BEST OF

Best CD Rates for July 2024: Up to 5.30%

Spencer Tierney
By Spencer Tierney 
Edited by Sara Clarke

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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 90 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) can have the highest interest rates among bank accounts. The best CD rates today are above 5% for one-year terms and above 4% for three- to five-year terms.

CDs provide a boost to savings, with certain limits: You agree to lock up a fixed sum for a set period, typically between three months to five years and in exchange, you get a guaranteed interest rate for that time period. High-yield CDs can earn you more money than high-yield savings accounts.

Our list features banks and credit unions that NerdWallet has reviewed and that have nationally available CDs. The selections have competitive APYs across popular short- and long-term CDs.

APY research methodology: Annual percentage yields, meaning the rates of return, are current on this page as of its publication date. All other information is current as of June 24, 2024.

Summary of best CD rates

Here are the highest CD rates at top online banks and credit unions for term lengths from nine to 15 months:

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 90 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) can have the highest interest rates among bank accounts. The best CD rates today are above 5% for one-year terms and above 4% for three- to five-year terms.

CDs provide a boost to savings, with certain limits: You agree to lock up a fixed sum for a set period, typically between three months to five years and in exchange, you get a guaranteed interest rate for that time period. High-yield CDs can earn you more money than high-yield savings accounts.

Our list features banks and credit unions that NerdWallet has reviewed and that have nationally available CDs. The selections have competitive APYs across popular short- and long-term CDs.

APY research methodology: Annual percentage yields, meaning the rates of return, are current on this page as of its publication date. All other information is current as of June 24, 2024.

Summary of best CD rates

Here are the highest CD rates at top online banks and credit unions for term lengths from nine to 15 months:

Best CD Rates for July 2024: Up to 5.30%

Our pick for

CD Rates

NerdWallet rating 

5.0

/5
Marcus by Goldman Sachs High-Yield CD
Learn more

at Goldman Sachs Bank USA, Member FDIC

Minimum deposit
$500
Member FDIC
APY
1-year APY: 5.15%

3-year APY: 4.15%

5-year APY: 4.00%

Why We Like It

Overview: Marcus is the Goldman Sachs branch launched in 2016 that handles online banking products, including an extensive lineup of CDs with terms from six months to six years. Six years is unusual; most banks’ CD terms stop at five years. Rates include its one-year CD with 5.15% APY (annual percentage yield) as of 06/25/2024. The minimum of $500 is lower than at many banks, though some have no minimum. The bank has two specialty types of CDs: a 20-month bump-up CD and three no-penalty CD terms, which include seven months, 11 months and 13 months. These specialty CDs are rare and have perks beyond the typical CD, such as the ability to request a rate increase for a bump-up CD and the freedom to redeem a no-penalty CD earlier than maturity at no cost.

Fees: No monthly or opening fees, which is normal for CDs. If you withdraw early from a standard Marcus CD, the penalty is the following: three months’ worth of interest earned for CD terms up to a year, six months of interest for CD terms of one to five years and nine month’s worth of interest for the six-year CD. These penalties are lower than at some online banks.

Other products: Its savings account’s rate is solid. 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.

Marcus CD rates:

1-year CD: 5.15% APY

3-year CD: 4.15% APY

5-year CD: 4.00% APY

See more rates on our Marcus review

NerdWallet rating 

5.0

/5
BMO Alto Certificate of Deposit
Learn more

at BMO Alto, Deposits are FDIC Insured

Minimum deposit
$0
Deposits are FDIC Insured
APY
1-year APY: 5.05%

3-year APY: 4.60%

5-year APY: 4.75%

Why We Like It

Overview: BMO Alto is the U.S. online-only division of BMO, all under the Canada-based parent bank BMO Financial Group. BMO Alto's online CDs have high rates and no minimum opening deposit requirement, whereas many online banks have minimum deposits such as $500 or $1,000. CD terms go from six months to five years, which is a standard range. Note that all the money you have across divisions of BMO Financial Group (including BMO and Bank of the West) counts toward the same FDIC insurance limit for one institution.

Fees: No monthly or opening fees, which is normal for CDs. BMO Alto’s early withdrawal penalties include three months of interest for CD terms of 11 months or shorter and six months of interest for CD terms of one year or longer. These penalties are low.

Other products: BMO Alto also offers a high-yield savings account, but no checking account, so the bank is best for saving money.

BMO Alto CD rates:

1-year CD: 5.05% APY

3-year CD: 4.60% APY

5-year CD: 4.75% APY

See more rates on our BMO Alto review

NerdWallet rating 

5.0

/5
Alliant Credit Union Certificate
Learn more

at Alliant Credit Union, Federally insured by NCUA

Minimum deposit
$1,000
Federally insured by NCUA
APY
1-year APY: 5.05%

3-year APY: 4.15%

5-year APY: 4.00%

Why We Like It

Overview: Founded in 1935 in Illinois, the online-focused Alliant Credit Union is one of the largest credit unions nationwide and offers solid certificate rates. To become a member, the easiest option for most consumers nationwide is to agree to support Alliant's nonprofit partner 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 three months to five years, which is a typical range.

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

Other products: Alliant also offers IRA and jumbo certificates for those saving for retirement as well as high-yield checking and savings account.

Alliant Credit Union certificate rates:

1-year: 5.05% APY

3-year: 4.15% APY

5-year: 4.00% APY

See more rates on our Alliant Credit Union review

NerdWallet rating 

5.0

/5
Bread Savings™️ CD
Learn more

at Bread Savings, Member FDIC

Minimum deposit
$1,500
Member FDIC
APY
1-year APY: 5.25%

3-year APY: 4.25%

5-year APY: 4.15%

Why We Like It

Overview: Bread Savings (formerly Comenity Direct) is an online-only banking division of Bread Financial (formerly Comenity Bank). Despite the unusual name, the bank has a lineup of online CD rates worth considering. Terms are limited to a range from one to five years, whereas many online banks have CDs with terms shorter than one year. The $1,500 minimum balance is somewhat high among online banks.

Fees: No monthly or opening fees, which is standard for CDs. Bread Savings charges a penalty for early withdrawals that’s a little steeper than some 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.

Other products: Bread Savings also features a high-yield savings account, but no checking account, so it’s a bank for savers.

Bread Savings™️ CD rates:

1-year CD: 5.25% APY

3-year CD: 4.25% APY

5-year CD: 4.15% APY

See more rates on our Bread Savings review

NerdWallet rating 

5.0

/5
Synchrony Bank CD
Minimum deposit
$0
Member FDIC
APY
1-year APY: 4.80%

3-year APY: 4.15%

5-year APY: 4.00%

Why We Like It

Overview: An online bank owned by a Fortune 500 company, Synchrony Bank has a stellar lineup of CDs with terms ranging from three months to five years. The range of terms is fairly standard, but Synchrony stands out for offering more variety of CD types than the typical bank. It offers a no-penalty CD, which allows you to withdraw the full amount early at no cost, and a bump-up CD, which lets you raise your rate once during the term. Unlike many banks, Synchrony has no minimum opening requirement.

Fees: Early withdrawal penalties include: three months of interest for CDs of one-year terms or shorter; six months of interest for CDs of terms longer than one year and shorter than four years; and one year of interest for four-year CDs and longer. These penalties are on the higher side among online banks. No monthly or opening costs outside of these penalties exist, which is standard for CDs.

Other products: Synchrony Bank offers IRA CDs for the retirement-minded as well as a money market account and high-yield savings account. It doesn’t have checking accounts, though, so Synchrony is best for saving money.

Synchrony Bank CD rates:

9-month CD: 4.90% APY

1-year CD: 4.80% APY

3-year CD: 4.15% APY

5-year CD: 4.00% APY

See more rates on our Synchrony review

NerdWallet rating 

4.5

/5
EverBank Performance℠ CD
Minimum deposit
$1,000
Member FDIC
APY
1-year APY: 4.80%

3-year APY: 4.10%

5-year APY: 3.90%

Why We Like It

Overview: EverBank, formerly known as TIAA Bank, is an online bank that offers a standard range of high-yield CDs from three months to five years. The $1,000 minimum to open is somewhat low compared with some banks, and the rates can be worthwhile. In addition to its nationwide online platform, the bank has some branches – rare for a bank with high-yield CDs – but they’re only in Florida.

Fees: Early withdrawal penalties vary for every CD term, ranging from 22 days of interest for three-month CDs to about 15 months of interest for five-year CDs. The penalties are higher than at many banks, and it’s unusual for every CD term to have a different penalty amount. There are no monthly or opening fees, which is standard for CDs.

Other products: Online checking, savings and money market accounts are also available.

EverBank CD rates:

9-month CD: 5.05% APY

1-year CD: 4.80% APY

3-year CD: 4.10% APY

5-year CD: 3.90% APY

See more rates on our EverBank review

NerdWallet rating 

5.0

/5
LendingClub CD
Minimum deposit
$2,500
Member FDIC
APY
1-year APY: 4.40%

3-year APY: 4.30%

5-year APY: 4.00%

Why We Like It

Overview: LendingClub Bank is an online-only financial institution. Its CDs have solid rates for a standard range of terms from six months to five years. The $2,500 minimum opening balance is high compared to other online banks' requirements.

Fees: No monthly or opening fees, which is typical for CDs. LendingClub Bank’s early withdrawal penalties include 90 days of interest for CDs of one year or shorter and 180 days of interest for CDs longer than a year. These penalties are fairly low for an online bank.

Other products: LendingClub Bank also offers a high-yield savings account, rewards checking account and various loans.

LendingClub Bank CD rates:

1-year CD: 4.40% APY

3-year CD: 4.30% APY

5-year CD: 4.00% APY

See more rates on our LendingClub Bank review

NerdWallet rating 

4.5

/5
Quontic Bank CD
Minimum deposit
$500
Member FDIC
APY
1-year APY: 4.50%

3-year APY: 4.40%

5-year APY: 4.30%

Why We Like It

Overview: With roots as a community development financial institution in New York City, Quontic Bank expanded to become a digital bank with a stellar lineup of high-yield CDs. The minimum opening requirement of $500 is on the lower end. Terms have a standard range from three months to five years.

Fees: There are no monthly or opening fees, which is normal for CDs, but early withdrawal fees are steep, especially for shorter-term CDs. For one-year CDs, the penalty is one year of interest; and for two-year CDs and longer, the penalty is two years of interest. The penalty can include part of your initial balance depending on the date of the early withdrawal, meaning a penalty can result in losing you money in a CD.

Other products: Quontic Bank also offers a high-yield savings account, multiple rewards checking accounts, mortgages and more.

Quontic Bank CD rates:

1-year CD: 4.50% APY

3-year CD: 4.40% APY

5-year CD: 4.30% APY

See more rates on our Quontic Bank review

NerdWallet rating 

5.0

/5
TAB Bank CD
Minimum deposit
$1,000
Member FDIC
APY
1-year APY: 5.15%

3-year APY: 4.25%

5-year APY: 4.00%

Why We Like It

Overview: TAB Bank is an online bank with roots in Ogden, Utah. Founded in 1998, it started by serving the trucking industry; TAB stands for Transportation Alliance Bank. Its CDs have competitive yields and a standard range of terms from six months to five years. The opening minimum of $1,000 is on the lower end among online banks.

Fees: No opening or monthly fees, which is standard for CDs. If you withdraw before the term ends, you’ll pay a penalty of either about three months’ worth of interest on CD terms one year or shorter; or about six months’ interest on CD terms longer than a year.

Other products: TAB Bank offers a full suite of financial products including checking, high-yield savings and money market accounts.

TAB Bank CD rates:

1-year CD: 5.15% APY

3-year CD: 4.25% APY

5-year CD: 4.00% APY

See more rates on our TAB Bank review

NerdWallet rating 

4.0

/5
Sallie Mae Bank CD
Minimum deposit
$2,500
Member FDIC
APY
1-year APY: 5.15%

3-year APY: 4.00%

5-year APY: 4.00%

Why We Like It

Overview: The online banking arm of student loan provider Sallie Mae provides nearly a dozen CD terms from six months to five years, with a focus on short-term CDs. It’s unusual for a bank to have as many high-yield CD terms as Sallie Mae does, and that can be helpful if you’re looking for that period between one- and two-year savings. The $2,500 minimum is somewhat hefty.

Fees: Withdrawing early results in a penalty, either 90 days of interest for CDs of one year or shorter or 180 days of interest for CDs of longer terms. These penalties are in line with those at other online banks. There are no monthly or opening fees, which is normal for CDs.

Other products: Sallie Mae also has various savings accounts, but no checking account, so the bank is best as a place for savings.

Sallie Mae CD rates:

1-year CD: 5.15% APY

3-year CD: 4.00% APY

5-year CD: 4.00% APY

See more rates on our Sallie Mae Bank review

NerdWallet rating 

4.5

/5
Andrews Federal Credit Union Fixed Rate Share Certificates
Minimum deposit
$1,000
Federally insured by NCUA
APY
1-year APY: 4.89%

3-year APY: 4.10%

5-year APY: 3.90%

Why We Like It

Overview: Andrews Federal Credit Union is a credit union that serves members of the military as well as anyone who joins the nonprofit American Consumer Council. The credit union provides a code that allows for free membership to the nonprofit. Andrews’ fixed-rate share certificates have a somewhat low minimum deposit of $1,000 and a wider-than-normal range of terms from six months to seven years. Yields are mostly competitive. The credit union also has other types of share certificates for higher minimums, retirement and other use cases.

Fees: No monthly or opening fees, which is standard for certificates. Andrews charges an early withdrawal penalty of 90 days of dividends for share certificates with terms shorter than two years and 180 days of dividends for share certificates with terms of two years or longer, which aren’t too steep as far as certificates’ penalties go.

Other products: Andrews offers a standard range of bank accounts, investments, loans and insurance plans, among other accounts.

Andrews Federal fixed-rate share certificate rates:

1-year share certificate: 4.89% APY

3-year share certificate: 4.10% APY

5-year share certificate: 3.90% APY

NerdWallet rating 

5.0

/5
NASA Federal Credit Union Share Certificate
Minimum deposit
$1,000
Federally insured by NCUA
APY
1-year APY: 4.50%

3-year APY: 4.25%

5-year APY: 4.00%

Why We Like It

Overview: NASA Federal Credit Union is a credit union that serves NASA employees as well as anyone who joins the National Space Society. The credit union offers free one-year membership to the nonprofit. Credit unions with nationwide membership often require prospective members to join an affilitated association, but they don’t always make it free. NASA FCU’s share certificates (or certificates) have strong rates across its standard range of terms from six months to five years. The opening minimum is $1,000 for standard certificates and $10,000 for certificate specials, which have atypical term lengths such as 49 months. While certificate specials have higher rates, they tend to renew into certificates with lower rates at a term length close to the original certificate.

Fees: No monthly or opening fees, which is standard for certificates. Withdrawing funds early, not including dividends (or interest) earned, results in a penalty of about six months’ worth of dividends for terms of two years or shorter. Terms longer than two year have a penalty of one year’s worth of dividends.

Other products: NASA FCU also has checking, savings and loans.

NASA Federal Credit Union share certificate rates:

1-year share certificate: 4.50% APY

3-year share certificate: 4.25% APY

5-year share certificate: 4.00% APY

NerdWallet rating 

4.0

/5
Capital One 360 CD
Minimum deposit
$0
Member FDIC
APY
1-year APY: 5.00%

3-year APY: 4.00%

5-year APY: 3.90%

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 have a standard range from six months to five years, and there’s no minimum to open, which is an uncommon perk. Capital One has more customer service channels than most online banks thanks to its handful of cafes in major cities nationwide that function like branches, as well as phone support.

Fees: No monthly or opening fees, which is standard for CDs. The early withdrawal penalty for one-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.

Capital One CD rates:

1-year CD: 5.00% APY

3-year CD: 4.00% APY

5-year CD: 3.90% APY

See more rates on our Capital One review

Want to compare more options? Here are our other top picks:

On this page

💬 Our Nerds say:

“CDs work best as an out-of-sight, out-of-mind bank account that gives you three things: predictable returns, federal deposit insurance and more earning potential than a typical savings account.

"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.

"If you’re worried about relying on one rate, consider splitting your investment into multiple CDs using a CD ladder strategy to benefit from short- and long-term yields. Or, if you’d want the flexibility to redeem a CD early at no cost, a few banks offer no-penalty CDs.”

Spencer Tierney NerdWallet senior writer covering consumer banking

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

Current promotional CD rates

The following promotional CD rates stand out based on NerdWallet’s data analysis in June 2024. Expiration dates for a promo are shown when available.

In general, promotional rates tend to be for irregular CD terms and featured on banking websites as a “promotional rate” or “CD special.” (For more details, see how promotional CD rates work.)

Name (click to see our review)

CD rate (or certificate rate)

Bank of America: 7-month CD

5.00% APY.*

U.S. Bank: 7-month CD

Up to 4.50% APY (Varies by location).

Wells Fargo: 7-month CD

4.75% APY.

NASA Federal Credit Union: 9-month Certificate

5.25% APY.

Bask Bank: 9-month CD

5.30% APY.

CIBC U.S.: 9-month CD

5.11% APY.

EverBank (formerly TIAA Bank): 9-month CD

5.05% APY.

Live Oak Bank: 9-month CD

4.90% APY.

LendingClub: 10-month CD

5.20% APY.

NBKC Bank: 11-month CD

5.00% APY.

Synchrony Bank: 13-month CD

5.15% APY.

BMO: 13-month CD

4.75% APY.

Service Credit Union: 15-month Certificate

4.75% APY.

NASA Federal Credit Union: 15-month Certificate

5.15% APY.

NASA Federal Credit Union: 49-month Certificate

4.30% APY.

*Bank of America’s rate is based on a San Francisco ZIP code. Rates may vary by location.

Best CD rates for July 2024

  • Alliant Credit Union: APYs: 5.05% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.

  • Bread Savings: APYs: 5.25% (1 year); 4.25% (3 years); 4.15% (5 years); Term range: 1 - 5 years; Minimum to open: $1,500.

  • Popular Direct: APYs: 5.20% (1 year); 4.50% (3 years); 4.30% (5 years); Term range: 3 months - 5 years; Minimum to open: $10,000.

  • Quontic Bank: APYs: 4.50% (1 year); 4.40% (3 years); 4.30% (5 years); Term range: 6 months - 5 years; Minimum to open: $500.

  • BMO Alto: APYs: 5.05% (1 year); 4.60% (3 years); 4.75% (5 years); Term range: 6 months - 5 years; Minimum to open: None.

  • TAB Bank: APYs: 5.15% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.

  • LendingClub Bank: APYs: 4.40% (1 year); 4.30% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.

  • EverBank: APYs: 4.80% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.

  • Marcus by Goldman Sachs: APYs: 5.15% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 6 months - 6 years; Minimum to open: $500.

  • Synchrony Bank: APYs: 4.80% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: None.

  • Sallie Mae Bank: APYs: 5.15% (1 year); 4.00% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.

  • Andrews Federal Credit Union: APYs: 4.89% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 6 months - 7 years; Minimum to open: $1,000.

  • NASA Federal Credit Union: APYs: 4.50% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.

  • Capital One: APYs: 5.00% (1 year); 4.00% (3 years); 3.90% (5 years); Term range: 6 months - 5 years; Minimum to open: None.

CD rates news 2024

Competitive CD rates have started to dip gradually in 2024, according to NerdWallet analysis. Banks and credit unions have generally raised CD rates in the past two years to follow the direction of the Federal Reserve’s benchmark rate, which saw almost a dozen increases.

However, since late July 2023, the Fed has kept its rate steady and may drop its rate sometime this year. The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider taking advantage of high CD rates while they last. Learn more about where rates are headed in our CD rate forecast.

What to consider about the best CD rates

  • Rates on new CDs are slowly dropping. While rates aren’t likely to plummet by 1.00% APY (100 basis points) overnight, be careful about waiting too long to get CDs if you’re ready to get them.

  • Compare CD rates by the same or similar term lengths. CDs for one year, three years and five years are considered some of the most common terms, but you can also consider promotional CDs with irregular terms. Focus on the rough time frame you plan to put money away into a CD as you look at rates.

  • Some CDs have low or no minimum opening deposits. You can find CDs with no opening minimums, but unlike with regular savings accounts, you rarely can add money to a CD after the initial deposit. Focus on the fixed amount you want to save in a CD.

  • CDs occupy the cash investment portion of a portfolio, which is your overall collection of investments across different types of assets. Learn how asset allocation works.

  • Strategies for using multiple CDs may help avoid decision fatigue. 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.

Pros and cons of certificates of deposit

Pros

Fixed rate once a CD is opened (or bought).

CDs can have the highest rates among types of 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 and aren’t best for long-term investment growth.

How much does a $10,000 CD make in a year?

The three main factors that impact CD earnings are the rate, the CD term and the CD deposit, or the starting amount you put into a CD. 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 three scenarios including how much $10,000 in a CD can earn in a year. (Or use our CD calculator.)

Scenario 1: Different amounts, same one-year rate

Here’s what we get after one year if we put different amounts in CDs with the same rate:

Starting balance

1-year CD APY

Interest earned

$500.

5.00%.

$25.

$1,000.

5.00%.

$50.

$5,000.

5.00%.

$250.

$10,000.

5.00%.

$500.

Here’s what we get after one year if we put the same amount in CDs with different rates:

Starting balance

1-year CD APY

Interest earned

$10,000.

3.00%.

$300.

$10,000.

4.00%.

$400.

$10,000.

5.00%.

$500.

$10,000.

5.30%.

$530.

Here’s what we get after five years if we put the same amount in CDs with different rates:

Starting balance

5-year CD APY

Interest earned (rounded to the nearest dollar)

$10,000.

3.00%.

$1,593.

$10,000.

4.00%.

$2,167.

$10,000.

5.00%.

$2,762.

$10,000.

5.30%.

$2,946.

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: 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. High-yield CDs work like standard CDs but have the best rates and are often at online banks. 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 you want to have more funds than a CD’s opening minimum requirement. 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.

Watch our explainer to further help you decide on CDs:

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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.

The following four banks offer no-penalty CDs (click each link to read the full review):

» 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 July 12, 2024

Methodology

On a monthly basis, we compare rates at over 40 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 90 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, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings 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 (formerly TIAA Bank), Fifth Third Bank, First Foundation, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, 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, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, 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 and Zynlo Bank.

To recap our selections...

NerdWallet's Best CD Rates for July 2024: Up to 5.30%

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