11 Best CD Rates for January 2022
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ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
The best CD rates provide a stable way to grow fixed sums of savings faster than other CDs or savings accounts.
Why trust NerdWallet: Our writers and editors follow 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.
Online banks and credit unions tend to have the best yields on certificates of deposit. You can find rates two to three times higher than the national averages of 0.13% for one-year terms and 0.28% for five-year terms. Although many CD interest rates dropped during the first year of the pandemic, there have been some rate increases since July 2021. For more on rate changes, see our analysis of current CD rates.
If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term.
If you'll need access to funds in the short term, consider the best six-month rates or the best one-year rates. Or, if you want more flexibility than typical CDs, scroll down to see no-penalty CDs that let you withdraw when you want.
Here’s a look at some of the highest CD rates on the market.
ALSO CONSIDER: Best online savings accounts || Best checking accounts || Best high-interest accounts
The best CD rates provide a stable way to grow fixed sums of savings faster than other CDs or savings accounts.
Why trust NerdWallet: Our writers and editors follow 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.
Online banks and credit unions tend to have the best yields on certificates of deposit. You can find rates two to three times higher than the national averages of 0.13% for one-year terms and 0.28% for five-year terms. Although many CD interest rates dropped during the first year of the pandemic, there have been some rate increases since July 2021. For more on rate changes, see our analysis of current CD rates.
If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term.
If you'll need access to funds in the short term, consider the best six-month rates or the best one-year rates. Or, if you want more flexibility than typical CDs, scroll down to see no-penalty CDs that let you withdraw when you want.
Here’s a look at some of the highest CD rates on the market.
Best CD Rates
| Bank/Institution | NerdWallet Rating | Minimum Deposit | 1-year APY | 3-year APY | 5-year APY | Learn More |
|---|---|---|---|---|---|---|
 Synchrony Bank CD Learn more at Synchrony Bank, Member FDIC | $0 Member FDIC | 0.55% | 0.75% | 1.00% | Learn more at Synchrony Bank, Member FDIC | |
 Comenity Direct CD Learn more at Comenity Direct, Member FDIC | $1,500 Member FDIC | 0.65% | 1.00% | 1.10% | Learn more at Comenity Direct, Member FDIC | |
 Discover Bank CD Learn more at Discover Bank, Member FDIC | $2,500 Member FDIC | 0.55% | 0.75% | 1.00% | Learn more at Discover Bank, Member FDIC | |
 Quontic Bank CD Learn more at Quontic Bank, Member FDIC | $500 Member FDIC | 0.60% | 1.10% | 1.20% | Learn more at Quontic Bank, Member FDIC | |
 TIAA Bank Basic CD | $1,000 Member FDIC | 0.55% | 0.80% | 1.05% | Read review | |
 Ally Bank High Yield CD | $0 Member FDIC | 0.55% | 0.65% | 0.80% | Read review | |
 Connexus Credit Union CD | $5,000 Federally insured by the NCUA | 0.61% | 0.81% | 1.21% | Read review | |
 Marcus by Goldman Sachs High-Yield CD | $500 Member FDIC | 0.55% | 0.75% | 1.00% | Read review | |
 Sallie Mae Bank CD | $2,500 Member FDIC | 0.60% | 0.80% | 0.80% | Read review | |
 PenFed Credit Union CD | $1,000 Federally insured by the NCUA | 0.85% | 1.00% | 1.30% | Read review | |
 Popular Direct CD | $10,000 Member FDIC | 0.15% | 0.95% | 1.00% | Read review |
at Synchrony Bank, Member FDIC
Synchrony Bank CD
Minimum Deposit
$0Member FDIC
1-year APY
0.55%3-year APY
0.75%5-year APY
1.00%at Synchrony Bank, Member FDIC
at Comenity Direct, Member FDIC
Comenity Direct CD
Minimum Deposit
$1,500Member FDIC
1-year APY
0.65%3-year APY
1.00%5-year APY
1.10%at Comenity Direct, Member FDIC
at Discover Bank, Member FDIC
Discover Bank CD
Minimum Deposit
$2,500Member FDIC
1-year APY
0.55%3-year APY
0.75%5-year APY
1.00%at Discover Bank, Member FDIC
at Quontic Bank, Member FDIC
Quontic Bank CD
Minimum Deposit
$500Member FDIC
1-year APY
0.60%3-year APY
1.10%5-year APY
1.20%at Quontic Bank, Member FDIC
TIAA Bank Basic CD
Minimum Deposit
$1,000Member FDIC
1-year APY
0.55%3-year APY
0.80%5-year APY
1.05%Ally Bank High Yield CD
Minimum Deposit
$0Member FDIC
1-year APY
0.55%3-year APY
0.65%5-year APY
0.80%Connexus Credit Union CD
Minimum Deposit
$5,000Federally insured by the NCUA
1-year APY
0.61%3-year APY
0.81%5-year APY
1.21%Marcus by Goldman Sachs High-Yield CD
Minimum Deposit
$500Member FDIC
1-year APY
0.55%3-year APY
0.75%5-year APY
1.00%Sallie Mae Bank CD
Minimum Deposit
$2,500Member FDIC
1-year APY
0.60%3-year APY
0.80%5-year APY
0.80%PenFed Credit Union CD
Minimum Deposit
$1,000Federally insured by the NCUA
1-year APY
0.85%3-year APY
1.00%5-year APY
1.30%Popular Direct CD
Minimum Deposit
$10,000Member FDIC
1-year APY
0.15%3-year APY
0.95%5-year APY
1.00%» Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts
CD definition
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. See more about what CDs are.
Best CD rates for January 2022
Synchrony Bank: 0.15% - 1.00% APY, 3 months - 5 years, $2,000 minimum to open.
Quontic Bank: 0.55% - 1.10% APY, 6 months - 3 years, $500 minimum to open.
Discover Bank: 0.20% - 1.00% APY, 3 months - 10 years, $2,500 minimum to open.
Comenity Direct: 0.65% - 1.10% APY, 1 - 5 years, $1,500 minimum to open.
TIAA Bank: 0.35% - 1.05% APY, 3 months - 5 years, $1,000 minimum to open.
Ally Bank: 0.15% - 0.80% APY, 3 months - 5 years, no minimum to open.
Connexus Credit Union: 0.61% - 1.21% APY, 1 - 5 years, $5,000 minimum to open.
Marcus by Goldman Sachs: 0.15% - 1.00% APY, 6 months - 6 years, $500 minimum to open.
Sallie Mae Bank: 0.30% - 0.80% APY, 6 months - 5 years, $2,500 minimum to open.
Pentagon Federal Credit Union: 0.45% - 1.50% APY, 6 months - 7 years, $1,000 minimum to open.
Popular Direct: 0.15% - 1.00% APY, 3 months - 5 years, $10,000 minimum to open.
How do CDs work?
Learn more about the journey of choosing, opening and closing CDs:
For choosing CDs:
For opening CDs:
For closing CDs:
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.
Best no-penalty CD rates
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, 0.35% APY.
Ally Bank, 11-month no penalty-CD, 0.50% APY.
CIT Bank, 11-month no-penalty CD, 0.30% APY.
» See more details on our list of the best no-penalty CD rates.
What happens if I withdraw from a CD early?
Most CDs have an early withdrawal penalty that tends to range from several months' to a year's worth of interest earned, depending on the CD term length and the bank's policy. No-penalty CDs are the only type of CD that lets you withdraw money from a CD early without a fee. Learn more about different types of CDs.
Last updated on January 1, 2022
Methodology
On a monthly basis, we compare rates at over 20 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyzed 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 80 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, Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, BB&T (now Truist), BMO Harris, Boeing Employees Credit Union, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comenity Direct, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Discover Bank, E-Trade, Fifth Third Bank, First Foundation, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Monifi, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Redneck Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, SunTrust Bank (now Truist), Synchrony Bank, TAB Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's Best CD Rates for January 2022
Frequently asked questions
Definition: A CD, or certificate of deposit, is a bank account with a fixed interest rate that’s generally higher than that of a regular savings account, and a fixed date of withdrawal, known as the maturity date. Common terms range from three months to five years.
Main advantages: The ability to lock in rates when they’re high is one of the most attractive features of a CD, especially since regular savings accounts have variable rates subject to change at any time. Even outside of high-rate environments, though, CDs provide a safe, federally insured place for short-term savings.
Main downsides: You’ll generally have to pay a penalty if you withdraw your money before a CD matures; the penalty can be equal to several months’ or a year’s worth of interest.
What else to consider: If you’re thinking about CDs, compare the highest CD rates today.
Online banks such as Quontic Bank and Ally and credit unions such as Connexus 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.
Yes, in some cases. CD interest rates have stayed relatively flat for the first half of 2021, but some online banks and credit unions are raising a few rates. See more insight about current CD rates.
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. Take a closer look at when CDs are worth it.
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.
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
This depends on the CD’s interest rate and compounding period. Let’s say you placed $10,000 into a one-year CD with 0.50% APY that compounds interest daily. You’d earn about $50 in interest.
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.
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, one-year CDs with other one-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.
See our list of the best credit union CD rates.
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.
See our list of the best IRA CD rates.
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. Learn more about how CD ladders work.
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, especially in a low-rate environment, is unlikely to 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
Both CDs and savings bonds offer stable returns over time and can be given to children as long as an adult manages the account on their behalf. Savings bonds have longer time horizons, up to 30 years, and can earn more than many CDs in a low-rate environment. Learn more about savings bonds and how to give them as gifts.