If you have cash sitting in a regular savings account earning next to nothing, this is one of those weeks worth paying attention to.
Certificate of deposit rates at several online banks are still sitting above 4 percent, even after the Federal Reserve started trimming its benchmark rate.
That gap between what a branch bank pays and what an online bank pays is where real money hides.
Here is the simple version of how CDs work.
You agree to leave a set amount of money parked for a set stretch of time, usually anywhere from three months to five years.
In exchange, the bank locks in your interest rate.
The trade-off is that if you pull the money out early, you usually owe a penalty, often a few months of interest.
The best offers right now tend to land in the 4 percent to 5 percent range for terms between six months and two years.
A 12-month CD at 4.5 percent turns $10,000 into $450 in interest over the year.
The same $10,000 in a typical big-bank savings account paying 0.4 percent earns about $40.
A few things are worth knowing before you lock anything up.
First, rates are drifting lower, not higher, so the offers you see today may not be around in a couple of months.
Second, only put in money you truly will not need.
An emergency fund belongs in something you can reach without a penalty, like a high-yield savings account.
Some advertised rates are promotional and drop sharply after the first term ends, so mark your calendar for the maturity date.
Others require a minimum deposit that is larger than it first appears, or they tie the good rate to opening a checking account you do not want.
A 12-month CD with a six-month interest penalty is a very different deal than one with a 90-day penalty.
If you are not sure about timing, laddering is a straightforward approach.
Split your money into chunks and stagger the terms, say three months, six months, and one year.
That way something matures regularly and you are not stuck if rates move or you need cash.
One more note for anyone with credit card debt.
Paying off a card charging 22 percent is a better return than any CD on this list.
Clear the high-interest balance first, then park what is left.
The window on these rates will not stay open forever.
If you have been meaning to move idle cash somewhere it actually earns, this is a reasonable moment to compare a handful of federally insured banks and pick a term that matches when you might genuinely need the money back. **The takeaway:** Above-4 percent CDs are still out there, but they are a parking spot, not a jackpot.
Final Thoughts
Match the term to your real timeline, avoid the promotional fine print, and never let a CD rate talk you out of killing high-interest debt first.