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Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work!
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Best 1-year CD rates April 2021 Bankrate 21 hrs ago © MoMo Productions/Getty Images Mother working on laptop with daughter nearby
Certificates of deposits (CDs) are safe vehicles for investors hoping to avoid taking on too much risk. If you keep your funds locked up in the bank for an entire term (such as three months or one year), you can expect to end up with your initial deposit plus interest.
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A 12-month CD won t pay the highest CD rates in the market. But right now, there isn t much of a difference between the annual percentage yields (APYs) on many one-year CDs and five-year CDs. The benefit to a short-term CD, such as a one-year CD is when your account comes due, you ll have an opportunity to see if a higher-yielding option is available.