The big banks and the Federal Reserve have faced an uphill battle in recent months amid major bank failures and red-hot inflation. Still, there are some clear winners. Savers have benefited from record-high APYs on their deposit accounts, with some high-yield savings accounts and certificates of deposit (CDs) offering APYs in excess of 5%.
One CD that should be on your radar: Goldman Sachs 10 Month Promotional CD,
goldman sachs 10 month promo cd
Through August 15, 2023, Goldman is offering a 10-month CD with a fixed 5.05% APY, more than three times the national average. The minimum deposit to open an account is $500.
What’s more, Goldman has a 10-day CD rate guarantee. This means that if the minimum deposit of $500 is deposited into your account within 10 days of opening your CD, Marcus guarantees that you will receive the highest published interest rate and APY for the term you choose.
If you choose to open this CD close to the end date of this promo, this rate guarantee will ensure that you receive the highest possible rate. Any interest you earn on your CD balance will automatically be added to the principal amount of your CD account each month. However, you also have the option of withdrawing the interest earned, penalty-free. You can transfer that money to Marcus savings account or any external bank account.
This CD does not come with any regular fees or penalties, unless you withdraw money before your CD matures. For CDs with terms less than one year, you will pay a penalty equal to 90 days’ interest on the original principal balance at the interest rate in effect for the CD. When your CD matures, you have a 10-day grace period. During that time, you can withdraw your balance without paying a penalty, roll over the money in your CD to a new CD with a new term, or renew your CD and keep the same term. Are.
Choosing the Right CD
Generally, the most common CD terms offered by banks and credit unions are 1-, 3- and 5-year terms. That’s why a 10-month CD is short. However, if this is your first CD, a 10-month term may give you the sense of locking up your money for a set period of time and determine if this type of savings vehicle and term length is right for you. Or not. When choosing a CD, there are a few factors you’ll want to keep in mind:
- Your savings goal: Knowing what you’re saving for can help you choose appropriate CD terms. If you’re saving for a down payment on a house you plan to buy in a year, a 1-year CD might be a good fit for you. However, if you are saving for a long-term goal such as retirement, you can opt for a CD for a longer tenure, between 5-10 years and possibly at the end of that tenure, depending on the time frame of your retirement. But you can also roll over that balance.
- Rates and Fees: The APY on your CD balance will tell you how much you can expect to earn in interest over the course of a year. The higher your APY, the more your balance will grow during that time. Take the time to shop around and compare APYs across financial institutions. You can start by asking your current bank or credit union about their CD rates. There are institutions that offer higher relationship APY for existing customers.
- Liquidity: CDs do not work like traditional savings accounts. Even though there are savings accounts that set limits on how many withdrawals you can make within a certain period, you will still have some access to the money in your account. If this is a problem for you, CDs may not be the best fit. Putting your money in a CD means you are promising not to touch that money at all for the duration of its term. Doing so could mean losing whatever interest you have earned. If you still want to take advantage of a higher promotional APY, you might want to opt for a shorter term CD.
CDs can be a worthwhile investment if you have the money to deposit upfront and are confident that you will not need access to your money before your CD matures. Plus, if you’re saving for a specific goal, putting your money in a CD can help hold you accountable and keep your money safe until it’s time to meet your goal. Don’t have time to Before selecting a CD, pay close attention to the rates, fees and terms offered to choose the best fit for your savings needs.