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13 Best CD Rates for April 2020

Spencer TierneyApril 1, 2020

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Summary of Best CD Rates for April 2020

Bank1-year APY3-year APY5-year APYMinimum DepositLearn More
Marcus by Goldman Sachs CD

Marcus by Goldman Sachs CD

at Marcus by Goldman Sachs,

Member, FDIC

1.85%

1.85%

1.90%

$500

at Marcus by Goldman Sachs,

Member, FDIC

Discover Bank CD

Discover Bank CD

at Discover Bank,

Member, FDIC

1.75%

1.80%

1.80%

$2,500

at Discover Bank,

Member, FDIC

Synchrony Bank CD

Synchrony Bank CD

1.50%

1.55%

1.65%

$2,000

Read review
Ally Bank CD

Ally Bank CD

1.50%

1.55%

1.60%

$0

Read review
TIAA Bank CD

TIAA Bank CD

1.50%

1.60%

1.70%

$5,000

Read review
Barclays CD

Barclays CD

1.85%

1.85%

1.85%

$0

Read review
Citizens Access CD

Citizens Access CD

1.50%

1.55%

1.65%

$5,000

Read review
Sallie Mae Bank CD

Sallie Mae Bank CD

1.50%

1.45%

1.45%

$2,500

Read review
Alliant Credit Union CD

Alliant Credit Union CD

1.40%

1.45%

1.50%

$1,000

Read review
American Express National Bank CD

American Express National Bank CD

1.85%

1.95%

2.00%

$0

Read review
CIT Bank CD

CIT Bank CD

1.86%

1.30%

1.70%

$1,000

Read review
Vio Bank CD

Vio Bank CD

1.00%

1.30%

1.50%

$500

Read review
Capital One CD

Capital One CD

1.50%

1.40%

1.40%

$1

Read review
Marcus by Goldman Sachs CD

at Marcus by Goldman Sachs,

Member, FDIC

Marcus by Goldman Sachs CD

Marcus by Goldman Sachs CD

1-year APY

1.85%

With $500 minimum balance

3-year APY

1.85%

With $500 minimum balance

5-year APY

1.90%

With $500 minimum balance

Minimum Balance

$500

Member, FDIC

at Marcus by Goldman Sachs,

Member, FDIC


3-year APY

1.85%

With $500 minimum balance

5-year APY

1.90%

With $500 minimum balance

Why we like it

Overview: Marcus is the Goldman Sachs branch launched in 2016 that handles online banking products, including an extensive line-up of CDs with terms from six months to six years. Rates include its one-year CD with 1.85% APY (annual percentage yield) as of 3/11/2020. The minimum is lower than many banks, though some have no minimum. Marcus CD rates from the one-year term onward tend to be better. Live customer service by phone is available every day. To learn more about the bank's CDs, see our Marcus CD Rates review.

 

Fees: No monthly or opening fees. If you withdraw early from a standard Marcus CD, the penalty is the following: three months’ worth of interest earned for CD terms less than a year, nine months of interest for CD terms of one to five years and one year’s worth of interest for the six-year CD. Marcus also has no-penalty CDs for three terms: seven months, 11 months and 13 months. (Learn more about no-penalty CDs.)

 

Other products: Its savings account’s rate is similarly impressive. The bank doesn't, however, offer mobile apps, ATMs, branches or checking accounts, so it’s best for letting the interest on your money grow.

 

Full list of Marcus CD rates:

  • 6-month CD: 0.60% APY
  • 9-month CD: 0.70% APY
  • 1-year CD: 1.85% APY
  • 18-month CD: 1.85% APY
  • 2-year CD: 1.85% APY
  • 3-year CD: 1.85% APY
  • 4-year CD: 1.85% APY
  • 5-year CD: 1.90% APY
  • 6-year CD: 1.90% APY

Read Full Review
Discover Bank CD

at Discover Bank,

Member, FDIC

Discover Bank CD

Discover Bank CD

1-year APY

1.75%

With $2500 minimum balance

3-year APY

1.80%

With $2500 minimum balance

5-year APY

1.80%

With $2500 minimum balance

Minimum Balance

$2,500

Member, FDIC

at Discover Bank,

Member, FDIC


3-year APY

1.80%

With $2500 minimum balance

5-year APY

1.80%

With $2500 minimum balance

Why we like it

Overview: The credit card issuer and online bank Discover offers a wide range of CDs. CD terms start at three months and extend to 10 years, though there tend to be better rates on terms from one to five years. The minimum to open is $2,500, which is somewhat high. To dive deeper, see our review of Discover CD rates.

 

Fees: The penalty for withdrawing early from a Discover CD depends on the CD’s term, starting with three months of interest for terms of less than one year. The biggest penalty is two years of interest for terms of seven to 10 years. Like most CDs, there are no monthly or opening fees.

 

Other products: Discover also boasts CDs for individual retirement accounts (or IRA CDs), an online savings account and a cashback checking account. There are also highly rated mobile apps and 24/7 live customer service.

 

Full list of Discover CD rates:

  • 3-month CD: 0.35% APY
  • 6-month CD: 0.65% APY
  • 9-month CD: 0.70% APY
  • 1-year CD: 1.75% APY
  • 18-month CD: 1.74% APY
  • 2-year CD: 1.75% APY
  • 30-month CD: 1.75% APY
  • 3-year CD: 1.80% APY
  • 4-year CD: 1.80% APY
  • 5-year CD: 1.80% APY
  • 7-year CD: 1.80% APY
  • 10-year CD: 1.80% APY

Read Full Review

Synchrony Bank CD

Synchrony Bank CD

1-year APY

1.50%

With $2000 minimum balance

3-year APY

1.55%

With $2000 minimum balance

5-year APY

1.65%

With $2000 minimum balance

Minimum Balance

$2,000

Member, FDIC


3-year APY

1.55%

With $2000 minimum balance

5-year APY

1.65%

With $2000 minimum balance

Why we like it

Overview: An online bank owned by a Fortune 500 company, Synchrony Bank has more CD terms than many banks, with eight terms under two years. This can be helpful for creating a short-term CD ladder, which is a more flexible approach to saving in CDs than holding funds only in long-term CDs (read more about CD ladders). Synchrony CD rates have a minimum of $2,000, which is a somewhat hefty opening requirement. Customer service is available by phone every day.

 

Fees: Early withdrawal penalties include: three months of interest for CDs of one-year terms or shorter, six months of interest for CDs between one-year and four-year terms, and one year of interest for five-year CDs. No monthly or opening costs.

 

Other products: Synchrony Bank offers IRA CDs for the retirement-minded as well as a money market account and high-yield savings account that has a program for extra banking perks, including unlimited ATM fee reimbursements. It doesn’t have checking accounts.

 

Full list of Synchrony Bank CD rates:

  • 3-month CD: 0.25% APY
  • 6-month CD: 0.50% APY
  • 9-month CD: 0.75% APY
  • 1-year CD: 1.50% APY
  • 18-month CD: 1.50% APY
  • 2-year CD: 1.50% APY
  • 3-year CD: 1.55% APY
  • 4-year CD: 1.60% APY
  • 5-year CD: 1.65% APY

Read Full Review

Ally Bank CD

Ally Bank CD

1-year APY

1.50%

With $0 minimum balance

3-year APY

1.55%

With $0 minimum balance

5-year APY

1.60%

With $0 minimum balance

Minimum Balance

$0

Member, FDIC


3-year APY

1.55%

With $0 minimum balance

5-year APY

1.60%

With $0 minimum balance

Why we like it

Overview: Ally Bank, an online-only institution originally founded by General Motors, offers a high-quality banking experience. It has an unusually diverse set of CDs, including a no-penalty CD and bump-rate CDs. The minimum deposit is $0 for most CDs. To see more information, check out our review of Ally CD rates.

 

Fees: No monthly or opening costs. If you withdraw early from a regular Ally CD, the penalty varies by term: two months of interest for two-year terms and shorter, three months of interest for 18-month and three-year CDs, four months of interest for four-year CDs and five months of interest for five-year CDs.

 

Other products: Ally is a full-service bank with checking, savings, IRA CDs, investing accounts and more. Its website and mobile app are top-notch, and customer service is available 24/7, with wait times listed online.

 

Full list of Ally Bank CD rates:

  • 3-month CD: 0.50% APY
  • 6-month CD: 0.75% APY
  • 9-month CD: 1.00% APY
  • 1-year CD: 1.50% APY
  • 18-month CD: 1.75% APY
  • 2-year CD: 1.50% APY
  • 3-year CD: 1.55% APY
  • 4-year CD: 1.50% APY
  • 5-year CD: 1.60% APY

Read Full Review

TIAA Bank CD

TIAA Bank CD

1-year APY

1.50%

With $5000 minimum balance

3-year APY

1.60%

With $5000 minimum balance

5-year APY

1.70%

With $5000 minimum balance

Minimum Balance

$5,000

Member, FDIC


3-year APY

1.60%

With $5000 minimum balance

5-year APY

1.70%

With $5000 minimum balance

Why we like it

Overview: TIAA Bank, part of the Fortune 100 company Teachers Insurance and Annuity Association of America, offers a wide range of high-yield CDs from three months to five years. The $5,000 minimum to open is steep compared with some banks, but the rates can be worthwhile. The bank promises that its Yield Pledge CDs have rates within the top 5% of its competitor banks. Although there are some branches, TIAA Bank mainly functions as an online bank with mobile apps and 24/7 customer service by phone.

 

Fees: Early withdrawal penalties vary for every CD term, starting at 22 days of interest for three-month CD and about 15 months of interest for five-year CDs. The penalties are higher than at some banks. No monthly or opening fees.

 

Other products: Apart from its Yield Pledge CDs, TIAA Bank also offers basic and bump rate CDs. Online checking, savings and money market accounts are also available.

 

Full list of TIAA Bank CD rates:

  • 3-month CD: 0.80% APY
  • 6-month CD: 1.10% APY
  • 9-month CD: 1.43% APY
  • 1-year CD: 1.50% APY
  • 18-month CD: 1.55% APY
  • 2-year CD: 1.60% APY
  • 30-month CD: 1.20% APY
  • 3-year CD: 1.60% APY
  • 4-year CD: 1.65% APY
  • 5-year CD: 1.70% APY

Read Full Review

Barclays CD

Barclays CD

1-year APY

1.85%

With $0 minimum balance

3-year APY

1.85%

With $0 minimum balance

5-year APY

1.85%

With $0 minimum balance

Minimum Balance

$0

Member, FDIC


3-year APY

1.85%

With $0 minimum balance

5-year APY

1.85%

With $0 minimum balance

Why we like it

Overview: Barclays, an online-only U.S. branch of a London-based company by the same name, has CD rates with the rare perk of no opening minimum. Terms include three-month to five-year CDs, with the better rates generally for one-year CDs onward. Customer service is available every day for 12 hours.

 

Fees: No monthly or opening fees. The early withdrawal penalties are three months of interest for two-year CDs and shorter, and six months of interest for CDs with terms longer than two years.

 

Other products: Barclays also has a high-yield savings account with no minimum deposit and a bare-bones mobile app. The bank lacks checking, an ATM network and advanced budgeting tools.

 

Full list of Barclays CD rates:

  • 3-month CD: 0.35% APY
  • 6-month CD: 0.65% APY
  • 9-month CD: 0.70% APY
  • 1-year CD: 1.85% APY
  • 18-month CD: 1.85% APY
  • 2-year CD: 1.85% APY
  • 3-year CD: 1.85% APY
  • 4-year CD: 1.85% APY
  • 5-year CD: 1.85% APY

Read Full Review

Citizens Access CD

Citizens Access CD

1-year APY

1.50%

With $5000 minimum balance

3-year APY

1.55%

With $5000 minimum balance

5-year APY

1.65%

With $5000 minimum balance

Minimum Balance

$5,000

Member, FDIC


3-year APY

1.55%

With $5000 minimum balance

5-year APY

1.65%

With $5000 minimum balance

Why we like it

Overview: Citizens Access, the online-only offshoot of Citizens Bank, has a variety of CDs with terms ranging from one to five years. The $5,000 minimum to open is high. Phone support is available every day of the week.

 

Fees: No monthly or opening fees. Withdrawing early from a CD has a charge of six months of interest.

 

Other products: Like other online banks with stellar CD options, Citizens Access doesn't have checking or branches, but its savings account has a top APY. Citizens Access doesn’t have mobile apps, but its website is mobile-friendly.

 

Full list of Citizens Access CD rates:

  • 1-year CD: 1.50% APY
  • 2-year CD: 1.50% APY
  • 3-year CD: 1.55% APY
  • 4-year CD: 1.60% APY
  • 5-year CD: 1.65% APY

Read Full Review

Sallie Mae Bank CD

Sallie Mae Bank CD

1-year APY

1.50%

With $2500 minimum balance

3-year APY

1.45%

With $2500 minimum balance

5-year APY

1.45%

With $2500 minimum balance

Minimum Balance

$2,500

Member, FDIC


3-year APY

1.45%

With $2500 minimum balance

5-year APY

1.45%

With $2500 minimum balance

Why we like it

Overview: Online student loan provider Sallie Mae focuses on short-term CDs, with 10 options from six months to three years. There is a five-year but no four-year term. The $2,500 minimum is somewhat hefty. Phone support is available only on weekdays.

 

Fees: Withdrawing early results in a penalty, either three months of interest for CDs of one year or shorter or six months of interest for CDs of longer terms. No monthly or opening fees.

 

Other products: Sallie Mae also has a money market account, high-yield savings account and a goal-oriented savings account. Its mobile app ratings are mixed.

 

Full list of Sallie Mae CD rates:

  • 6-month CD: 1.30% APY
  • 9-month CD: 1.30% APY
  • 11-month CD: 1.30% APY
  • 1-year CD: 1.50% APY
  • 13-month CD: 1.50% APY
  • 15-month CD: 1.50% APY
  • 18-month CD: 1.50% APY
  • 2-year CD: 1.50% APY
  • 30-month CD: 1.45% APY
  • 3-year CD: 1.45% APY
  • 5-year CD: 1.45% APY

Read Full Review

Alliant Credit Union CD

Alliant Credit Union CD

1-year APY

1.40%

With $1000 minimum balance

3-year APY

1.45%

With $1000 minimum balance

5-year APY

1.50%

With $1000 minimum balance

Minimum Balance

$1,000

Member, NCUA


3-year APY

1.45%

With $1000 minimum balance

5-year APY

1.50%

With $1000 minimum balance

Why we like it

Overview: Founded in 1935 in Illinois, the online-focused Alliant Credit Union is one of the largest credit unions nationwide. To become a member, one option is to agree to support Alliant's partner charity Foster Care to Success; Alliant will make a $5 donation on your behalf. Alliant’s certificates have a low minimum deposit of $1,000, and terms stretch from one to five years. Unlike at many banks, you can select a term of any month within that range. Phone support is available 24/7.

 

Fees: No monthly or opening costs. Early withdrawal penalties are more friendly than some banks’ — the penalty for certificates of two-year terms or longer is up to six months of dividends. Some banks require more than a year of dividends, or interest, for similar terms.

 

Other products: Alliant also offers IRA certificates for those saving for retirement as well as high-yield checking and savings accounts and an extensive ATM network.

 

Full list of Alliant Credit Union CD rates:

  • 1-year CD: 1.40% APY
  • 18-month CD: 1.40% APY
  • 2-year CD: 1.45% APY
  • 30-month CD: 1.20% APY
  • 3-year CD: 1.45% APY
  • 4-year CD: 1.45% APY
  • 5-year CD: 1.50% APY

Read Full Review

American Express National Bank CD

American Express National Bank CD

1-year APY

1.85%

With $0 minimum balance

3-year APY

1.95%

With $0 minimum balance

5-year APY

2.00%

With $0 minimum balance

Minimum Balance

$0

Member, FDIC


3-year APY

1.95%

With $0 minimum balance

5-year APY

2.00%

With $0 minimum balance

Why we like it

Overview: American Express is more than a major credit card issuer. Its bank offers CDs with competitive rates from terms up to five years, and there’s no minimum to open. Rates include its five-year CD with 2.00% APY as of 3/19/2020. Phone support is 24/7.

 

Fees: No monthly or opening fees. Withdrawing early can result in huge penalties that vary by CD term, ranging from around three months’ worth of interest to about 18 months’. The maximum penalty is one of the highest among online bank CDs.

 

Other products: American Express also has a high-yield savings account, which you can compare with other solid options on our list of the best online savings accounts.

 

Full list of American Express CD rates:

  • 6-month CD: 0.40% APY
  • 1-year CD: 1.85% APY
  • 18-month CD: 1.90% APY
  • 2-year CD: 1.90% APY
  • 3-year CD: 1.95% APY
  • 4-year CD: 1.95% APY
  • 5-year CD: 2.00% APY

Read Full Review

CIT Bank CD

CIT Bank CD

1-year APY

1.86%

With $1000 minimum balance

3-year APY

1.30%

With $1000 minimum balance

5-year APY

1.70%

With $1000 minimum balance

Minimum Balance

$1,000

Member, FDIC


3-year APY

1.30%

With $1000 minimum balance

5-year APY

1.70%

With $1000 minimum balance

Why we like it

Overview: CIT Bank is an online bank with three types of CDs, term (or standard), jumbo and no-penalty (if you’re curious about the different CDs, see our explainer on types of CDs). The term CDs range from six months to five years, and the minimum is on the lower end. Customer service by phone is available from 8 a.m. to 9 p.m. Eastern Time on weekdays, plus some Saturday hours.

 

Fees: No monthly or opening fees. CIT’s early withdrawal penalties range from three to 12 months’ worth of interest, which is on the lower end for online bank CDs.

 

Other products: CIT also offers checking, money market account and a high-yield savings account (compare options on our list of the best online savings accounts).

 

List of CIT Bank CD rates:

  • 6-month CD: 0.72% APY
  • 1-year CD: 1.86% APY
  • 13-month CD: 1.82% APY
  • 18-month CD: 1.85% APY
  • 2-year CD: 1.40% APY
  • 3-year CD: 1.30% APY
  • 4-year CD: 1.50% APY
  • 5-year CD: 1.70% APY

Read Full Review

Vio Bank CD

Vio Bank CD

1-year APY

1.00%

With $500 minimum balance

3-year APY

1.30%

With $500 minimum balance

5-year APY

1.50%

With $500 minimum balance

Minimum Balance

$500

Member, FDIC


3-year APY

1.30%

With $500 minimum balance

5-year APY

1.50%

With $500 minimum balance

Why we like it

Overview: Vio Bank is the online division of MidFirst Bank, one of the largest private U.S. banks, and has expansive offerings for CDs. Terms range from six months to 10 years, and the $500 opening minimum is low. Phone support hours are extensive on weekdays and Saturdays.

 

Fees: No upfront costs. If you withdraw early on a CD with a term longer than one year, the penalty is 3% of the amount withdrawn and a $25 fee. This is an unusual fee structure, since most banks stick to the interest earned in a certain number of months.

 

Other products: Vio Bank also has a high-yield savings account. There’s no checking or ATM network offered.

 

List of all Vio Bank CD rates:

  • 6-month CD: 0.80% APY
  • 9-month CD: 0.90% APY
  • 1-year CD: 1.00% APY
  • 18-month CD: 1.10% APY
  • 2-year CD: 1.20% APY
  • 3-year CD: 1.30% APY
  • 4-year CD: 1.40% APY
  • 5-year CD: 1.50% APY
  • 7-year CD: 1.60% APY
  • 10-year CD: 1.70% APY

Read Full Review

Capital One CD

Capital One CD

1-year APY

1.50%

With $0 minimum balance

3-year APY

1.40%

With $1 minimum balance

5-year APY

1.40%

With $1 minimum balance

Minimum Balance

$1

Member, FDIC


3-year APY

1.40%

With $1 minimum balance

5-year APY

1.40%

With $1 minimum balance

Why we like it

Overview: Capital One, one of the biggest U.S. credit card issuers, is also an online bank with strong savings tools and CD options. Terms go from six months to five years, and there’s no minimum to open. Capital One has a handful of cafes in major cities nationwide that function like branches, and its phone support for online customers is available during weekdays. To see more details about CDs, check out our review of Capital One CDs.

 

Fees: No monthly or opening fees. The early withdrawal penalty for 1-year CDs and shorter terms is three months of interest and the penalty for longer terms is six months. These are lower penalties than at some banks.

 

Other products: Capital One boasts a strong selection of online accounts, including checking, savings and money market accounts. Its mobile apps have been ranked among the highest in customer satisfaction by J.D. Power.

 

List of all Capital One CD rates:

  • 6-month CD: 0.60% APY
  • 9-month CD: 0.80% APY
  • 1-year CD: 1.50% APY
  • 18-month CD: 1.50% APY
  • 2-year CD: 1.40% APY
  • 30-month CD: 1.40% APY
  • 3-year CD: 1.40% APY
  • 4-year CD: 1.40% APY
  • 5-year CD: 1.40% APY

Read Full Review

No-penalty CD rates this month

If you withdraw money from a CD before the term ends, you generally pay a penalty of at least several months' worth of interest earned. But some providers have CDs without this early withdrawal penalty, though rates are slightly lower than other CD rates. Here are some:

  • Marcus by Goldman Sachs, 11-month no-penalty CD, 1.60% APY.
  • Ally Bank, 11-month no penalty-CD, up to 1.55% APY.
  • CIT Bank, 11-month no-penalty CD, 1.70% APY.

» See more details on our list of the best no-penalty CD rates.

[Back to top]

What is a no-penalty CD?

A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect.

Here's our list of best CD rates from top banks and credit unions for April 2020

  • Goldman Sachs Bank: 0.60% - 1.90% APY, 6 months - 6 years, $500 minimum to open
  • Discover Bank: 0.35% - 1.80% APY, 3 months - 10 years, $2,500 minimum to open
  • Citizens Access: 1.50% - 1.65% APY, 1 - 5 years, $5,000 minimum to open
  • Synchrony Bank: 0.25% - 1.65% APY, 3 months - 5 years, $2,000 minimum to open
  • Ally Bank: 0.50% - 1.60% APY, 3 months - 5 years, no minimum to open
  • TIAA Bank: 0.80% - 1.70% APY, 3 months - 5 years, $5,000 minimum to open
  • Sallie Mae Bank: 1.30% - 1.45% APY, 6 months - 5 years, $2,500 minimum to open
  • Barclays: 0.35% - 1.85% APY, 3 months - 5 years, no minimum to open
  • Alliant Credit Union: 1.40% - 1.50% APY, 1 - 5 years, $1,000 minimum to open
  • American Express: 0.40% - 2.00% APY, 6 months - 5 years, no minimum to open
  • CIT Bank: 0.72% - 1.70% APY, 6 months - 5 years, $1,000 minimum to open
  • Vio Bank: 0.80% - 1.70% APY, 6 months - 10 years, $500 minimum to open
  • Capital One: 0.60% - 1.40% APY, 6 months - 5 years, no minimum to open

Last updated on April 1, 2020

Methodology

We took a close look at over 70 financial institutions, including the largest U.S. banks based on assets, debit card volume, internet search traffic and other factors; the nation’s largest credit unions, based on deposits as well as broad-based membership requirements; 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; we favored those with the highest CD rates. We excluded banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere. Financial institutions surveyed include: Alaska USA Federal Credit UnionAlliant Credit UnionAlly BankAmerica First Credit UnionAmerican ExpressAspirationAssociated BankAxos BankBank5 Connect, Bank7, Bank of AmericaBank of the WestBarclays, BB&T, BBVABoeing Employees Credit Union, BMO HarrisCapital One 360Charles Schwab BankChaseChimeCIBC U.S., CITCitibankCitizens AccessCitizens Bank, Comerica Bank, Commerce BankConnexus Credit UnionConsumers Credit UnionDiscover Bank, E-Trade, FidelityFifth Third BankFirst National BankFirst Tech Federal Credit UnionGoBankGolden 1 Credit UnionGS BankHSBC Bank USAHuntington BankKeyBankM&T BankMovenNavy Federal Credit UnionPentagon Federal Credit UnionPNC, Popular DirectPurePoint FinancialRadius Bank, Redneck Bank, Regions BankSallie Mae BankSantander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit UnionSimpleState Employees’ Credit Union of North CarolinaState Farm BankSuncoast Credit Union, SunTrust Bank, Synchrony BankTCF BankTD BankTIAA BankUnion BankUFB DirectUSAAU.S. BankVaro, Vio BankWells Fargo and Zions Bank.

Frequently asked questions

A CD, or certificate of deposit, is a type of savings account that keeps money locked up for a set period or term, generally three months to five years. The longer the CD term, the higher the rate. Here are this month's best CD rates.

It depends on what’s more important to you: rates or access to your money. Some of the current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t work for you, check out our list of best online savings accounts.

CDs can make sense as a way to lock up some savings dedicated to a short-term goal such as buying a car or house in the next few years. Outside of goals, CDs can be a safe place for money you want to get guaranteed returns on without the risk of fluctuation such as in the stock market.

It depends on your savings goals and how sure you are that you won't need your funds before the CD term expires. Having to pay an early withdrawal penalty, generally up to one year's worth of interest, can be a blow to your savings. Common CD terms range from six months to five years; if you want to play it safe, go for a shorter CD term or a no-penalty CD.

No. The Federal Reserve cut rates in March 2020, which encouraged banks and credit unions to lower their CD rates. Rates are likely to continue falling before they go up again.

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. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.

CD rates are 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.

» See what CDs can earn you with our CD calculator

Both show the rate of interest you can earn on a CD or savings account, but APY factors in compounding interest and the interest rate doesn’t. If you’re comparing CD rates at a glance, APY is more useful. For example, APY brings a CD with interest compounded daily and another with interest compounded monthly onto the same playing field. For CDs of the same term length, a higher APY means a higher return.

This depends on the CD’s interest rate and compounding period. Let’s say you placed $10,000 into a one-year CD with 1.50% APY, which is a 1.49% interest rate, that compounds interest daily. You’d earn about $150 in interest.

The biggest point of comparison for any CD is the rate: the higher it is, the more you save. Compare CD rates by term, for example, five-year CDs with other five-year CDs. Other details to consider would be an unusually high minimum deposit or a harsh early withdrawal penalty (such as cutting into the initial deposit you put into the CD — most early-withdrawal penalties only affect the interest earned, not the initial deposit).

Credit unions and online banks are solid places to find competitive CD rates. Credit unions are the nonprofit equivalent of banks, and can generally offer higher savings rates than traditional brick-and-mortar banks. Credit unions’ certificates of deposit are called “shared certificates” and interest “dividends,” and these function as they do at banks.

A jumbo CD is a type of CD with a traditionally high minimum deposit such as $10,000, though it can be lower. Although jumbo CD rates can be higher than regular CDs, online banks and credit unions offer some of the best rates on CDs with low or no minimums.

A brokered CD is a CD originated by a bank or credit union and offered by a brokerage firm. They function like regular CDs except that they can be traded before their terms end. Check out the pros and cons on our explainer about brokered CDs.

An IRA, or individual retirement account, is a tax-advantaged account that contains investments such as stocks, bonds and CDs. A CD is a type of savings account that locks up money for a set term, generally from three months to five years.

An IRA CD is a type of CD used to save a portion of retirement savings. You get the tax-advantaged status of an IRA and the fixed term and rate of a CD.

No. CDs are meant for savings you can set aside and leave untouched. Consider a high-yield savings account for money you need in a pinch.

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’ 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.

A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect. Here’s a closer look at no-penalty CDs: pros, cons, and some of their rates.

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, so a CD with a term longer than a year wouldn’t have its interest taxed until the term ends.

A CD ladder can be a helpful strategy if you don’t want to go all in on one CD, especially if you think rates will keep rising. It works like this: you open multiple CDs at different terms, such as one year, two years and three years, which frees up part of your funds more regularly than having, say, just a three-year CD. Each time a CD matures, you can either reinvest in a new CD or withdraw your money.

It depends on what rates and type of access to funds you need. Like high-yield savings accounts, money market accounts have ongoing access to funds, while CDs don’t. Among savings accounts, CD rates are traditionally the highest, then money market accounts, then regular savings accounts. However, online high-yield savings account rates now compete with money market rates, which you can see on our list of top rates.

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 your savings goals and options -- investing your money in mutual funds might be more worthwhile for a longer term.

» For more info, see the best short-term investments for 5 years or less

It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They’re typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses.

Let's say you have an emergency fund that consists of enough cash to cover about three to six months’ worth of living expenses. To grow your long-term savings, consider opening an online brokerage account. Although these financial products come with more risk than CDs, they could lead to higher returns.

Picking the right broker comes down to your priorities. Some investors are willing to pay more for a top-notch platform; others count costs above all else. With brokerage accounts, you don't have to worry about early withdrawal penalties, but your funds may be more difficult to access in a pinch, given that you’ll likely need to sell some investment shares before you can devote that money to anything else.

» For in-depth guidance, check out NerdWallet’s best online stock brokers for beginners