Last Updated: Sep 10, 2024
The highest certificates of deposit (CDs) rates today are offered by Merchants Bank of Indiana (5.92%), First Federal of Lakewood (5.61%), Maries County Bank (5.51%) and Shoreham Bank (5.50%). You can see the full list of the CDs with the best rates here.
That said, some of the highest-paying CDs may be difficult to qualify for, their high rates may only apply to small amounts of money or there may be other hoops to jump through. So we’ve put together a list of the best CD rates from our top-rated banks, credit unions and other financial institutions – all of which are accessible to a large number of people.
Written by Cheri Read Written byCheri ReadWriter Cheri Read is a former accountant turned professional personal finance writer. She is a MarketWatch Guides team writer specializing in personal loans, home equity loans, accounting and banking.
Edited by RaShawn Mitchner Edited byRaShawn MitchnerSenior Editor RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Edited by RaShawn Mitchner Edited byRaShawn MitchnerSenior Editor RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Why Trust Us
Here’s a breakdown of how we reviewed and rated top banks and credit unions
154 Institutions Monitored Our team reviewed 154 of the country’s largest and most prominent financial institutions, from big banks like Chase and Bank of America to credit unions like Navy Federal Credit Union and PenFed Credit Union.
688 Products Studied Total number of checking, saving, CDs, and money-market accounts that inform our review ratings.
719 Rates Tracked The accounts with an annual percentage yield (APY) several times the national average rate receive the highest scores. Accounts with the lowest APY offering (under 1%) earn the least points.
10 Professionals Consulted Before we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Rating Methodology All banks we review receive a star rating from 0 to 5. CDs shown below are from banks with the highest star ratings.
Barclays
Our Score4.3
APY5.10%
Min. Deposit$0
Term Length6 Months
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
Quontic Bank
Our Score4.5
APY5.10%
Min. Deposit$500
Term Length6 Months
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Read ReviewQuontic Highlights
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Ally Bank
Our Score4.6
APY4.90%
Min. Deposit$0
Term Length6 Months
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
BMO Alto
Our Score4.3
APY4.80%
Min. Deposit$0
Term Length6 Months
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Read ReviewBMO Alto Highlights
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Alliant Credit Union
Our Score4.2
APY4.75%
Min. Deposit$1,000
Term Length6 Months
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
Alliant Credit Union
Our Score4.2
APY4.75%
Min. Deposit$1,000
Term Length1 Year
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
BMO Alto
Our Score4.3
APY4.75%
Min. Deposit$0
Term Length1 Year
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Read ReviewBMO Alto Highlights
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Marcus by Goldman Sachs
Our Score4.5
APY4.75%
Min. Deposit$500
Term Length6 Months
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Marcus by Goldman Sachs
Our Score4.5
APY4.70%
Min. Deposit$500
Term Length1 Year
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
USAA Bank
Our Score4.5
APY4.55%
Min. Deposit$1,000
Term Length6 Months
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Ally Bank
Our Score4.6
APY4.50%
Min. Deposit$0
Term Length1 Year
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Citizens Access
Our Score4.2
APY4.50%
Min. Deposit$5,000
Term Length1 Year
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Read ReviewCitizens Access Highlights
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Discover Bank
Our Score4.4
APY4.50%
Min. Deposit$2,500
Term Length1 Year
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Quontic Bank
Our Score4.5
APY4.50%
Min. Deposit$500
Term Length1 Year
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Read ReviewQuontic Highlights
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Alliant Credit Union
Our Score4.2
APY4.40%
Min. Deposit$1,000
Term Length18 Months
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
Synchrony Bank
Our Score4.6
APY4.40%
Min. Deposit$0
Term Length6 Months
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Alliant Credit Union
Our Score4.2
APY4.25%
Min. Deposit$1,000
Term Length3 Months
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
Ally Bank
Our Score4.6
APY4.25%
Min. Deposit$0
Term Length18 Months
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Discover Bank
Our Score4.4
APY4.25%
Min. Deposit$2,500
Term Length18 Months
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Marcus by Goldman Sachs
Our Score4.5
APY4.25%
Min. Deposit$500
Term Length18 Months
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Synchrony Bank
Our Score4.6
APY4.25%
Min. Deposit$0
Term Length18 Months
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
USAA Bank
Our Score4.5
APY4.25%
Min. Deposit$1,000
Term Length1 Year
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Alliant Credit Union
Our Score4.2
APY4.20%
Min. Deposit$1,000
Term Length2 Years
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
Marcus by Goldman Sachs
Our Score4.5
APY4.15%
Min. Deposit$500
Term Length3 Years
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Synchrony Bank
Our Score4.6
APY4.15%
Min. Deposit$0
Term Length3 Years
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
BMO Alto
Our Score4.3
APY4.10%
Min. Deposit$0
Term Length5 Years
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Read ReviewBMO Alto Highlights
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Discover Bank
Our Score4.4
APY4.10%
Min. Deposit$2,500
Term Length6 Months
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Alliant Credit Union
Our Score4.2
APY4.05%
Min. Deposit$1,000
Term Length3 Years
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
USAA Bank
Our Score4.5
APY4.05%
Min. Deposit$1,000
Term Length18 Months
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Alliant Credit Union
Our Score4.2
APY4.00%
Min. Deposit$1,000
Term Length5 Years
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
NextAlliant Highlights
Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.
BMO Alto
Our Score4.3
APY4.00%
Min. Deposit$0
Term Length2 Years
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Read ReviewBMO Alto Highlights
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
BMO Alto
Our Score4.3
APY4.00%
Min. Deposit$0
Term Length3 Years
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Read ReviewBMO Alto Highlights
BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.
Citizens Access
Our Score4.2
APY4.00%
Min. Deposit$5,000
Term Length2 Years
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Read ReviewCitizens Access Highlights
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Discover Bank
Our Score4.4
APY4.00%
Min. Deposit$2,500
Term Length2 Years
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Marcus by Goldman Sachs
Our Score4.5
APY4.00%
Min. Deposit$500
Term Length2 Years
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Marcus by Goldman Sachs
Our Score4.5
APY4.00%
Min. Deposit$500
Term Length5 Years
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Read ReviewMarcus by Goldman Sachs Highlights
Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.
Synchrony Bank
Our Score4.6
APY4.00%
Min. Deposit$0
Term Length2 Years
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Synchrony Bank
Our Score4.6
APY4.00%
Min. Deposit$0
Term Length5 Years
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Quontic Bank
Our Score4.5
APY3.85%
Min. Deposit$500
Term Length2 Years
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Read ReviewQuontic Highlights
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
USAA Bank
Our Score4.5
APY3.85%
Min. Deposit$1,000
Term Length2 Years
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Ally Bank
Our Score4.6
APY3.75%
Min. Deposit$0
Term Length3 Years
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Ally Bank
Our Score4.6
APY3.75%
Min. Deposit$0
Term Length5 Years
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Barclays
Our Score4.3
APY3.75%
Min. Deposit$0
Term Length1 Year
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
Discover Bank
Our Score4.4
APY3.75%
Min. Deposit$2,500
Term Length3 Years
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Quontic Bank
Our Score4.5
APY3.75%
Min. Deposit$500
Term Length3 Years
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Read ReviewQuontic Highlights
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Discover Bank
Our Score4.4
APY3.60%
Min. Deposit$2,500
Term Length5 Years
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Quontic Bank
Our Score4.5
APY3.50%
Min. Deposit$500
Term Length5 Years
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Read ReviewQuontic Highlights
Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.
Citizens Access
Our Score4.2
APY3.45%
Min. Deposit$5,000
Term Length5 Years
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Read ReviewCitizens Access Highlights
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Citizens Access
Our Score4.2
APY3.35%
Min. Deposit$5,000
Term Length3 Years
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Read ReviewCitizens Access Highlights
Citizens Access, an only-only division of Citizens Bank, has five traditional CD options and allows you to easily create a CD ladder within the application process. Its one-year CD offers its most competitive rate of 5.00% APY, but Citizens Access has the highest minimum deposit on our list, $5,000.
Barclays
Our Score4.3
APY3.25%
Min. Deposit$0
Term Length18 Months
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
Barclays
Our Score4.3
APY3.25%
Min. Deposit$0
Term Length5 Years
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
Ally Bank
Our Score4.6
APY3.00%
Min. Deposit$0
Term Length3 Months
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Read ReviewAlly Highlights
Ally has traditional, no-penalty, and bump-up CDs with terms from three months to five years and no minimum deposit requirement. Ally offers a loyalty APY increase of 0.05% above the current rate if you renew a CD for another term. Ally also offers a “best rate guarantee” that increases your APY if rates rise within 10 days of opening your account.
Barclays
Our Score4.3
APY3.00%
Min. Deposit$0
Term Length2 Years
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
Barclays
Our Score4.3
APY3.00%
Min. Deposit$0
Term Length3 Years
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
NextBarclays Highlights
Barclays offers traditional fixed-rate CDs with the highest APYs on its six-month and one-year CDs. You can withdraw the interest on your CD at any time penalty-free. Barclays has no minimum deposit requirements and allows you up to two weeks to fund your account.
USAA Bank
Our Score4.5
APY2.75%
Min. Deposit$1,000
Term Length3 Years
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
USAA Bank
Our Score4.5
APY2.50%
Min. Deposit$1,000
Term Length5 Years
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Discover Bank
Our Score4.4
APY2.00%
Min. Deposit$2,500
Term Length3 Months
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
NextDiscover Highlights
Discover Bank offers the largest range of traditional fixed-rate CD terms within our picks, from three months to 10 years. It requires a higher minimum deposit of $2,500 but offers rare seven- and 10-year CD terms with a competitive 3.75% APY. Discover’s highest APY, 4.70%, is for a one-year CD. Discover is also well-known for its 24/7, U.S.-based customer service.
Synchrony Bank
Our Score4.6
APY0.25%
Min. Deposit$0
Term Length3 Months
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
Read ReviewSynchrony Highlights
Synchrony CDs offer some of the highest APYs currently available and have no minimum deposit requirements. Along with traditional and bump-up CD options, Synchrony offers a no-penalty CD, which lets you withdraw all your funds as soon as seven days after you open your account without incurring any penalties.
USAA Bank
Our Score4.5
APY0.05%
Min. Deposit$1,000
Term Length3 Months
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
Read ReviewUSAA Highlights
USAA Bank offers fixed-rate, adjustable-rate and variable-rate CDs, with its best rates found with traditional CDs in the nine- to 18-month range. We don’t recommend its adjustable- or variable-rate CDs, as they offer just 0.01% APY. The bank restricts membership to current and former military members and their families, but if you qualify, USAA offers competitive APYs with a minimum deposit of $1,000 per CD.
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Our Key Takeaways
- CDs are a safe investment, especially for savings you may need in the short-to-medium term.
- CDs lock in your interest rate for the duration of the certificate, so if rates drop, your interest rate will stay fixed until your CD matures. That’s unlike high-yield savings accounts, where rates can rapidly rise or drop.
- With rates at near record highs and likely to drop later in the year, now may be the time to lock in interest rates on a longer-term CD, pros tell us.
Best CD Rates of September 2024
Synchrony
Our Top Pick
Pros
+
Transparent about CD rates and required balance tiers
+
Offers some of the highest CD rates available
+
No minimum deposit requirements on CDs
+
Has a no-penalty CD and a bump-up CD
Cons
–
Difficult to reach a customer service agent, according to our experience
–
No physical branch locations
–
No checking account option
We opened a nine-month CD with Synchrony Bank in February of 2024 to give you a first-hand look at the application process. Our experience with Synchrony Bank was positive overall, starting with the fact that the provider was transparent about its APYs and related balance tiers during sign-up. Other highlights include:
- Seamless account integrations, such as the ability to set up recurring deposits
- Option to transfer CD interest payments to an external account or a Synchrony money market or high-yield-savings account
- Accessible application process with checkbox for those without phone numbers due to hearing or speech disabilities
However, Synchrony fell short in a couple of areas when we opened our CD. The main thing we noted was difficulty with customer service in these areas:
- Difficulty finding the customer service phone number followed by completing seven voice prompts to reach a live agent
- For chat, must request a live agent
- Unable to connect with Synchrony’s budgeting tool
We found Synchrony Bank to be a transparent and user-friendly online bank with several savings products such as ahigh-yield savings account (HYSA), a money market account and a wide range of CD terms – many with APYs between 4% and 5%.
We liked the seamlessness of Synchrony’s online platform, which allows you to transfer interest payments from your CD account to another internal or external account. We also liked that Synchrony CDs have no minimum balance requirements.
Our Score 4.6
APY Range 0.25% to 5.15%
Terms 3 Months – 5 Years
Min. Deposit None
Ally
Best Online Experience
Pros
+
Loyalty APY increase (an additional 0.05%) when you renew an Ally CD
+
Bump-up CD allows you to increase your rate if rates rise during your term
+
No-penalty CD offers a competitive 4.00% APY and the ability to withdraw your money during the 11-month term with no charge
Cons
–
No APYs over 5.00%
–
No physical branch locations
Our research team opened a six-month CD and a three-month CD to test Ally’s CD application process. Ally Bank has several helpful features that stand out, including:
- A series of FAQ articles available within the application
- Convenient customer support options, including chat and phone, with estimated wait times posted
- A 0.05% loyalty bonus that’s automatically added to your interest rate when you renew a CD term
We also encountered the following drawbacks when opening an Ally CD:
- Required a picture of our Social Security card during the application process, which none of the other banks we tested did
- Because our tester already had an Ally account, the process to open a CD only took a few minutes. But if you don’t have an existing account, Ally warns it can take up to five to seven days for Ally to review an application.
We chose Ally for its history of high APYs and solid customer service. The online bank offers many ways to save, including several high-yield CDs, bump-up CDs and a no-penalty CD that allows you to withdraw your money as soon as seven days after you fund the account. We were also impressed with Ally’s best-rate guarantee that automatically increases the APY on your CD if rates rise within 10 days of opening your account. We found Ally’s customer service and user experience top-notch, even while its security measures slowed down our application process.
Our Score 4.6
APY Range 3.00% to 5.00%
Terms 3 Months – 5 Years
Min. Deposit None
Quontic
Fastest Customer Service
Pros
+
Earn interest the day you initiate a money transfer into the account
+
Easy, fast and secure account setup
+
Fast U.S.-based customer service with no prompts
Cons
–
No physical branch locations
–
No specialty CDs
–
Third-party verification may reject your application if you’ve recently moved
Three MarketWatch Guides team members attempted to open CDs with Quontic Bank, and two were rejected via email. When we reached out to a Quontic customer service representative, the rep said that rejections are common because the bank uses a third-party system for verification.
She added that two common causes are the use of virtual private networks (VPNs) and recent address changes. The two Guides team members had moved within the last 14 months, which could have been a factor in the approval process.
We were able to open a six-month CD and fund it with $500. It was easy to set up an account with the bank, which we created in just nine clicks. We particularly liked:
- You start earning interest the day you initiate your transfer, not the day your transfer is received.
- To reach a customer service agent, you input your number into the website and within seconds you’re connected to a U.S.-based agent – no phone prompts or account numbers are required.
- Seamless integration with budgeting apps
The biggest issue our team faced with Quontic was the rejected CD applications. We reached out to Quontic’s corporate team to comment on our experience and received the following response: “Given Quontic is a digital-only bank, we take a strong approach to identifying someone’s digital identity and there is always a possibility that someone triggers false positives for a decline. We use a third-party platform in which we leverage best practices for an approval/denial workflow. There can be many reasons in which an applicant could be declined. Due to fraud prevention reasons, we do not disclose the exact reason for the denial. However, we continue to meet and exceed industry benchmarks for approval rates so we feel comfortable that our workflow is configured as appropriately as possible.”
While Quontic is a newer online bank, we like its high APYs for certificates of deposit, two of which top 5.00%. And it was a breeze to set up our Quontic account, once one of our researchers was able to get past the bank’s third-party verification system and have an application approved.
When it comes to CDs, we like Quontic’s simple but thorough offerings. Quontic offers six traditional fixed-rate options with terms ranging from three months to five years. All terms have high APYs that beat national averages and a minimum deposit requirement of only $500.
Quontic is also the only bank on our list that’s a certified Community Development Financial Institution, meaning its mission is to support economically disadvantaged communities through access to financial products such as mortgages.
Our Score 4.5
APY Range 3.50% to 5.50%
Terms 3 Months – 5 Years
Min. Deposit $500
Marcus by Goldman Sachs
Best for No-Penalty CDs
Pros
+
A competitive APY on three no-penalty CDs terms (7, 11, or 13 months)
+
Allows depositors to withdraw the accrued interest on CDs each month without penalty
+
Allows unlimited deposits within the first 30 days of a high-yield or rate-bump CD’s term
+
Lets you select what to do when your CD matures up to one year before the date
Cons
–
No physical branch locations
–
Lack of a checking account means it might not be a good choice for someone looking to keep all their money at one bank
–
Can take two or three days for an external account to be verified manually
We opened a 14-month CD with $500 to gather insights into the application process and digital platform experience. We liked Marcus by Goldman Sachs for its flexibility and streamlined features, some include:
- Gives you 30 days after account opening to add additional money (except for no-penalty CDs)
- Lets you add a joint account holder up to three business days after you open your account
- Option to open multiple CD and savings accounts at the same time
- Tips and FAQs on screen provide helpful information during the application process
- Guarantees the highest rate it offers for your CD within 10 days of account opening if you make the minimum deposit
Here are the areas we highlighted for improvement:
- Limited visibility of promotional CD options on parts of the website
- Manual process for verifying an external account with small test deposits took two days
We found Marcus, an online bank backed by finance giant Goldman Sachs, to be flexible and user-friendly, although we did have to do a separate Google search to find the best rate on its one-year CD. The bank offers three types of CDs — no penalty, traditional fixed-rate and rate-bump — all with competitive rates and terms ranging from six months to six years.
Marcus has a referral offer for its current online HYSA customers: If you refer a new customer who opens a savings or CD account, you’ll receive a 1% boost on your CD or savings account rate for three months. Depending on which CD you own, this could temporarily push your rate to one of the highest available at any bank.
Our Score 4.5
APY Range 3.90% to 5.15%
Terms 6 Months – 6 Years
Min. Deposit $500
USAA
Best for Military Families
Pros
+
Some of the top rates available for select terms
+
A wider range of CD term lengths than many banks
+
Doesn’t require a larger deposit amount to get the best rates
Cons
–
Low APYs on terms under nine months
–
Minimum opening deposits of $1,000 for fixed- and adjustable-rate CDs
–
Membership is restricted to current and former military members and USAA members’ spouses and children
We opened a 182-day USAA CD with $1,000 to show you the process from a customer’s point of view. Our experience was fairly seamless, and we found the company to be user-friendly. Highlights include:
- Easy to transfer money from existing USAA accounts
- Detailed guidance on CD types during the application process
- Pre-application checklist displaying the required documentation and information needed
- Lower minimum deposits for variable-rate CDs
It’s also important to note this limitation with USAA Bank:
- Exclusively available to military members, veterans and their spouses and children
USAA is well-known for its affordable insurance and wide variety of banking products, which are accessible only to members of the military and their families. We loved how USAA educated us on different types of CDs while we were setting up our account. USAA has over a dozen CD terms, though the most notable are the 182-day term at 4.55% APY and its nine-month term at 4.40%APY. If you qualify for membership with USAA, it’s easy to add a CD to an existing checking or savings account.
While USAA offers four adjustable-rate CDs and two variable-rate CDs, the current APY of 0.01% is so low we don’t recommend them. All three types of CDs have early withdrawal penalties.
Our Score 4.5
APY Range 0.05% to 5.25%
Terms 3 Months – 7 Years
Min. Deposit $1,000
Discover
Best Long-Term CDs
Pros
+
Rare seven- and 10-year long-term CDs offered at 3.75% APY, abnormally high for this time frame
+
APY, interest rate and maturity date are clearly displayed on a user dashboard
+
Offers live customer service via phone 24/7
Cons
–
$2,500 minimum deposit on CDs, which is higher than many competitors’ requirements
–
Steep early withdrawal penalties, especially on longer-term CDs
We opened a six-month Discover CD with $2,500 to give you a first-hand look into the process. We like Discover for its transparency on its account options, and we took note of the following:
- APY and CD account details are clearly displayed on the brand’s website
- Included a CAPTCHA anti-bot verification step in the application for security
Here are the areas where we think Discover could improve its customer experience:
- Lengthy 19-step application process, including inquiries about paperless statements and using money internationally
- Deposit not available for five days
- No chat option for customer support
We like Discover because its CD terms range from three months to 10 years — the longest range among our picks. While Discover’s CD rates aren’t as high as some other banks, it may be a convenient option for existing Discover customers.
We didn’t love the lengthy application process, but the bank did offer many security features like multiple verification codes and CAPTCHA. We also liked the transparency of Discover’s account dashboard, which clearly displays our CD’s interest rate and maturity – a feature we didn’t find with most other banks.
Our Score 4.4
APY Range 2.00% to 4.50%
Terms 3 Months – 10 Years
Min. Deposit $2,500
BMO Alto
Best for Small Investments
Pros
+
Has one of the highest rates offered for a five-year CD
+
No minimum opening deposit
+
Fund your account within 10 days and if rates rise, you’ll get the higher rate
Cons
–
No mobile banking app
–
Only allows CD funding through a BMO Alto bank account or an automated clearing house transfer from an external bank account
–
Only offers savings accounts and CDs – no checking accounts, credit cards or loans
For a personal look into the BMO account process, we opened a $2,500 CD with a six-month term. Here’s what we liked about becoming a BMO Alto account holder:
- Gives you the higher APY if the offered rate increases between when you open your account and fund your CD
- Convenient option to save the application and finish it later
- Two options for linking an external account to fund your CD
- Lets you cancel online instead of requiring you to call
Since the bank doesn’t offer a mobile app, we tested its online banking platform. There were several technical glitches we had to work through:
- Asked for location during the application process
- Aggressive account timeout mechanisms, leading to unintended logouts
- Error when linking bank accounts forced us to link manually
We liked BMO Alto, an online-only subsidiary of BMO Financial Group, for its competitive CD rates on longer-term CDs with no minimum deposit. And while it doesn’t offer a mobile app, it was easy to set up our account on its website, which is also accessible via mobile. Customer service is available via phone 24/7.
BMO Alto is limited to savings accounts and CDs, though, so if you want a one-stop financial institution, this isn’t it.
Our Score 4.3
APY Range 4.00% to 5.15%
Terms 6 Months – 5 Years
Min. Deposit None
Barclays
Best CD Ladders
Pros
+
5% APYs on shorter-term CDs
+
No minimum balance requirements for CDs or the savings account
+
No penalty for withdrawing interest earned on a CD before its maturity date
Cons
–
Only offers savings and CD accounts
–
Has just seven CD term lengths
–
Live customer support only available from 8 a.m. to 8 p.m. EST
We opened a one-year CD and funded it with $500 for a hands-on look at Barclays’ application process. It was efficient:
- Had the fewest number of steps in its application process among the top 10 CDs we reviewed
- Option to set up two-factor authentication for additional security
However, we had some challenges with Barclays:
- One of only two accounts we tested that didn’t provide instant approval, instead making us wait for email confirmation and manual account review
- Prompted us to reset our password during the initial login, which was confusing
- Linked external account didn’t show up as an option for transferring money
- Phone system required us to enter a Social Security number to speak with an agent, unlike other banks
Our review team reached out to Barclays for comment on our experience with opening a CD and received the following response:
“We strive to provide a simple and easy experience for our customers. The majority of our customers are pleased with their online experience and savings rates that are roughly five times the national average.”
It was quick and easy to set up an account with Barclays, requiring just eight clicks to complete the process. Rates for all Barclays online CDs are competitive, and there are no minimum opening deposit requirements. Barclays also gives you a little longer than other banks to fund your CD — up to 14 days.
Our Score 4.3
APY Range 0.10% to 4.25%
Terms 3 Months – 5 Years
Min. Deposit None
Alliant Credit Union
Top Credit Union Pick
Pros
+
Very high rates on CDs: 5.20% for a 1-year term
+
Large selection of traditional fixed-rate certificates, plus retirement CD options
+
24/7 customer service by phone
Cons
–
$1,000 minimum deposit for non-jumbo CDs
–
Membership requirements to join the credit union
–
Interest on CDs compounded monthly rather than daily
We opened a three-month CD with $1,000 to share our personal experience with Alliant. Alliant had several features we liked, including one that made it stand out from the nine other banks we opened CD accounts with:
- Instant funding from an external account, which took days with other CD providers we used
- Security measures such as naming the devices you log in with and automatically logging out after 10 minutes of inactivity
- Exceptional customer service that directly links you with an agent — no prompts
While you do need to join the credit union to be a customer, you can first apply for a CD, and if the application is approved, Alliant will automatically set up the membership for you. To maintain your membership, you must keep a $5 balance in your Alliant savings account. Alliant funds this initial deposit for you.
We thought Alliant could improve in some areas:
- Difficult to find the chat option for customer support
- CDs renew automatically and may renew at a lower rate
Credit unions typically offer more favorable rates than traditional brick-and-mortar banks, and Alliant is no exception. It calls its CDs certificates, and top certificate rates are above 5%. If you invest in a jumbo certificate for $75,000 or more, you’ll earn an extra 0.05% APY for some term lengths. Otherwise, the minimum deposit to open a regular Alliant CD is $1,000.
Alliant also offers an array of tax-exempt certificates, including three types of IRA certificates: Traditional, Roth and Simplified Employee Pension (SEP).
We found Alliant’s customer service to be top-notch. After we called their customer service number, an agent answered our call directly. While Alliant is a credit union and membership is required, they make it easy to join by automatically setting up an account for you after your certificate application is approved.
Our Score 4.2
APY Range 4.00% to 5.45%
Terms 3 Months – 5 Years
Min. Deposit $1,000
Citizens Access
Best for Large Investments
Pros
+
Offers a competitive 5.00% APY for one-year CDs
+
Allows you to create a CD ladder within one simple online application
+
Ample customer service hours with live phone support seven days a week
Cons
–
The $5,000 minimum opening deposit for CDs is higher than the amount required by most online banks
–
Only allows deposit accounts to be funded via online bank transfer or mailed checks
We opened a Citizens Access one-year CD with a $5,000 deposit in February 2024 to test the overall user experience. Here’s what we liked:
- User-friendly interface, making it easy to see the number of steps in the application process and a timeline
- Helpful FAQs to guide you along the account creation process
- Combines several questions on each screen and provides clear confirmations for each step
Certain aspects of our experience with Citizens Access, however, were not as positive:
- Waited on hold for eight minutes to speak with a representative
- Deposit took five days to reach the account
We like that Citizens Access, an online-only division of Citizens Bank, offers a straightforward application process and ample FAQs if you run into an issue. Since it doesn’t have physical branches to maintain, Citizens Access is able to offer high rates with no monthly fees on its savings products. The one-year CD is a standout at 5.00% APY.
The minimum deposit to open a Citizens Access CD is $5,000, so it’s best for savers who have more to invest.
Our Score 4.2
APY Range 0.05% – 5.00%
Terms 11 Months – 5 Years
Min. Deposit $5,000
CD Rates In the News
Fed Rates Poised To Drop In September
After no change came to current interest rates in July, Federal Reserve Chair Jerome Powell recently signaled rates are likely to come down at the next meeting on Sept. 17-18. The last time we saw a change in interest rates was in June 2023 when they raised rates to 5.5%.
Until then, what will happen with CD rates? Most financial institutions will hold them steady, Brittany Pedersen, director of deposit and payment operations at Georgia’s Own Credit Union, told MarketWatch Guides: “Some financial institutions may decide to continue to keep their CD rates on the higher side to bring in more deposits, “ Pedersen said, “while others may slowly lower them in anticipation of inflation going down over the next few months.”
Top CD Rates by Term
Depending on your financial goals, the term length of a CD is an important factor to consider as APYs vary based on the duration of the term. Plus, you typically pay a penalty to withdraw your money before the term is up, so consider whether you can keep your money locked up for the duration of the term you choose. In our latest MarketWatch Guides team CD survey, over 78% of people chose their term based on interest rate, while 28% based their decision on when they’d need their money.
Common CD terms range from three months to five years. The following CDs assume a $10,000 deposit and are accurate as of September 13, 2024. Rate data is sourced by Curinos, a provider of retail banking research that collects deposit pricing data from more than 3,600 financial institutions. These products may have stricter requirements than our picks above – see the institution’s website for more details.
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
First Federal of Lakewood | 5.61% | quarterly | $140.25 |
Shoreham Bank | 5.50% | daily | $138.44 |
HomeTown Bank | 5.43% | monthly | $136.37 |
First Bank | 5.25% | monthly | $131.83 |
Piedmont Bank | 5.25% | daily | $132.11 |
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
HAB Bank | 5.50% | daily | $278.79 |
Southwest Heritage Bank | 5.40% | daily | $273.66 |
HomeTown Bank | 5.38% | monthly | $272.03 |
First Federal of Lakewood | 5.35% | quarterly | $269.29 |
Amerant Bank | 5.35% | monthly | $270.50 |
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
Merchants Bank of Indiana | 5.92% | daily | $609.82 |
First Merchants Bank | 5.25% | quarterly | $535.43 |
Northwest Bank | 5.25% | ||
Guaranty Bank of Delhi | 5.12% | annually | $512.00 |
Bank of Utah | 5.20% | quarterly | $530.23 |
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
Merchants Bank of Indiana | 5.92% | daily | $1,256.83 |
Guaranty Bank of Delhi | 5.37% | annually | $1,102.84 |
United Business Bank | 4.86% | daily | $1,020.74 |
First Federal of Lakewood | 4.84% | quarterly | $1,010.00 |
Bank of Whittier | 4.75% | daily | $996.52 |
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
Merchants Bank of Indiana | 5.92% | daily | $1,943.30 |
Alliance Bank Central Texas | 4.73% | quarterly | $1,515.02 |
First County Bank | 4.75% | daily | $1,531.42 |
Bank of Whittier | 4.65% | daily | $1,496.89 |
Profinium Financial | 4.60% | quarterly | $1,470.72 |
Read more with our review of thebest 3-year CD rates.
Institution | APY | Compounding Frequency | Interest Earned (On a $10,000 Investment) |
---|---|---|---|
California International Bank | 4.39% | daily | $2,454.37 |
Planters Bank | 4.34% | daily | $2,423.28 |
Alliance Bank Central Texas | 4.32% | quarterly | $2,396.66 |
Evangeline Bank & Trust Company | 4.25% | annually | $2,313.47 |
Bank of Clovis | 4.33% | daily | $2,417.07 |
Read more with our review of thebest 5-year CD rates.
Is Now the Right Time to Buy a CD?
In our survey of Americans who have used a CD within the past five years, over half of the respondents told us they opened a CD in either 2023 or 2024. High interest rates were the main reason why people opened a CD, and 40% of respondents reported earning a rate between 4% and 6%.
The last time CD rates reached 5% was December 2007. From 2008 to early 2023, rates averaged at 0.94% and only briefly surpassed 2%. The chart to the right shows average 3-month CD rates over the past 20 years.
Over the past year, the top CD rates offered by the online banks and credit unions we track have remained steady but have taken a slight dip in recent weeks. Now may be an opportune time to open an account and maximize your savings before rates likely fall later in 2024.
While the Federal Reserve has indicated that interest rate cuts are coming in 2024, no cuts have been made yet. Federal Reserve Chair Jerome Powell told a House Financial Services Committee in early March that the Federal Reserve would likely cut interest rates but is keeping a keen eye on inflation before making any decisions. So far this year, the Reserve has held rates between 5.25% and 5.50%.
We spoke to Preston Caldwell, chief U.S. economist at Morningstar Research Services, on the future outlook for CDs. He expects the federal funds rate to drop from its current range of 5.25% to 5.5% to 3.75% to 4% by the end of the year. When that happens, he expects short-term CDs to see a similar dip of around 1.5%.
Michael Collins, CFA
Founder of WinCap Financial
“Some of the language in [the Federal Reserve’s most recent] statement indicated that the economy is in a strong place, but progress on inflation has stalled in recent months. The Fed’s message could be summarized in that they will cut rates when the data warrants. Thus far cuts have not been warranted.
I would expect rate changes on long- and-short term CD’s to be minimal after [the] announcement, but once we have a hint that cuts are closer to the horizon we would expect short term rates to fall first.”
Lawrence Sprung, CFP
Author of Financial Planning Made Personal and Founder of Mitlin Financial
“Short-term and longer-term CD rates should see little to no change.… If you feel rates are going to be heading lower in the near to mid-term it may make sense to lock in for today’s rates for longer. With the Fed decision [in early May], you have a little while to make this assessment for your situation.”
How To Choose the Best CD
There are four primary factors to keep in mind when choosing a CD. They are the interest rate, term length, early withdrawal penalty and insurance coverage.
Annual Percentage Yield (APY)
The annual percentage yield (APY) measures the total return on your savings, taking into account both interest rate and compounding frequency. The higher your APY, the more your money will earn over the life of the CD. The APYs offered on CDs vary greatly based on the length of the CD. Right now, short-term CDs offer much higher rates than longer-term CDs (4% to 5.5% for 3-month CDs compared to 4% to 4.5% for 5-year CDs). If you find a CD at or above this range from a reputable bank, you can be fairly certain you’re getting a good deal.
Term Length
CDs are time-based deposit accounts, and most CDs require you to keep your money in the account for a set period of time. Common CD term lengths range from three months to five years. Shorter-term CDs often offer higher APYs, but you run the risk of rates being lower when you need to renew them. Longer-term CDs have lower rates, but offer you a guaranteed return for longer. A CD ladder may be able to give you the best of both worlds, splitting your savings between multiple CDs of different term lengths.
Early Withdrawal Penalty
Most CDs come with early withdrawal penalties if you take money out of the account before your CD term ends. In most cases, this penalty is imposed as a certain number of days’ worth of interest. The best CDs typically charge you 30 days worth of interest, while other banks may charge as much as 180 days or more. Some banks allow you to withdraw the interest you’ve earned on your account without penalty. If you think you might need access to cash during your CD term, make sure to look for this feature.
Minimum Deposit
Most banks require you to start your account at a minimum dollar amount. Others may tier their APYs, offering higher rates to people with larger deposits. The best CDs have low ($500 or less) or no minimum deposit requirement. On the other side of the range, some banks may require $100,000 or more to earn their best rate.
Types of CDs
The first way to maximize your CD’s potential is to consider the type you need. Here’s a quick breakdown of how they differ.
Traditional CD
Best for savers seeking a predictable, guaranteed return on their investment:Traditional CDs have a fixed APY for the entire term and don’t generally allow you to withdraw your principal until they have matured. They typically offer higher APYs than a savings account.
Bump-Up CD
Best for investors who expect CD interest rates to increase:Bump-up CDs allow you to get a higher rate if the available rate rises during your CD’s term. Bump-up CDs provide flexibility in case rates increase before your CD matures.
No-Penalty CD
Best for those who may need to access their funds before the CD matures:No-penalty CDs don’t charge a penalty if you withdraw the principal before your CD matures. This is the only type of CD that allows for early withdrawal with no costs or fees.
CD Calculator
Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. But those higher rates can add up significantly over time, especially as you earn compound interest. The calculator below can help you see how much your CD will earn over its lifetime.
Calculate Interest Earned on Your CD
Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. Enter your deposit, CD term and annual percentage yield (APY) to see what you would earn on a certificate of deposit.
CD INFORMATION
YOUR ENDING BALANCE $1,025
Total Interest Earned
$25
Initial Balance
$1,000
Pros and Cons of CDs
Pros
- A fixed interest rate means youlock in your APYfor the entire length of the term.
- A fixed interest rate also means you’ll know exactly how much you’ll earn at the end of the term.
- CDs can keep you from spending your savings by limiting access to your money until the CD matures.
- CDs areconsidered very safe investmentsfor money you need in the short or medium term, and they’re FDIC- or NCUA-insured for up to $250,000.
- CDs are not subject to market fluctuations, making them a stable investment during market instability.
Cons
- CDslimit access to your moneyduring the term of the CD unless you take an early withdrawal penalty.
- You can’t usually add money to a CD after you’ve funded your account.
- If interest rates rise, you’ll miss out —your CD rate will stay the same.
- Withdrawing your money before the maturity date can result in penalties, reducing your overall returns.
- CDs typically offer lower returns than higher-risk investments like stocks.
What Are CD Alternatives?
While CDs are a reliable way to earn money on cash investments, there are several alternatives. CDs may offer higher interest rates than traditional savings accounts or money market accounts, and can be less risky than bonds, but their downside is less liquidity.
Type of Investment
Time deposits where you deposit your money for a set term in exchange for a fixed interest rate
APY
Offer higher APYs than HYSAs or MMAs but lower than some bonds
Risk
Extremely safe as the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor
Accessibility
Limited access until CD maturity unless you pay an Early Withdrawal Penalty
Type of Investment
Savings accounts that offer higher variable interest rates than regular savings accounts, usually offered by online banks or other financial institutions with low overhead
APY
Lower APYs than CDs or bonds but higher rates than a regular savings account
Risk
Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor
Accessibility
Full accessibility — withdraw your money any time and for any reason (although some banks may limit the number of withdrawals you make per month)
Type of Investment
Savings accounts that work more like checking accounts, offering higher variable interest rates than regular savings accounts with check writing capabilities
APY
APYs similar to HYSAs, higher than regular checking or savings accounts but lower than CDs or bonds
Risk
Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor
Accessibility
Full accessibility — withdraw your money at any time and write checks or pay bills out of your account (although some banks may limit monthly transactions)
Type of Investment
Debt securities, short term loans you provide to a company or municipality in exchange for a fixed interest rate paid back over a specific term
APY
Offer the most competitive APYs — the riskiest bonds generally offer the highest interest rates
Risk
Slightly riskier as companies could default and you’d lose your principal and the promised interest (but U.S. Treasury bonds are considered very safe investments)
Accessibility
Some accessibility — you could sell your bond on the secondary market if you needed your money sooner
CDs | High-Yield Savings Accounts | Money Market Accounts | Bonds | |
---|---|---|---|---|
Type of Investment | Time deposits where you deposit your money for a set term in exchange for a fixed interest rate | Savings accounts that offer higher variable interest rates than regular savings accounts, usually offered by online banks or other financial institutions with low overhead | Savings accounts that work more like checking accounts, offering higher variable interest rates than regular savings accounts with check writing capabilities | Debt securities, short term loans you provide to a company or municipality in exchange for a fixed interest rate paid back over a specific term |
APY | Offer higher APYs than HYSAs or MMAs but lower than some bonds | Lower APYs than CDs or bonds but higher rates than a regular savings account | APYs similar to HYSAs, higher than regular checking or savings accounts but lower than CDs or bonds | Offer the most competitive APYs — the riskiest bonds generally offer the highest interest rates |
Risk | Extremely safe as the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor | Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor | Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor | Slightly riskier as companies could default and you’d lose your principal and the promised interest (but U.S. Treasury bonds are considered very safe investments) |
Accessibility | Limited access until CD maturity unless you pay an Early Withdrawal Penalty | Full accessibility — withdraw your money any time and for any reason (although some banks may limit the number of withdrawals you make per month) | Full accessibility — withdraw your money at any time and write checks or pay bills out of your account (although some banks may limit monthly transactions) | Some accessibility — you could sell your bond on the secondary market if you needed your money sooner |
Expert Insights and Tips
We asked five experts to share their insights about CD Rates.
Blain Pearson, Ph.D.
Assistant professor of finance, Coastal Carolina University
“Compared to traditional savings accounts, CDs typically offer higher interest rates, which are locked in at the CD’s initiation. In addition, CDs are FDIC-insured and provide a predictable return that is static over the CD’s term.
There are, however, several risks to consider. CDs typically have limited liquidity and often include penalties for early termination. Furthermore, CDs also have interest rate risk. This means if interest rates rise, CD holders will generally be unable to benefit from the increased rates.”
Hossein Salehi, Ph.D.
Adjunct professor of financial planning at the American College of Financial Services
“CDs offer guaranteed returns because of their fixed interest rates and are insured by the FDIC, protecting deposits up to $250,000 per depositor, per bank. CDs usually have higher interest rates than regular savings accounts and come in different term lengths, offering flexibility for different financial goals.
However, CDs also have downsides. They have limited liquidity, meaning your money is locked in for a set period, and early withdrawals might incur penalties. There’s an inflation risk, where the fixed interest rate may not keep up with rising inflation, reducing the purchasing power of your returns. Additionally, committing funds to a CD means you might miss out on other investments with potentially higher returns due to the opportunity cost.
Lastly, if interest rates rise after you’ve locked in a CD, you can’t benefit from the new, higher rates.”
Hossein Salehi, Ph.D.
Adjunct professor of financial planning at the American College of Financial Services
“There are several key factors to consider when evaluating CDs. The term length of the CD is crucial — it determines how long the funds will be locked in, with longer terms typically offering higher rates.
Annual percentage yield (APY) is another vital aspect, as it reflects the total interest earned in a year, accounting for compounding. It’s important to understand the early withdrawal penalties, which can vary significantly between institutions and impact the overall return if funds are accessed prematurely. Additionally, the minimum deposit requirement should be considered to ensure it aligns with your financial capacity.”
Peter Zaleski, Ph.D.
Professor of economics, Villanova University
“You want the timing of the maturities to coincide with any needed future payments. If the money is not needed, you can roll over the CD. If it is needed, make sure you do not pay any early redemption penalties.”
Lloyd Mitchell
Associate professor of accounting, St. Thomas University
“The APY should be used to compare returns or investments you may be considering. The APY simplifies the comparison and enables you to be confident that you have received a competitive rate. CDs may require early withdrawal penalties if you take your money out before the maturity date. Know these penalties before you invest.
CDs may also require minimum deposits in order to open. Know how much you can invest without needing to pull the money out before the maturity date.”
Lloyd Mitchell
Associate professor of accounting, St. Thomas University
“Rates on short-term CDs are very likely to decrease since their rates generally follow market short-term interest rates.
Rates on longer-term CDs reflect the market for longer-term securities. These rates may not decrease if long-term inflation expectations do not fall. Future rate cut expectations by the market may drive longer-term CD rates lower.”
Blain Pearson, Ph.D.
Assistant professor of finance, Coastal Carolina University
“CD rates will gradually decrease when the Federal Reserve cuts interest rates. Consequently, locking in a CD at today’s current rates may be prudent if the Federal Reserve cuts interest rates.”
William Klinger, MBA
Professor of business, Raritan Valley Community College
“When the Federal Reserve cuts interest rates, banks can borrow money more cheaply and banks will typically lower CD interest rates to reflect their lower cost. The good news is that existing CDs with a fixed interest rate are not affected.”
Common Questions About CDs
Online banks have some of the highest-paying CD rates right now, reaching 5.30% APY or more. There are some smaller credit unions offering higher rates, but these typically have membership requirements and geographic restrictions.
The top rates are now just under 6.00%. These are typically offered by a handful of credit unions that may have membership restrictions. However, because CD rates can rise and fall based on economic conditions, CDs paying 6.00% APY could be more common if interest rates increase.
The best CD rates for $100,000 are above 5.50% APY and tend to come from credit unions (though these usually have membership restrictions) or online banks. For larger sums such as $100,000, it may be more lucrative to open a CD that compounds interest daily rather than monthly, even if the APY is slightly lower.
High-risk investors may not find CDs attractive since their guaranteed payouts mean they often have lower rates of return than other types of investments. But variable-rate CDs may satisfy those looking for more risk since their interest rates can change when benchmark rates go up or down.
Bump-up CDs also allow for some risk since they often have lower APYs than some fixed-rate CDs but allow you to request a higher rate at least once during the CD’s term if the bank raises rates for new account holders. Additionally, you might consider a brokered CD that comes with a higher risk and higher APYs.
Our Methodology
For our list of the best CD rates, we at the MarketWatch Guides team evaluated 154 banks and credit unions and selected the highest-scoring financial institutions. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms.
Our comprehensive methodology examines over a dozen customer experience data points, including branch and ATM locations, mobile app ratings, reputation and customer service access. We focus on key categories such as savings accounts, money market accounts, checking accounts, CDs and overall banking experience. We also consider any legal settlements or agreements with regulators.
Our ratings are continuously updated to reflect changes in rates and features to ensure that our recommendations are current and reliable.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
*Annual Percentage Yield. Rates accurate as of September 10, 2024.
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