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These CDs have 5% APY (and higher) - and no fees

With interest rates high, now is a great time to grow your savings with a certificate of deposit. Getty Images/iStockphoto

High interest rates are rarely good news for consumers. The cost of living goes up, prices for goods and services rise and the purchasing power of the dollar declines. However, there is one way you stand to benefit: The potential to earn more interest on your savings.

While the latest Federal Reserve numbers show inflation is slightly lower than in recent months, the difference is negligible. And many experts predict inflation will remain near its current level for some time. That makes now a great time to grow your savings.

One easy way to do this is with a certificate of deposit (CD). Unlike products like high-yield savings accounts, CD rates are fixed at the time you open the account. So, by acting now while rates are still high, you can secure a great rate for the entire term of your CD. There are plenty of CD options on the market today.

Below, we explore some of the ones with the highest yields to help you find the one that's best for you. Better yet, each account carries no ongoing fees, allowing you to keep more of your earnings for yourself.

View today's CD rates here to see how much you could be earning.

These CDs have 5% APY (and higher) - and no fees

Different CDs come with different terms. The accounts below offer a range of terms, so you can pick the one best suited for your savings goals. Bear in mind you can always ladder multiple CDs to enjoy a regular source of cash while securing the best rates.

In addition to being fee-free, these accounts are all FDIC-insured, which means your deposits are protected by up to $250,000 per account, per institution should the bank fail.

Bread Savings: 5.20% APY (1-year term)

One of the highest APYs on the market is from Bread Savings' one-year CD. You can earn 5.20% APY if you make a deposit of at least $1,500 when you open the account. This CD has no maintenance fees, although you will pay 180 days' interest if you withdraw funds before the CD matures.

Bread Savings also offers a two-year CD if you want a longer term. That account has a still-competitive 5.00% APY.

Bask Bank: 5.10% APY (6-month term)

Savers looking for a short-term CD should consider Bask Bank's six-month CD, which offers an APY of 5.10%. You'll need to deposit at least $1,000 on account opening to earn this APY. There are no maintenance fees, but there is an early withdrawal penalty of 90 days' worth of interest.

Bask Bank also offers a one-year CD with a 5.00% APY. That account requires the same $1,000 minimum initial deposit.

CIT Bank: 5.00% APY (6-month term)

CIT Bank's six-month CD has a 5.00% APY if you make an initial deposit of at least $1,000. It has no maintenance fees and an early withdrawal penalty of three months' interest — the lowest penalty on this list.

Citizens Access: 5.00% APY (1-year term)

If you have a larger amount to deposit, you can earn 5.00% APY with the one-year CD from Citizens Access. This account requires a $5,000 minimum and no maintenance fees. The early withdrawal penalty is 90 days' interest.

Synchrony Bank: 5.00% APY (6-month term)

Synchrony Bank's six-month CD is a good option if you don't have a large amount to deposit. It has no minimum balance requirement but still earns an attractive 5.00% APY. As with the other CDs on this list, the account has no maintenance fees. If you need to withdraw funds before the term is up, you'll be charged a penalty of 90 days' worth of interest.

Compare CD rates online now!

The bottom line

The above CDs are all great ways to take advantage of today's higher interest rates and avoid fees. But, as with any financial product, you should be sure to research your options and compare them against your short-term savings goals.

One thing to consider, in particular, is your likelihood of potentially needing to withdraw funds early. Some of the higher-APY options on this list carry heftier early withdrawal penalties, so that's worth taking into account when determining the best option for you.

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