The holiday shopping season is still in full swing, so saving money is probably far from most consumers’ minds. However next up is the New Year, for which millions of people will decide to set resolutions for 2013. Whether or not you blew all your extra cash on a new TV and clothes this past weekend, saving more money should be one resolution to consider. Certificates of deposit may be just the tools to help you achieve that goal. Your deposits will earn more interest, on average, than a regular savings account and you’ll face a penalty for withdrawing your savings too early. What better way to incentivize saving than to impose penalties for drawing down your balance?
Rates are at an unfortunate low, but with a little bit of shopping around for the best offers, you can still come out ahead compared to most savings accounts (and definitely compared to the stash under your mattress).
|Length of Term (months)||Average Promo APY||Average Reg. APY|
CD rates that beat the average
|Digital FCU||MA||8 months||1.50%||SPECIAL: Limited Time Offer; Min $1,000|
|Wymar FCU||LA||3 months||1.21%||Min $5,000|
|Gulf Coast FCU||TX||6 months||1.10%||Min $500|
1-2 year CDs
|San Patricio County Teachers FCU||TX||2 years||1.85%||Min $2,500|
|Encompass CU||IN||2 years||1.76%||Min $500|
|Tuscaloosa CU||AL||2 years||1.51%||Min $500|
3+ year CDs
|SeaComm FCU||NY||5 years||2.49%||Min $1,000|
|Birmingham Police CU||AL||5 years||2.38%||Min $1,000|
|General Electric CU||OH||5 years||2.33%||Min $500|
Banking image via shutterstock