Are you seeking a secure investment with no risk and attractive returns? Consider investing in certificates of deposit (CDs) or share certificates. With a CD, you commit your funds for a fixed period in exchange for a fixed interest rate.

To identify the most profitable CDs, we partnered with Curinos, leveraging a vast dataset of more 20,000 data points from various banks and financial institutions in Massachusetts. Our carefully selected CDs boast the state’s highest annual percentage yields (APYs).

CDs are risk-free because they’re considered deposit accounts. That means they’re backed by FDIC or NCUA insurance which provides up to $250,000 of coverage.

Best CD rates in Massachusetts overall

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Of course, you’re not limited to banks located within Massachusetts. We’ve also compiled data from banks nationwide to pinpoint the institutions that provide the best CDs overall. These CDs feature competitive interest rates and minimal opening deposit requirements, ensuring accessibility regardless of location.

Best CD rates in Massachusetts by term

Utilizing data obtained from Curinos, we identified the best 6-month, 1-year, and 5-year CDs in Rhode Island.

To qualify for these rates, take note of any eligibility criteria specified in the notes field in the tables below. Note that some fields may be blank, so we recommend contacting the bank or credit union directly for the most up-to-date information.

Best 6-month CD rates in Massachusetts

Secure an impressive APY without committing your funds for an extended period by opting for a 6-month CD. However, remember that you’ll likely receive a higher APY by opting for a longer duration. 

Best 1-year CD rates in Massachusetts

If you’re not ready to part with your funds for an extended period, a 1-year CD could be a solid middle-ground. Moreover, certain CDs come with low minimum opening deposit requirements, making them accessible regardless of your savings amount.

Best 5-year CD rates in Massachusetts

If you’re working towards a financial goal set further ahead in the future, consider opting for a 5-year CD. Although it entails a longer commitment, 5-year CDs typically offer higher rates than shorter-term alternatives.

What is a certificate of deposit?

When you opt for a CD, you commit your funds for a specific duration and receive a fixed interest rate. This deposit account is risk-free if your bank or credit union has FDIC insurance or NCUA coverage.

However, if you access your funds before the CD matures, be prepared to pay up. There’s typically an early withdrawal penalty equal to a few months’ worth of interest.

What does APY mean on a CD?

You can think of the APY, or annual percentage yield, as the interest you earn in a year. Imagine if you tucked away $5,000 in a 1-year CD with a 5% APY – that means you’d pocket $250 by the end of the year.

What are the most common types of CDs?

There are many different types of CDs, but traditional, brokered, and no-penalty CDs are quite common. 

Traditional CDs. Park your money in traditional CDs for a fixed period, and in return, get regular interest payments. It’s that easy.

Brokered CDs. Financial institutions sell CDs brokerages, which then offer them to customers with more generous APYs, at least compared to traditional CDs.

No-Penalty CDs. Want flexibility? With these CD, you can dip into your funds without having to pay early withdrawal fees. Just note, that these CDs often come with slightly lower interest rates.How to choose the best CD in Massachusetts

There are over 120 FDIC-regulated banks in Massachusetts and 84 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:

Term length. The term length tells you how long it takes for your CD to mature. This term may range from one week to many years. Pick a term that aligns with your needs and financial goals.

APY. The annual percentage yield indicates how much interest you’ll earn in a year. The higher the APY, the more interest you can expect to earn.

Minimum deposit requirement. Most banks and credit unions require a minimum investment to open a CD. This initial deposit can vary from a few hundred dollars to thousands. Keep in mind that when you invest in a CD, you deposit a lump sum and can’t make additional contributions. 

Early withdrawal penalties. If you tap your money before your CD matures, you might have to pay an early withdrawal penalty. This penalty is typically worth a few months of interest. While you might not be able to plan for an early withdrawal, it’s important to know what the penalty is before you sign up for a new CD.

Deposit Insurance. FDIC and NCUA insurance provide coverage to depositors in the event of a credit union or bank failure, offering protection of up to $250,000 per depositor or share owner. Confirm that your account is insured to safeguard your money.

Original: Fortune | FORTUNE: The best CD rates for Massachusetts in December 2023