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About 1 in 3 Workers Thinking About Quitting; Most Cite Low Pay, Desire to Work Remotely and Burnout

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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The coronavirus pandemic brought on significant change, including how and where people work. In 2020, the U.S. workforce was flipped on its head with sudden shifts, from people leaving their jobs — or the workforce all together — to others having their offices at home for the first time.

Many say their professional lives have been negatively affected, while some are looking at the pandemic as an opportunity for a fresh start professionally, according to the latest MagnifyMoney survey of 1,000-plus Americans. About one-third of workers are thinking about quitting their jobs, while almost 60% are rethinking their career at least somewhat.

Key findings

  • About 1 in 3 workers are thinking about quitting their job. Of that group, the main reasons are being underpaid (42%), wanting to work from home (42%) and feeling burned out (34%).
  • Working women contemplating a job change are more likely than men to cite being burned out, not making enough money and not feeling valued by their employer as reasons they might quit. 42% of women contemplating quitting cite burnout (versus 27% of men), 50% feel like they don’t make enough money (versus 34% of men) and 25% say they don’t feel valued by their employer (versus 15% of men).
  • Nearly a third (31%) of working women say the pandemic negatively impacted their career, compared with 22% of working men. In fact, 29% of working men say the pandemic helped their career, while only 20% of women say the same.
  • 58% of workers say the pandemic has caused them to rethink their careers, especially those 40 and younger. Some have already made moves: Nearly one-third (32%) of both Gen Zers and millennials changed careers during the pandemic and now work in a new field.
  • Pay remains the most important factor consumers weigh when looking for a new job, even more than working from home. 30% say pay is most critical, while 19% cite the ability to work from home.

34% of employed Americans are thinking about quitting their jobs

Among working Americans, roughly 1 in 3 are thinking about leaving their jobs, with 19% actively searching for other work — without much variation between men and women.

In February 2020, ahead of mass shutdowns in the U.S., the national unemployment rate was 3.5%, among the lowest in U.S. history. By April 2020, that rate would shoot up to a record-high 14.8%, leaving more than 23 million Americans jobless.

The MagnifyMoney survey finds the substantial disruption to daily lives resulted in many people reconsidering their situations in a post-pandemic world. In addition to forced reevaluation for those who lost their jobs, many others potentially sought something new.

As part of that reconsideration, Americans who are thinking about quitting have various reasons why. The most prevalent, according to MagnifyMoney’s findings, is wanting more money and wanting to work from home, in addition to feeling burned out and wanting more work-life balance.

Many women cite similar reasons for wanting to leave their jobs

Certain areas concerned women more than men regarding their desire to quit their job. Specifically, women who are thinking about leaving their roles note greater feelings about burnout (42% versus 27%), inadequate pay (50% versus 34%) and value by their employer (25% versus 15%).

Here’s a deeper breakdown of how women and men responded to this question:

All of these factors paint an image of issues, including the wage gap, that women commonly face. They also draw further interest because many more women felt negatively affected by the pandemic than their male counterparts (more on this soon).

Why workers aren’t leaving their jobs

On the other hand, many people have just as many reasons for not leaving their jobs, whether it be a desire to maintain stability during a time of great instability or to have a pipe dream while stressed at work.

The main reasons that respondents cite:

  • Not having anything else lined up (44%)
  • Being paid well (34%)
  • Not having enough savings (25%)
  • Receiving great benefits (24%)

Ultimately, as appealing as a new job might seem, some stability is most important for many still in the workforce.

Working women are more negatively affected by the pandemic than men

In the wake of the pandemic, more women thought their careers had been more negatively affected than positively affected — 31% versus 20%, respectively — which is the inverse of men, as they say they were more positively affected (29%) than negatively affected (22%).

From February 2020 to February 2021, 2.4 million women left the workforce, compared with 1.8 million men, according to the Pew Research Center. One explanation for this is that the service sector, an industry largely predominated by women, was greatly affected by pandemic shutdowns. In addition, according to MagnifyMoney’s findings, 16% of women — versus 9% of men — either wanted to or had to stay home with their children.

Nearly 60% of workers are thinking about a career change

With the rapidly changing values and culture of the American workforce, it’s understandable that many people might be looking for a change, especially among Gen Zers (ages 18 to 24) and millenials (ages 25 to 40). Fifty-eight percent of workers say the pandemic has caused them to rethink their careers completely.

In fact, 19% of workers quit their jobs to dive into a new field during the pandemic. This was more common for Gen Zers and millennials than Gen Xers (ages 41 to 55) and baby boomers (ages 56 to 75).

21% of workers voluntarily quit their jobs

From March 2020 to when the survey was conducted in early July 2021, 21% of workers voluntarily quit their jobs, including 28% among those who earn less than $35,000 a year.

The reasons range from feeling burned out or overworked (31%) to not liking their boss (26%), not being allowed to work remotely (25%) and finding a better opportunity (22%).

In addition, 50% of the people who quit their jobs during the pandemic didn’t have something else lined up. Although many have found other work (21%), many others have yet to find another job (18%) — while some have even left the workforce altogether (11%).

Pay is still key for many when choosing a job

Although it may not be surprising, salary is still the most important factor for many Americans when deciding what job to accept. The importance of being able to work remotely continues to be a growing trend, too.

Before the beginning of the pandemic, according to Pew Research Center, only 1 in 5 people say they worked from home “all or most of the time.” By the end of 2020, that percentage had skyrocketed to 71%, with 54% saying they would be happy to continue working from home even after the pandemic.

Since working from home became the new normal for so many, it makes sense why wanting to work from home and maintaining that new normalcy could be appealing.

3 tips if you’re looking to leave your job

Be prepared financially

Although quitting your job may be appealing for a slew of reasons, be sure that you’re financially stable.

“Before quitting your job, make sure you have done a careful review of your finances,” says Ismat Mangla, MagnifyMoney senior content director.

Mangla advises asking yourself the following questions:

  • Do you have enough in your savings account to cover your expenses for at least six months?
  • Are you able to trim your expenses to live on a more lean budget?
  • Do you have extra money to cover emergencies, such as a necessary car or home repair or medical expense?

Know the impact of the pandemic on your savings

The pandemic affected everyone differently, leading to some feeling the full force of its effects while others were hardly impacted at all.

It’s been a tale of two pandemics, Mangla says, since many saved on formerly regular expenses while others suffered from job and wage loss. Where you fall should be considered in the job hunt.

Seek a solid compensation package

Although pay is important and should be a strong consideration, more factors should be considered with a compensation package.

In addition to salary, Mangla says you should consider other factors such as annual and signing bonuses, access to equity or company stock and vacation days — not to mention any medical benefits and other potential bonuses.

Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,039 U.S. consumers from July 1 to July 8, 2021. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.

We defined generations as the following ages in 2021:

  • Generation Z: 18 to 24
  • Millennial: 25 to 40
  • Generation X: 41 to 55
  • Baby boomer: 56 to 75

While the survey also included consumers from the silent generation (defined as those 76 and older), the sample size was too small to include findings related to that group in the generational breakdowns.

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The Best 6-Year CD Rates in 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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If you want to earn the highest CD rates, you generally need to invest in a longer-term CD. When the bank or credit union gets to keep your money for an extended period of time, it rewards you with higher interest rates.

Higher rates can make a 6-year term an appealing choice when considering CDs. However, there aren’t as many 6-year CDs available as with other CD terms. Most banks don’t offer this particular term, often maxing out at five years or skipping to 7-year CDs. In our analysis, we managed to find ten great choices when sorting through long-term CD data from DepositAccounts.com, a LendingTree-owned company.

To find the best 6-year CDs, we first looked at the highest 6-year CD rates available nationwide. Then we ranked each by APY, taking the accounts’ minimum deposit requirements into consideration for wider availability. We also made sure to include institutions with great health ratings so you know you’re working with a reputable bank with FDIC or NCUA insurance.

The best 6-year CD rates

As of August 2021
All rates expressed in annual percentage yield (APY) unless otherwise stated.

1. Evansville Teachers FCU— 1.15% APY, $1,000 minimum deposit

The 6-year certificate is Evansville Teachers FCU’s longest term and earns at a competitive interest rate alongside the credit union’s other certificates. You’ll need at least $1,000 to open an account. The penalty for an early withdrawal will equal either $100 or 180 days’ worth of interest, whichever is greater.

ETFCU was founded in 1936 by several teachers in Evansville, Ind. who needed better financial services. Today, you can be eligible for Evansville Teachers FCU membership not just as a teacher, but also through select employers or organizations, or a family or household member. You may also join by donating $5 to the Mater Dei Friends & Alumni Association.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

2. First National Bank of America — 1.10% APY, $1,000 minimum deposit

This 72-month CD from First National Bank of America easily earns one of the top spots. The CD will roll over automatically when it matures, or you can opt for a new CD term or withdraw your money altogether. First National allows for partial withdrawals but at a stiff penalty — you’ll lose 540 days’ interest on the amount you take out.

First National Bank of America is based in Michigan and is family-owned. The bank opened its doors in 1955.

SEE DETAILS Secured

on First National Bank Of America’s secure website

Member FDIC

3. Northrop Grumman Federal Credit Union — 1.03% APY, $2,500 minimum deposit

For a $2,500 deposit, you’ll lock in this high rate at Northrop Grumman FCU on its 7-year CD. Have even more you can afford to invest? With $40,000, you can get a bonus term savings certificate that will land you an APY better than the top spot on this list.

Membership to Northrop Grumman FCU is open to employees of Northrop Grumman Corporation, their subsidiaries and Metro, Los Angeles County, as well as their families and retirees. Joining the Southern California Historical Aviation Foundation also qualifies you.

SEE DETAILS Secured

on Northrop Grumman Federal’s secure website

4. INOVA Federal Credit Union— 0.70% APY, $200 minimum deposit

Earn the best 6-year CD rate from Inova FCU. You need at least $200 to deposit and open up INOVA’s 6-year certificate. The penalty for an early withdrawal from this account is equal to 180 days’ of dividends.

Headquartered in Indiana, INOVA Federal was originally founded to serve the employees of Miles Laboratories in 1942. You can join INOVA through your employer or other organization, or through an immediate family member who is already an INOVA member. Membership is also open to those who join the Tru Direction Financial Literacy Program.

SEE DETAILS Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

5. Third Federal Savings and Loan — 0.70% APY, $500 minimum deposit

The 72-month standard CD is the longest term offered by Third Federal Savings and Loan. It earns at a competitive rate and requires only $500 to open and start saving. The penalty for an early withdrawal from a 72-month CD equals 18 months’ interest, whether earned or not.

Third Federal is based in Cleveland, where it was founded back in 1938.

SEE DETAILS Secured

on Third Federal Savings And Loan (OH)’s secure website

Member FDIC

6. Marcus by Goldman Sachs — 0.60% APY, $500 minimum deposit

A big name in the online banking space, Marcus by Goldman Sachs offers consistently competitive rates. This includes its high-yield 6-year CD, the longest term among its offerings. It features a competitive annual percentage yield and requires an initial deposit of at least $500 and must be fully funded within 30 days of opening the account. Marcus makes a 10-day CD rate guarantee, so if the rate increases during that period, you can switch to that higher rate.

Just be careful of making an early withdrawal from the 6-year CD, as it will trigger a penalty of 365 days’ worth of simple interest on the principal.

Marcus by Goldman Sachs is the banking branch of investment giant Goldman Sachs, which traces its history back to 1869.

SEE DETAILS Secured

on Marcus By Goldman Sachs’s secure website

Member FDIC

7. Chartway Federal Credit Union— 0.85% APY, $0 minimum deposit

You can take advantage of Chartway FCU’s longest share certificate term of 71 months with a $100 minimum. It earns at a competitive rate, which applies to certificates between 60 and 71 months. This rate is not applicable to accounts opened in North Carolina, Nevada, Texas, Utah or Virgina. The penalty for making an early withdrawal from this certificate will equal 180 days’ worth of interest.

Chartway FCU was started as NorVA N.A.S. Federal Credit Union by civilian workers at the Norfolk Naval Air Station in 1959. Today, you can join Chartway if you live, work, go to school or worship in select areas in Texas, Utah or Virgina, you work for a select partner employer or you have an immediate family member who is a member. You may also join by donating $10 to Chartway’s We Promise Foundation, which benefits children with medical issues and illnesses.

SEE DETAILS Secured

on Chartway Federal Credit Union’s secure website

NCUA Insured

8. EmigrantDirect — 0.45% APY, $1,000 minimum deposit

EmigrantDirect offers a lower but still good rate on its 60- to 120-month certificates of deposit, including its 6-year term. You need $1,000 to open an account here. The penalty for early withdrawals will be an amount equal to 180 days’ interest, whether earned or not.

EmigrantDirect is a digital-only division of Emigrant Bank.

SEE DETAILS Secured

on EmigrantDirect.com’s secure website

Member FDIC

9. 1st Source Bank— 0.40% APY, $500 minimum deposit

You can get started with 1st Source Bank’s 6-year CD with just $500. The penalty for an early withdrawal is 12 months’ interest that would have been earned on the amount withdrawn.

1st Source Bank was established back in 1863 in South Bend, Ind. It has branches in Florida, Indiana and Michigan.

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on 1st Source Bank’s secure website

Member FDIC

10. MySavingsDirect — 0.40% APY, $1,000 minimum deposit

MySavingsDirect offers a wide range of MyTerm Certificates of Deposit. Its 6-year term falls in its range of 60- to 120-month terms available at the given APY. Plus, interest is compounded daily for faster savings growth. You’ll need at least $1,000 to open an account. Making an early withdrawal from this account will trigger a penalty of 180 days’ worth of interest.

Like EmigrantDirect on this list, MySavingsDirect is also a digital-only division of Emigrant Bank, which dates back to 1850.

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on MySavingsDirect’s secure website

Member FDIC

Is it worth getting a 6-year CD?

It can be worth getting a 6-year CD if you’re signing up for the highest rates on our list. Perhaps it would make a solid addition to a CD ladder you’re building.

In truth, 6-year CD rates aren’t always competitive enough to make them a reliable investment. In fact, 5- and 7-year CD terms consistently have much better rates, despite the small one-year difference.

When we compare 6-year CD rates with 5-year CD rates, the 6-year yields struggle to keep up. You can see above that the best 6-year CD rates jump from 1.15% APY at the top all the way to 0.40%. Meanwhile, all the best 5-year CD rates offer a much better savings opportunity, ranging between 1.25% and 1.10% APY. No matter which 5-year CD you pick from the list, you’re bound to yield some solid earnings.

We tend to expect that the longer the CD term, the higher the rate will be, but we just don’t see that when comparing 6-year CDs with other long-term CDs. On the whole, 6-year CD terms are bookended by better-earning products. Opening 5- and 7-year CDs will give you a wider product selection to choose from and a better chance at growing your savings.

Alternative long-term investments

Other than 5- and 7-year CDs, Ken Tumin, founder of DepositAccounts.com (which similar to MagnifyMoney, is owned by LendingTree) suggests turning to individual bonds to beef up your savings. “Much like a CD ladder, the same technique can be used with individual bonds (Treasury, municipal, corporate, etc.) to build steady savings over time,” he offered. Note that non-Treasury bonds do have some default risk that CDs don’t carry when they have FDIC/NCUA insurance.

Another alternative to a bond ladder is a mutual fund or an ETF of bonds. Unlike a ladder, the value of a bond mutual fund or ETF fluctuates with interest rates. This can give you the chance to boost your savings when interest rates go down. However, the opposite is also true, where the value of your bonds decrease when interest rates rise.

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The Best 3-Month CD Rates in August 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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If you have some extra cash and are looking for a quick return, a 3-month certificate of deposit (CD) could be the handy savings tool you’ve been looking for. CDs with a 3-month term are typically the shortest CD offerings available. Because they’re such brief investments, 3-month CDs also tend to earn at pretty low interest rates. In fact, the average return on a 3-month CD in June is only 0.14% APY.

However, low 3-month CD rates are far from being an inescapable destiny. In order to compete for customers, some banks end up offering really great rates on short-term CDs. This competition can be a big advantage if you know where to look. And we know where to look: Read on to see the best CD rates for 3-month terms.

We ranked the following products by highest APY available nationwide, using data from DepositAccounts.com, another LendingTree-owned company. We also took minimum deposit requirements into consideration to ensure wider availability for customers. Finally, we checked each account’s early withdrawal penalty, as 3-month CD penalties can take a larger chunk of your earnings out than other terms.

The best 3-month CD rates

1. Spectrum Credit Union — 0.50% APY, $500 minimum deposit

Spectrum Credit Union offers a high-yield rate with its 3-month share certificate, which requires a $500 minimum deposit. After that, all balances can earn at the given rate. Making an early withdrawal from the 3-month share certificate will result in a penalty of three months’ worth of dividends.

Spectrum Credit Union was founded in 1973 as Bechtel Employees Federal Credit Union. In 2012, it became a division of Chevron Federal Credit Union (CFCU), aiming to serve communities that Chevron’s membership does not reach. Spectrum membership is available to a variety of customers, including employees of select companies and residents of select San Francisco and Maryland neighborhoods. You can also become eligible by joining one of its partner nonprofit associations.

SEE DETAILS Secured

on Spectrum Credit Union’s secure website

NCUA Insured

2. NexBank — 0.50% APY, $10,000 minimum deposit

NexBank certificates of deposit earn at some great rates, including its 3-month CD. NexBank requires a pretty high opening deposit of $10,000 for its CDs, and balances max out at $240,000. The penalty for an early withdrawal will equal one month’s worth of interest.

In addition to its CDs and other personal deposit accounts, NexBank focuses largely on commercial banking, mortgage banking and institutional services. It was established in 1934 and is based in Dallas.

SEE DETAILS Secured

on NexBank’s secure website

Member FDIC

3. Bethpage Federal Credit Union — 0.40% APY, $50 minimum deposit

With competitive rates on all its Certificates, the Bethpage Federal Credit Union 3-Month Certificate is no exception. Plus, you only need $50 to open an account, so it’s easier to get started. The penalty for an early withdrawal from this account is 90 days’ worth of dividends on the principal amount withdrawn.

Bethpage FCU first opened in 1941 to serve Grumman employees. Based in Bethpage, N.Y., the credit union also offers customers access to thousands more branches and ATMs throughout the country through the CO-OP Network. Bethpage FCU opens membership up to anyone; you just need to open a Bethpage savings account and fund it with $5 to become a member.

SEE DETAILS Secured

on Bethpage Federal Credit Union’s secure website

NCUA Insured

4. Service Credit Union — 0.40% APY, $500 minimum deposit

Dividends are compounded monthly on this 3-month CD from Service Credit Union and credited every month. At the end of the term, you can take out your funds or roll them over. The minimum to open an account is $500.

Service Credit Union was originally formed in 1957 to provide financial services to military members and their families. Active military and veterans are still welcome to join, as are community members of select Massachusetts areas. If you don’t fall under these categories, you can also join Service Credit Union through the American Consumer Council. Use the code “Service” to score a membership at no cost.

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on Lake Michigan Credit Union’s secure website

NCUA Insured

5. Consumers Credit Union (IL) — 0.35% APY, $250 minimum deposit

It takes only $250 to earn this competitive rate on Consumers Credit Union’s 91-day CD. Dividends are compounded daily and post monthly for this account. Early withdrawal will cost you 60 days’ dividends.

A one-time $5 membership fee to the Consumers Cooperative Association also qualifies you for membership to Consumers Credit Union, which was originally established in 1910 as Cooperative Trading Company of Waukegan in Illinois.

SEE DETAILS Secured

on Consumers Credit Union (IL)’s secure website

NCUA Insured

6. Evansville Teachers Federal Credit Union — 0.35%APY, $1,000 minimum deposit

This 3-month certificate from Evansville Teachers Federal Credit Union earns a solid rate for such a short term. You’ll only need $1,000 to deposit to secure this rate.

Evansville Teachers Federal Credit Union was established in 1936 by a group of Indiana teachers in response to the Great Depression to help serve the financial needs of teachers at the time. Today, ETFCU membership is still open to teachers, but it also serves through other employers, organizations and family members. You can also join by donating as little as $5 to the Mater Dei Friends & Alumni Association.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

7. TIAA Bank — 0.35% APY, $1,000 minimum deposit

You’ll need to set aside only $1,000 to benefit from TIAA Bank’s 3-month Yield Pledge CD. Interest on the certificate is compounded daily and credited monthly, and it will automatically renew at maturity for the same term. The penalty for an early withdrawal from this account is equal to 22 days of simple interest.

Established in 1998, TIAA Bank is a division of TIAA, FSB, which was founded in 1918. TIAA Bank is headquartered in Jacksonville, Fla., but operates entirely online.

SEE DETAILS Secured

on TIAA Bank’s secure website

Member FDIC

8. Hiway Federal Credit Union — 0.35% APY, $25,000 minimum deposit

Dividends are calculated daily on this 3-month CD from Hiway Federal Credit Union, which requires a substantial opening balance of $25,000. But investing only $10,000 will still get you a rate that just misses the top 10. Withdrawing before maturity will cost you 30 days’ dividends. The certificate automatically renews for the same term if you don’t make any changes within the 14-day, post-maturity grace period.

Minnesota-based Hiway Federal Credit Union opens its membership outside the Metro Community area to employees of partner organizations. You can also qualify if you become a member of the Minnesota Recreation and Park Foundation or the Association of the United States Army for a small donation.

SEE DETAILS Secured

on Hiway Credit Union’s secure website

NCUA Insured

9. Affinity Plus Credit Union — 0.30% APY, $500 minimum deposit

The APY listed here is for a 3-month Affinity Plus Basic Certificate. Dividends are compounded and credited monthly. Withdrawing money before the three months is up carries a stiff penalty of 90 days’ interest, essentially wiping out any benefit, so be sure you can leave your money untouched until the CD matures.

There are many avenues of eligibility for membership in Affinity Plus, most centering around your employer or participation in select Minnesota areas. But anyone can join by making a one-time $25 payment to the Affinity Plus Foundation.

SEE DETAILS Secured

on Affinity Plus Federal Credit Union’s secure website

NCUA Insured

10. Signature Federal Credit Union — 0.30% APY, $500 minimum deposit

You can get started with a 3-month Signature FCU share certificate with $500. Dividends are compounded and credited monthly. Signature FCU allows you to transfer your interest out of your CD each month or you can reinvest it to grow your money even faster. You’ll forfeit 45 days of dividends if you withdraw your money early.

You can join Signature Federal Credit Union if you are a member or employee of select partner organizations; by being sponsored or referred by a member; or by enrolling in the American Consumer Council at no cost.

SEE DETAILS Secured

on Signature Federal Credit Union’s secure website

NCUA Insured

Short-term CDs vs. long-term CDs: Which are better investments?

Both short-term and long-term CDs are great investment tools, although they serve different purposes depending on your savings goals. Long-term CDs are better for saving for goals years in the future. They also help you lock in high rates for years to come to protect against a rate-dropping climate.

Short-term CDs, on the other hand, are better when you have some extra cash you need to stash away for a bit. You can take advantage of high rates, but there is the inherent risk that in three or six months, that rate may have gone down. On the flip side, a short-lived term allows you to take advantage of rising rates more quickly.

A CD alternative that would still allow you some flexibility in catching rising rates would be to open no-penalty CDs instead. Like their name suggests, no-penalty CDs allow you to avoid the typical early withdrawal penalty associated with CDs. That way, when you start to see higher available CD rates, you can close up one CD and deposit those funds in a new, higher rate account without losing money.

Because short-term CDs expire so quickly, it might make sense to open a more liquid savings product instead. “A reasonable alternative is to just keep that money in a savings or money market account for three or six months,” suggests Ken Tumin, founder of DepositAccounts.com, a LendingTree-owned company. “In fact, the savings account rates at many internet banks are actually quite a bit higher than their 3- and 6-month CD rates.”

However, there is always the chance of your variable savings account rate decreasing without notice. So if you can open one of the best 3-month CDs above, the returns could be worth locking away your money for a few months.

Starting off a mini CD ladder with a 3-month CD

Many CD ladder guides suggest building a ladder starting with a 1-year CD. That technique results in CDs that mature every year. But you can also just as easily kick off a CD ladder with 3-month CDs. That would allow for more frequent maturity dates. For example, you could start a ladder with 3-month, 6-month, 9-month and 12-month CDs. When the 3-month, 6-month and 9-month CDs mature, you would renew each one into a 12-month CD. The steady state of the ladder would then be just 12-month CDs that mature every three months.

You can also create a ladder with longer-term CDs that still mature every three months. In this case, it’s a little more complicated when starting the CD ladder. In sticking with the example above, you could also open a 24-month and 36-month CD at the outset. After several rollovers into various terms over the next few years, the ladder’s steady state would have a 36-month CD maturing every 3 months. This could be an ideal way to take advantage of high rates now while also leaving some room for higher rates in the future. It also offers opportunities for you to receive a payout every three months.