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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.
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.
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.
Best CD Rates of March 2023
- Barclays 1 Year Online CD: 5.00% APY
- Air Force Federal Credit Union 18 Month Certificate Account: 5.05% to 5.25% APY
- Quorum Federal Credit Union 2 Year Term Savings: 4.60% (on balances $1,000 - $99,999) or 4.70% (on balances of $100,000 or more) APY
- CFG Bank 3 Year CD: 4.60% APY
- Crescent Bank 4 Year CD: 4.50% APY
- CFG Bank 5 Year CD: 4.50% APY
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
Barclays 1 Year Online CD
Annual Percentage Yield (APY)
5.00%
Minimum Deposit Amount
$0
Barclays 1 Year Online CD
Annual Percentage Yield (APY)
5.00%
Minimum Deposit Amount
$0
On Barclays' site. FDIC Insured.
Barclays 1 Year Online CD
Details
Annual Percentage Yield (APY)
5.00%
Minimum Deposit Amount
$0
Pros & Cons
No minimum deposit
High interest rate
Low-to-standard early withdrawal penalties
Low mobile app ratings in the Apple store
Highlights
- Terms range from 3 months to 5 years
- Early withdrawal penalties are as follows: 90 days interest for terms of 24 months or less, 180 days interest for terms of more than 24 months
- Interest compounds daily to maximize earnings
- FDIC insured
Additional Reading
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
Pros & Cons
High interest rate
Variety of CD terms
High minimum opening deposit
Standard-to-high early withdrawal penalties
Highlights
Quorum Federal Credit Union 2 Year Term Savings
Annual Percentage Yield (APY)
4.60% (on balances $1,000 - $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Quorum Federal Credit Union 2 Year Term Savings
Annual Percentage Yield (APY)
4.60% (on balances $1,000 - $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
on Quorum's website. Member NCUA.
Quorum Federal Credit Union 2 Year Term Savings
Details
Annual Percentage Yield (APY)
4.60% (on balances $1,000 - $99,999) or 4.70% (on balances of $100,000 or more)
Minimum Deposit Amount
$1,000
Pros & Cons
Competitive interest rate on select CD terms
Standard-to-low early withdrawal penalties
Standard CD terms
$1,000 minimum opening deposit
Interest compounded monthly, not daily
Highlights
- Online credit union with 1 location in NY
- Terms range from 3 months to 5 years
- To become a member, you or a family must work at a Select Employee Group OR you must join the American Consumer Council or Select Savers Club
- Earn an additional 0.10% APY on account balances over $100,000
- Early withdrawal penalties: 1% of the amount withdrawn for terms between 2 months and 11 months; 2% of the amount withdrawn for terms between 1 year and 2 years; 3% of the amount withdrawn for terms over 25 months
- Interest compounded and deposited monthly
- NCUA insured
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$500
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$500
on CFG's website. Member FDIC.
CFG Bank 3 Year CD
Details
Annual Percentage Yield (APY)
4.60%
Minimum Deposit Amount
$500
Pros & Cons
$500 minimum opening deposit
Competitive APY
Standard early withdrawal penalties
Limited term options
Highlights
- 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
Additional Reading
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
On Crescent Bank's website
Crescent Bank 4 Year CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$1,000
Pros & Cons
High interest rate
Standard CD terms
Standard early withdrawal penalties
$1,000 minimum opening deposit
Highlights
- 3 branches in Louisiana
- Terms range from 12 months to 5 years
- Early withdrawal penalties: 90 days interest for a 1-year CD term; 180 days interest for all other CD terms
- Interest compounded and deposited monthly
- Member FDIC
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
on CFG's website. Member FDIC.
CFG Bank 5 Year CD
Details
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$500
Pros & Cons
$500 minimum opening deposit
Competitive APY
Standard early withdrawal penalties
Limited term options
Highlights
- 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
Additional Reading
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.
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. 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
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.
If you don't need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed annual percentage yield (APY) for the term of the CD. During that period, you typically won't be able to add additional money or access your original balance without paying a penalty.
You will, however, earn interest on the amount and have the option to collect those payments monthly or reinvest them into your CD. Most banks offer varying rates for different terms and deposit amounts — typically, the longer the term, the higher the rate.
At the CD's maturity date, you'll typically have a 10 to 14-day grace period in which you can withdraw your money and close the account or renew the term.
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 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 throughout 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 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
CD Rates at the Largest US Banks
About the Best CD Issuers
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 CD is its 18-month term, but you'll only be able to deposit new money. New money means any funds that haven't already been deposited into an Air Force Federal Credit Union account.
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.
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.
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.
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.
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 3-year and 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.
Quorum Federal Credit Union Term Savings
Why it stands out: Quorum Federal Credit Union has a high interest rate on its 2-year term account (which is another name for a certificate).
The 2-year term account pays the highest interest rate out of all its term options. You'll earn 4.60% (on balances $1,000 - $99,999) or 4.70% (on balances of $100,000 or more) APY (Annual Percentage Yield).
The 13-month term account pays 4.50% APY if you use money than hasn't been deposited into another Quorum 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, 3-year, and 4-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.
Bethpage Federal Credit Union Certificate Account
Why it stands out: Bethpage Credit Union has high CD rates for 1-year and 2-year terms. It also has a low minimum opening deposit requirement.
Term options: Terms range from 3 months to 5 years.
Penalties: Bethpage 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: Credit unions require membership to open accounts. To join Bethpage FCU, you just need to open a Bethpage Federal Credit Union Savings Account with $5.
Connexus Credit Union Share Certificate
Why it stands out: Connexus has a 15-month CD special with a high interest rate.
Term options: Terms range from 12 months to 5 years.
Penalties: Connexus charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for terms 1 year or less
- 180 days of interest for terms over 1 year
Keep an eye out for: Once the 15-month CD matures, it will renew automatically to 1-year CD term, unless you notify the bank to take out your money at the end of a term.
Rising Bank CD
Why it stands out: Rising Bank has a 15-month CD with a high interest rate.
Term options: Terms range from 6 months to 3 years.
Penalties: Rising Bank charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days of interest for terms 1 year or less
- 180 days of interest for terms over 1 year
Keep an eye out for: Rising Bank doesn't offer CDs over 3 years. Rising Bank also compounds interest every 3 months instead of monthly or daily. Depending on how much you deposit into a CD, this may or may not make a significant difference.
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.
Capital One 360 CD
Why it stands out: Capital One offers competitive rates, and unlike most banks, you don't need any money for an initial deposit.
Capital One also has a limited-time 11-month CD that pays 5.00% APY. To get the offer, you'll have to open an account by March 14, 2023.
Term options: Capital One offers CD term lengths ranging from 6 months to 5 years.
Penalties: The penalties for early withdrawals are as follows:
- 3 months interest penalty for a CD term of 1 year or less
- 6 months interest penalty for a CD term greater than 1 year
Keep an eye out for: Capital One is a good choice for people who don't want to place an initial deposit, but you can find slightly higher rates elsewhere.
CIT Bank Term CD
Why it stands out: CIT Bank pays a competitive rate on its no-penalty CD (a CD that doesn't charge any early withdrawal penalties).
It also has a strong 18-month and 13-month CIT Bank Term CD.
Term options: 6 months to 5 years.
Penalties: CIT Bank charges standard penalties on term CDs for early withdrawals of your principal balance, as follows:
- 3 months simple interest for terms under 1 year
- 6 months simple interest for terms of 1 to 3 years
- 12 months simple interest for terms over 3 years
What to look out for: When the 13-month CD term matures it will be automatically renewed as a 1-year term. When the 18-month CD term matures it will automatically be renewed to a 2-year term.
Marcus High-Yield CD
Why it stands out: Marcus by Goldman Sachs offers a variety of CDs, including High-Yield CDs and No-Penalty CDs. Its 13-month No-Penalty CD is its most appealing option.
Term options: High-Yield CD terms range from 6 months to 6 years, and No-Penalty CDs come with 7-month, 11-month, and 13-month options.
Penalties: Marcus charges standard penalties for early withdrawals of your principal balance, as follows:
- 90 days interest penalty for a CD term of under 12 months
- 270 days interest penalty for a CD term of 12 months to 5 years
- 365 days interest penalty for a CD term of more than 5 years
Keep an eye out for: You need at least $500 to open a CD with Marcus. Some of our other picks let you open an account with $0.
America First Credit Union Flexible Certificate
Why it stands out: America First Credit Union gives you more flexibility with deposits and withdrawals than most banks. Unlike other institutions, America First 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: 12 months
What to look out for: Like most credit unions, America First compounds your interest monthly rather than daily, which will limit how much you earn over time.
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.
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.
- 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.
- HSBC Direct CD(Member FDIC): HSBC's CD rates were relatively high, but they've recently dropped.
- PurePoint Financial(Member FDIC): PurePoint's rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.
- Chase CD(Member FDIC): 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 (Member FDIC) : 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 (Member FDIC): 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.
- Sallie Mae CD (Member FDIC): Sallie Mae pays competitive rates on short terms, but you'll need $2,500 to open a CD.
- 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.
Sophia Acevedo is a banking reporter at Insider. She covers bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF). Sophia joined Insider in July 2021 and is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Los Angeles. You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com. Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >> Below are links to some of her most popular stories:
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