your interest in the account to compound until it matures. Note that the CD's stated APY assumes you're going to do this.

Alternatively, some (but not all) banks give CD owners the ability to withdraw the interest that is paid to their account as it arrives. This can make CDs a good choice for people who rely on their investments for income to cover day-to-day expenses.

One excellent choice that allows you to withdraw the interest from your CDs as it is paid each month is Barclays Online CDs. These come in terms ranging from six months to five years and have highly competitive interest rates and no minimum deposits. You can choose to have interest withdrawn to a Barclays Online Savings or to an external linked bank account, or you can simply leave it in the CD. It's your choice.

Which is best for you?

Obviously, there's no such thing as a perfect CD for everyone. We all have different financial goals, income objectives, time horizons, and more. But these are three great options for savers, and if one is a good fit for your needs, it could be worth a closer look today.