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CDs are an ideal option if you’d like to grow your money but don’t want to deal with fluctuations of the stock market.
CIT Bank No Penalty 11-Month CD
Annual Percentage Yield (APY)
4.80%
Minimum Deposit Amount
$1,000
CIT Bank No Penalty 11-Month CD
Annual Percentage Yield (APY)
4.80%
Minimum Deposit Amount
$1,000
On CIT Bank’s site. CIT Bank, FDIC Insured
CIT Bank No Penalty 11-Month CD
Details
Annual Percentage Yield (APY)
4.80%
Minimum Deposit Amount
$1,000
Since you’re locking in an interest rate, it’s smart to look for the highest one. However, if you don’t have a lot of money to deposit you might also want to pay attention to minimum deposit requirements.
Table of Contents
Best CD Rates of April 2023
Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank and Signature Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best CD Rates
Annual Percentage Yield (APY)
5.20%
Minimum Deposit Amount
$500
Annual Percentage Yield (APY)
5.20%
Minimum Deposit Amount
$500
On CFG’s website. CFG Bank, FDIC Insured
CFG Bank 1 Year CD
Details
Annual Percentage Yield (APY)
5.20%
Minimum Deposit Amount
$500
Air Force Federal Credit Union 18 Month Certificate Account
Annual Percentage Yield (APY)
5.05% to 5.25%
Minimum Deposit Amount
$1,000 to $100,000
Air Force Federal Credit Union 18 Month Certificate Account
Annual Percentage Yield (APY)
5.05% to 5.25%
Minimum Deposit Amount
$1,000 to $100,000
On Air Force Federal Credit Union’s website
Air Force Federal Credit Union 18 Month Certificate Account
Details
Annual Percentage Yield (APY)
5.05% to 5.25%
Minimum Deposit Amount
$1,000 to $100,000
Air Force Federal Credit Union 2 Year Certificate Account
Annual Percentage Yield (APY)
5.15% to 5.35%
Minimum Deposit Amount
$1,000 to $100,000
Air Force Federal Credit Union 2 Year Certificate Account
Annual Percentage Yield (APY)
5.15% to 5.35%
Minimum Deposit Amount
$1,000 to $100,000
On Air Force Federal Credit Union’s website
Air Force Federal Credit Union 2 Year Certificate Account
Details
Annual Percentage Yield (APY)
5.15% to 5.35%
Minimum Deposit Amount
$1,000 to $100,000
Quorum Federal Credit Union 3 Year Term Savings
Annual Percentage Yield (APY)
4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Quorum Federal Credit Union 3 Year Term Savings
Annual Percentage Yield (APY)
4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
On Quorum Federal Credit Union’s website
Quorum Federal Credit Union 3 Year Term Savings
Details
Annual Percentage Yield (APY)
4.85% (on balances $1,000 – $99,999) or 4.95% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.55%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.55%
Minimum Deposit Amount
$1,000
On Crescent’s website. Crescent Bank, FDIC Insured
Crescent Bank 4 Year CD
Details
Annual Percentage Yield (APY)
4.55%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
On CFG’s website. CFG Bank, FDIC Insured
CFG Bank 5 Year CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
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 Did We Choose 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.
CD Frequently Asked Questions
The highest-paying CDs on our list are available at Pacific Western Bank. Pacific Western Bank has 5-month, 7-month, and 13-month terms that pay 5.50% APY.
A CD is basically 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 but may be less liquid than a savings account. 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.
Like savings accounts, CDs are insured by the FDIC or NCUA for up to $250,000.
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.
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 since 2022.
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 4-year CD Rates
Best Rates for No Opening Deposit
Best Rates for Other CD Terms
CD Rates at the Largest US Banks
About the Best CD Issuers
CFG Bank CD
Why it stands out: CFG Bank pays higher interest rates on 1-year, 18-month, 3-year, and 5-year CDs than what you would earn at many brick-and-mortar or online banks.
Term options: Terms range from 1 year to 5 years.
Penalties: CFG Bank charges standard-to-low penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for terms of 1 year
- 180 days of interest for terms longer than 1 year
Keep an eye out for: There are only a few terms to choose from. CFG Bank only has 1-year, 18-month, 3-year, and 5-year CDs.
Air Force Federal Credit Union Certificate Account
Why it stands out: You might like Air Force Federal Credit Union if you prefer credit unions over banks. However, you’ll need to meet one of the requirements for membership to open a CD.
The credit union’s most competitive CDs are its 18-month and 24-month terms. You’ll also earn a higher interest rate if you open a CD with $100,000 or more.
Term options: Terms range from 6 months to 7 years.
Penalties: Your early withdrawal penalties will depend on the amount of money you deposit and the term. You’ll have to contact the credit union for more information on early withdrawal penalties for specific terms.
Keep an eye out for: You’ll be eligible to bank with Air Force Federal Credit Union if you or a family member: live, work, or go to school in select areas in Texas or Mississippi; are an active duty member or veteran of the US Armed Forces or National Guard living in Texas, Oklahoma, Arkansas, Louisiana, or Mississippi; or you make a $10 donation to the Dream Education Foundation or $25 to the Airman Heritage Foundation.
Quorum Federal Credit Union Term Savings
Why it stands out: Quorum Federal Credit Union has a high interest rate on term accounts (which is another name for a certificate).
The 3-year and 11-month terms offer the most competitive interest rates. The 11-month term only allows you deposit new money. New money means that the fund haven’t been deposited into another Quorum Federal Credit Union bank account.
Term options: Terms range from 3 months to 5 years.
Penalties: At Quorum Federal Credit Union the early withdrawal penalty is as follows:
- For terms between 2 months and 11 months, 1% of the amount withdrawn
- For terms between 12 months and 24 months, 2% of the amount withdrawn
- For terms over 25 months, 3% of the amount withdrawn
Keep an eye out for: You must become a member to open a bank account at Quorum. To become a member, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.
Crescent Bank CD
Why it stands out: Crescent Bank has competitive interest rates for a variety of online CDs. It also has standard early withdrawal penalties for most terms.
Term options: Terms range from 12 months to 5 years.
Penalties: Crescent Bank charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days interest for a 1-year CD term
- 180 days interest for all other CD terms
Keep an eye out for: To deposit money into an online Crescent Bank CD, you’ll need to mail the bank a check or transfer money from a bank account at another financial institution.
Also, keep in mind that other financial institutions may allow you to open a CD with less money upfront.
First Internet Bank of Indiana CD
Why it stands out: First Internet Bank of Indiana pays high interest rates, and it has a variety of terms to choose from.
Term options: Terms range from 3 months to 5 years.
Penalties: First Internet Bank of Indiana charges standard-to-high penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for terms of 3 months
- 180 days of interest for terms between 6 months and 18 months
- 360 days of interest for terms between 24 months and 60 months
Keep an eye out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.
The early withdrawal penalties may also be steep compared to other financial institutions.
Bread Savings High-Yield CD
Why it stands out: Bread Savings CDs stand out for their competitive interest rates on 1-year, 2-year, and 3-year terms.
Term options: Terms range from 1 year to 5 years.
Penalties: Bread Savings charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for terms under 12 months
- 180 days of interest for terms between 12 months and 36 months
- 365 days of interest for terms between 48 months and 60 months
Keep an eye out for: The minimum opening deposit for Bread Savings CDs is $1,500. Other banks have lower minimum opening deposits.
Barclays Online CD
Why it stands out: Barclays is one of the few banks that doesn’t have a required minimum deposit for CDs. Its early withdrawal penalties are also lower than what you’ll pay with many institutions.
Term options: Term lengths range from 3 months to 5 years.
Penalties: Barclays has standard early withdrawal penalty terms, as follows:
- 90 days interest penalty for a term of 24 months or less
- 180 days interest penalty for a term over 24 months
Keep an eye out for: The Barclays app has good ratings in the Google Play store, but not in the Apple store.
Pacific Western Bank CD
Why it stands out: You may like Pacific Western Bank if you’re searching for competitive interest rates on short-term CDs. Pacific Western Bank has 5-month, 7-month, and 13-month terms that pay 5.50% APY.
If you’re interested in opening a CD, you won’t be able to open an account online. You’ll have to submit a message on the website and wait for a representative to reach out and schedule an appointment at a branch.
You’ll also have to contact your nearest branch for information about the bank’s other CD terms. Pacific Western Bank has branches in California, Colorado (one branch in Denver), and North Carolina (one branch in Durham).
Term options: Term lengths range from 30 days to 5 years.
Penalties: Early withdrawal penalties depend on the term you choose and amount deposited. Contact your nearest branch for more information.
Keep an eye out for:
Pacific Western Bank CDs have a $2,500 minimum opening deposit. Other banks on our list may let you open a CD with $1,000 or less. Something else to keep in mind is that the bank’s mobile app ratings in the Google Play Store and Apple store are under 3 stars.
Ally High Yield CD
Why it stands out: Ally has more options for CDs than any other online bank, including a no-penalty CD and a variable-rate CD.
Most notably, the Ally 18 Month High Yield CD pays 5.00% APY.
Term options: Ally offers a total of 11 different CD term lengths ranging from 3 months to 5 years.
Penalties: Ally charges standard penalties for early withdrawals of your principal balance, as follows:
- 60 days interest penalty for a CD term of 24 months or less
- 90 days interest penalty for a CD term of 25 months to 36 months
- 120 days interest penalty for a CD term of 37 months to 48 months
- 150 days interest penalty for a CD term of 49 months or more
Keep an eye out for: Ally offers three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs.
Unlike regular High Yield CDs, Raise Your Rate accounts offer 2-year and 4-year terms. APYs on these accounts start lower than High Yield CDs rates, but you can increase your APR once over 2 years or twice over 4 years.
No Penalty CDs do not penalize you for early withdrawal, but the only term available is 11 months.
America First Credit Union Certificate
Why it stands out: America First Credit Union has a high interest rate on a regular 1-year certificate.
America First Credit Union also has a unique flexible certificate that might be worth considering if you’re worried about early withdrawal penalties. The America First Flexible Certificate Account lets you continue depositing money into your CD after you’ve opened it, up to $10,000 per month. Many banks make you take out all your funds if you need to make an early withdrawal, but America First lets you make partial withdrawals.
Term options: Terms for regular CDs range from 3 months to 5 years. The America First Flexible CD is only available in a 12-month term.
Penalties: If you get an America First Flexible Certificate Account, you are permitted to make one free withdrawal per quarter.
The following early withdrawal penalty may apply to all America First certificate accounts:
- For terms of 1 year or less, the penalty is 60 days of interest
- For terms over 1 year, the penalty is 180 days of interest
Keep an eye out for: Like most credit unions, America First compounds your interest monthly rather than daily, which will limit how much you earn over time.
CIT Bank Term CD
Why it stands out: CIT Bank has regular CDs, jumbo CDs, and one no-penalty CD. CIT Bank Term CD rates vary depending on the term you choose. The 6-month, 13-month, and 18-month terms pay higher interest rates than the average CD.
CIT Bank also pays a competitive rate on its no-penalty CD (a CD that doesn’t charge any early withdrawal penalties).
Term options: Terms CDs range from 6 months to 5 years. CIT Bank has one 11-month no-penalty CD.
Penalties: If you open a No-Penalty CD, there are no early withdrawal penalties.
There are early withdrawal penalties for CIT Bank Term CDs, though. CIT Bank charges standard penalties for early withdrawals of your principal balance, as follows:
- For CD terms of one year or less, the penalty is three months of simple interest.
- For CD terms between one year and three years, the penalty is six months of simple interest.
- For CD terms longer than three years, the penalty is one year of simple interest.
Keep an eye out for: You’ll need a minimum of $1,000 to open any CIT Bank CD. Other banks have lower minimum opening requirements.
Alliant Certificate
Why it stands out: Alliant Credit Union is a strong choice if you would rather be part of a credit union than a bank. Alliant certificates offer competitive interest rates, particularly for 4-year terms.
Term options: Certificate terms range from 3 months to 5 years.
Penalties: The early withdrawal penalties are as follows:
- 90 days of interest for terms of 17 months or less
- 120 days of interest for terms between 18 months and 23 months
- 180 days of interest for terms 2 years and over
Keep an eye out for: Credit unions require you to become a member to open accounts. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.
Sallie Mae CD
Why it stands out: Sallie has high CD rates. Its 2-year term, in particular, offers the highest interest rate out of all of its terms.
Term options: Terms range from 6 months to 5 years.
Penalties: Sallie Mae charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for a 1-year term or shorter
- 180 days of interest for a term over 1 year
Keep an eye out for: You’ll need a minimum of $2,500 to open a Sallie Mae CD. Other financial institutions may allow you to open CDs with less money upfront.
Synchrony CD
Why it stands out: Synchrony offers a variety of term length options, including 13-month, 14-month, and 15-month CDs.
Term options: Terms range from 3 months to 5 years.
Penalties: Synchrony’s early withdrawal penalty rules are pretty standard, as follows:
- 90 days interest penalty for a term of 12 months or less
- 180 days interest penalty for a term over 12 months but under 48 months
- 365 days interest for a term of 48 months or more
Keep an eye out for: You’ll want to consider whether you have a preference on how you’ll withdraw money from a CD. When you’re ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.
American Express® CD
Why it stands out: American Express doesn’t have a minimum opening deposit requirement. Most banks and credit unions require at least $1,000 for an initial deposit on a CD.
Term options: American Express has CD terms ranging from 6 months to 5 years.
Penalties: The early withdrawal penalties are as follows:
- 90 days interest penalty for a term under 12 months
- 270 days interest penalty for a term between 12 and 47 months
- 365 days interest penalty for a term between 48 and 59 months
- 540 days interest penalty for a term of 60 months or more
Keep an eye out for: American Express’ fees for withdrawing funds before the CD maturity date are higher than most. If you’re worried about early withdrawal penalties, you may want to consider one of the other options from our list.
Marcus No-Penalty CD
Why it stands out: Marcus by Goldman Sachs offers a variety of no-penalty CDs. Its 13-month term offers a competitive interest rate.
Term options: No-Penalty CDs come with 7-month, 11-month, and 13-month options.
Keep an eye out for: The 7-month and 11-month terms offer significantly lower interest rates than the 13-month term. If you’re searching for a no-penalty CD under a year, you can find other banks with more competitive interest rates.
Other CDs That Didn’t Make the Cut and Why
We looked at the following CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.
- Capital One 360 CD: Capital One 360 lets you open a CD with $0, but its rates have recently dropped and are lower than our top picks.
- Rising Bank CD: Rising Bank CD rates were relatively high, but they’ve recently dropped. Our top picks offer higher rates or have lower minimum opening deposit requirements.
- Connexus Credit Union Share Certificate: Connexus share certificates require a minimum of $5,000. Our top picks also pay higher interest rates right now.
- Pentagon Federal Credit Union Money Market Certificate: PenFed offers solid interest rates on CDs, but our top picks have even more competitive CD rates right now.
- TIAA Basic CD: TIAA offers solid CD rates, but our top picks pay higher interest rates or have more lenient early withdrawal penalties.
- Pure Point Financial CD: Pure Point’s rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.
- Chase CD: While Chase has some truly excellent rewards credit cards, the rates on its CDs do not compete with any of the banks on our list.
- USAA Bank CD: 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 CD : 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 Certificate Account: Bethpage CDs have a low minimum opening deposit but our top picks offer more competitive interest rates.
- Charles Schwab Bank CD: 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 your bank, you may prefer open a CD directly with the financial institution.
