Overview
Compare the best CD rates from top banks and credit unions. Find the highest rates for 3-month, 6-month, 1-year, 2-year, and 5-year CDs. Finding the right option depends on your specific needs, spending habits, and financial goals. Below we break down the key factors to consider and the top choices available.
Top CD Rates by Bank
| Bank | Best For | Typical APY Range | Minimum Deposit | |
|---|---|---|---|---|
| Marcus by Goldman Sachs | Strong rates, no minimum on many terms | Competitive across all terms | $500 | Compare → |
| Ally Bank | No minimum deposit, raise-your-rate option | Competitive, especially 11-month "Raise Your Rate" CD | $0 | Compare → |
| Discover Bank | Wide range of terms, strong customer service | Competitive across 3-month to 10-year terms | $2,500 | Compare → |
| Synchrony Bank | No minimum deposit, frequent rate promotions | Often among the highest online rates | $0 | Compare → |
| CIT Bank | Strong rates on specific "featured" terms | Highly competitive on featured terms (often 6-month, 1-year) | $1,000 | 1-Year Rates → |
How to Choose a CD Term
- Match the term to your timeline: Only put money into a CD you won't need before it matures — early withdrawal penalties typically cost several months of interest.
- Compare APY, not just the advertised rate: APY (Annual Percentage Yield) reflects compounding and is the true comparison number between banks.
- Check the minimum deposit: Online banks like Ally and Synchrony often have no minimum, while others require $500-$2,500 to open.
- Consider a CD ladder: Splitting your money across multiple terms (e.g., 6-month, 1-year, 2-year) gives you regular access to funds while still capturing longer-term rates.
- Watch for rate-change trends: When rates are expected to fall, locking in a longer-term CD now protects your rate. When rates are expected to rise, shorter terms let you reinvest sooner at a higher rate.
CD Rates vs. High-Yield Savings
CDs typically offer a fixed rate for a set term, while high-yield savings accounts offer a variable rate you can access anytime. If you're confident you won't need the money before the term ends, a CD often locks in a slightly higher rate than a comparable savings account. If you want flexibility or think rates may rise, a high-yield savings account may serve you better.
Frequently Asked Questions
Most banks charge an early withdrawal penalty, typically equal to a set number of months of interest (often 3 months for short-term CDs, up to 12 months for longer terms). Some banks offer "no-penalty" CDs with slightly lower rates in exchange for early withdrawal flexibility.
Yes — interest earned on a CD is taxable as ordinary income in the year it's earned, even if you don't withdraw it, unless the CD is held in a tax-advantaged account like an IRA. Your bank will send a 1099-INT if you earn $10 or more in interest.
Yes, as long as the bank is FDIC-insured (or NCUA-insured for credit unions), your deposit is protected up to $250,000 per depositor, per institution — the same protection as a traditional brick-and-mortar bank.