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Best CD Rates of January 2025

Review Updated
Matt Frankel, CFP®
Author: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for Motley Fool Money and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column for the Motley Fool ("Ask a Fool") that is syndicated in USA Today, and his work with Motley Fool Money has also been syndicated to MSN and Yahoo! Finance. He has been regularly featured on Fox Business and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

See Full Bio

| 1 other [ + ]
Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

While CD rates aren't directly linked to the federal funds rate, they tend to move in the same direction. Since the Fed has cut rates a full percentage point since September 2024, CD rates have gradually fallen as well.

The Fed is predicting two more rate cuts in 2025, meaning CD yields are unlikely to get any higher in the next few months. If you have cash sitting on the sidelines, now is a great time to lock into a high-yield CD.

We've evaluated over 100 banking institutions and found 9 CDs that we think are the best choice for you. See our top picks below.

  • Our team of experts assessed 100+ banking institutions
  • We evaluate all banking institutions across the same 4 key criteria: annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks
  • Our bank ratings are never influenced by our advertising partners
  • We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased

Here are three of our favorite CDs on the market. Click the links below to go straight to the issuer's website to learn more.

At a glance: 9 best CD rates

Ratings Methodology
Rates as of Dec. 18, 2024
Best CD rates of January 2025
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 3.80% Term: 1.5 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 4.15% Term: 1 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Member FDIC.
APY: 4.00% Term: 1 Year Min. Deposit:  $500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.00% Term: 1 Year Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

APY: 3.90% Term: 1.5 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.85% Term: 2 Year Min. Deposit:  $1,500
Read Review
Member FDIC.
APY: 4.25% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
APY: 3.50% Term: 5 Year Min. Deposit:  $0
Read Review
APY: 4.65% Term: 6 Months Min. Deposit:  $500
Read Review
APY: 4.30% Term: 1 Months Min. Deposit:  $1
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.05% Term: 1 Months Min. Deposit:  $1,000
Member FDIC.
APY: 3.80% Term: 3 Months Min. Deposit:  $1,500
Read Review
Member FDIC.
APY: 4.50% Term: 3 Months Min. Deposit:  $1,000
Read Review
APY: up to 2.01% Term: 3 Months Min. Deposit:  $2,500 for Standard, $5,000 for Special
Read Review
APY: 2.00% Term: 3 Months Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 3.71% Term: 3 Months Min. Deposit:  $10,000
Read Review
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 3 Months Min. Deposit:  $500
APY: 4.50% Term: 3 Months Min. Deposit:  $1
Open Account for

On Secure Website.

Huntington Bank Standard CD
Member FDIC.
APY: 0.05% Term: 3 Months Min. Deposit:  $1,000
APY: 2.00% Term: 3 Months Min. Deposit:  $500
Read Review
Member FDIC.
APY: 4.65% Term: 3 Months Min. Deposit:  $10,000
Read Review
APY: 4.30% Term: 3 Months Min. Deposit:  $1
Read Review
Member FDIC.
APY: 4.65% Term: 3 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: up to 4.75% Term: 3 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: up to 4.63% Term: 3 Months Min. Deposit:  $1,000
Read Review
APY: 3.00% Term: 3 Months Min. Deposit:  $0
Read Review
APY: up to 4.51% Term: 4 Months Min. Deposit:  $2,500 for Standard, $5,000 for Special
Read Review
APY: 5.50% Term: 5 Months Min. Deposit:  $2,500
Read Review
First National Bank Special CD
Member FDIC.
APY: 4.75% Term: 5 Months Min. Deposit:  $5,000 or $10,000, depending on term
APY: 4.90% Term: 5 Months Min. Deposit:  —
Read Review
APY: up to 2.01% Term: 6 Months Min. Deposit:  $2,500 for Standard, $5,000 for Special
Read Review
Member FDIC.
APY: 3.50% Term: 6 Months Min. Deposit:  $500
Read Review
APY: 5.21% Term: 6 Months Min. Deposit:  $1
Read Review
Member FDIC.
APY: 3.00% Term: 6 Months Min. Deposit:  $1,000
Read Review
APY: 4.50% Term: 6 Months Min. Deposit:  $10,000
Read Review
Valley Bank CD
Member FDIC.
APY: 4.75% Term: 6 Months Min. Deposit:  $500
APY: 3.95% Term: 6 Months Min. Deposit:  $2,500
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 4.35% Term: 6 Months Min. Deposit:  $1,000
APY: 4.20% Term: 6 Months Min. Deposit:  $0
Read Review
APY: 4.10% Term: 6 Months Min. Deposit:  $500
Read Review
APY: 3.80% Term: 6 Months Min. Deposit:  $0
Read Review
APY: 3.70% Term: 6 Months Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.45% Term: 6 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 4.00% Term: 6 Months Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

APY: 4.70% Term: 6 Months Min. Deposit:  $500
Read Review
Member FDIC.
APY: 4.75% Term: 6 Months Min. Deposit:  $1,500
Read Review
Member FDIC.
APY: 1.00% - 4.00% Term: 6 Months Min. Deposit:  $250.00
Read Review
Member FDIC.
APY: 3.00% Term: 6 Months Min. Deposit:  $1,000
Open Account for CIT Bank CD

On CIT's Secure Website.

APY: 4.40% Term: 6 Months Min. Deposit:  $0
Read Review
First Tech CD
APY: up to 4.91% Term: 6 Months Min. Deposit:  $500
Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $0
Read Review
Member FDIC.
APY: up to 4.35% Term: 6 Months Min. Deposit:  $1,000
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 0.50% Term: 6 Months Min. Deposit:  $1,000
Member FDIC.
APY: 4.40% Term: 6 Months Min. Deposit:  $10,000
Read Review
APY: 4.00% Term: 6 Months Min. Deposit:  $1
Read Review
Member FDIC.
APY: 5.30% Term: 6 Months Min. Deposit:  $1,000
Read Review
APY: 5.00% Term: 6 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 0.05% Term: 6 Months Min. Deposit:  $1,000
Read Review
APY: 4.50% Term: 6 Months Min. Deposit:  $500
Read Review
Fidelity CD
Member FDIC.
APY: 5.25% Term: 6 Months Min. Deposit:  $1,000
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 6 Months Min. Deposit:  $500
APY: 4.40% Term: 6 Months Min. Deposit:  $1
Open Account for

On Secure Website.

Member FDIC.
APY: 4.15% Term: 6 Months Min. Deposit:  $500
Read Review
APY: 3.00% Term: 6 Months Min. Deposit:  $500
Read Review
NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 4.80% Term: 6 Months Min. Deposit:  $1,000
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 6 Months Min. Deposit:  $1,000
APY: 4.20% Term: 6 Months Min. Deposit:  $1
Read Review
Vanguard Brokered CD
Member FDIC.
APY: 5.25% Term: 6 Months Min. Deposit:  $1,000
APY: 4.00% Term: 6 Months Min. Deposit:  $1,000
Read Review
APY: 4.24% Term: 6 Months Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: up to 4.30% Term: 6 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 5.25% Term: 7 Months Min. Deposit:  $1,000
Open Account for Ponce Bank CDs

On Ponce Bank's Secure Website.

APY: up to 4.26% Term: 7 Months Min. Deposit:  $2,500 for Standard, $5,000 for Special
Read Review
Huntington Bank Promotional CD
Member FDIC.
APY: 5.13% Term: 7 Months Min. Deposit:  $1,000
Republic Bank of Chicago CD
Member FDIC.
APY: 4.34% Term: 7 Months Min. Deposit:  $1,000
Member FDIC.
APY: 3.50% Term: 7 Months Min. Deposit:  $500
Read Review
APY: 4.75% Term: 7 Months Min. Deposit:  $500
Read Review
APY: 5.00% Term: 7 Months Min. Deposit:  —
Read Review
First National Bank Special CD
Member FDIC.
APY: 4.50% Term: 7 Months Min. Deposit:  $5,000 or $10,000, depending on term
Member FDIC.
APY: 4.30% Term: 9 Months Min. Deposit:  $1,000
Read Review
APY: 4.00% Term: 9 Months Min. Deposit:  $2,500
Read Review
NASA Federal Credit Union High-Yield Certificate
Federally insured by NCUA.
APY: 4.99% Term: 9 Months Min. Deposit:  $10,000
APY: 4.30% Term: 9 Months Min. Deposit:  $0
Read Review
Member FDIC.
APY: 2.50% Term: 9 Months Min. Deposit:  $500
Read Review
APY: 4.25% Term: 9 Months Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 1.00% - 4.00% Term: 9 Months Min. Deposit:  $250.00
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 9 Months Min. Deposit:  $1,000
Member FDIC.
APY: 3.75% Term: 9 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 4.25% Term: 9 Months Min. Deposit:  $0
Read Review
APY: 4.35% Term: 9 Months Min. Deposit:  $1
Open Account for

On Secure Website.

Member FDIC.
APY: 5.30% Term: 9 Months Min. Deposit:  $1,000
Read Review
APY: 3.65% Term: 9 Months Min. Deposit:  $1
Read Review
APY: 4.10% Term: 9 Months Min. Deposit:  $500
Read Review
Member FDIC.
APY: up to 4.50% Term: 9 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.80% Term: 9 Months Min. Deposit:  $1,500
Read Review
APY: 3.80% Term: 9 Months Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

APY: 5.31% Term: 10 Months Min. Deposit:  $1
Read Review
APY: 3.75% Term: 11 Months Min. Deposit:  $0
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 4.04% Term: 11 Months Min. Deposit:  $1,000
Huntington Bank Promotional CD
Member FDIC.
APY: 4.86% Term: 11 Months Min. Deposit:  $1,000
APY: 3.50% Term: 11 Months Min. Deposit:  $1,000
Open Account for CIT Bank No-Penalty CD

On CIT's Secure Website.

Member FDIC.
APY: 2.00% Term: 1 Year Min. Deposit:  $1,000
Read Review
APY: 4.50% Term: 1 Year Min. Deposit:  $500
Read Review
APY: 4.51% Term: 1 Year Min. Deposit:  $5,000
Read Review
APY: 3.60% Term: 1 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: up to 4.50% Term: 1 Year Min. Deposit:  $1,000
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 0.75% Term: 1 Year Min. Deposit:  $1,000
Member FDIC.
APY: up to 4.05% Term: 1 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 4.25% Term: 1 Year Min. Deposit:  $1,000
Read Review
APY: 3.75% Term: 1 Year Min. Deposit:  $1
Read Review
APY: 4.10% Term: 1 Year Min. Deposit:  $2,500
Read Review
APY: 4.40% Term: 1 Year Min. Deposit:  $0
Read Review
Valley Bank CD
Member FDIC.
APY: 4.50% Term: 1 Year Min. Deposit:  $500
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 1 Year Min. Deposit:  $500
Member FDIC.
APY: 1.00% - 3.75% Term: 1 Year Min. Deposit:  $250.00
Read Review
Member FDIC.
APY: 2.50% Term: 1 Year Min. Deposit:  $500
Read Review
Vanguard Brokered CD
Member FDIC.
APY: 5.40% Term: 1 Year Min. Deposit:  $1,000
Member FDIC.
APY: 4.25% Term: 1 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 5.05% Term: 1 Year Min. Deposit:  $1,000
Read Review
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 1 Year Min. Deposit:  $1,000
APY: 4.00% Term: 1 Year Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 4.25% Term: 1 Year Min. Deposit:  $1,000
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 4.42% Term: 1 Year Min. Deposit:  $1,000
APY: 4.00% Term: 1 Year Min. Deposit:  $1
Read Review
APY: 4.20% Term: 1 Year Min. Deposit:  $500
Read Review
APY: 4.00% Term: 1 Year Min. Deposit:  $1,000
Read Review
NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 4.40% Term: 1 Year Min. Deposit:  $1,000
Member FDIC.
APY: 5.25% Term: 1 Year Min. Deposit:  $1,000
Read Review
APY: 1.50% Term: 1 Year Min. Deposit:  $500
Read Review
APY: 4.25% Term: 1 Year Min. Deposit:  $1
Open Account for

On Secure Website.

Member FDIC.
APY: 3.85% Term: 1 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 4.30% Term: 1 Year Min. Deposit:  $1,500
Read Review
APY: 4.10% Term: 1 Year Min. Deposit:  $500
Read Review
APY: 5.20% Term: 1 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 2.00% Term: 1 Year Min. Deposit:  $1,000
Read Review
APY: 4.25% Term: 1 Year Min. Deposit:  $0
Read Review
APY: 4.37% Term: 1 Year Min. Deposit:  $10,000
Read Review
APY: 4.25% Term: 1 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 5.00% Term: 1 Year Min. Deposit:  $5,000
Read Review
Fidelity CD
Member FDIC.
APY: 5.05% Term: 1 Year Min. Deposit:  $1,000
First Tech CD
APY: up to 4.55% Term: 1 Year Min. Deposit:  $500
Member FDIC.
APY: 4.30% Term: 1 Year Min. Deposit:  $10,000
Read Review
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Read Review
SchoolsFirst Federal Credit Union CD
Federally insured by NCUA.
APY: 5.00% Term: 13 Months Min. Deposit:  $500
Member FDIC.
APY: 4.00% Term: 13 Months Min. Deposit:  $1,000
Read Review
First National Bank Special CD
Member FDIC.
APY: 4.00% Term: 13 Months Min. Deposit:  $5,000 or $10,000, depending on term
Member FDIC.
APY: 3.50% Term: 13 Months Min. Deposit:  $1,000
Open Account for CIT Bank CD

On CIT's Secure Website.

Member FDIC.
APY: 4.00% Term: 13 Months Min. Deposit:  $500
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 4.33% Term: 13 Months Min. Deposit:  $1,000
APY: 5.15% Term: 13 Months Min. Deposit:  —
Read Review
NASA Federal Credit Union High-Yield Certificate
Federally insured by NCUA.
APY: 4.54% Term: 15 Months Min. Deposit:  $10,000
Member FDIC.
APY: 0.50% to 1.01% Term: 15 Months Min. Deposit:  $500
Read Review
Federally insured by NCUA.
APY: 5.10% Term: 16 Months Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.80% Term: 1.5 Year Min. Deposit:  $1,500
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 4.15% Term: 1.5 Year Min. Deposit:  $1,000
APY: 3.50% Term: 1.5 Year Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 3.00% Term: 1.5 Year Min. Deposit:  $1,000
Open Account for CIT Bank CD

On CIT's Secure Website.

Member FDIC.
APY: 3.90% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
APY: 3.70% Term: 1.5 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 2.50% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 1.00% - 3.00% Term: 1.5 Year Min. Deposit:  $250.00
Read Review
APY: 3.70% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
APY: 4.25% Term: 1.5 Year Min. Deposit:  $0
Read Review
APY: 4.00% Term: 1.5 Year Min. Deposit:  $0
Read Review
APY: 4.15% Term: 1.5 Year Min. Deposit:  $500
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 1.00% Term: 1.5 Year Min. Deposit:  $1,000
Member FDIC.
APY: 1.70% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
APY: 3.80% Term: 1.5 Year Min. Deposit:  $2,500
Read Review
Member FDIC.
APY: 5.00% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: up to 4.25% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
Fidelity CD
Member FDIC.
APY: 5.00% Term: 1.5 Year Min. Deposit:  $1,000
Member FDIC.
APY: 3.85% Term: 1.5 Year Min. Deposit:  $10,000
Read Review
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 1.5 Year Min. Deposit:  $500
APY: 3.25% Term: 1.5 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Member FDIC.
APY: 3.95% Term: 1.5 Year Min. Deposit:  $1,000
Read Review
APY: 3.98% Term: 1.5 Year Min. Deposit:  $10,000
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 1.5 Year Min. Deposit:  $1,000
APY: 3.35% Term: 1.5 Year Min. Deposit:  $0
Read Review
APY: 4.00% Term: 1.5 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.90% Term: 1.5 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 2.45% Term: 1.5 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.75% Term: 1.5 Year Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

Vanguard Brokered CD
Member FDIC.
APY: 5.40% Term: 1.5 Year Min. Deposit:  $1,000
First National Bank Special CD
Member FDIC.
APY: 3.00% Term: 19 Months Min. Deposit:  $5,000 or $10,000, depending on term
APY: 3.75% Term: 2 Year Min. Deposit:  $500
Read Review
APY: 3.75% Term: 2 Year Min. Deposit:  $2,500
Read Review
APY: 3.00% Term: 2 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Member FDIC.
APY: up to 4.40% Term: 2 Year Min. Deposit:  $1,000
Read Review
APY: 3.50% Term: 2 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 3.90% Term: 2 Year Min. Deposit:  $0
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 2 Year Min. Deposit:  $1,000
Member FDIC.
APY: 1.50% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.85% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.80% Term: 2 Year Min. Deposit:  $0
Read Review
Valley Bank CD
Member FDIC.
APY: 4.00% Term: 2 Year Min. Deposit:  $500
Member FDIC.
APY: 3.50% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.80% Term: 2 Year Min. Deposit:  $10,000
Read Review
NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 4.10% Term: 2 Year Min. Deposit:  $1,000
APY: 3.50% Term: 2 Year Min. Deposit:  $10,000
Read Review
APY: 3.50% Term: 2 Year Min. Deposit:  $0
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 3.93% Term: 2 Year Min. Deposit:  $1,000
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 2 Year Min. Deposit:  $500
Member FDIC.
APY: 4.90% Term: 2 Year Min. Deposit:  $1,000
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 1.00% Term: 2 Year Min. Deposit:  $1,000
APY: 3.50% Term: 2 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 3.35% Term: 2 Year Min. Deposit:  $500
Open Account for

On Secure Website.

First Tech CD
APY: up to 2.25% Term: 2 Year Min. Deposit:  $500
APY: 4.15% Term: 2 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.00% Term: 2 Year Min. Deposit:  $1,000
Read Review
APY: 4.53% Term: 2 Year Min. Deposit:  $5,000
Read Review
Vanguard Brokered CD
Member FDIC.
APY: 5.35% Term: 2 Year Min. Deposit:  $1,000
Member FDIC.
APY: 4.00% Term: 2 Year Min. Deposit:  $5,000
Read Review
Member FDIC.
APY: 3.75% Term: 2 Year Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

APY: 4.24% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 1.00% - 3.00% Term: 2 Year Min. Deposit:  $250.00
Read Review
APY: 3.70% Term: 2 Year Min. Deposit:  $500
Read Review
APY: 3.55% Term: 2 Year Min. Deposit:  $10,000
Read Review
Fidelity CD
Member FDIC.
APY: 4.90% Term: 2 Year Min. Deposit:  $1,000
APY: 3.75% Term: 2 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 2.50% Term: 2 Year Min. Deposit:  $1,000
Read Review
APY: 3.90% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 2.00% Term: 2 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.75% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: up to 3.55% Term: 2 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.75% Term: 25 Months Min. Deposit:  $1,000
Read Review
First National Bank Special CD
Member FDIC.
APY: 3.00% Term: 25 Months Min. Deposit:  $5,000 or $10,000, depending on term
APY: 3.50% Term: 30 Months Min. Deposit:  $0
Read Review
APY: 3.40% Term: 30 Months Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 3.50% Term: 30 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.75% Term: 35 Months Min. Deposit:  $1,000
Read Review
First National Bank Special CD
Member FDIC.
APY: 3.00% Term: 35 Months Min. Deposit:  $5,000 or $10,000, depending on term
Vanguard Brokered CD
Member FDIC.
APY: 5.35% Term: 3 Year Min. Deposit:  $1,000
Republic Bank of Chicago CD
Member FDIC.
APY: 1.50% Term: 3 Year Min. Deposit:  $1,000
Fidelity CD
Member FDIC.
APY: 4.80% Term: 3 Year Min. Deposit:  $1,000
APY: 3.60% Term: 3 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 1.40% Term: 3 Year Min. Deposit:  $1,000
Read Review
APY: 3.60% Term: 3 Year Min. Deposit:  $2,500
Read Review
APY: 3.65% Term: 3 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.35% Term: 3 Year Min. Deposit:  $5,000
Read Review
Member FDIC.
APY: 2.50% Term: 3 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.65% Term: 3 Year Min. Deposit:  $10,000
Read Review
APY: 3.44% Term: 3 Year Min. Deposit:  $10,000
Read Review
APY: 2.00% Term: 3 Year Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 2.00% Term: 3 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.25% Term: 3 Year Min. Deposit:  $500
Open Account for

On Secure Website.

APY: 3.25% Term: 3 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 3.60% Term: 3 Year Min. Deposit:  $0
Read Review
APY: 3.50% Term: 3 Year Min. Deposit:  $1,000
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 3 Year Min. Deposit:  $1,000
Member FDIC.
APY: up to 4.25% Term: 3 Year Min. Deposit:  $1,000
Read Review
APY: 3.75% Term: 3 Year Min. Deposit:  $500
Read Review
First Tech CD
APY: up to 2.45% Term: 3 Year Min. Deposit:  $500
Member FDIC.
APY: 3.50% Term: 3 Year Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

Member FDIC.
APY: 3.50% Term: 3 Year Min. Deposit:  $1,500
Read Review
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 3 Year Min. Deposit:  $500
APY: 3.00% Term: 3 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 3.00% Term: 3 Year Min. Deposit:  $1,000
Read Review
APY: 3.00% Term: 3 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 4.00% Term: 3 Year Min. Deposit:  $1,000
Member FDIC.
APY: 1.00% - 2.75% Term: 3 Year Min. Deposit:  $250.00
Read Review
APY: 3.40% Term: 3 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.80% Term: 3 Year Min. Deposit:  $1,000
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 3.77% Term: 3 Year Min. Deposit:  $1,000
APY: 3.50% Term: 3 Year Min. Deposit:  $0
Read Review
APY: 4.00% Term: 3 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 3.60% Term: 3 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: up to 1.75% Term: 37 Months Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.80% Term: 45 Months Min. Deposit:  $1,000
Read Review
First Internet Bank of Indiana CD
Member FDIC.
APY: 3.62% Term: 4 Year Min. Deposit:  $1,000
APY: 3.00% Term: 4 Year Min. Deposit:  $0
Read Review
APY: 3.25% Term: 4 Year Min. Deposit:  $500
Read Review
Member FDIC.
APY: 1.35% Term: 4 Year Min. Deposit:  $1,000
Read Review
APY: 4.00% Term: 4 Year Min. Deposit:  $0
Read Review
First National Bank Standard CD
Member FDIC.
APY: 1.00% Term: 4 Year Min. Deposit:  $500
APY: 3.60% Term: 4 Year Min. Deposit:  $500
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 1.50% Term: 4 Year Min. Deposit:  $1,000
Member FDIC.
APY: 3.40% Term: 4 Year Min. Deposit:  $5,000
Read Review
APY: 2.25% Term: 4 Year Min. Deposit:  $10,000
Read Review
APY: 3.34% Term: 4 Year Min. Deposit:  $10,000
Read Review
APY: 3.00% Term: 4 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Member FDIC.
APY: 3.60% Term: 4 Year Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 3.50% Term: 4 Year Min. Deposit:  $1,500
Read Review
Member FDIC.
APY: 4.55% Term: 4 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.40% Term: 4 Year Min. Deposit:  $1,000
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 4 Year Min. Deposit:  $1,000
Fidelity CD
Member FDIC.
APY: 4.55% Term: 4 Year Min. Deposit:  $1,000
NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 3.85% Term: 4 Year Min. Deposit:  $1,000
APY: 1.61% Term: 4 Year Min. Deposit:  $1
Read Review
Member FDIC.
APY: 2.00% Term: 4 Year Min. Deposit:  $500
Read Review
APY: 3.50% Term: 4 Year Min. Deposit:  $0
Read Review
APY: 3.40% Term: 4 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 2.50% Term: 4 Year Min. Deposit:  $1,000
Read Review
Vanguard Brokered CD
Member FDIC.
APY: 5.25% Term: 4 Year Min. Deposit:  $1,000
Member FDIC.
APY: up to 3.80% Term: 4 Year Min. Deposit:  $1,000
Read Review
APY: 3.50% Term: 4 Year Min. Deposit:  $1,000
Read Review
APY: 3.50% Term: 4 Year Min. Deposit:  $500
Read Review
NASA Federal Credit Union High-Yield Certificate
Federally insured by NCUA.
APY: 4.09% Term: 49 Months Min. Deposit:  $10,000
First National Bank Special CD
Member FDIC.
APY: 3.00% Term: 52 Months Min. Deposit:  $5,000 or $10,000, depending on term
Member FDIC.
APY: 3.90% Term: 59 Months Min. Deposit:  $1,000
Read Review
Fidelity CD
Member FDIC.
APY: 4.50% Term: 5 Year Min. Deposit:  $1,000
First Internet Bank of Indiana CD
Member FDIC.
APY: 3.67% Term: 5 Year Min. Deposit:  $1,000
Member FDIC.
APY: 2.00% Term: 5 Year Min. Deposit:  $500
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 5 Year Min. Deposit:  $1,000
Member FDIC.
APY: 3.50% Term: 5 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 3.40% Term: 5 Year Min. Deposit:  $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

APY: 4.00% Term: 5 Year Min. Deposit:  $0
Read Review
APY: 3.75% Term: 5 Year Min. Deposit:  $2,500
Read Review
Member FDIC.
APY: up to 4.30% Term: 5 Year Min. Deposit:  $1,000
Read Review
APY: 3.00% Term: 5 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 4.50% Term: 5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.45% Term: 5 Year Min. Deposit:  $5,000
Read Review
Member FDIC.
APY: 1.35% Term: 5 Year Min. Deposit:  $1,000
Read Review
Republic Bank of Chicago CD
Member FDIC.
APY: 1.50% Term: 5 Year Min. Deposit:  $1,000
APY: 2.25% Term: 5 Year Min. Deposit:  $10,000
Read Review
APY: 3.60% Term: 5 Year Min. Deposit:  $500
Read Review
Vanguard Brokered CD
Member FDIC.
APY: 5.35% Term: 5 Year Min. Deposit:  $1,000
APY: 3.25% Term: 5 Year Min. Deposit:  $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

Member FDIC.
APY: 3.25% Term: 5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.55% Term: 5 Year Min. Deposit:  $10,000
Read Review
NASA Federal Credit Union Share Certificate
Federally insured by NCUA.
APY: 3.75% Term: 5 Year Min. Deposit:  $1,000
APY: 3.60% Term: 5 Year Min. Deposit:  $0
Read Review
Member FDIC.
APY: 3.00% Term: 5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 1.00% - 2.25% Term: 5 Year Min. Deposit:  $250.00
Read Review
Member FDIC.
APY: 3.50% Term: 5 Year Min. Deposit:  $1,500
Read Review
First Tech CD
APY: up to 3.55% Term: 5 Year Min. Deposit:  $500
APY: 3.40% Term: 5 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 3.50% Term: 5 Year Min. Deposit:  $1,000
Read Review
Member FDIC.
APY: 3.00% Term: 5 Year Min. Deposit:  $500
Open Account for

On Secure Website.

APY: 3.25% Term: 5 Year Min. Deposit:  $500
Read Review
APY: 3.25% Term: 5 Year Min. Deposit:  $500
Read Review
APY: 3.29% Term: 5 Year Min. Deposit:  $10,000
Read Review
Member FDIC.
APY: 2.50% Term: 5 Year Min. Deposit:  $1,000
Read Review
First National Bank Standard CD
Member FDIC.
APY: 1.50% Term: 5 Year Min. Deposit:  $500
First National Bank Special CD
Member FDIC.
APY: 3.00% Term: 61 Months Min. Deposit:  $5,000 or $10,000, depending on term
Member FDIC.
APY: up to 2.00% Term: 61 Months Min. Deposit:  $1,000
Read Review
Huntington Bank Standard CD
Member FDIC.
APY: 0.10% Term: 6 Year Min. Deposit:  $1,000
APY: 3.60% Term: 6 Year Min. Deposit:  $500
Read Review
APY: 3.40% Term: 7 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

APY: 3.40% Term: 10 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Sorry, we didn't find any CDs that meet those criteria.

  • At Motley Fool Money, our certificates of deposit (CDs) ratings primarily focus on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.

    Motley Fool Money tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best CD Rates pages are comprised of both the highest CD rates in Motley Fool Money’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.

    Learn more about how Motley Fool Money rates bank accounts.

Expert insights on CD rates
Image of reviewer

The Federal Reserve reduced the target for the fed funds rate in September and November, and more cuts are coming. The interest rates on most types of banking products – such as savings and money market accounts – will likewise drift downward.

One way to lock in current rates is through a certificate of deposit (CD). They’re particularly attractive for money you know you’ll need at a certain time in the near future, such as a down payment for a home or retirement income a few months or years from now.

Since a CD won’t lose value, the money is protected from the ups and downs of the bond and stock markets. If the characteristics of a CD sound appropriate for your situation, don’t wait; the Federal Reserve is expected to continue cutting rates.

-Robert Brokamp, Certified Financial Planner® and Senior Advisor at The Motley Fool

A closer look at our top CDs

Best for creating a CD ladder: Discover® Bank CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Discover® Bank CD
Discover® Bank CD
Bottom Line

Discover's rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.

MINIMUM DEPOSIT $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 30 Mo. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY 7 Yr. APY 10 Yr. APY
2.00% 3.70% 3.80% 4.00% 3.80% 3.50% 3.40% 3.40% 3.40% 3.40% 3.40% 3.40%

Why we think this is best for creating a CD ladder: Discover offers a broader range of CD terms than many of its competitors. This gives you the flexibility to build CD ladders of just about any length, ranging from a few months to several years.

What you need to know before opening an account: Its $0 minimum deposit makes this CD potentially ideal for those with small sums to deposit.

Read our Discover® Bank CD Review

Best for high balances: LendingClub CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for LendingClub CD
LendingClub CD
Bottom Line

LendingClub CDs don't skimp on interest, offering competitive APYs for all six of its CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.

MINIMUM DEPOSIT $2,500
Open Account for LendingClub CD

On LendingClub's Secure Website.

6 Mo. APY 10 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 5 Yr. APY
4.00% 4.25% 4.00% 3.75% 3.75% 3.50% 3.40%

Why we think this is best for high balances: LendingClub's $2,500 minimum deposit requirement is higher than what many of its competitors require. But those able to pull it off get rewarded with competitive rates on CDs of all term lengths.

What you need to know before opening an account: LendingClub CDs come with a 10-day grace period where you can withdraw your cash penalty free if you change your mind about the account.

Read our LendingClub CD Review

Best for no minimum deposits: Barclays Online CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Barclays Online CD
Barclays Online CD
Bottom Line

Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.

MINIMUM DEPOSIT $0
Open Account for Barclays Online CD

On Barclays' Secure Website.

6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
4.00% 4.00% 4.15% 3.25% 3.00% 3.00% 3.00% 3.25%

Why we think this is best for no minimum deposits: Barclays is one of the few top banks that doesn't require a minimum deposit to open a CD. That makes it a great option for people with all levels of savings, but especially those with only a few hundred dollars.

What you need to know before opening an account: Barclays rates are a little behind some of its competitors. However, they're still well above the national average.

Read our Barclays Online CD Review

Best for unique banking perks: Quontic CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Quontic CD
Quontic CD
Bottom Line

Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a 4-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.

MINIMUM DEPOSIT $500
Open Account for Quontic CD

On Quontic's Secure Website.

6 Mo. APY 1 Yr. APY 2 Yr. APY 3 Yr. APY 5 Yr. APY
4.25% 4.00% 3.35% 3.25% 3.00%

Why we think this is best for unique banking perks: Quontic offers strong online and mobile tools for managing your account, including the option to open your CD in three minutes or less. Its mobile app also comes with tools to help you manage many aspects of your financial life.

What you need to know before opening an account: Though Quontic offers most popular CD terms, it's missing a 4-year CD. So it may not be the best option for those seeking to build a long-term CD ladder.

Read our Quontic CD Review

Best for banking convenience: Capital One 360 CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Capital One 360 CD
Capital One 360 CD
Bottom Line

Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's website for the most up-to-date rates.

MINIMUM DEPOSIT $0
Read Review
6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 30 Mo. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.80% 3.80% 4.00% 3.70% 3.50% 3.50% 3.50% 3.50% 3.50%

Why we think this is best for banking convenience: Capital One offers strong online and mobile tools, but it also has some branches for those who prefer traditional banking. Its CDs also don't have a minimum deposit requirement, so applying for one is pretty straightforward.

What you need to know before opening an account: Capital One has above-average rates on all of its CDs, but its long-term CD rates tend to be more competitive than its short-term rates.

Read our Capital One 360 CD Review

Best for variety of term lengths: Marcus by Goldman Sachs High Yield CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Marcus by Goldman Sachs High Yield CD
Marcus by Goldman Sachs High Yield CD
Bottom Line

Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.

MINIMUM DEPOSIT $500
Read Review
6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY 6 Yr. APY
4.10% 4.10% 4.10% 3.90% 3.70% 3.65% 3.60% 3.60% 3.60%

Why we think this is best for a variety of term lengths: Marcus by Goldman Sachs has CD term lengths ranging from six months to six years. This is a larger range than what most banks offer, making it a good fit for those seeking to build CD ladders.

What you need to know before opening an account: Marcus's CDs come with a 10-day rate guarantee. If rates increase within 10 days of account opening, Marcus will give you the higher rate.

Read our Marcus by Goldman Sachs High Yield CD Review

Best for high renewal rates: Bread Savings CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Bread Savings CD
Bread Savings CD
Bottom Line

Bread Savings CDs are available in many of the most popular terms, making this a flexible high-yield CD account to consider for various financial goals. There's also no monthly maintenance fee. But the $1,500 minimum deposit for Bread Savings CDs is a little steeper than some of its competitors require.

MINIMUM DEPOSIT $1,500
Read Review
3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.80% 4.75% 3.80% 4.30% 3.80% 3.85% 3.50% 3.50% 3.50%

Why we think this is best for high renewal rates: Bread Savings CDs incentivize customers to renew at the end of the term by offering renewal rates, which are higher than the rates for new CD owners. This could be the right fit for those who don't want to continually move their money between banks chasing after the highest rates.

What you need to know before opening an account: Its $1,500 minimum deposit requirement is a little steeper than what some other banks require. This could be a hindrance to those hoping to build a CD ladder.

Read our Bread Savings CD Review

Best for monthly dividend withdrawal option: Alliant CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Alliant CD
Alliant CD
Bottom Line

Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.

MINIMUM DEPOSIT $1,000
Read Review
6 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
4.45% 4.50% 4.25% 4.00% 3.80% 3.65% 3.65%

Why we think this is best for monthly dividend withdrawal option: Alliant is somewhat unique in allowing customers to receive their monthly interest payments as a dividend rather than waiting until the end of the term to get them. This may appeal to those who want more immediate rewards, especially on long-term CDs.

What you need to know before opening an account: Going with the dividend option will lead to lower interest payments overall. When you leave the interest in your account, you earn interest on that interest the following month. This won't happen if you're withdrawing that interest as dividends.

Read our Alliant CD Review

Best for medium-term CDs: Prime Alliance Bank CD

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Prime Alliance Bank CD
Prime Alliance Bank CD
Bottom Line

The rates on Prime Alliance Bank's CDs are decent enough, but you can find better ones. However, the relatively low $500 minimum deposit makes these more available to the everyday saver -- or someone looking to build a CD ladder.

MINIMUM DEPOSIT $500
Read Review
6 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
4.65% 4.50% 4.15% 4.15% 3.75% 3.50% 3.25%

Why we think this is best for medium-term CDs: Prime Alliance Bank has strong CD rates on all term lengths, but its medium-term CDs -- those with terms between one and three years -- are some of its most competitive offers.

What you need to know before opening an account: There is a $500 minimum deposit requirement, but this is pretty reasonable compared to what some of its competitors require.

How to choose the right CD for you

Here are some of the things to keep an eye out for:

  • A high APY: This tells you how much you'll earn in interest.
  • Daily compounding interest: Want more money in interest? Look for a high-yield CD account with daily compounding.
  • Low early withdrawal penalties: You'll pay a penalty to withdraw your funds early. Check the CD's fee schedule to learn how big the penalty is.
  • Low or no fees: Fees with high-yield CDs aren't common (except for early withdrawal penalties), but it's always good to check.

Other CD term lengths to consider

Who is a CD right for?

CDs can be smart choices for savers who won't need access to their cash anytime soon and want to lock in a high yield for a certain amount of time. A CD can be a better choice than a savings account in this case, as savings account yields fluctuate over time while CD yields are guaranteed for the entire term.

Conversely, CDs are generally not a good idea for money you might need before the term ends. Most CDs assess a penalty if you decide to withdraw money before the maturity date, and they generally don't allow partial withdrawals.

How will CD rates change in 2025?

To be clear, nobody can predict future CD rates with 100% accuracy. CD rates have historically moved in the same direction as benchmark interest rates like the federal funds rate. But they aren't directly linked and banks have some discretion to set their own rates.

Experts are predicting two rate cuts in 2025, meaning CD yields are unlikely to get any higher in the next few months. If you have cash sitting on the sidelines, now is a great time to lock into a high-yield CD.

How does a CD work?

You deposit a certain amount of money into a high-yield CD and agree not to touch it for the length of the CD term in exchange for a high rate of interest that's usually locked in for the full term.

Your bank pays that interest monthly or quarterly. When the CD term is up, you may withdraw the funds and spend them, place them in a savings account, or put them in another high-interest CD.

Withdrawing your funds before the CD term ends results in a penalty -- usually several months' worth of interest. The earlier you withdraw the funds, the larger your penalty will be.

Pros and cons of CDs

Pros

  • CDs lock in a fixed interest rate for a certain amount of time.
  • CDs are FDIC insured for as much as $250,000 per person, per bank, per account ownership category.
  • CDs often have higher interest rates than high-yield savings accounts.
  • Some CDs allow you to withdraw the interest paid at any time, as long as you leave your initial deposit in the account.
  • CDs come in a variety of term lengths.

Cons

  • CD interest is a form of taxable income.
  • You'll incur early withdrawal penalties if you need the money before the CD matures.
  • Many CDs automatically renew unless you act.

Alternatives to CDs

CDs are appealing if you're trying to earn a high APY on your savings, but being unable to touch your money for a set amount of time can be too constraining for some people. If you don't think a high-yield CD is a great fit for you, perhaps one of these accounts would work better.

Savings accounts

High-yield savings accounts offer interest rates that are comparable to the highest CD rates. Plus, savings accounts have fewer restrictions on what you can do with your money. You're able to put money in, transfer it to a checking account, or withdraw it almost whenever you want (though withdrawals are often limited to six a month, per Regulation D).

Money market accounts

Money market accounts are a hybrid of checking and savings accounts. They offer interest rates similar to high-yield savings accounts and certificate of deposit rates. In addition, money market accounts often give you a debit card and check-writing capabilities. That means, with a money market account, you can directly withdraw funds from your account at your convenience.

This might be a better option than a high-yield savings account or a CD if you anticipate needing to take money directly out of your account.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of January 6, 2025. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

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FAQs

  • Using a CD for an emergency fund is safer than putting it in the stock market. However, it's not as flexible as a savings account. If you withdraw money from a CD before the term is over, you will have to pay an early withdrawal penalty. Typically, it amounts to several months of interest earned, depending on the bank and the CD's term.

    Other options for an emergency fund are a savings account, high-yield savings account, or a money market account.

  • If you invest $10,000 in a 1-year CD at a 4.50% APY, it would make $450. The amount you will earn depends on your CD rate. To calculate this yourself, multiply the amount you plan to deposit by the APY that the CD offers.

  • A good CD rate in 2024 is about 4.50% or higher for a 1-year term. Some of the best CDs offer an APY of 5.00% or more on 1-year CDs. Rates like these are much higher than the national average, and you can normally only find them at online banks.

  • Yes. CD deposits are covered by FDIC insurance, which insures depositors for up to $250,000 per person per bank. In the event of a bank's insolvency, this insurance would kick in and cover any lost funds up to that amount.

  • Your CD rate is typically fixed for the term of the CD, unlike savings accounts, where your rate will adjust over time. Specialty CDs like bump-ups have rates that can adjust during the CD term.