BrioDirect is offering a promotional 1-year CD with a 5.25% APY

Amid recent federal interest rate increases, banks and credit unions across the nation are raising deposit account annual percentage yields (APYs) to record-levels, with some institutions offering well above 4% and 5%. 

One of the highest 1-year CD rates available right now: BrioDirects Promo 12-Month CD. 

BrioDirect: Promo 1-year CD offers 5.25%  

BrioDirect is an online bank that is a sub-brand of Webster Bank. It offers just one type of product: high-yield CDs with terms ranging from 30 days to 60 months. 

Brio is currently offering one of the highest rates on the market through its promo high-yield 12-month CD. Brios standard rate for 1-year CDs is 0.45%, but if you take advantage of this promo, you could score a rate thats more than 11 times that rate and over three times the national average for a 1-year CD. Note: this CD is only available for new accounts opened on or after 4/6/2023. 

Key figures 

Minimum opening deposit: $500

APY: 5.25%

Early withdrawal penalty: 90 days worth of interest.

Once your year is up, you have 10 days to withdraw your funds without penalty. If you do nothing, this CD will renew automatically at maturity to another 12-month CD at the standard, non-promotional rate at the time of renewal. 

Should you open a new CD?

A certificate of deposit (CD) is just one of many different types of savings vehicles you can use to hit your goal. However, it does work a little differently and may not be the right fit for you depending on what youre saving for. If youre on the fence about opening a new CD, consider the following: 

1. Your savings goal: If your goal is to save for a specific goal with a predetermined timeline, a CD could make sense. Say you want to save for a down payment on a home that you plan to purchase in three years. Putting your money in a 3-year CD and leaving it untouched while it accrues interest could make it easier to hit your savings goal and ensure that when you do need the money, its ready for you. Depending on your individual goals, a 1-year CD may be too long or too short of a timeline.
   • Other CD terms to fit your savings goal:
2. Liquidity: If youre considering a new savings account for something like your emergency fund, thats a case where a CD may not be the best fit. CDs do not offer the same liquidity that traditional savings accounts offer. Once you agree to put your money into a CD, youll be expected to keep your hands off that money until the end of your term (in most cases). An alternative that could make more sense: a high-yield savings account.
3. Your current savings balance: More often than not, you wont be able to make additional contributions to your CD once youve made your initial deposit. If youre a long-time saver, this might not be an issue. But, if youre just starting to build up your savings, you might want to opt for an account that allows you to continue making weekly or monthly contributions and revisit the idea of a CD later on. 

The takeaway 

To get the most out of your CD, youll need to be sure about what exactly youre saving for and when youll need to dip into those savings. The good news: CDs come in a wide range of terms, from 30 days up to ten years. If youre not quite ready to commit to a year-long CD, you might consider test-driving a shorter-term CD first.