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We check CD rates daily to find the best rates for a variety of CD terms. We also have options for people who want a no-penalty CD, a unique term length, or a CD with no minimum deposit.
Some national brick-and-mortar banks pay decent rates on CDs, but it’s rare. For example, Bank of America CD rates go up to 5.40% — but it varies by location, and most terms only pay 0.03% APY. The best CD rates will earn you significantly more money.
The Best CD Rates by Term
Several of the best CD rates are offered by credit unions right now. But don’t worry — anyone is eligible to join these credit unions and open CDs.
TermAPYProviderNo Penalty CD (16 months)5.40% APYWestern Alliance Bank, powered by Raisin3 Month5.66% APY
6 Month5.76% APY
1 Year6.00% APY
Credit Human Federal Credit Union
18 Month5.55% APY
2 Year5.60% APYNewtek Bank3 Year5.60% APY
4 Year4.81% APYUnited States Senate Federal Credit Union5 Year4.90% APYMYSB Direct
Market Leader
Financial Partners Credit Union (8-month term) paying 6.50% APY
The Financial Partners Credit Union 8-month CD special requires a minimum deposit of $1,000 and a maximum deposit of $5,000. To open this CD at Financial Partners Credit Union, you must be a new member of the credit union. You may be eligible for membership if you live, work, or go to school in an eligible area in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or work for a select employer group.
Compare the Best CD Rates
CDs aren’t as accessible as other types of savings accounts, so keep in mind how long you can keep money in the account without potentially facing early withdrawal penalties. Also, make sure you know what steps you need to take once your CD term ends.
About the Best CD Issuers
Our top picks for CDs are protected by federal insurance. If you’re wary of banks because a few collapsed in 2023, bear in mind money is safe at a federally insured financial institution. When a financial institution is FDIC– or NCUA-insured, up to $250,000 per depositor, per account category is secure in a bank account.
Financial Partners Credit Union 8-Month CD Special
The Financial Partners Credit Union 8-Month Certificate Special pays the highest CD rate overall. You can earn 6.50% APY on an 8-month CD if you qualify for membership at the credit union.
Membership is open to anyone who lives, works, or goes to school in select areas in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or works for a select employer group.
This promotional CD has specific opening requirements: You must deposit at least $1,000 but no more than $5,000. This offering is also only for new members.
Term options: Financial Partners Credit Union also has terms ranging from 3 months to 5 years.
Penalties: The early withdrawal penalty for the 8-month CD special is 90 days of interest.
TotalDirectBank CD
A TotalDirectBank CD may be appealing if you’re searching for a 3-month or 6-month term available nationwide.
TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. TotalDirectBank is the online-only division of the City National Bank of Florida. The online division doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or the U.S. Virgin Islands.
Term options: TotalDirectBank has terms ranging from 3 months to 5 years.
Penalties: The following early withdrawal penalties may apply to TotalDirectBank CDs:
30 days of interest for terms between 30 days and up to 6 months90 days of interest for terms above 6 months and up to one year180 days of interest for terms over 1 year
Credit Human Share Certificate
You may like a Credit Human Share Certificate if you’d prefer a credit union over a bank. Credit Human offers an especially high interest rate on its 1-year term. A minimum of $500 is required to open a CD, which is less than what many other banks require upfront.
To open a Credit Human Share Certificate, you’ll have to qualify for membership. You may join from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You’ll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
Term options: Credit Human has share certificates ranging from six months to 10 years.
Penalties: Credit Human Share Certificates have the following early withdrawal penalties:
90 days of interest for terms of 3 months180 days of interest for terms of 6 months270 days of interest for terms of 12 months365 days of interest for terms of 36 months730 days of interest for terms of 60 months1,095 days of interest for terms of 84 or 120 months
Newtek Bank CD
Newtek Bank CDs are great options if you’re interested in competitive 18-month or 2-year terms.
In addition to standard CDs, Newtek has a 24-month variable-rate CD paying 5.66% APY. A variable-rate CD means the interest rate may change according to market conditions, similar to a high-yield savings account (going up or down over time). Besides that detail, your account will function similarly to a traditional CD. You’ll have to keep money in the account for the full term or pay a penalty for early withdrawals. You also can’t make additional deposits until the CD reaches maturity.
Newtek Bank also offers business checking and savings accounts, as well as a personal high-yield savings account.
Newtek Bank CDs require a minimum opening deposit of $2,500, which is higher than other banks.
Term options: Terms range from 6 months to 5 years.
Penalties: The early withdrawal penalties are as follows:
For standard terms between 30 days and less than 1 year, the penalty is 90 days of simple interestFor standard terms of 1 year or more, the penalty is 180 days of simple interest
For the variable rate CD, the penalty is 1% of principal plus accrued interest that has not been credited (maximum 30 days)
Valley Direct 36-Month Variable CD
The Valley Direct 36-Month Variable CD may be a solid choice for a 3-year share certificate if you are comfortable getting a CD where the interest rate can fluctuate. Valley Direct’s variable CD rate can go up or down during the term. That said, the rate stays 0.1% above the Federal Funds Target Rate Upper Limit, and any changes occur on the first business day of the month.
The Valley Direct 36-Month Variable CD has a $500 minimum opening deposit and a maximum deposit of $500,000. It is an FDIC-insured bank account, so up to $250,000 per depositor, per category is secure. Anyone in the U.S. can open Valley Direct accounts, regardless of where they live in the U.S.
Valley Direct CDs must be opened online. You won’t be able to open a Valley Direct CD at a Valley National Bank branch.
Term options: Valley Direct has a 36-month variable CD as well as 12-month and 24-month fixed-interest CDs.
Penalties: At Valley Direct, the early withdrawal penalties are as follows:
90 days of interest for a term of less than one year180 days of interest for terms between 1 year and less than 30 months365 days of interest for terms between 30 months and less than 5 years540 days of interest for terms of 5 years or more
United States Senate Federal Credit Union Smart Share Certificate
The United States Senate FCU Share Certificate is a great choice if you’re specifically looking for a 4-year share certificate.
You must become a member to open a bank account at the United States Senate FCU. To join, you may work for a Select Employee Group, have a family member who’s a current member, or become a member of the U.S. Capital Historical Society or the American Consumer Council (you can join these organizations from anywhere in the U.S.).
Term options: Terms range from 3 months to 5 years.
Penalties: At United States Senate FCU, the early withdrawal penalties are as follows:
90 days of interest for terms of 1 year or less120 days of interest for terms greater than 2 years and up to 3 years360 days of interest for terms greater than 3 years
MYSB Direct CD
The MYSB Direct CD offers a competitive interest rate for a 5-year term. You also might like this CD if you’re comfortable with online banking experience and have at least $500 to open an account.
M.Y. Safra Bank is a New York-based financial institution that serves customers nationwide, and its online-only division is MYSB Direct.
Term options: Terms range from 3 months to 60 months.
Penalties: The early withdrawal penalty for MYSB Direct CDs is 90 days of interest
Western Alliance Bank 16 Month No Penalty CD
The Western Alliance Bank 16 Month No-Penalty CD offers the highest no-penalty CD rate at Raisin. Raisin also may be appealing if you’d like to open a CD with a low minimum opening deposit. You only need $1 to get started.
Raisin doesn’t have physical locations. It also won’t be the best choice if you want to do all your banking at one institution because you can’t open checking accounts.
Term options: Raisin is partnered with over 30 banks and credit unions, so it has multiple terms for both no-penalty and regular CDs.
Penalties: This account doesn’t have any early withdrawal penalties.
CD FAQs
Who has the highest CD interest rate right now?
The highest-paying CD is the 8-month certificate special from Financial Partners Credit Union, which pays 6.50% APY. This CD special is only for new members and permits a $5,000 maximum opening deposit. To become a member and open a CD, you must live, work, or go to school in select areas in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or work for a select employer group.
Can you get 5% APY on a CD?
Yes, several financial institutions have CDs paying 5.00% APY or more. Some examples include (but are not limited to) Raisin, Credit Human, and TotalDirectBank.
Can you get 6% on a CD?
Yes, a few local institutions pay 6% interest on CDs, including Credit Human Credit Union, City Credit Union, Financial Partners Credit Union, and more. But these credit unions have membership requirements and are usually limited to people who live in a certain area.
Are 10-year CD rates worth it?
When choosing a CD term, you’ll want to consider the timeline of your goal. That said, not many financial institutions offer 10-year CDs, and the rates for short-term CDs are actually better than long-term CDs right now. You could build a CD ladder if you want to diversify your CDs and open multiple terms for more flexibility.
What is a CD?
A CD is a time-sensitive savings account that holds your money at a fixed interest rate for a specified period of time. You can open one at almost any bank or credit union.
Are CDs safe?
CDs are safer than investing your money in the stock market. Money in a CD is federally insured by the FDIC or NCUA for up $250,000 for up to $250,000. CDs are a good place to store and grow money that you will need at a predetermined future date. While your money doesn’t have the potential to earn as much as it would in the stock market, there is no risk. CDs may be less liquid than a savings account, though.
Can you lose money in CDs?
You cannot lose money in a CD if you leave it untouched for the full term length. It is like a locked savings account and the only way you can lose money is if you make an early withdrawal for which you are penalized.
Are CD rates going up?
Yes, CD rates have been going up. Interest rates on CDs follow the federal funds rate, which is determined by the Federal Reserve. Thus far, the Federal Reserve has raised interest rates several times in 2023.
Best CD Rates by Term
Below, you’ll find our picks for the best CD rates right now. There isn’t one particular CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now.
Best 3-Month CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositTotalDirectBank CD5.66%$25,000Dow Credit Union Simple CD Special5.65% $500Signature Federal Credit Union Certificate5.55% $500
Best 6-Month CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositTotalDirectBank CD5.76% $25,000USALLIANCE Financial Share Certificate5.75% $500Credit Human Share Certificate5.75%$500
Best 1-Year CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositCredit Human Share Certificate6.00%$500Popular Direct CD5.67%$10,000LendingClub CD5.65%$2,500
Best 18-Month CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositNewtek Bank CD5.55%$2,500USALLIANCE Financial Share Certificate5.50%$500Popular Direct CD5.50%$10,000
Best 2-Year CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositNewtek Bank CD5.60%$2,500Crescent Bank CD5.35%$1,000Rising Bank CD5.30%$1,000
Best 3-Year CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositValley Direct 36 Month Variable CD5.60%$500United States Senate FCU Smart Share Certificate5.23%$1,000Newtek Bank CD5.00%$2,500
Best 4-Year CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositUnited States Senate FCU Smart Share Certificate4.81% $1,000First National Bank of America CD4.80%$1,000iGOBanking High Yield CD4.75%$1,000
Best 5-Year CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositMYSB Direct4.90%$500U.S. Senate Federal Credit Union Smart Share Certificate4.86% $1,000First National Bank of America CD4.75%$1,000
Best No-Penalty CD Rates
CD accountAnnual Percentage Yield (APY)Minimum depositWestern Alliance Bank 16 Month No Penalty CD, powered by Raisin5.40%$1Technology Credit Union 5 Month No Penalty CD, powered by Raisin5.36%$1Mission Valley Bank 3 Month No Penalty CD, powered by Raisin5.35% $1USALLIANCE Financial 11 Month No Penalty CD5.00%$500
Best Rates for No Opening Deposit
CD accountAnnual Percentage Yield (APY)Minimum depositBarclays Online CD0.10% to 5.50%$0Synchrony CD2.25% to 5.50%$0Capital One 360 CDs4.10% to 5.30%$0Ally High Yield CD3.00% to 5.15%$0
Best Rates for Other CD Terms
CD accountTerm(s)Annual Percentage Yield (APY)Minimum depositFinancial Partners Credit Union 8 Month CD Special8 months6.50%$1,000Forbright Bank 9 Month CD9 months5.75%$1,000BluPeak Credit Union 9 Month Promotional Share Certificate9 months5.75%$1,000Quorum Federal Credit Union 7 Month and 15 Month Term Accounts7 months and 15 months5.60%$100,000
Alternative CD Options
These weren’t chosen as our top CDs, but you still might find some of these options appealing depending on your preferences.
Pelican State Credit Union: Pelican State Credit Union has a high CD rate for a 2-year term, but it’s just short of the top rates on our list. Truliant Federal Credit Union: Truliant Federal Credit Union has an 11-month limited-time CD special paying 5.70% APY, which is a bit lower than our market leader. Truliant Federal Credit Union still might be worth considering if you live in North Carolina, Virginia, South Carolina, Virginia, Georgia, or Tennessee. Gulf Coast Federal Credit Union: Gulf Coast Federal Credit Union has an 18-month regular share certificate and a 2-year share certificate special with high interest rates. It didn’t make our list because it local financial institution that serves select communities in Texas. Other banks also offer more competitive rates so it isn’t a market leader. You still might consider this option if you live in Nueces, San Patricio, or Jim Well Counties in Texas.Latino Community Credit Union: Latino Community Credit Union may be a good option if you value banking with a Hispanic American-owned financial institution with good CD rates. It didn’t make our list, though, because there are other financial institutions with even higher CD rates right now.GTE Financial: GTE Financial pays solid CD rates, but its terms are currently lower than our top picks. Limelight Bank: Limelight Bank has good rates for a variety of CD terms, but none of its terms’ rates are quite as high as the rates included in our list. Bank5 Connect: Bank5 has a 6-month CD with a great interest rate, but our top choices offer higher rates. The bank’s other CD rates also aren’t as competitive as other financial institutions. Department of Commerce Federal Credit Union: The Department of Commerce Federal Credit Union has a high 5-year CD rate, but it isn’t as high as the top rates mentioned. Sallie Mae: Sallie Mae CD rates recently dropped. Now Sallie Mae’s 12-month and 18-month terms are lower than our top picks.First Internet Bank of Indiana: First Internet Bank of Indiana has several CDs with high rates, but they’re just short of those on our list.Crescent Bank: Crescent Bank has online CDs with great rates, but they’re not as competitive as any of those mentioned on our list.Bread Savings: Bread Savings has great CD rates – some above 5.00% APY. However, its CD rates are just short of the rates on our list. Delta Community Credit Union: Delta Community Credit Union has a high rate on a 2-year term, but our top picks pay even higher rates right now. America First Credit Union: America First Credit Union pays great interest rates on short-term CDs, but its just top rates are just a bit lower than our top picks. CIT Bank: CIT Bank has a great interest rate on a 6-month term, but it’s just short of the top rates we’ve included.Alliant Credit Union: Alliant Credit Union has high interest rates, but our top picks offer even more competitive rates.Bask Bank: Bask Bank has great interest rates for short-term CDs, but there are banks with even higher rates right now. American Express National Bank (Member FDIC): American Express lets you open a CD with $0, but its rates aren’t as high as those from other national brands included in our list. Vio Bank: Vio Bank has good CD rates for terms between 6 months and 120 months, but our top picks have even more competitive rates right now.Consumers Credit Union: Consumers pays some solid rates, and it’s a good choice if you’re looking for a 10-month term.Salem Five Direct: Salem Five Direct has competitive interest rates on short-term CDs, but they aren’t quite as high as what you’ll earn with our top picks.Chase: Chase offers solid interest rates on a 3-month and 12-month term if you qualify for relationship rates by having a Chase checking account. If you don’t qualify for a relationship rate, other financial institutions will likely offer much more competitive CD rates.Marcus: Marcus pays a high rate on a no-penalty CD, but our top picks offer higher interest rates.Air Force Federal Credit Union Certificate Account: Air Force Federal Credit Union has a variety of CDs, but its rates have recently dropped and are lower than our top picks.Pentagon Federal Credit Union: PenFed offers solid interest rates on CDs, but our top picks have even more competitive CD rates right now.Pure Point Financial: Pure Point’s rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.USAA Bank: USAA Bank offers a wide range of CD options for military members and families, but rates are mediocre and you’ll need at least $1,000 to open an account.NBKC: NBKC pays good rates. But unlike most CDs, NBKC CDs pay variable rates, so rates can go up or down after you’ve opened the account.Bethpage Federal Credit Union: Bethpage CDs have a low minimum opening deposit but our top picks offer more competitive interest rates.Charles Schwab Bank: Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how you bank, you may prefer open a CD directly with the financial institution.
Why You Should Trust Us: Experts’ Advice on Choosing the Best CD
We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts to use for your money. You can read their insights at the bottom of this post.
Insider
Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)
What makes a CD good or not good?
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
“You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it’s monthly or quarterly.”
How should someone choose a CD term length?
Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:
“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”
Mykail James, CFEI:
“I believe in having a plan for whatever the funds are. If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, certified financial planner at SaverLife:
“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
“Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don’t need access to some of your money, since they have a fixed interest rate for a specific term.”
Methodology: How We Chose the Best CDs
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high Annual Percentage Yield (APY), for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
We reviewed CD offerings from over three dozen national banks using our CD methodology. All banks included on our list are FDIC-insured and do not impose monthly maintenance fees on CDs.
In the event two banks offered the same APY on a CD product, we considered factors like the minimum deposit requirements and early withdrawal penalties.
