Now is a great time to put your money in a certificate of deposit (CD). Interest rates have been going up over the past two years, and CDs currently offer some of the highest rates available—much higher than you’ll get with a traditional savings account.
Not sure how to find the best CDs near you? Don’t worry, we did the heavy lifting for you. In partnership with Curinos, a leading provider of banking data and analytics, we analyzed more than 20,000 data points to find the best CD rates in New Jersey and the U.S.
Keep in mind that our assessment of each institution isn’t exhaustive and our rankings focus solely on the APY.
Best CD rates in New Jersey overall
Compare rates from our partners
New Jersey has some of the best CD rates available today, but you don’t have to stop your search here. We curated some of the top CD accounts available nationwide from our partners.
Best CD rates in New Jersey by term
We worked with Curinos to identify the best CD rates in New Jersey by term, including 6-month, 1-year, and 5-year CDs.
If there are special requirements that must be met in order to open an account, they’ll be indicated in the “Notes” column (keep in mind this field may be blank). We recommend contacting the financial institution directly to confirm account details and requirements before opening a CD.
Best 6-month CD rates in New Jersey
A 6-month CD is Ideal for savers who don’t want to lock up their funds for long. Earn a great rate on your deposit and have your funds back within a few months to use as you please.
Best 1-year CD rates in New Jersey
By keeping your money on deposit a bit longer, you may be able to earn an even higher rate. A 1-year CD offers a great balance between higher earning opportunities without locking in your funds for too long.
Best 5-year CD rates in New Jersey
If you prefer a set-it-and-forget-it approach to your savings, consider a 5-year CD. With a longer term, you can rest assured that your rate is guaranteed for next few years and your savings won’t be impacted by market fluctuations.
What is a certificate of deposit?
A certificate of deposit is a type of time deposit account offered by banks and credit unions. CDs often provide a higher interest rate in exchange for keeping your money on deposit for a predetermined period of time, known as the term. CD term lengths can range from a few weeks or months to several years.
The key feature of a CD is the fixed term, during which your interest rate is guaranteed and you agree not to withdraw your funds. If you do need to access the money before the CD matures, you’ll likely face a penalty. Upon the CD’s maturity, you have the option to withdraw your initial deposit, plus the accrued interest, or you can choose to renew or roll over the CD into a new term. CDs are considered a safe investment option, especially since they’re typically insured by the government up to certain limits.
What does APY mean on a CD?
APY stands for Annual Percentage Yield. It represents the amount of interest you will earn on your deposit over a year, taking into account the effect of compounding interest. The higher the APY, the more interest you stand to earn.
What are the most common types of CDs?
CDs come in various types, each catering to different investment strategies and financial needs. Here are some of the most common types:
- Traditional CD: This is a standard CD, where you deposit a sum of money for a fixed term and earn a guaranteed interest rate.
- Bump-up CD: This type of CD allows you to increase your interest rate once or twice during the term if interest rates rise. It’s useful in a rising-rate environment, but usually starts with a lower initial rate compared to traditional CDs.
- No-penalty CD: Also known as a liquid CD, these offer more flexibility for withdrawing your money without a penalty before maturity. However, they typically offer lower interest rates compared to traditional CDs.
- Jumbo CD: Jumbo CDs require a significantly larger minimum deposit, often $100,000 or more. They typically offer a higher interest rate in return for the larger deposit.
- Brokered CD: These are CDs sold through brokerage firms. They often offer higher rates than bank CDs and can be bought and sold on a secondary market, but they may come with additional risks and fees.
- Callable CD: The issuing bank can “call” or terminate these CDs after a set period, returning your principal and interest earned to date. They typically offer higher rates to compensate for the risk of being called.
How to choose the best CD in New Jersey
There are over 50 FDIC-regulated banks in New Jersey and 150 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:
- Term: The duration of your CD determines the time it will take to reach maturity. CD terms vary, ranging from a few weeks up to 10 years. It’s important to select a term that fits your personal financial goals.
- Annual percentage yield: The APY on your CD greatly influences the growth of your savings. A higher APY means greater interest earnings.
- Opening deposit: Not all financial institutions have a minimum deposit requirement, but many do require a certain minimum investment to open a CD. This initial deposit can vary widely, from a few dollars to thousands of dollars. Before selecting a CD, be sure you can meet the minimum balance requirement (if there is one).
- Early withdrawal fees: Most CDs come with penalties for withdrawing funds before the term ends. If your CD has such penalties, withdrawing early might mean forfeiting some interest and even a portion of your principal. While you might not anticipate needing to access your funds early, it’s wise to be aware of any potential early withdrawal penalties.
- Insurance on deposits: The FDIC and NCUA offer insurance to safeguard depositors at banks and credit unions, respectively, if their financial institution fails. Coverage is up to $250,000 per depositor, per institution. Ensure your account has this insurance for protection against possible bank failures.
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