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If you’re looking for a way to earn more interest on your money, a certificate of deposit (CD) could be a useful tool. With a CD, you’ll make a one-time deposit and the money must stay in the account for a set amount of time to earn interest.
Our best CD guide can be a great resource for learning about CDs and their various functions. But if you prioritize finding a competitive CD rate above all else, then this list is for you.
What are the interest rates for CDs today?
The FDIC controls the nation’s rates on bank accounts that earn interest.
For CDs, the average interest rate depends on the term you choose. The average interest rate for a 3-month CD is 0.10% APY, and the average interest rate for a 60-month CD is 0.57% APY.
We’ve reviewed more than a dozen financial institutions to keep up with new rate offers. Our list includes CDs with interest rates much higher than the national average. Most of the institutions on our list are online banks and credit unions, as they tend to offer high-yield bank accounts.
The most competitive institutions may offer 1-year CDs paying up to 1.75% APY and 5-year CDs up to 3.65% APY.
CDs typically have fixed interest rates. This means that it will block a rate for a specific period of time. If you need to withdraw money from a CD before it expires, you may have to pay a early withdrawal penalty.
The Federal Reserve has also increased the fed funds multiple times since March, so savings interest rates are expected to rise steadily throughout 2022.
Best CD Interest Rates
Some of the institutions on our list are also top picks in our best CD guides. If you’re looking for a specific CD term, consider checking out these posts as well:
That said, if you’re comfortable with a high initial deposit or don’t mind limited-term options, the following three CD options may also be suitable contenders, even if they’re not in our best guides.
Annual Percentage Yield (APY)
0.50% to 3.25% APY
Minimum deposit amount
$10,000
- Competitive rates for certain terms
- daily compound interest
- $10,000 minimum deposit
- Early withdrawal penalties from standard to high
- Terms ranging from 3 months to 5 years
- Penalties for early withdrawal: 89 days of simple interest for terms less than 91 days; 120 days of simple interest for terms from 91 days to less than 12 months; 270 days of simple interest for terms from 12 months to less than 36 months; 365 days of simple interest for terms from 36 months to less than 60 months; 730 days of simple interest for terms of 60 months or more
- Interest compounded daily, paid monthly
- FDIC insured
While the Popular Direct Deposit Certificate It wasn’t included in any of our best CD guides, but it could still be great if you already intend to open a CD with more than $10,000. However, you’ll want to pay attention to CD early withdrawal penalties, because some terms have high penalties.
Annual Percentage Yield (APY)
2.55% to 3.65% APY
Minimum deposit amount
$500
- 2 locations near Baltimore, Maryland
- Free access to more than 1,600 M&T Banks ATMs on the East Coast
- Terms range from 1 year to 5 years
- Early withdrawal penalties: 90 days interest for 1-year terms; 180 days of interest for terms greater than 1 year
- Interest compounded daily and paid monthly
- Member FDIC
You may like CFG Bank CD if you are looking for the following terms: 12-month, 13-month, 18-month, 36-month, or 60-month CDs. You can also open a CD with a low minimum opening deposit.
Annual Percentage Yield (APY)
2.25% to 3.25% APY
Minimum deposit amount
$5,000
- competitive APY
- Early withdrawal penalties from low to standard
- $5,000 minimum deposit
- No terms less than 1 year
- Terms range from 1 year to 5 years
- Early withdrawal penalties: 90 days interest for 1-year terms; 180 days of interest for terms greater than 1 year
- Interest Compounded Daily
- FDIC insured
the Citizens Access Online Certificate of Deposit it could be worth it if you have at least $5,000 for a minimum opening deposit. Terms for online CDs range from 1 year to 5 years.