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1 Year CD Rates: Is a Savings Account Better than a CD Account

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Find the Best 1 Year CD Rates with High Interest

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1 Year CD rates can provide a good return on your investment in a short amount of time. Bitcoin investing may be all the craze, but if you’re looking for a secure way to grow your money, 1 Year CD rates offer a safer alternative.

A certificate of deposit (CD) is a low-risk way to save money for short-term of long-term goals. The risk involved with a CD is minimal because you can open one at an FDIC-insured bank.

Certificate of deposits make an attractive savings vehicle because you can pretty much predict your earnings and establish a reliable income stream. Your interest rate is locked in for the term and you will be unable to access your money penalty-free until the CD’s maturity date.

Earnings are higher because CD interest rates are often higher than what a savings account offers; unless you find a high-interest savings, like CIT’s Savings Builder Account that pays 2.20% APY.

A 1-year CD could be a great option for you if:

  • You won’t need access to your money for one year.
  • You would like to earn a higher interest rate than a savings or money market account.
  • You want a safe, FDIC-insured investment protected from market fluctuations.

Find the Best 1 Year CD Rates

One of the most important facts to consider when looking for the best 1 year cd rates is: Typically, a CD with a longer term, comes with a higher rate. However, that also means you won’t have access to the money for a longer period of time.

A 1-year CD may work for you if you’re looking for a stable, short-term investment and don’t require liquidity.

If you cash out early, you may face an early withdrawal penalty that would impact your earnings – unless you open a No-Penalty CD where there is no charge or fee for early withdrawal.

What happens at maturity?
When a CD reaches maturity, you typically have the option of rolling over the CD to another CD for the same term or a different term, or you can cash it out.

How to choose the best 1-year CD account
With so many financial institutions offering 1-year CDs, deciding which one to trust with your money can seem overwhelming.

Here is an online bank that offers great 1 year cd rates plus an exceptional high-yield savings account.

CIT Bank No-Penalty 11-Month CD – (2.05% APY)

With a CIT Bank No-Penalty CD, you get the security of an 11-month CD plus know you can withdraw the total balance and interest earned without penalty.
The No-Penalty CD kicks into full effect seven days after your deposit is made. 

Here are the details:

  • Minimum deposit of $1,000
  • You may withdraw the total balance and interest earned, without penalty, beginning seven days after funds have been received for your CD. No withdrawals are permitted during the first six days following the receipt of funds
  • No account opening or maintenance fees
  • Daily compounding interest to maximize your earning potential
  • FDIC insured

All deposits, no matter the amount will receive a 2.05% APY. You can’t go wrong with the CIT Bank 11-Month No Penalty CD.[/vc_column_text][vc_btn text=”Open an account” link=”url:https%3A%2F%2Fcreditmashup.com%2FCDs|||” size=”17px”]

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CIT Bank Term CD – (2.05% APY)

Earn a high rate (2.50% APY) with the CIT Term CD

With a CIT Bank Term CD, you get the security of an 18-month CD to secure your short-term savings goals. If you are looking for a stable, short-term investment and don’t require liquidity like the No-Penalty CD, there are many benefits to this savings product:

Here are the details:

  • Minimum deposit of $1,000
  • At maturity, you have the option of rolling over the CD to another CD for the same term or a different term, or you can cash it out
  • No account opening or maintenance fees
  • Daily compounding interest to maximize your earning potential
  • FDIC insured

All deposits, no matter the amount will receive a 2.50% APY. You can’t go wrong with the 1-year Term CD, it provides a good return on your investment in a short amount of time plus your funds will be unaffected if CD rates decrease.[/vc_column_text][vc_btn text=”Open an account” link=”url:https%3A%2F%2Fcreditmashup.com%2FTermCD|||” size=”17px”][us_separator size=”large”]

Certificate of deposit aren’t for everyone. You have to discipline yourself to maintain your deposit over a length of time or you can end up losing money earned in interest.

But a 1 Year CD may be perfect for you if saving money for something special that is at least a year away. For example, maybe you are planning to take a vacation, buy a car, or do some work on your home. You want to park your money in a place where you won’t be tempted to spend it.

Most importantly is that a CD is designed to increase your savings because regardless of what the market does, money you put into a certificate of deposit grows.

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