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Best CD Rates of September 2023 (5.75% APY Available Nationally)

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

We check rates daily to find the best rates for a variety of CD terms. We’ve also included picks for people who want a no-penalty CD, a unique term length, or a CD with no minimum deposit.

Western Alliance Bank 1 Year CD


Annual Percentage Yield (APY)

5.51%


Minimum Deposit Amount

$1

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Accounts pay high interest rates
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No fees
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Open accounts you might not be able access outside of Raisin
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Minimum opening requirements are often lower than if you opened an account directly with a bank
Cons

  • con icon Two crossed lines that form an ‘X’. No checking accounts or business accounts
  • con icon Two crossed lines that form an ‘X’. Only way to deposit or withdraw money is by connecting to an external account
  • con icon Two crossed lines that form an ‘X’. Can’t connect to third-party budgeting apps, like Mint


Product Details

  • Raisin is an online marketplace that partners with banks to offer competitive rates
  • Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
  • Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
  • Interest is compounded daily and paid monthly
  • Deposits are federally insured by the FDIC or NCUA

The Best CD Rates

Top CD Rates by Term

Many 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.

Market Leader

Alpena Alcona Area Credit Union (7-month term) paying 7.19% APY

To open a CD at Alpena Alcona Area Credit Union, you must qualify for membership. Generally, you must live, work, own property, go to school, or worship in any county in Michigan; work at the credit union; or have an immediate family member who is an existing member. The CD also permits a maximum deposit of $7,000. Learn more.

Our top picks for CDs are protected by federal insurance. Although three financial institutions were shut down in 2023, keep 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 is secure in a bank account.

Compare the Best CD Rates

Alpena Alcona Area Credit Union 7-month certificate

Insider’s Rating

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3.5/5

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 7.19% Annual Percentage Yield (APY). $500 minimum deposit. FDIC Insured.


Annual Percentage Yield (APY)

7.19%


Minimum Deposit Amount

$500

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
Cons

  • con icon Two crossed lines that form an ‘X’. Contact nearest branch for information on CD early withdrawal penalties
  • con icon Two crossed lines that form an ‘X’. Interest compounded quarterly, not daily
  • con icon Two crossed lines that form an ‘X’. Maximum opening deposit of $7,000
  • con icon Two crossed lines that form an ‘X’. Limit of one account per member


The Insider’s Take

Alpena Alcona Area Credit Union has the highest CD rate available right now.


Product Details

  • To join Alpena Alcona Area Credit Union, you must 1) live, work, own property, go to school, or worship in Michigan; 2) work at the credit union or 3) have an immediate family member who is a member
  • Early withdrawal penalty will depend on the amount withdrawn; contact your nearest branch for more information
  • Interest compounded and deposited quarterly
  • Federally insured by the NCUA

Dow Credit Union 3 Month Simple CD Special

Insider’s Rating

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3.5/5


Annual Percentage Yield (APY)

5.65%


Minimum Deposit Amount

$500

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
Cons

  • con icon Two crossed lines that form an ‘X’. Interest compounded monthly, not daily
  • con icon Two crossed lines that form an ‘X’. Standard-to-high early withdrawal penalties


Product Details

  • Based in Midland, Michigan
  • To join Dow Credit Union, you must be an employee or retiree of Dow Inc., the former Dow Corning Corporation, or a Select Employer Group company; have a family member who is eligible to join; donate $10 to the Dow Credit Union Members Endowed Scholarship Fund; are a member of the Midland Center for the Art’s Alden B. Dow Museum of Science & Art or Midland Historical Society; own stock at Dow Inc.; have a revocable trust in which the Grantor is a member of Dow Credit Union; or are a member of Midland Country Club of Great Lakes Loons Founders Club
  • Automatically renews to another 3-month CD special as long as the product is offered
  • Simple CDs are not eligible for Member Saver Rewards
  • Early withdrawal penalty for a 3-month term is 45 days and for a 6-month term is 90 months of interest
  • Interest compounded monthly, not daily
  • Federally insured by the NCUA

USALLIANCE Financial 6 Month Certificate

Insider’s Rating

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3.5/5

Icon of check mark inside a promo stamp It indicates a confirmed selection.

Perks

Earn 5.50% Annual Percentage Yield (APY). FDIC Insured.


Annual Percentage Yield (APY)

5.75%


Minimum Deposit Amount

$500

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Variety of CD terms available at the financial institution
Cons

  • con icon Two crossed lines that form an ‘X’. Standard-to-high early withdrawal penalties


The Insider’s Take

USALLIANCE Financial offers the most-competitive interest rate on an 18-month term right now. It also pays a great interest rate on a 1-year share certificate.


Product Details

  • 9 branches in MA, CT, NY and NJ
  • To join USALLIANCE Financial you must 1) live in a select area in MA, CT, NJ, or NY 2) work for a select employment group or 3) become a member of the American Consumer Council, Arco of Westchester, Tread Lightly! or the Council of Community Services
  • Terms range from 3 months to 60 months
  • Interest compounded daily and deposited monthly
  • Federally insured by the NCUA

CFG Bank 1 Year CD

Insider’s Rating

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3.75/5


Annual Percentage Yield (APY)

5.67%


Minimum Deposit Amount

$500

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 minimum opening deposit
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. Limited term options


Product Details

  • 2 branches near Baltimore, Maryland
  • Free access to over 1,600 M&T Banks ATMs on the East Coast
  • Terms range from 1 year to 5 years
  • Early withdrawal penalties: 90 days of interest for terms of 1 year; 180 days of interest for terms longer than 1 year
  • Interest compounded daily and paid monthly
  • Member FDIC

Limelight Bank 18 Month Online CD


Start saving

On Limelight Bank’s website. Limelight Bank, FDIC Insured.

Insider’s Rating

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3.75/5


Annual Percentage Yield (APY)

5.60%


Minimum Deposit Amount

$1,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard-to-low early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. $1,000 minimum opening deposit
  • con icon Two crossed lines that form an ‘X’. Limited online CD terms


Product Details

  • Early withdrawal penalties: for terms between 6 months and 18 months, the early withdrawal penalty is 90 days of interest; for terms of 36 month term, the penalty is 180 days of interest
  • Compounded daily and deposited monthly
  • FDIC insured

Newtek Bank 24 Month Variable Rate CD


Start saving

On Newtek Bank’s site. Newtek Bank, FDIC Insured.

Insider’s Rating

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3.75/5


Annual Percentage Yield (APY)

5.62% variable


Minimum Deposit Amount

$50,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
Cons

  • con icon Two crossed lines that form an ‘X’. Penalty varies depending on principal deposit
  • con icon Two crossed lines that form an ‘X’. $50,000 minimum opening deposit
  • con icon Two crossed lines that form an ‘X’. $220,000 maximum deposit


Product Details

  • Rate adjusts monthly according to market conditions
  • Early withdrawal penalty is 1% of principal plus accrued interest that has not been credited (maximum 30 days)
  • Interest compounded and credited monthly
  • FDIC member

US Senate Federal Credit Union 3 Year Smart Share Certificate

Insider’s Rating

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3.5/5


Annual Percentage Yield (APY)

5.23%


Minimum Deposit Amount

$1,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. $1,000 minimum opening deposit


Product Details

  • Locations in Alexandria, Virginia and Washington, DC
  • To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
  • All members have to pay a one-time $1 membership fee
  • Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
  • Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
  • Interest compounded and deposited monthly
  • Federally insured by the NCUA

US Senate Federal Credit Union 4 Year Smart Share Certificate

Insider’s Rating

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3.5/5


Annual Percentage Yield (APY)

4.81%


Minimum Deposit Amount

$1,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. $1,000 minimum opening deposit


Product Details

  • Locations in Alexandria, Virginia and Washington, DC
  • To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
  • All members have to pay a one-time $1 membership fee
  • Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
  • Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
  • Interest compounded and deposited monthly
  • Federally insured by the NCUA

US Senate Federal Credit Union 5 Year Smart Share Certificate

Insider’s Rating

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3.5/5


Annual Percentage Yield (APY)

4.86%


Minimum Deposit Amount

$1,000

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. $1,000 minimum opening deposit


Product Details

  • Locations in Alexandria, Virginia and Washington, DC
  • To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
  • All members have to pay a one-time $1 membership fee
  • Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
  • Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
  • Interest compounded and deposited monthly
  • Federally insured by the NCUA

FVCbank 12 Month No-Penalty CD

Insider’s Rating

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3.75/5


Annual Percentage Yield (APY)

5.30%


Minimum Deposit Amount

$1

Pros

  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
  • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties
Cons

  • con icon Two crossed lines that form an ‘X’. No terms under 6 months or over 5 years


Product Details

  • Terms ranging from 6 months to 5 years
  • Early withdrawal penalties: Terms of 12 months or less are charged 90 days simple interest; terms of over 12 months are charged 180 days simple interest
  • Interest compounded daily, paid monthly

About the Best CD Issuers

Alpena Alcona Area Credit Union 7-Month CD

The Alpena Alcona Area Credit Union 7-Month CD has the highest CD rate available out of all terms. You can earn 7.19% APY on a 7-month CD if you qualify for membership at the credit union.

To become a member, you must 1) live, work, own property, go to school, or worship in any county in Michigan, 2) work at the credit union, or 3) have an immediate family member who is an existing member. 

 This promotional CD has specific opening requirements: Your deposit cannot exceed $7,000, and there is a limit of one CD special per member.

Term options: Alpena Alcona Area Credit Union also has terms ranging from 90 days to 5 years. 

Penalties: You’ll have to contact your nearest branch to learn more information about early withdrawal penalties. The penalty may depend on the amount withdrawn.

Dow Credit Union Simple CD 

The Dow Credit Union Simple CD is a solid choice if you prioritize banking with a credit union. The credit union has a low $500 minimum opening deposit. The 3-month and 6-month Simple CDs — the credit union’s CD specials — are the most competitive rates available at Dow Credit Union.

Credit unions require membership to open an account. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join like if you are part of a Select Employer Group or have a family member who is a current credit union member.

Term options: Simple CD terms range from 3 months to 3 years. The bank also offers traditional and bump-up CDs.

Penalties: Dow Credit Union charges standard penalties for early withdrawals of your principal balance, as follows:

  • 45 days of interest for a 3-month term
  • 90 days of interest for a 6-month term

For information on additional penalties, call a Dow Credit Union branch.

USALLIANCE Financial Share Certificate

USALLIANCE Financial Share Certificates may be worthwhile if you’re searching for a high interest rate on a 6-month term. It also pays a great interest rate on a 18-month share certificate. 

The early withdrawal penalties at USALLIANCE Financial are a bit higher than other financial institutions. You can also only open a CD if you qualify for membership at the credit union. 

You may join USALLIANCE Financial if you do one of the following: live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services from anywhere in the US.

Term options: USALLIANCE Financial has terms ranging from 3 months to 5 years. 

Penalties: USALLIANCE  Financial charges the following early withdrawal penalties: 

  • For terms under 18 months, the early withdrawal penalty is 180 days of interest on the amount withdrawn
  • For terms of 18 months or more, the early withdrawal penalty is 360 days of interest on the amount withdrawn

CFG Bank CD

CFG Bank CDs may be appealing if you’re searching for a 1-year term that’s available nationwide. CFG Bank CDs have a low minimum opening deposit of $500, and maximum deposit of $500,000.

CFG Bank offers limited online CD terms — only 1-year, 18-month, 3-year, and 5-year terms. If you’re looking for a bank with more CD variety, one of our other top picks may be more suitable. 

Term options: CFG Bank has terms ranging from one year to five years.

Penalties: CFG Bank CDs have the following early withdrawal penalties: 

  • 90 days of interest for terms of one year 
  • 180 days of interest for terms longer than one year

CFG Bank Review

Limelight Bank CD

Limelight Bank CDs may be worthwhile if you’re searching for an 18-month term. 

Limelight Bank is an online-only bank that only offers CDs, not other types of bank accounts. If you’re planning to do all your banking with one financial institution, you might prefer another bank.

Term options: Limelight Bank CD terms range from 6 months to 3 years.

Penalties: Limelight Bank CDs have the following early withdrawal penalties: 

  • 90 days of interest for terms 18 months or under
  • 180 days of interest for terms of 36 months

Newtek Bank 24 Month Variable Rate CD

The Newtek Bank 24 Month Variable Rate CD pays the highest interest rate on a 2-year CD right now. The CD requires a minimum opening deposit of $50,000 and has a maximum deposit of $220,000.

This is an FDIC-insured bank account, so you won’t lose any money in your initial deposit as long as you keep it in the account for the full term. That said, the account still has a variable interest rate, which means the account doesn’t have a guaranteed rate of return. Instead, the interest rate for this account may change depending on 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.

Term options: Newtek Bank is offering one 24-month variable rate CD. The bank also has traditional CDs ranging from 1 month to 60 months. 

Penalties: The early withdrawal penalty for the Newtek Bank Variable Rate CD is 1% of principal plus accrued interest that has not been credited (maximum 30 days).

US Senate Federal Credit Union Smart Share Certificate

The US Senate Federal Credit Union Share Certificate is a great choice for a high interest rate on a 3-year, 4-year, or 5-year share certificate.

You must become a member to open a bank account at US Senate Federal Credit Union. 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 US).

Term options: Terms range from 3 months to 5 years.

Penalties: At US Senate Federal Credit Union, the early withdrawal penalties are as follows:

  • 90 days of interest for terms of 1 year or less
  • 120 days of interest for terms greater than 2 years and up to 3 years
  • 360 days of interest for terms greater than 3 years

FVCbank 12 Month No-Penalty CD

The FVCbank No Penalty CD, 12-month GreenState Credit Union No Penalty Certificate, and 4-month Ponce Bank No Penalty CD offer 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.

Raisin Review

CD FAQs

The highest-paying CD is the 7-month certificate special from Alpena Alcona Area Credit Union, which pays 7.19% APY. To open a CD at Alpena Alcona Area Credit Union, you must live, work, own property, go to school, or worship in any county in Michigan; work at the credit union; or have an immediate family member who is an existing member. 

Yes, several financial institutions have CDs paying 5.00% APY or more. Some examples include (but are not limited to) Raisin, CFG Bank, and USALLIANCE Financial.

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.

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.

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.

Timing matters. CDs can be a good investment if interest rates are currently high and/or expected to fall. The biggest benefit of a CD is your ability to lock in a fixed interest rate. If interest rates fall during the term of your CD, the APY on your CD will not be affected. Conversely, if rates are expected to rise, then it may not be a good time to put money in a CD.

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.

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’s no 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

Best 6-Month CD Rates

Best 1-Year CD Rates

Best 18-Month CD Rates

Best 2-Year CD Rates

Best 3-Year CD Rates

Best 4-Year CD Rates

Best 5-Year CD Rates

Best No-Penalty CD Rates

Best Rates for No Opening Deposit

Best Rates for Other CD Terms

Alternative CD Options

We looked at the following CDs as well. While these ultimately weren’t selected as our top picks, you might find some of these options appealing depending on your preferences.

  • GTE Financial: GTE Financial has a solid rate for a 4-year term, but it’s currently lower than our top picks. 
  • Popular Direct: Popular Direct 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 high 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: 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.
  • Rising Bank: Rising Bank offers good interest rates on CD terms of three years or less, but our top picks have higher rates right now. 
  • 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.
  • Quorum Federal Credit Union: Quorum Federal Credit Union has a strong 3-year term account, but its rate is lower than our top picks. 
  • 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% 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 High-Yield: 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 No-Penalty: Marcus pays a high rate on its 13-month no-penalty CD, but our top picks offer higher interest rates.
  • TIAA Bank Basic: TIAA pays a relatively high 3-month CD rate, but you can earn better rates elsewhere.
  • 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.

PFI Banking Expert Panel that includes: Tania Brown, Roger Ma, Sophia Acevedo, and Mykail James

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 around a dozen national banks using our CD rates methodology. All banks included on our list are insured by the FDIC and do not impose monthly maintenance fees on CDs.

In the event two banks offered the same APY on a CD product, we considered minimum deposit requirements and penalties for early withdrawals.


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