Business CDs: Compare Rates and Top Options

A business CD is a high-yield account that locks your funds up for a designated term — anywhere from a few weeks to a few years. In exchange, certificates of deposit ypically offer interest rates far higher than traditional business savings or business checking accounts.

If you know you won’t need money for a year or longer, you can earn an annual percentage yield above 5% on your idle funds with a business CD. Want the option to occasionally tap into your savings instead? A high-yield business savings account or money market account might be a better fit.

What is a business CD?

A business CD, or certificate of deposit, is a fixed-rate business savings account with a set term — typically six months to five years.

Money deposited into a business CD must stay there for the entire term. Taking your money out early will result in a penalty of anywhere from one month’s to one year’s interest, depending on your original term and the financial institution’s rules. You won’t lose any of your initial deposit, though.

Like other business bank accounts, business CDs are FDIC insured up to $250,000 per depositor.

» MORE: Need more flexibility? Compare business savings accounts instead

Best business CDs

We scoped out the highest-earning business CDs from dozens of online, national and regional banks to find the business CDs with the best rates. Only accounts that earned at least 4% APY were included in this list — far higher than the national average for a 12-month CD, which is 1.80% APY, according to the latest data from the Federal Deposit Insurance Corp.

Interest rates and APYs may vary depending on your location or the term of the CD. We’ve included CDs with multiple term lengths below. Consider how that length and the CD’s rate align with your business goals to find the right fit.

Keep an even closer eye on the term if you opt for a promotional CD rate. When your CD’s promotional rate term ends, the certificate may automatically renew at a much lower rate. Promotional terms may be unusual — for instance, seven months instead of six — so make a note of when your term ends. That way, you can move your funds to an account that will continue generating a high yield.

» MORE: Best business bank account promotions right now

Live Oak Business CD

The Live Oak Bank 12 Month Business CD earns 5.00% APY. Prefer a shorter term? The bank’s six-month CD currently earns 4.80% APY. Live Oak's business savings account also earns 4.00% APY and has unlimited transactions.

• Term: 12 months.

• Minimum deposit: $2,500.

• APY: 5.00% APY. 

• Early withdrawal penalty: 90 days of interest.

Prime Alliance Bank Business CD

If you don’t want to sacrifice interest with a shorter term, the Prime Alliance Bank business CD offers the same strong APY for both 6- and 12-month CDs: 5.30%. Prime Alliance has a single branch location near Salt Lake City, and opening an account isn’t as straightforward as it is at other banks — you’ll have to email Prime Alliance. But that minor inconvenience may be worth the major yield.

• Term: 6 or 12 months.

• Minimum deposit: $500.

• APY: 5.30%.

• Early withdrawal penalty: Not disclosed.

First Internet Bank Business CD

First Internet Bank is known for offering some of the best rates on business savings accounts and its business CD is no different. You can choose term lengths ranging from three months to five years, but you’ll get the best rate with the bank’s 12-month business CD, which earns 5.26% APY.

• Term: 12 months.

• Minimum deposit: $1,000.

• APY: 5.26% APY.

• Early withdrawal penalty: 180 days of interest.

TAB Bank Business CD

TAB Bank’s business CD terms range from 12 months to 60 months, but the bank’s 12-month CD lets you lock in its best rate (5.15%).

• Term: 12 months.

• Minimum deposit: $1,000. 

• APY: 5.15%.

• Early withdrawal penalty: 90 days of interest.

EverBank Business CD

EverBank, formerly known as TIAA, offers business CDs with terms ranging from three months to five years. But the highest APY, 4.75%, comes with the 12-month term. You’ll need a minimum deposit of $1,500 for all business CDs.

• Term: 12 months.

• Minimum deposit: $1,500.

• APY: 4.75%.

• Early withdrawal penalty: 91 days of interest.

Regions Business CD

Regions currently offers a five-month business CD that earns a promotional rate of 5.00% to those who qualify for relationship pricing (primarily having a Regions checking account). If you don't, the non-relationship promo rate is still a solid 4.75%. Promotional rates of more than 3.50% are also available on 14-month and 20-month CDs.

• Term: Five months.

• Minimum deposit: $500. 

• APY: 5.00% (relationship rate); 4.75% (non-relationship rate).

• Early withdrawal penalty: All interest earned on the amount withdrawn as of the date of withdrawal or 2% of the amount withdrawn, whichever is less. 

Wells Fargo Special Fixed Rate Business CD

Wells Fargo’s current business CD special delivers 4.75% APY on four-month and seven-month business CDs. To qualify, you need a minimum deposit of at least $5,000. If you can't hit that threshold, Wells Fargo’s standard business CDs require a smaller opening deposit ($2,500), but top out at 2.50% APY for terms of three to 11 months.

• Term: Four or seven months.

• Minimum deposit: $5,000. 

• APY: 4.75%.

• Early withdrawal penalty: 90 days of interest.

U.S. Bank Business CD Special

U.S. Bank has multiple business CD offerings with terms ranging from one to 60 months. You'll get the best rate with the bank's Business CD Special, with terms of 7 or 11 months. As of this writing, the best rate available is with the bank's 7-month CD Special (4.64% APY). That beats U.S. Bank’s standard rates (0.05%-0.40%) by a mile.

• Term: Seven months.

• Minimum deposit: $1,000.

• APY: 4.64%.

• Early withdrawal penalty: $25 fee plus penalty, depending on when funds are withdrawn.

Business CD vs. business money market account

Business CDs and business money market accounts are both low-risk, high-reward ways to invest longer-term savings, but there are a few key differences.

Interest rates: Business CDs typically yield a better return than money market accounts. A 12-month CD earns 1.80% APY, on average, compared with 0.68% APY for money market accounts, according to the FDIC.

Business CDs also have a fixed rate for the duration of the term, while the rate on money market accounts is variable and can change as interest rates rise or fall.

That combo of higher rates and guaranteed returns makes business CDs a good tool to save for specific goals, like expansion plans or major equipment purchases, that are at least a year out.

Access to your money: Business money market accounts typically include check-writing and debit card access, so you can withdraw money as needed. With a business CD, your funds are tied up until the term ends and you’ll get hit with an early withdrawal penalty if you pull your money out early.

Withdrawals on money market accounts are traditionally capped at six per month, per Regulation D, but those limits were relaxed during COVID-19 and some banks still don’t enforce them. The flexibility of a money market fund makes it a better choice than a CD for your emergency fund or excess operating funds.

Average business CD rates

Business CD rates can vary widely depending on the business bank, the length of the CD term and where you live. In most cases, you’ll get the best yield with a 12-month CD, a departure from years past when a longer term equaled a higher rate.

The national average APY for a certificate of deposit, according to the most recent data from the FDIC:

• One-month CD: 0.23%.

• Three-month CD: 1.53%.

• Six-month CD: 1.79%.

• 12-month CD: 1.80%.

• 24-month CD: 1.54%.

• 36-month CD: 1.42%.

• 48-month CD: 1.33%.

• 60-month CD: 1.40%.

Rates are current as of May 20, 2024.

Compare business CD rates: 12-month term

This table reflects the APY for a 12-month business CD across multiple business banks. This term length often delivers the best rate, though some banks offer a higher APY on other terms, including promotional CD rates. Note: Rates may vary by location.