Best CDs Right Now to Maximize Your Savings

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At Business Insider, we independently review over 100 national banks and credit unions and report on the best CD interest rates they offer. We report on standard CDs, covering term lengths from three months to five years. We also cover some specialty CDs, like no-penalty CDs. In addition, we include the highest CD rate you can get at local institutions so you can see how the market is currently faring, even though this rate won't be available to everyone.

The best rate we've found is 9.50% APY from California Coast Credit Union Celebration Certificate. However, the credit union has a small footprint for eligible applicants, and there are caps on the amount of interest you can earn.

Featured Nationally Available CD  Rates

Best CD Rates Today by Term

Credit unions offer many of the best current CD rates right now. But don't worry — anyone is eligible to join these credit unions and open CDs.

CDs aren't as accessible as other types of savings accounts, so keep in mind how long you can keep money in the account without potentially facing early withdrawal penalties. Also, make sure you know what steps you need to take once your CD term ends.

Compare Bank and Credit Union CD Rates

The best banks and credit unions for CDs offer a high rate on certificates of deposit with good perks and low minimum opening deposits.

Our top picks for CDs are protected by federal insurance. Bear in mind money is safe at a federally insured financial institution. When a financial institution is FDIC- or NCUA-insured, up to $250,000 per depositor, per account category is secure in a bank account.

Here are the best CD rates as picked by Business Insider editors in 2024.

California Coast Credit Union Celebration Certificate

California Coast Credit Union currently offers a limited-time 5-month Celebration Certificate offering a whopping 9.50% APY CD rate. It's one of two credit unions offering CDs of 9% APY or more. It also requires a low minimum deposit of $500.

However, the criteria you need to meet in order to open the certificate are steep. First of all, you can only put a maximum of $3,000 in the CD. Second of all, the money in the CD has to be new, which means it can't have previously been in a California Coast Credit Union account. You'll also need some sort of other account with California Coast Credit Union to get the high APY. You can have an active checking account (meaning it has one transaction a month), a new money market account with a minimum balance of $5,000, a new regular certificate with a minimum balance of $5,000, a new IRA certificate with a minimum balance of $5,000, or a new funded consumer loan that isn't either a credit card or a share-secured or certificate-secured loan.

You also need to be a member of California Coast Credit Union. Membership is limited to people who live or work in San Diego or Riverside counties, to people in select employee groups, and to people who live with a member.

Term options: California Coast Credit Union has terms ranging from 3 months to 5 years, as well as a 5-month celebration certificate, an 8-month liquid certificate, and an 18-month bump rate certificate.

Penalties: California Coast Credit Union certificates have the following early withdrawal penalties:

• 90 days interest for terms of 6 months or less
• 180 days interest for terms from more than 6 months to 24 months
• 365 days interest for terms of more than 24 months

America First Credit Union 3 Month Certificate

America First Credit Union currently offers the highest rate on 3-month CD. An America First Credit Union Certificate may be worthwhile if you're searching for a financial institution with branches in Arizona, Idaho, Nevada, New Mexico, and Utah. America First Credit Union offers non-standard CDs in addition to their regular CDs, such as IRA CDs, flexible CDs, and bump-rate CDs.

Credit unions require membership to open bank accounts. You may join America First Credit Union if you live, work, worship, or volunteer in an Arizona, Idaho, Nevada, New Mexico, Oregon, or Utah county on its membership list. If you have a family member or spouse who is a current member, you're also eligible.

Term options: America First Credit Union has terms ranging from three months to 60 months. It also offers IRA certificates, flexible certificates, and bump-rate certificates.

Penalties: America First Credit Union has the following early withdrawal penalties:

• 60 days of interest for terms of 1 year or less (at least $5)
• 180 days of interest for terms of more than 1 year (at least $5)

America First Credit Union Review

Climate First Bank 6 Month No Penalty CD

Climate First Bank currently offers the highest rate on a no-penalty CD for its 6-month no-penalty CD. However, it also offers two other no-penalty CDs that also have strong rates. Climate First Bank might be a good choice for you if you're looking for an environmentally friendly bank offering a no-penalty CD with a low minimum opening deposit of $500.

Climate First Bank doesn't offer any CDs with term lengths over 25 months, so if you're interested in a long-term CD, Climate First Bank might not be the choice for you.

Term options: Climate First Bank has terms ranging from 6 months to 25 months.

Penalties: None

EagleBank 6 Month CD and EagleBank 12 Month CD

EagleBank offers the best 6-month and 1-year CD rates at U.S. banks.

If you're unfamiliar with EagleBank, it's a local financial institution in Maryland, Virginia, and Washington, DC. You can also open a high-yield savings account and online CDs ranging from 6 months to 18 months if you don't live near a branch.

You'll only be able to deposit a maximum of $500,000 into a CD. Another downside to banking with EagleBank is that its mobile banking app has lackluster ratings in both the Google Play and Apple stores.

Terms: EagleBank has online terms ranging from 6 months to 18 months. You can also open other terms by calling the bank or visiting a location in Virginia, Maryland, or Washington, DC.

Penalties: The following early withdrawal penalties may apply to online EagleBank CDs: 

• 3 months of interest for online EagleBank CDs ranging from 6 months to 18 months

Bask Bank 18 Month CD

Bask Bank is a good option if you'd like to earn a competitive interest rate on an 18-month CD. Several of Bask Bank's short-term CDs offer great rates, so if you want to open multiple short-term CDs with the same bank, Bask Bank might be a good choice for you.

Bask Bank has limited CD terms. If you're looking to open a CD with a term over 2 years, you might prefer another institution. It also isn't the only bank with this rate, as LendingClub offers the same rate for an 18-month CD. We chose Bask Bank because of its low minimum opening deposit of $1,000.

Term options: Terms range from 6 months to 2 years.

Penalties: The early withdrawal penalties are as follows:

• 90 days of interest for terms 1 year or less
• 180 days of interest for terms greater than 1 year

Bask Bank Review

USALLIANCE Financial 2 Year Certificate

USALLIANCE Financial currently has the highest rate on 2-year CDs. You might like this CD if you're interested in joining a credit union. 

You can join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York, work for a select employment group, or join the American Consumer Council, Arco of Westchester, Tread Lightly!, or the Council of Community Services.

Term options: USALLIANCE Financial has terms ranging from 3 months to 5 years. 

Penalties: USALLIANCE Financial charges the following early withdrawal penalties: 

• For terms under 18 months, the early withdrawal penalty is 180 days of interest on the amount withdrawn
• For terms of 18 months or more, the early withdrawal penalty is 360 days of interest on the amount withdrawn

Lafayette Federal Credit Union 3 Year Certificate and Lafayette Federal Credit Union 4 Year Certificate

Lafayette Federal Credit Union has the best 3-year and 4-year CD rates available. These CDs also stand out because they have a $500 minimum opening deposit.

You can open an account regardless of where you live in the United States by joining the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC; or have a family member with credit union membership. 

Term options: Lafayette Federal Credit Union has certificates ranging from 7 months to 5 years.

Penalties: Lafayette Federal Credit Union has the following CD early withdrawal penalties: 

• 90 days of interest for a 7-month term
• 180 days of interest for a 1-year term
• 270 days of interest for a 2-year term
• 360 days of interest for a 3-year term
• 480 days of interest for a 4-year term
• 600 days of interest for a 5-year term

Department of Commerce Federal Credit Union 5 Year Share CD

The Department of Commerce Federal Credit Union offers the best rate for 5-year CDs. It also requires a relatively low minimum opening deposit of $500; if you want to open a CD with a lower amount of money, this credit union might be a good choice for you.

In addition to regular share certificates, the Department of Commerce Federal Credit Union offers IRA certificates for certificates with 1-year term lengths or more. It has terms up to 7 years long, and you can open CDs in monthly increments; for example, you can open a 25-month, 26-month, and 27-month CD if you'd like. Most financial institutions only offer CDs with term lengths up to 5 years, and they tend to be more restrictive on what CD term lengths they offer in that range.

Since the Department of Commerce Federal Credit Union is a credit union, it does require you to meet certain membership requirements to join, but it's pretty easy to join this credit union. The easiest way to be eligible to join the Department of Commerce Federal Credit Union is to be a part of the American Consumer Council, which you can join online. Other ways to be eligible include working for certain employer groups or living with someone who's already a member.

Term options: The Department of Commerce Federal Credit Union has certificates ranging from 6 months to 7 years.

Penalties: The Department of Commerce Federal Credit Union has the following early withdrawal penalties:

• 90 days of interest for terms between 6 months and 11 months
• 180 days of interest for terms of 1 year and over

Compare CD Rates by Term

Below, you'll find our picks for the best CD rates right now. There isn't one particular CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now.

Best 3-Month CD Rates

Best 6-Month CD Rates

Best 1-Year CD Rates

Best 18-Month CD Rates

Best 2-Year CD Rates

Best 3-Year CD Rates

Best 4-Year CD Rates

Best 5-Year CD Rates

Best No-Penalty CD Rates

Best Rates for No Opening Deposit

Best Rates for Other CD Terms

Types of Certificates of Deposit

Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.

No-Penalty CDs

Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

However, there may be other reasons for wanting to open a savings account versus a no-penalty CD. Carefully review both accounts and see which is a better fit for reaching your needs.

6-Month CDs

The best 6-month CDs are offering interest rates around 5%. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term.

These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.

1-Year CDs

The best 1-year CDs also offer around 5%, and are a popular option for many investors.

A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses. Financial planners often recommend this CD strategy of laddering several terms so that you have additional flexibility while still being able to lock in higher rates.

2-Year CDs

The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

3-Year CDs

The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

5-Year CDs

The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

Jumbo CDs

A jumbo CD is a type of CD with a much higher minimum opening deposit than the average traditional CD. In exchange, jumbo CDs usually offers better rates than you would find with traditional CDs. If you have a lot of money to put in a CD, jumbo CDs might be a good choice for you.

Bump-Up CDs

Bump-up CDs are a type of CD that lets you raise your CD rate once during the term length if your financial institution's rates go up. These are also sometimes called bump-rate CDs or raise-your-rate CDs. Some banks and credit unions let you raise your rate more than once, so if that's something you're interested in, you should check with your financial institution before you open the CD.

Step-Up CDs

Step-up CDs are similar to bump-up CDs, in that their special features center around raising the interest rate you get on your CD. However, step-up CD rates are locked in when you open the CD; you'll know exactly when your rate will raise, and by how much, when you open the CD.

For example, an 18-month step-up CD might start at 1% APY, or annual percentage yield, raise to 1.5% APY after 6 months, and raise to 2% APY after a year. These rate raises aren't dependent on market fluctuations like bump-up CDs are.

What Makes a CD the 'Best'?

Highest Interest Rates

When opening a CD, one of the most important things to consider is the interest rate. There are currently several CDs offering 5% interest or more available, so choosing a CD with a high interest rate will likely be doable, no matter what your needs are.

Keep in mind it's also likely that CD rates will drop in the future. Notably, there's less room for long-term CD rates when rates decline since accounts offer around 4% APY, while short-term CDs are still paying around 5% APY.

Favorable Terms

While interest rate is important, you'll also want to make sure other aspects of the CD fit your needs, too. Consider whether you want a short-term CD vs. a long-term CD and act accordingly; you don't want to end up hit by early withdrawal penalties because you took out a CD with a too-long term length, and you don't want to miss out on savings because you took out a short-term CD and interest rates dropped.

You'll also want to consider types of CDs, too. If you're interested in the best CD rates for seniors, for example, you might want to look for CDs that give better interest rates for senior citizens. And if you're interested in planning for retirement, you might want to consider IRA CDs over traditional CDs.

Safety and Insurance

Make sure that the bank or credit union is FDIC- or NCUA-insured before putting money in a financial institution. FDIC insurance keeps your money safe in banks up to $250,000 per person, per account type. NCUA insurance works similarly, but is only for credit unions.

Factors to Consider Beyond Just the Rate

Minimum Deposit Requirements

If you have a limited amount of money to put in a CD, you'll want to check what the minimum opening deposit is for the CD. A minimum opening deposit of $1,000 is fairly standard, but you can find CDs that permit a deposit of $0 upfront. If you're looking to open a much larger CD, jumbo CDs usually have minimum opening deposits that are far higher than those for standard CDs. 

If you're not certain how much money to deposit into a CD, think about what you're saving money for and create a savings goal that can help make this idea more tangible. Setting up a timeline can also help you determine how much you'll need to deposit upfront to reach your end goal. 

Early Withdrawal Penalties

If you aren't sure whether you can keep money in a CD for its entire term length, you'll want to check what early withdrawal penalties your CD charges. This generally takes the form of deducting a certain amount of interest from your account, such as 90 days' interest for a 6-month CD. A compound interest calculator can help you figure out exactly how much this is for your CD.

If you want to be able to withdraw money without incurring these penalties, you'll probably want to go for a no-penalty CD. No-penalty CDs let you withdraw your money without penalty in exchange for generally slightly lower interest rates.

Account Fees

Some bank accounts come with monthly service fees, which will automatically deduct a small fee from your account each month. Luckily, you generally don't have to worry about these for CDs; they're more commonly found on checking accounts, money market accounts, and traditional savings accounts. However, you should always check before opening a CD to make sure there aren't any fees associated with the account.

Bank/Credit Union Reputation

It's important to make sure the financial institution you open a CD with is trustworthy and safe. Before opening a CD with a bank or credit union, check their BBB page, see if they've been involved in any recent lawsuits, and research whether they've had any recent data breaches.

Secure the Best CD for Your Financial Future

When looking for where to find the best CD rates, you'll want to consider several factors, including interest rate, minimum opening deposit, early withdrawal penalties, and bank safety. You'll also want to factor what banks and credit unions are accessible to you. If you know you don't enjoy online banking, you'll probably want to choose a brick-and-mortar bank or local credit union, even if their rates aren't as good as the ones in this article.

Why You Should Trust Us: Experts' Advice on Choosing the Best CD

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best CDs to use for your money. You can read their insights at the bottom of this post.

BI

Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)

What makes a CD good or not good?

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

"You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it's monthly or quarterly."

How should someone choose a CD term length?

Roger Ma, CFP® professional with lifelaidout® and author of "Work Your Money, Not Your Life":

"I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective."

Mykail James, CFEI:

"I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, CFP® professional and vice president of coaching strategy at OfColor:

"So I guess we'll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account."

Sophia Acevedo, banking editor, Business Insider:

"Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don't need access to some of your money, since they have a fixed interest rate for a specific term."

Methodology: How We Chose the Best CDs

Business Insider's personal finance team has reviewed over 100 financial institutions. We've selected the top CD offerings from banks and credit unions using our bank account methodology. For CDs, we consider what terms are offered, along with the accounts' minimum opening deposit requirements, interest rates, and early withdrawal penalties. We also consider the financial institution's customer service options, ethics, and mobile app ratings. We score each of these on a scale of zero to five, then average these scores together to get an account's final rating.

All banks included on our list are FDIC-insured, while credit union CDs offer insurance through NCUA. 

In the event two banks offered the same APY on a CD product, we considered factors like the minimum deposit requirements and early withdrawal penalties.

You can read more about how we review and rate products on our editorial standards page.

Best CD FAQs

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
• Savings and CD rate trends
• Budgeting
• Saving
• How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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Top Offers From Our Partners

Western Alliance Bank High-Yield Savings Premier Earn 5.31% APY on your entire account balance – more than 10 times the national average

5.31% annual percentage yield (APY) is accurate as of 7/11/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Accurate as of the time of publication. The national average rate referenced is from the FDIC’s published National Rates and Rate Caps for Savings deposit products, accurate as of 8/19/2024. See the FDIC website for more information. https://www.fdic.gov/resources/bankers/national-rates/index.html

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