The average national interest rate on savings accounts in 0.06 percent, but online banks often carry high yields due to low overhead. Without brick-and-mortar locations, online banks don’t have to pay for branches and all of their associated costs - think: electricity, construction and maintenance, personnel and property tax. As a result, customers reap the benefits when it comes to earning interest.
See the best offers below:
A certificate of deposit (CD) is a deposit account that works much like a savings account, with a few exceptions. While you can usually withdraw your money from a savings account whenever you want, certificates of deposit require you to agree to a fixed term – anywhere from six months to several years – during which you aren't supposed to withdraw your money. In return for agreeing to the term, you are rewarded with the best CD rates.
The best CD rates tend to be higher than savings rates in order to provide incentive for account holders to keep their money on deposit longer. Certificate of deposit rates can vary widely, from practically nothing at all to highly competitive.