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The best CD rates on the market for December 2024 (up to 4.45% APY)
If you’re looking for a secure place to store your money and earn interest, a high-yield certificate of deposit (CD) could be a good option. These accounts require you to keep your money on deposit for a set period of time, known as the term. In exchange for locking in your funds, you may earn a higher rate than what traditional savings accounts offer.
Not sure where to start? We reviewed more than 300 data points to determine the best CDs available today for 6-month, 1-year, and 18-month terms. We then identified the 10 best CD rates overall among the accounts we reviewed.
Table of contents
Note that all interest rates, fees, and requirements are accurate as of the publish date. Please verify account details directly with the financial institution.
Best CD rates for December 2024: 11 banks offering 4.00% APY and up
Here’s a closer look at the top CD rates among all of the CD accounts we evaluated:
Best CD accounts for December 2024
Getting the best possible interest rate on your CD is important, but so is choosing the right account to meet your needs. That includes a term length that matches your savings goal, low fees, excellent support, and more.
To help you find the right CD, we evaluated approximately 60 CD accounts across 6-month, 1-year, and 18-month terms. We then identified the 10 best account options available today for each term based on interest rates, minimum opening deposit requirements, interest compounding frequency, and access to customer service. Read on to see our top picks.
10 best 6-month CDs
The following is a snapshot of our picks for the best 6-month CDs available today. Keep reading for more details about these accounts.
Ally Bank
Account details
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APY: 4.20%
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Minimum opening deposit: $0
Ally Bank’s 6-month CD currently offers 4.20% APY with no monthly maintenance fees and minimum opening deposit requirement. Another perk: Ally offers around-the-clock customer service via telephone, chat, and email.
Note that the penalty for making an early withdrawal from this account is 60 days’ interest.
Read our full review of Ally Bank
Barclays Bank
Account details
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APY: 4.00%
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Minimum opening deposit: $0
Barclays’ 6-month CD offers 4.00% APY with no minimum deposit required to open an account. Interest on this CD compounds daily.
The penalty for making a withdrawal before your CD reaches maturity is 90 days’ simple interest on the dollar amount withdrawn.
Read our full review of Barclays Bank
Synchrony Bank
Account details
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APY: 3.70%
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Minimum opening deposit: $0
Synchrony Bank’s 6-month CD boasts 3.70% APY with no monthly maintenance fees or minimum balance requirements. Interest on this account is compounded daily and credited monthly.
The penalty for making an early withdrawal from this CD is equal to 90 days’ simple interest at the current rate.
Read our full review of Synchrony Bank
Bank5Connect
Account details
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APY: 4.50%
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Minimum opening deposit: $500
Bank5Connect is an online-only bank offering competitive rates on its deposit products. The current rate for a 6-month CD is 4.50% APY, and a minimum of $500 is needed to open an account. Interest compounds monthly, which is less frequent than most of the accounts we reviewed.
The penalty for making an early withdrawal from this account is equal to three months’ interest.
Read our full review of Bank5 Connect
Marcus by Goldman Sachs
Account details
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APY: 4.10%
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Minimum opening deposit: $500
The Marcus by Goldman Sachs 6-month CD offers 4.10% APY — nearly three times the national average. Interest compounds daily. You must deposit a minimum of $500 to open an account.
The penalty for making an early withdrawal from this account is 90 days’ interest on the original principal balance at the interest rate in effect for the account.
Read our full review of Marcus by Goldman Sachs
America First Credit Union
Account details
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APY: 4.55%
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Minimum opening deposit: $500
Depositors who prefer a credit union over a traditional bank may be interested in America First Credit Union’s 6-month CD. This short-term CD offers 4.55% APY with a minimum of $500 required to open an account.
The penalty for making an early withdrawal from this account is equal to 60 days of dividends.
To become a member of America First Credit Union, you’ll need to submit an online application and meet certain eligibility requirements.
Read our full review of America First Credit Union
Bask Bank
Account details
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APY: 4.45%
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Minimum opening deposit: $1,000
Bask Bank’s 6-month CD has a higher minimum opening deposit at $1,000. So, this account may not be the best option if you’re still working on building up your savings.
Those who do have the funds to get started will benefit from a 4.45% APY and daily interest compounding. The penalty for making a withdrawal before your CD hits maturity is 90 days’ simple interest based on the principal amount withdrawn.
Read our full review of Bask Bank
Quontic Bank
Account details
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APY: 4.25%
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Minimum opening deposit: $500
Quontic’s 6-month CD currently provides 4.25% APY with a minimum deposit of $500 to open an account. Interest compounds daily and is credited monthly. There are no monthly service fees.
One major drawback of this CD: The penalty for making an early withdrawal is equal to the interest for the full length of your term, which means you could lose part of your principal deposit if you withdraw your funds too soon.
Read our full review of Quontic Bank
EverBank
Account details
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APY: 4.00%
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Minimum opening deposit: $1,000
EverBank’s 6-month CD has one of the highest minimum opening deposits on our list at $1,000, but it offers 4.00% APY, which is more than double the national average for 6-month CDs. Interest on this CD compounds daily.
The penalty for making an early withdrawal is 45 days’ simple interest.
Read our full review of EverBank
LendingClub
Account details
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APY: 4.00%
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Minimum opening deposit: $2,500
LendingClub’s 6-month CD offers 4.00% APY. The minimum to open this account is $2,500, which is on the higher end compared to the other CDs we evaluated. The early withdrawal penalty for this account is equal to 90 days’ simple interest.
Read our full review of LendingClub
10 best 1-year CDs
The following is a snapshot of our picks for the best 1-year CDs available today. Keep reading for more details about these accounts.
Ally Bank
Account details
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APY: 4.00%
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Minimum opening deposit: $0
Ally Bank’s 1-year CD offers a competitive 4.00% APY and $0 minimum deposit, making it a great option for savers who are just getting started. Interest compounds daily
The penalty for making an early withdrawal is 60 days’ interest.
Read our full review of Ally Bank
Synchrony Bank
Account details
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APY: 4.00%
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Minimum opening deposit: $0
Synchrony Bank’s 1-year CD offers a competitive 4.00% APY, but poses a stiffer penalty for early withdrawals. Making a withdrawal from your account before its maturity date will result in a penalty of 90 days’ simple interest at the current rate. This account is free to open and interest compounds daily.
Read our full review of Synchrony Bank
Marcus by Goldman Sachs
Account details
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APY: 4.10%
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Minimum opening deposit: $500
The Marcus by Goldman Sachs 1-year CD offers 4.10% APY— almost three times the national average for 1-year CDs. Interest compounds daily. You’ll need a minimum of $500 to open an account.
The early withdrawal penalty for this CD is equal to 90 days’ interest on the original principal balance at the interest rate in effect for the CD.
Read our full review of Marcus by Goldman Sachs
America First Credit Union
Account details
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APY: 4.45%
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Minimum opening deposit: $500
America First Credit Union’s 1-year CD offers a competitive rate of 4.45% APY with a minimum deposit requirement of $500. Interest compounds monthly, which is less frequent than some of the other accounts on our list.
Early withdrawals from this CD incur a penalty of 60 days of dividends.
Read our full review of America First Credit Union
American Express National Bank
Account details
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APY: 3.60%
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Minimum opening deposit: $0
The 1-year CD from American Express National Bank offers 3.60% APY and requires no minimum opening deposit. The early withdrawal penalty is equal to 270 days’ interest on the amount withdrawn at the current rate.
Read our full review of American Express National Bank
Barclays Bank
Account details
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APY: 4.25%
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Minimum opening deposit: $0
The Barclays Bank 1-year CD offers 4.25% APY with no minimum deposit requirement to open an account. It also scored favorably for its daily compounding interest.
The penalty for making an early withdrawal from this account is equal to 90 days’ simple interest on the dollar amount withdrawn.
Read our full review of Barclays Bank
Bask Bank
Account details
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APY: 4.25%
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Minimum opening deposit: $1,000
Bask Bank’s 1-year CD offers 4.25% APY, though it does require a higher minimum opening deposit of $1,000. On the plus side, it does not come with any monthly fees. Interest on this account compounds daily.
Making an early withdrawal will result in a penalty of 90 days’ simple interest based on the principal amount withdrawn.
Read our full review of Bask Bank
BMO Alto
Account details
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APY: 4.30%
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Minimum opening deposit: $0
BMO Alto’s 1-year CD is free to open and boasts 4.30% APY without any additional fees. Interest on this CD compounds daily and is credited to your account monthly and at maturity.
Making an early withdrawal from this account will incur a penalty of 180 days’ interest.
Read our full review of BMO Alto
Quontic Bank
Account details
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APY: 4.00%
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Minimum opening deposit: $500
Quontic Bank’s online 1-year CD offers 4.00% APY, which is more than double the national average. A minimum deposit of $500 is required to open a CD. Interest compounds daily and is credited monthly.
Making an early withdrawal from this CD will incur a penalty of one year's interest.
Read our full review of Quontic Bank
TAB Bank
Account details
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APY: 4.25%
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Minimum opening deposit: $1,000
TAB Bank’s 1-year CD has one of the higher minimum opening deposits on our list at $1,000. However, this account also offers a competitive 4.25% APY. Interest compounds daily.
The early withdrawal penalty for this account is equal to 90 days’ interest on the amount withdrawn.
Read our full review of TAB Bank
10 best 18-month CDs
The following is a snapshot of our picks for the best 18-month CDs available today. Keep reading for more details about these accounts.
Ally Bank
Account details
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APY: 3.80%
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Minimum opening deposit: $0
Ally once again took the top spot on our list for its 18-month CD. This account boasts a 3.80% APY and doesn’t require a minimum opening deposit to get started. Interest on this account compounds daily.
Making a withdrawal before this CD reaches its maturity date will incur a fee equal to 60 days of interest.
Read our full review of Ally Bank
Barclays Bank
Account details
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APY: 3.20%
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Minimum opening deposit: $0
The 18-month CD from Barclays Bank offers 3.20% APY with no minimum opening deposit or monthly fees. Interest on this account compounds daily.
Making an early withdrawal from this account results in a penalty of 90 days’ simple interest on the dollar amount withdrawn.
Read our full review of Barclays Bank
Synchrony Bank
Account details
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APY: 3.80%
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Minimum opening deposit: $0
Synchrony Bank’s 18-month CD offers a competitive 3.80% APY with no minimum opening deposit. Making an early withdrawal from this account incurs a penalty of 180 days’ simple interest.
Read our full review of Synchrony Bank
Marcus by Goldman Sachs
Account details
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APY: 3.90%
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Minimum opening deposit: $500
The 18-month CD from Marcus by Goldman Sachs’ offers 3.90% APY and requires a minimum deposit of $500. Interest compounds daily. Making an early withdrawal from this account results in a penalty equal to 180 days’ interest on the original principal balance at the interest rate in effect for the CD.
Read our full review of Marcus by Goldman Sachs
America First Credit Union
Account details
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APY: 4.10%
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Minimum opening deposit: $500
America First Credit Union’s 18-month CD offers 4.10% APY and requires a minimum opening deposit of $500. Dividends are compounded and credited monthly.
The early withdrawal penalty for this account is equal to 180 days of dividends.
Read our full review of America First Credit Union
Bank5Connect
Account details
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APY: 3.90%
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Minimum opening deposit: $500
Bank5Connect’s 18-month CD requires a minimum opening deposit of $500 and offers 3.90% APY. Interest compounds monthly. The early withdrawal penalty is six months’ interest.
Read our full review of Bank5 Connect
Bask Bank
Account details
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APY: 3.90%
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Minimum opening deposit: $1,000
Bask Bank’s 18-month CD provides a competitive 3.90% APY with a minimum opening deposit of $1,000. The penalty for making an early withdrawal from this account is equal to 180 days’ interest based on the principal amount withdrawn.
Read our full review of Bask Bank
LendingClub
Account details
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APY: 3.75%
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Minimum opening deposit: $2,500
LendingClub’s 18-month CD features a competitive 3.75% APY. The minimum opening deposit for this account is on the high end at $2,500.
A penalty for early withdrawals may apply.
Read our full review of LendingClub
Live Oak Bank
Account details
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APY: 3.00%
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Minimum opening deposit: $2,500
Live Oak Bank’s 18-month CD offers a competitive 3.00% APY, and interest compounds daily. This account also has one of the highest minimum opening deposits on our list at $2,500.
The early withdrawal penalty for this account is equal to 90 days’ simple interest.
Sallie Mae
Account details
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APY: 3.80%
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Minimum opening deposit: $2,500
Sallie Mae took the final spot on our list for its 18-month CD, which boasts 3.80% APY and requires a minimum opening deposit of $2,500. Interest is compounded daily.
The penalty for making an early withdrawal from this CD is equal to 180 days’ simple interest.
Learn more about certificates of deposit (CDs)
CDs are a type of deposit account that may or may not be the right fit depending on your unique savings goals. Before opting for a CD, it’s important to fully understand how they work, the benefits and drawbacks of a CD, and where CD rates stand today.
CD rates today
The highest-paying CDs are currently offering APYs of 4.50% or more, though these are only available at select banks. Nationally, the average interest rate on a 6-month CD is 1.81%, according to the FDIC.
Current CD rates are some of the highest in nearly two decades, thanks to the Federal Reserve’s ongoing efforts to slow inflation. Until it's recent decision to cut its target rate, the central bank kept interest rates high for much of the last two years, aiming to reduce inflation to 2%. This has led to higher rates on CDs and savings accounts as a result.
The last time CDs paid high rates close to 5% was in late 2007, according to the Organization for Economic Co-operation and Development. When you shop around and compare rates from different banks, you can find one-year CD interest rates that are almost triple the national average. Learn more about CD rates today.
What is a good CD rate?
The interest rate on a CD plays a key role in how your money grows over time. A higher rate means your balance will earn interest faster and give you a better return on your investment. Today, CD rates range quite a bit depending on the financial institution. However, the best rates hover around 4% to 5% APY.
One of the biggest benefits of a CD is that these rates are locked in; once you open and fund your account, you don’t have to worry about your rate changing. This is also why it’s crucial to make sure you’re locking in the best possible rate when opening an account. Learn more about what is considered a good CD rate.
How do CDs work?
CDs work differently than other types of deposit accounts. Unlike a traditional savings account, for example, a CD requires you to keep your money on deposit for a set period of time. However, CDs also typically offer higher interest rates than most other types of savings accounts in exchange for locking in your money.
CD terms can range from a few months to several years. As long as your money remains untouched, you can expect your balance to keep growing. However, making an early withdrawal from your CD will likely result in a penalty. Learn more about how CDs work and how to choose the right one.
How much do you need to open a CD?
The minimum amount needed to open a CD varies depending on the financial institution and the specific type of CD. Often, you’ll need at least $500 to $1,000 to open an account, although there are many banks and credit unions that offer CDs with no minimum balance requirement. Learn more about minimum balances for CDs.
Types of CDs
CDs are not all structured the same way, and you might find that one type of CD works better for your savings strategy than another.
These are the most common types of CDs available:
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High-yield CD: A high-yield CD offers a higher rate than traditional CDs.
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No-penalty CD: This type of CD gives you the option to withdraw funds from your account before the maturity date without paying a penalty.
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Bump-up CD: These CDs allow you to take advantage of interest rate increases during the term. For example, say you opened your CD at 4.00% APY, but your financial institution raised that rate to 4.25% soon after. With a bump-up CD, you can request to increase your rate to the current one being advertised.
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Jumbo CD: Jumbo CDs typically offer a higher interest rate but require a higher minimum deposit than most other CD products — usually starting at $100,000.
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Callable CD: If interest rates fall, your bank may redeem a callable CD before its maturity date. In this case, you’d get your principal balance back, plus any earned interest up to that point.
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Brokered CD: Brokered CDs are purchased from a brokerage firm, rather than a bank. They are often higher risk than traditional CDs.
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Share certificate: A share certificate is essentially the same thing as a CD, except they’re offered by credit unions.
Are CDs FDIC-insured?
CDs are usually insured by the federal government. Any CD you open with an FDIC-insured bank or NCUA-insured credit union is covered up to $250,000 per depositor. If your financial institution fails, the government guarantees the balance of your account up to $250,000. Learn more about FDIC insurance for CDs.
Pros and cons of CDs
Consider these important pros and cons of CDs before opening an account:
Pros
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CDs are a great intro to personal finance tools. Unlike the stock market, CDs offer safe, reliable returns with no rate changes.
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CDs offer fixed interest rates with higher returns on average compared with other deposit accounts.
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When you open a CD at a federally insured bank or credit union, that CD is insured up to $250,000.
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Opening a CD may discourage you from tapping into your savings early.
Cons
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You'll typically pay an early withdrawal penalty if you need your cash before the CD’s maturity date.
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The competitive rates on CDs — especially longer-term CDs — might not keep up with inflation.
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The minimum balance needed to open a CD may be too high.
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Although CDs are safer, they offer lower returns than mutual funds and stocks.
Learn more about the pros and cons of CDs.
Are CDs worth it?
CDs can give you a solid return on your savings if you secure an account with a high APY, but they are not without their limitations. When determining if a CD is right for you, consider how often you need to access your money and whether there are other options that could help you meet your savings goals. Learn more about when CDs are worth it.
What is a CD early withdrawal penalty?
Most CDs impose an early withdrawal penalty if you access your funds before the account reaches maturity. The exact amount of the penalty depends on the financial institution’s policies and often the length of the CD term. This penalty is usually expressed as a certain number of days or months’ worth of interest. Learn more about early withdrawal penalties.
What to do with a CD when it matures
When your CD matures, you have a few options for how to proceed. You might decide to renew your CD for the same term length at the current interest rate. You can also withdraw the funds and open a new CD with a different bank, put your money into a different type of savings account, explore new investment options, or use the money to fund a major purchase.
When your CD reaches maturity, your bank will likely give you a short grace period before automatically renewing your CD, during which time you should take action and make a decision about how to best use those funds. Learn more about what to do when a CD matures.
How to set up a CD ladder
You may be worried about locking your money into a CD and missing out on higher interest rates in the future. And in an environment where interest rates are rising,, missing out on a great rate is a real possibility.
CD laddering can help you avoid the risk of missing out on higher CD rates later. With a CD ladder, you split your savings among multiple CDs with staggered maturity dates (e.g., a 6-month CD, a 1-year CD, and a 2-year CD). When the first CD in your ladder matures, you can access those funds if you need them or roll the cash into a new CD — perhaps at a higher interest rate if one is available at that time. Meanwhile, your longer-term CDs will continue earning the rate you locked in when you opened them. Learn more about creating a CD ladder.
Short- or long-term CD: Which is best?
The term of your CD — the length of time it takes your CD to mature — can affect the interest rate a bank offers you. Typically, long-term CDs feature higher APYs as a benefit of letting the bank hold on to your cash for a longer period. But longer terms don’t always equal higher interest rates.
In the current market, average interest rates increase between 1-month and 1-year CDs. Yet that upward trend isn't consistent with all longer-term CDs. Data from the FDIC finds the average 2-year CD rate to be 1.57%, but a 4-year CD sits at 1.36%. As you can see, today's best CD rates aren’t necessarily tied to accounts with the longest terms. Learn more about choosing between a short- or long-term CD.
Can you lose money in a CD?
CDs are considered low-risk investments because they offer a fixed interest rate. Once that rate is locked in, it won’t fluctuate as a result of major economic events or stock market swings. Plus, you won’t lose your principal deposit Still, CDs are not completely risk-free. Learn more about whether you can lose money in a CD.
Can you gift a certificate of deposit?
Gifting a certificate of deposit is possible, but there are certain rules about who you can give one to and how to go about it. Generally, the owner of a CD must open the account in their name, so you can't offer a certificate of deposit gift to another adult. However, you can open a custodial account for a child and offer a CD as a gift. Learn more about gifting CDs.
CDs vs. bonds
CDs and bonds are both considered low-risk places to put your money, but they function quite differently. Bonds may offer greater liquidity than CDs because you can sell them at any time, whereas CDs are locked in for the duration of the term. These two types of investments are also insured by different entities. Learn more about CDs vs. bonds.
CDs vs. Treasury bills
Another low-risk investment option, Treasury bills have become more popular in recent years. Also known as T-bills, these investments are backed by the U.S. government, offer competitive rates, and may be a more favorable option for short-term savers. Unlike CDs, T-bills provide greater liquidity and can be sold at any time. Learn more about CDs vs. Treasury bills.
CDs vs. money market accounts
Both money market accounts and CDs are known for offering higher interest rates than traditional savings accounts. They’re also both federally insured in most cases. However, CDs and money market accounts differ in a few key ways, including when it comes to fees, accessibility, and more. Learn more about CDs vs. money markets.
Best CD rates methodology
Our grading system, collected and carefully reviewed by our personal finance experts, comprised nearly 300 data points for approximately 60 federally insured CDs across 6-month, 1-year, and 18-month terms. We used this data to develop our list of the best CDs.
We evaluated these accounts according to several key metrics, including annual percentage yield, minimum opening deposit, compounding frequency, and more.
The accounts on our list could earn a maximum of 25 points across all metrics. Here’s a closer look at the categories we considered:
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Annual percentage yield (APY): Accounts with higher APYs were rewarded with more points than those with lower APYs. Note that rates on our list are current at the time of publishing but are subject to change at any time.
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Minimum opening deposit: Many CDs require a minimum deposit to open an account. Accounts with no or low minimum deposit requirements ranked more favorably than those with higher opening deposit requirements.
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Compounding frequency: Compounding can occur daily, monthly, quarterly, or even annually. We awarded more points to accounts that compound interest frequently.
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Customer service contact methods: Our team awarded one point for every contact method available to customers (phone, email, chat).
Michelle Lambright Black, Kat Tretina, Hal Bundrick, and Zina Kumok contributed to this article.
