Savers who spent the past two years watching certificate of deposit rates climb are now facing a different question: how long will the good ones last?
The Federal Reserve has been holding its benchmark rate steady, and while nobody knows the exact timing of future cuts, most forecasters expect rates to drift lower at some point.
That makes today's crop of CDs worth a closer look, especially for money you won't need for a year or more.
The national average for a one-year CD sits around 1.8%, according to recent bank surveys.
That number, however, hides the real story.
Plenty of online banks and credit unions are still advertising 4% to 5% on 12-month terms, and a few promotional offers push even higher for specific deposit amounts.
The gap between the average and the best available rate is roughly the difference between earning $180 and $500 on a $10,000 deposit over a year.
Brick-and-mortar banks are usually the worst place to look.
The big national chains tend to pay well under 1% on CDs because they don't need to compete for deposits.
Online banks, which lack expensive branch networks, pass some of those savings back to customers in the form of higher yields.
Credit unions are worth checking too, though many require you to join through an employer, a family member, or a small donation to a partner charity.
Before you lock money up, compare the early withdrawal penalty against the extra interest you'd earn.
A typical penalty is three to six months of interest, which can wipe out most of your gain if you need the cash early.
Also check whether the rate is fixed for the entire term or only a promotional teaser.
A CD that starts at 5% and drops to 2% after six months is rarely the deal it appears to be.
Laddering remains a simple strategy for people who want both yield and access.
Instead of putting $20,000 into one five-year CD, you split it into several CDs with staggered maturities.
When the shortest one matures, you roll it into a new longer-term CD at whatever rate is available then, rather than guessing where rates are headed.
Keep an eye on deposit insurance limits as well.
The FDIC covers up to $250,000 per depositor, per bank, and credit unions have the same cap through the NCUSIF.
If you're parking a large sum, spreading it across institutions keeps every dollar protected.
Treasury bills are another option worth pricing alongside CDs, since they're backed by the federal government and often pay competitive yields.
One more thing: read the fine print on automatic renewal.
Many banks roll your CD into a new term at the standard rate, which is often far below what you originally signed up for.
Set a calendar reminder a week before maturity so you can shop around instead of letting the bank decide for you.
The bottom line is that decent CD rates haven't disappeared, they've just become less automatic.
A few minutes of comparison shopping can be the difference between a mediocre return and a genuinely useful one.
Final Thoughts
If you have cash sitting in a savings account earning 0.5%, moving even part of it into a competitive CD is one of the least complicated financial upgrades available right now.