Best CD Rates for May 12, 2025: Up to 4.40%
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Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
More than 100 financial institutions surveyed by our team of experts.
More than 50 data points considered for each bank and credit union to be eligible for our lists. For this CD list, more than five data points were considered per institution.
Certificates of deposit (CDs) let you lock in a fixed interest rate that can be higher than that of regular savings accounts. CDs offer guaranteed returns over a set period of time, ranging from a few months to several years. The best CD rates today — May 12, 2025 — are above 4%. Top offers include:
Newtek Bank, 9-month CD: 4.40% APY.
Sallie Mae Bank, 13-month CD: 4.40% APY.
Marcus by Goldman Sachs, 14-month CD: 4.40% APY (annual percentage yield) as of 04/17/2025. Special offer expires 5/28/25. APY may change before CD is opened and funded.
See the best CD rates across various term lengths below. Scroll down to explore the best banks for multiple CDs and to learn more about certificates.
APYs shown are current as of May 12, 2025. All other information is current as of April 25, 2025.
Nerdy Tip
The Fed hasn’t changed its benchmark interest rates so far this year. This means that excellent interest rates are still available on CDs.
Best CD Rates for May 12, 2025: Up to 4.40%
Special offer expires 5/28/25. APY may change before CD is opened & funded.
APY
4.40%
Minimum deposit
Min. deposit
$500
Term
14mo
Marcus by Goldman Sachs is the online consumer bank that’s part of Goldman Sachs. It offers a variety of term lengths and types of CDs. The opening minimum of $500 is low. Most CD rates are generally competitive.
Pros
Has wide range of competitive APYs.
Offers no-penalty and bump-up CDs.
Low minimum deposit.
Cons
You can find higher APYs for some terms elsewhere.
LendingClub CD
APY
4.10%
Minimum deposit
Min. deposit
$500
Term
14mo
This online bank has most common CD terms with above average yields, and the minimum deposit of $500 is low. The maximum penalty for withdrawing early is six months of interest, which is fairly low. The bank lacks a four-year term.
Pros
Has some high APYs.
Low minimum deposit.
Early withdrawal penalties are on the lower end.
Cons
You can find higher APYs for multiple terms elsewhere.
Originally a government student loan servicer until 2014, Sallie Mae is now an online bank and private student loan provider. The bank’s CD rates tend to be fairly competitive, though the minimum deposit of $2,500 is on the higher end. There are more terms between one and two years than usual.
Pros
Has mostly competitive APYs.
Decent range of terms.
Cons
Somewhat high minimum deposit.
The online bank Bread Savings® has a competitive lineup of CDs. But the opening minimum of $1,500 is a little higher than average.
Pros
Has consistently competitive APYs.
Wide range of CD terms.
Cons
Somewhat high minimum deposit.
The online bank Bread Savings® has a competitive lineup of CDs. But the opening minimum of $1,500 is a little higher than average.
Pros
Has consistently competitive APYs.
Wide range of CD terms.
Cons
Somewhat high minimum deposit.
The Baltimore-based CFG Bank offers its CDs to branch and online nationwide customers. There’s a low opening minimum of $500 and some competitive rates, but the bank has few terms, including a lack of CDs shorter than one year.
Pros
Has mostly competitive APYs.
Low minimum deposit.
Cons
Limited selection of CD terms.
The online institution Bask Bank has competitive APYs on various CDs and a somewhat low minimum of $1,000. But the bank lacks terms longer than two years.
Pros
Has consistently competitive APYs.
Somewhat low minimum deposit.
Cons
Lacks long-term CDs.
This bank, as its name suggests, has been online for a long time: since 1999. Its CD rates also tend to be consistently competitive. The minimum to open is fairly low. But its penalty for withdrawing early from a CD tends to be steep compared to some other banks.
Pros
Has consistently competitive APYs.
Somewhat low minimum deposit.
Cons
Early withdrawal penalties are on the higher end.
Popular Direct is an online bank that’s part of Popular Bank. The bank has a wide breadth of CD terms with consistently competitive yields. The $10,000 minimum required to open is steep.
Pros
Has consistently competitive APYs.
Wide variety of terms.
Cons
High minimum deposit.
NASA Federal Credit Union Share Certificate
APY
4.00%
Minimum deposit
Min. deposit
$1,000
Term
1yr
NASA Federal Credit Union’s membership extends beyond NASA employees and includes anyone who agrees to a temporary, free membership to the National Space Society. NASA FCU’s share certificates have competitive rates and variety including bump-up options. Most terms require a relatively low minimum of $1,000, but some irregular terms have a steep minimum of $10,000, along with higher rates.
Pros
Has consistently competitive APYs.
Somewhat low minimum deposit for most terms.
Offers bump-up certificates.
Cons
High minimum deposit for some terms.
Early withdrawal penalties are on the higher end.
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Best CD rates at top banks for May 2025
NerdWallet reviewed the institutions below and rated them highly for their overall CD offerings. That means that the CDs have competitive rates across multiple traditional term lengths, and are available nationwide.A key advantage to getting CDs from one of these institutions is the ability to open several high-yield certificates as part of a CD ladder, which is a type of savings strategy. See the best banks and credit unions for CDs below.Marcus by Goldman Sachs launched in 2016 and offers online banking products, including an extensive lineup of CDs. Its one-year CD has an APY of 4.25% APY (annual percentage yield) as of 04/17/2025. Funding within the first 10 days comes with a guarantee to receive the highest rate for the term offered in that period. The minimum deposit requirement of $500 is low. Early withdrawal penalties, which include six months of interest for CD terms of one to five years, are lower than at some online banks. The bank also has two specialty CDs, which have rare perks: Bump-up CDs let you request a rate increase if APYs go up, and no-penalty CDs give you the ability to redeem a certificate earlier than maturity at no cost.
Pros
Has wide range of competitive APYs.
Offers no-penalty and bump-up CDs.
Low minimum deposit.
Cons
You can find higher APYs for some terms elsewhere.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 4.20% | $500 |
| 7 months no-penalty | 4.00% | $500 |
| 9 months | 4.30% | $500 |
| 11 months no-penalty | 4.10% | $500 |
| 1 year | 4.25% | $500 |
| 13 months no-penalty | 4.00% | $500 |
| 14 months | 4.40% | $500 |
| 1.5 years | 4.10% | $500 |
| 20 months bump-up | 3.90% | $500 |
| 2 years | 4.10% | $500 |
| 3 years | 4.00% | $500 |
| 4 years | 3.75% | $500 |
| 5 years | 3.75% | $500 |
| 6 years | 3.75% | $500 |
Bread Savings® is an online-only banking division of Bread Financial. The bank offers consistently high CD rates. The $1,500 minimum balance is somewhat steep among online banks. Early withdrawal penalties are a little costlier than at some other online banks: About six months of interest for CD terms from one to three years and one year of interest for four- and five-year CDs.
Pros
Has consistently competitive APYs.
Wide range of CD terms.
Cons
Somewhat high minimum deposit.
| Term | APY | Min Deposit |
|---|---|---|
| 3 months | 3.80% | $1,500 |
| 6 months | 4.35% | $1,500 |
| 9 months | 3.80% | $1,500 |
| 1 year | 4.00% | $1,500 |
| 1.5 years | 3.80% | $1,500 |
| 2 years | 4.00% | $1,500 |
| 3 years | 4.00% | $1,500 |
| 4 years | 4.00% | $1,500 |
| 5 years | 4.00% | $1,500 |
Started in 2016, Popular Direct is the online branch of the New York-chartered Popular Bank. Its opening minimum requirement of $10,000 is one of the highest among online banks. Early withdrawal penalties tend to be steep, such as two years of interest for a five-year CD. Rates tend to be consistently competitive.
Pros
Has consistently competitive APYs.
Wide variety of terms.
Cons
High minimum deposit.
| Term | APY | Min Deposit |
|---|---|---|
| 3 months | 4.40% | $10,000 |
| 6 months | 4.40% | $10,000 |
| 1 year | 4.40% | $10,000 |
| 1.5 years | 4.00% | $10,000 |
| 2 years | 4.05% | $10,000 |
| 3 years | 4.00% | $10,000 |
| 4 years | 3.90% | $10,000 |
| 5 years | 4.05% | $10,000 |
NASA Federal Credit Union’s membership extends beyond NASA employees and includes anyone who agrees to a temporary and free one-year membership to the National Space Society. NASA FCU’s share certificates have competitive rates and variety, including bump-up options which allow for a rate increase if APYs go up. Penalties for withdrawing early are somewhat steep. Most terms require a relatively low minimum of $1,000, but some irregular terms have a high minimum of $10,000, along with higher rates.
Pros
Has consistently competitive APYs.
Somewhat low minimum deposit for most terms.
Offers bump-up certificates.
Cons
High minimum deposit for some terms.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 4.20% | $1,000 |
| 9 months | 4.29% | $10,000 |
| 1 year | 4.00% | $1,000 |
| 15 months | 4.09% | $10,000 |
| 2 years | 3.90% | $1,000 |
| 2 years bump-up | 3.80% | $1,000 |
| 3 years | 3.95% | $1,000 |
| 3 years bump-up | 3.85% | $1,000 |
| 4 years | 4.00% | $1,000 |
| 49 months | 4.04% | $10,000 |
| 5 years | 4.00% | $1,000 |
This bank, as its name suggests, is one of the earliest online banks, created in 1999. Its full name is First Internet Bank of Indiana, though the bank operates nationwide. The bank’s CD rates tend to be consistently competitive for short and long CD terms. The minimum to open is fairly low. But its penalty for withdrawing early from a CD tends to be steep compared to some other banks. The cost of withdrawing early from a CD shorter than one year is effectively all the interest earned. Longer terms have either a half or full year’s worth of interest as a penalty.
Pros
Has consistently competitive APYs.
Somewhat low minimum deposit.
Cons
Early withdrawal penalties are on the higher end.
| Term | APY | Min Deposit |
|---|---|---|
| 3 months | 3.72% | $1,000 |
| 6 months | 4.15% | $1,000 |
| 1 year | 4.20% | $1,000 |
| 1.5 years | 4.00% | $1,000 |
| 2 years | 3.93% | $1,000 |
| 3 years | 3.97% | $1,000 |
| 4 years | 3.97% | $1,000 |
| 5 years | 3.97% | $1,000 |
Andrews Federal Credit Union is a credit union that serves members of the military as well as anyone who joins the American Consumer Council, a nonprofit. The credit union’s fixed-rate share certificates have a wide range of terms and some variety, including certificates that allow a rate increase mid-term and ones for retirement. Certificates have a somewhat low minimum of $1,000 and generally high rates. There are retirement-focused certificates as well as several “raise-your-rate,” or bump-up, certificates which allow a rate increase mid-term if APYs go up. Penalties for early withdrawal aren’t too steep. Membership is available nationwide by joining a specific nonprofit at no cost to you.
Pros
Has mostly competitive APYs.
Has bump-up certificates.
Somewhat low minimum deposit.
Cons
Lacks no-penalty certificates.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 2.95% | $1,000 |
| 1 year | 4.20% | $1,000 |
| 2 years | 3.80% | $1,000 |
| 3 years | 3.65% | $1,000 |
| 4 years | 3.55% | $1,000 |
| 5 years | 3.55% | $1,000 |
| 7 years | 2.95% | $1,000 |
E*TRADE is an online investing platform owned by Morgan Stanley Private Bank. Its digital banking platform includes a decent selection of competitive high-yield CDs. Funding a CD in the first 10 days comes with a guarantee that you get the highest rate within that period. But the penalties for early withdrawals, which go up as high as 15 months of interest, are far higher than the maximum at some banks. Note that these CDs differ from E*TRADE’s brokered CDs, which are also available. Brokered CDs are more like bonds in that you can buy and either sell early or hold to maturity.
Pros
Has mostly competitive APYs.
No minimum deposit.
Cons
Early withdrawal penalties are on the higher end.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 4.15% | $0 |
| 9 months | 4.15% | $0 |
| 1 year | 4.15% | $0 |
| 1.5 years | 3.90% | $0 |
| 2 years | 4.00% | $0 |
| 3 years | 3.90% | $0 |
| 5 years | 3.90% | $0 |
Newtek Bank is an online bank with headquarters in Miami. The bank focuses on serving businesses but also offers CDs to consumers online. Terms cover a decent range, though rates tend to vary in competitiveness. The opening minimum requirement of $2,500 is somewhat high compared to other banks. Early withdrawal penalties are relatively low.
Pros
Has mostly competitive APYs.
Decent range of CD terms.
Cons
Somewhat high minimum deposit.
You can find higher APYs for some terms elsewhere.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 4.40% | $2,500 |
| 9 months | 4.40% | $2,500 |
| 1 year | 4.25% | $2,500 |
| 1.5 years | 4.20% | $2,500 |
| 2 years | 4.20% | $2,500 |
| 3 years | 3.90% | $2,500 |
| 4 years | 2.00% | $2,500 |
| 5 years | 2.00% | $2,500 |
CFG Bank is a regional bank based in Baltimore, Maryland, that offers competitive CDs online nationwide. Unlike many banks, CFG’s CD lineup is limited in range, lacking CDs shorter than one year, but it makes up for it with competitive rates. The $500 minimum to open is low. Early withdrawal penalties are not disclosed without applying.
Pros
Has mostly competitive APYs.
Low minimum deposit.
Cons
Limited selection of CD terms.
| Term | APY | Min Deposit |
|---|---|---|
| 1 year | 4.15% | $500 |
| 1.5 years | 4.00% | $500 |
| 3 years | 3.75% | $500 |
| 5 years | 3.65% | $500 |
Founded in 1998 in Ogden, Utah, TAB Bank started out serving the trucking industry. Its name is a nod to those roots: Transportation Alliance Bank. The online bank’s CDs have a limited range of terms in year increments only, but rates tend to be competitive. The $1,000 opening minimum is fairly low. Penalties for withdrawing early include six months’ interest on CD terms longer than a year, which is fairly low.
Pros
Has mostly competitive APYs.
Somewhat low minimum deposit.
Cons
Lacks short-term CDs.
| Term | APY | Min Deposit |
|---|---|---|
| 1 year | 4.21% | $1,000 |
| 1.5 years | 4.16% | $1,000 |
| 2 years | 4.06% | $1,000 |
| 3 years | 3.91% | $1,000 |
| 4 years | 3.86% | $1,000 |
| 5 years | 3.81% | $1,000 |
Originally a government student loan servicer until 2014, Sallie Mae is now an online bank and private student loan provider. The bank’s CD rates tend to be fairly competitive, though the minimum deposit of $2,500 is on the higher end. There are more terms between one and two years than usual.
Pros
Has mostly competitive APYs.
Decent range of terms.
Cons
Somewhat high minimum deposit.
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 4.15% | $2,500 |
| 9 months | 4.20% | $2,500 |
| 11 months | 4.25% | $2,500 |
| 1 year | 4.40% | $2,500 |
| 13 months | 4.40% | $2,500 |
| 15 months | 4.40% | $2,500 |
| 1.5 years | 3.80% | $2,500 |
| 2 years | 4.00% | $2,500 |
| 2.5 years | 3.70% | $2,500 |
| 3 years | 3.40% | $2,500 |
| 5 years | 3.80% | $2,500 |
May 2025 news about the best CD rates
Where CD rates are: The best CD rates right now remain high, ranging from 3.50% to 4.40% APY across various terms, based on NerdWallet analysis. The best short-term CDs, such as three months to one year, still have the highest rates.
Where CD rates are going: Generally downwards. Steady drops occurred throughout April. CD rates started to fall in 2024 largely due to a series of rate cuts by the Federal Reserve. However, the Fed has kept its benchmark rates the same so far in 2025, which has slowed down the frequency of CD rate drops. More economic uncertainty has arisen due to the recent tariffs and other factors that may contribute to inflation. The Fed’s overall strategy is to slowly lower its rate as inflation goes down. Banks and credit unions tend to follow the direction of the Fed rate when determining their CD rates. Learn more about where rates are headed in our CD rate forecast.
Examples of recent CD rate changes:
May 1, 2025:
NASA Federal Credit Union lowered 11 of its share certificate rates, each by 0.10 percentage points. Example: Its one-year share certificate (4.10% to 4.00%).
April 28, 2025:
Popular Direct raised its six-month CD rate (4.35% to 4.40%) and its one-year CD rate (4.35% to 4.40%).
April 22, 2025:
Live Oak Bank lowered its one-year CD rate (4.20% to 4.10% APY).
Service Credit Union lowered its six-month certificate rate (4.50% to 4.25% APY) and its one-year certificate rate (4.25% to 4.15% APY).
April 15, 2025:
CIBC U.S. lowered its one-year CD rate (4.21% to 4.01% APY) and 13-month CD rate (4.36% to 4.06% APY).
Live Oak Bank lowered its one-year CD rate (4.30% to 4.20% APY).
Popular Direct lowered several CD rates, including its five-year CD (4.15% to 4.05% APY). But the bank also raised its six-month CD (4.30% to 4.35% APY).
The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider locking in high CD rates while they last.
đź’¬ Our Nerds say:
"When comparing CD rates, aim for the highest APY for the CD term length you need. The best rates right now tend to be on shorter terms such as one-year CDs or less, but a longer-term CD with a lower rate can outearn a shorter-term CD.
"Or, if you’d want the flexibility to redeem a CD early at no cost, a few banks offer no-penalty CDs.”
— Spencer Tierney,Â
NerdWallet senior writer covering consumer banking
Best CD rates today by term
If you’re looking for the highest rates for popular terms, here’s a breakdown of today’s best CD rates for five standard terms:
CD term | Institution and CD rate |
|---|---|
3 months | Popular Direct: 4.40% APY. |
6 months | Newtek Bank: 4.40% APY. |
1 year | Sallie Mae: 4.40% APY. |
3 years | Bread Savings: 4.00% APY. Popular Direct: 4.00% APY. Synchrony Bank: 4.00% APY. |
5 years | Synchrony Bank: 4.15% APY. |
Note: This table is based on CD rates currently shown elsewhere on this page.
CD definition: What is a CD?
A certificate of deposit is a bank account that requires you to lock funds away for a fixed period of months or years in exchange for a fixed interest rate that can be higher than other bank accounts. These accounts are often referred to as CDs.
Historically, CDs took the form of paper certificates, but nowadays, CDs are like other financial accounts that you can manage online. See more about what CDs are.
» Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts
How to choose a CD
Consider each part of a CD to help break down your decision:
CD term: Most terms at a bank or credit union range from three months to five years. Learn how to choose your CD term.
CD type: High-yield CDs work like standard CDs but have the best rates and are often at online banks. Some CDs have an unusual feature, such as a no-penalty CD that doesn’t charge for early withdrawals or a bump-up CD that allows for a rate increase during a term. See types of CDs.
CD rate: Once you’ve narrowed down the term and type of CD, you can compare banks and credit unions to find a competitive rate. You may decide to go with a bank you already have accounts at or choose a new institution, depending on whether convenience matters to you, but aiming for a high rate is ideal. See current CD rates.
CD deposit: The amount you put into a CD depends on your savings goals, but a CD’s opening minimum requirement isn’t a good guide. And, if you’re worried about a bank failing, keep less than the FDIC insurance limit of $250,000 in your accounts to keep your money protected. Learn how to choose your CD deposit.
CD penalty: The early withdrawal penalty only kicks in if you redeem a CD before the term ends. The penalty is usually several months to even a years’ worth of interest, depending on the CD term length. Ideally, you only need to factor in the penalty if there’s a chance you’ll need funds early. See more about CD early withdrawal penalties.
Watch our explainer to further help you decide on CDs:
Choosing multiple CDs
If the pressure of choosing one CD is too much, you might consider a strategy to balance cash access with high yields. Opening multiple CDs with different terms in a CD ladder lets you redeem CDs over time while taking advantage of competitive short- and long-term CD rates.
When to consider CDs
Think about CDs as part of the cash and cash equivalents category of your overall portfolio, which is your overall collection of investments across different types of assets. For many people, CDs can work best in a few situations:
Locking up savings for a big purchase within the next five years, including a down payment on a car or house.
Stashing away a sudden windfall to avoid spending it now.
Earning some returns without market risk, especially closer to or during retirement.
Learn more about when CDs can be worth it.
Pros and cons of certificates of deposits
Pros
- Fixed rate once a CD is opened (or bought).
- CDs can have the highest rates among bank accounts.
- Federally insured, like other bank accounts.
Cons
- Usually has a penalty to redeem early.
- Usually unable to add money over time.
- CD rates may not keep up with inflation.
How much does a $10,000 CD make in a year?
A $10,000 CD with a 4% APY would make $400 in a year. But if you’re eyeing a 6-month CD with that rate and deposit, you’d earn a little less than half that.
The three main factors that impact CD earnings are the rate, the CD term and the CD deposit. Unlike regular savings accounts, you don’t generally have the ability to add money to a CD after the initial deposit. Here’s a look at some scenarios for how much $10,000 in a CD can earn in a year, compared to six months. (Or use our CD calculator.)
Starting balance | APY | Interest earned in 1 year | Interest earned in 6 months (rounded) |
|---|---|---|---|
$10,000. | 2.00%. | $200. | $100. |
$10,000. | 3.00%. | $300. | $149. |
$10,000. | 4.00%. | $400. | $198. |
$10,000. | 4.25%. | $425. | $210. |
Nerdy Tip
A lower rate can outearn a higher rate. A 1-year CD with a 4.00% APY will get you more interest than with a 6-month, 4.50% APY CD. If you had $10,000 to deposit, you'd earn around $220 with the 6-month CD and $400 with the lower-rate 1-year CD. When comparing CD rates, use a CD calculator to see how much you can earn with different term lengths.
Other CDs: Promotional and no-penalty CDs
Traditionally, one-year, three-year and five-year CDs tend to be the most popular options to consider, but there are other CDs that occasionally provide higher yields or more flexibility.
Promotional CDs refer to CDs with nontraditional term lengths, or less often, CDs with expiration dates on the rates being offered. While these CD rates may be higher than CDs with traditional terms, they may automatically renew into lower-rate CDs by default. See our list of promotional CD rates.
No-penalty CDs are CDs that allow you to withdraw, at no cost, the full amount of a CD anytime after the first few days of opening. Generally, though, no-penalty CDs are uncommon and have lower rates compared to high-yield CDs for similar terms. See the best no-penalty CD rates.
Other CDs: IRA and jumbo CDs
Some types of CDs have more restrictions, such as funds earmarked only for retirement or high minimum deposits, and aren’t the standard CDs at banks or nationally available credit unions. However, they may work for certain savers:
IRA CDs are used to save a portion of retirement savings, largely for risk-averse savers and folks near or in retirement. You get the tax benefits of an individual retirement account plus the fixed rate of a CD. See the best IRA CD rates.
Jumbo CDs refer to CDs with a high minimum deposit requirement, traditionally $100,000. They’re not available everywhere and don’t often have the highest rates you can find. See the best jumbo CD rates.
Note: While not a special type of CD, CDs at credit unions – or share certificates – aren’t always available nationwide. Credit unions can have membership requirements limited to residents of a certain state or organization, such as the military. See the best credit union CD rates.
Alternatives to CDs
If you’re looking for similarly safe savings or investment vehicles to CDs but want more flexibility or other features, consider the following:
High-yield savings accounts have comparable returns to CDs and let you add or withdraw money typically whenever you want. Compare CDs and high-yield savings accounts.
Money market accounts, like regular savings accounts, let you add and withdraw money over time, but MMAs tend to have higher minimum deposit requirements to open the account or avoid a monthly fee. Compare CDs and money market accounts.
Bonds are loans to companies or the government that pay investors a fixed rate of interest in return. Compare CDs and bonds.
» Want more options? See the best investments in 2025
Last updated on May 12, 2025
Methodology
On a monthly basis, we compare rates at over 45 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyze our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
We took a close look at over 100 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings®, BrioDirect, Capital One, Carver Federal Savings Bank, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank, Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, Newtek Bank, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
Frequently asked questions
Online banks such as Popular Direct and credit unions such as NASA Federal Credit Union tend to offer some of the most competitive rates, especially compared to national averages.
Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. See more details about how CDs are FDIC insured. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.
Certificates of deposit require more of a commitment than a regular savings account since you're locking away some savings for a future date. This feature can be helpful for some goals but not for others, such as emergency savings, since you’ll want that money to be easy to access when you need it. While CDs have the perks of fixed rates and higher yields traditionally than other bank accounts, withdrawing from CDs early usually results in a penalty. Take a closer look at when CDs are worth it.
Yes. Interest earned in CDs is taxable as interest income. Your bank or credit union will usually give you a Form 1099-INT that states the interest each year, unless the amount is under $10. The IRS notes that you generally include interest from CDs when you receive it, regardless of when the CD matures. So for CDs with terms longer than a year, the portion of interest earned each year gets reported and counted as taxable income.
A CD rate is quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily. A CD’s term plays a role too: the longer the term, the higher the rate generally. APYs are not the same thing as interest rates since APYs have compounding factored in, making APYs more useful for comparing CDs’ potential returns. Learn more about APY vs. interest rate.
CDs don’t have monthly fees like checking or savings accounts might have, but they generally have a penalty if you withdraw before the CD term expires. This early withdrawal penalty tends to be several months’ to years' worth of interest, so it’s usually best to wait to access funds from a CD once it expires. The exception is no-penalty CDs.
It’s highly unlikely, but possible. Here are three scenarios:
If you withdraw early, the penalty can be steep enough at some banks to dig into the initial amount you put into a CD.
If you put more money into a CD than FDIC insurance covers – such as $250,000 for a single account owner at a bank – and the bank fails, you could possibly lose the amount not covered by the FDIC.
If inflation stays higher than your CD’s rate, the CD’s returns might not be enough to overcome the way inflation erodes purchasing power over time.
The general rule of thumb for CDs is the longer the term, the higher the rate. However, this isn't always true. The best 10-year CD rates aren't necessarily higher than the best five-year CD rates, and locking up your money for a decade might not be in your best interest. Consider current CD rates as well as your savings goals — investing your money in mutual funds might be more worthwhile for a longer term.
» MORE: See the best short-term investments for 5 years or less