The best CD rate across all terms from a bank is 5.35% APY, offered by DR Bank for a 6-month and T Bank for a 9-month term. To find you the best bank CD rates nationwide, we review CD rates from hundreds of banks every weekday. The top CD rates in our rankings typically pay three to five times as much as the national average—or even more. Below are the top CD rates from banks available from our partners, followed by the best CD rates from banks that we've found from our research that are available to U.S. customers everywhere. A certificate of deposit (CD) is a type of deposit account you can open through many banks. Unlike savings accounts, which allow you to withdraw your money at will, CDs typically require you to commit to leaving your funds untouched for a specific period of time, such as 6 months or 2 years. In exchange for depositing your money for a fixed period of time, banks usually pay a higher annual percentage yield (APY) on CDs than they do on savings accounts—but this isn’t always true. Open a New Account × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account × The offers that appear in this table are from partnerships from which Dotdash receives compensation. The Fedheld rates steady for an eighth consecutive timeat its July 31meeting. The federal funds rate is at its highest level since 2001, but experts are projecting a rate cut in September. CD yields closely follow thefed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall. 6 Best Online Banks for August 2024 But be aware that credit unions are also an excellent source of high-paying certificates of deposit. In fact, the top nationwide credit union CDs often outpay those from nationwide banks. The trade-off is that joining a credit union often involves paying a small membership fee or making a small donation to a nonprofit affiliated with the credit union. Bank CDs can be a little simpler to open since banks don't require membership. The following list highlights the best-paying bank CDs that anyone nationwide can easily open—no extra hoops required. To be eligible for our rankings, the banks must be FDIC-insured and must offer CDs with a minimum initial deposit of $25,000 or less. In cases where more than one institution offers the same top rate, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum opening deposit, and if there's still a tie, we sort alphabetically by institution name. Detailed information on the top nationally available bank CD in each term is provided below, including specifics about minimum deposits and early withdrawal penalties. If you want to explore more options—including credit union CDs—we also publish a complete list of the best nationwide CD rates, as well as stand-alone pages for the best 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, 4-year, 5-year, and 10-year CD rates. For anyone looking to put $100,000 or more into a CD, you may find even better rates in our roundup of the best jumbo CD rates. When asked in June what they would invest in if they had an extra $10,000,9% of Investopedia readerssaid they would open a CD, behind individual stocks, ETFs, and stock index funds. That’s a slight dip from April, when 12% said they’d invest extra funds in CDs. While CDs sit below individual stocks as the top response (at 23%), CDs are always a good option for those looking for safer investments. Ranked below are the top 15 or more APYs on nationally available CDs from banks with minimum deposits of no more than $25,000. In the case of ties, we rank them first by the shortest available term, then by the lowest minimum deposit, and finally by the smallest early withdrawal penalty. Pros Often pay higher APYs than liquid accounts Offer a fixed, guaranteed rate Are virtually risk-free Can help deter spending Cons Incur a penalty for early withdrawal If rates rise, you may regret being locked into your APY Typically return less than other investments Only allow one deposit Stashing your cash in a savings or money market account offers much more flexibility than a CD, letting you add and withdraw funds as you like. The trade-off is that interest rates on liquid accounts can change at any time. So if rates are declining, the annual percentage yield on your high-yield savings or money market account will almost certainly go down, while any rate on a CD will hold. Also, liquid accounts don't always offer as high of a return as CDs. So committing your funds to a CD can usually boost your earnings by a substantial margin. Another possible investment for your cash is a bond offered by the U.S. Treasury. Treasury notes are very similar to CDs in that the rate is typically predictable if you hold the bond until maturity. They are also backed by the federal government, so like CDs, they are exceptionally safe. U.S. Treasury I bonds are another option. But their fixed rate is only known for six months at a time, with the rate being adjusted twice a year based on the current inflation rate (hence the name I bonds). Like CDs, I bonds have an early withdrawal penalty, but it's a relatively mild three months' worth of interest. But unlike a CD, you cannot for any reason cash in an I bond during its first 12 months. Diversified bond funds are another idea, as they can potentially return quite a bit more than a fixed-rate CD. Of course, there's always a risk that bond returns could be negative from one year to the next, so the longer your time horizon, the less risky an investment in bonds would be. If you're considering a relatively short CD term, like 1 to 2 years, or even less, then bonds represent a much riskier option than a CD, with no guarantee of delivering a return. If your time horizon for investing is several years long, you could instead consider investing in equities, or stocks. The upside is that you could potentially earn quite a bit more in the stock market than with a fixed CD rate. But the significant downside is that you can always lose money on equities, including scenarios where you lose most of your investment. So while CDs won't return as much as stocks that are doing well, on the flip side, CDs are guaranteed to grow with no risk of you losing your initial principal. Opening a certificate of deposit generally follows the same steps as opening any new bank account, and the number of steps involved depends on whether you are a new customer of the bank or an established one. You’ll first need to fill out an application. You can usually do this online, but you can do it in-branch if you’re opening the certificate at a bank that operates in your community. Some banks also allow you to send paper applications via U.S. mail. If you’re not already a customer of the bank, you’ll need to prove your identity with photo identification. And you’ll be presented with various written account terms and disclosures that you’ll need to sign off on. Just like with a savings or checking account, you’ll be offered various options for making your initial deposit, whether that’s at the time of account opening or slightly later. Most banks offer transfers from another account at that bank, an external transfer from another bank, or a check that’s mailed in or submitted via mobile deposit. Just remember that you can only make one deposit to the CD, so choose your amount carefully. As soon as you’ve completed the account opening process, it’s smart to put a reminder on your calendar a month or two before the CD will mature. That way you can think ahead about what you want to do with the money when it becomes available, and can also watch your mail for a notice from your bank about how to convey your CD maturity instructions. A CD is a useful option for people who are looking to grow their money but may need to use the funds within the next few years. For example, if you plan on buying a home within three to five years, a CD could help you earn more interest than you would in a basic savings account without the risks of investing in the stock market. For longer-term goals, such as retirement if you’re currently in your thirties, a CD may not be a wise choice. Your money may perform better if you invest in the stock market. Historically, the stock market has delivered annual returns of about 10% (or 6% to 7% when considering the effects of inflation). CDs are not a good option for money you may need to access in the short-term. For example, stashing your emergency fund in a CD is probably a poor decision. If an unexpected expense pops up and you need to withdraw money before your CD matures, you'll have to pay an early withdrawal penalty. A high-yield savings account might work better in such situations. Many banks offer CDs. When shopping for one, consider the following: CDs come in a wide variety of flavors. In addition to traditional CDs, you can find: A certificate of deposit account is a deposit product available at banks, alongside savings, money market, and checking accounts. But instead of depositing money that you can withdraw from or add to whenever you want, you can generally only make a single initial deposit to a CD. When you open one, you're making an agreement to keep your funds in the account without withdrawals for an established period of time, known as the CD term. In return, you're able to lock in a fixed interest rate for the entire duration of the term. CDs are available through both brick-and-mortar banks and online banks, along with credit unions. In general, online banks tend to offer higher rates than brick-and-mortar banks since they have lower overhead costs, but it’s worth comparing specific options to confirm you’ve found the best rate and term for your needs. The good news for CD shoppers is that the type of bank or credit union offering the CD is of little importance, so long as you verify that it’s FDIC-insured (for banks) or NCUA-insured (for credit unions). The FDIC and NCUA insure bank deposits up to $250,000, giving you peace of mind that your investments are safe. CDs are deposit accounts, so you typically cannot lose money as long as you select a bank backed by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures eligible deposit accounts up to $250,000. The only ways to lose money are if you withdraw funds before the end of the CD's term (in which case you would pay a penalty), if you sell a brokered CD for less than it’s worth, or if you have over $250,000 deposited and the bank fails. With a CD, any interest you earn in the account is taxable as ordinary income. If your CD term is longer than one year, you'll have to pay taxes on the interest earned for each year the CD is open. If you earn $10 or more of interest, your bank will send you Form 1099-INT, which you can use when you file your tax return. The biggest drawback to putting money in a CD (whether it’s from a bank or a credit union) is the lack of liquidity. If you need to tap into the account to cover an unexpected expense, you'll have to pay penalties (unless, of course, you chose a no-penalty CD). You typically won't see big names like Chase, Bank of America, or Wells Fargo in our list of the best high-yield savings accounts. While we do monitor their rates, they usually aren't high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do, so their rates tend to be lower. You will sometimes see one of the top 25 U.S. banks in our rankings, such as Citi, BMO, or Ally Bank, as these institutions do occasionally offer competitive high-yield rates. Some banks you may be looking for that we track, but that don't make our list, are Marcus by Goldman Sachs, SoFi, Synchrony Bank, CIBC Bank USA, LendingClub, Bread Savings, FNBO Direct, and Citizens Access. Still other institutions may not appear in our ranking because they don't meet our qualification criteria, such as by not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. These include U.S. Bank, PNC, Varo, American Airlines Federal Credit Union, Delta Community Credit Union, Boeing Employees' Credit Union, Bethpage Federal Credit Union, and Western Alliance Bank. We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, , EverBank, TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank. Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, banks must be federally insured by the FDIC, the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.The banks must also be available in at least 40 states. For more about how we choose the best rates, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. CME Group. "FedWatch Tool." Federal Reserve. "Open Market Operations." Federal Reserve. "Federal Reserve Issues FOMC Statement." U.S. Securities and Exchange Commission. "Determine Your Risk Tolerance." Federal Deposit Insurance Corporation. "National Rates and Rate Caps." IRS. "Topic No. 403, Interest Received." Related Terms Jumbo Certificate of Deposit (CD): What It Is, Pros and Cons A jumbo certificate of deposit (CD) is a type of savings account with higher balance requirements than a traditional CD. It generally pays a higher interest rate. more What Is a Certificate of Deposit (CD)? Pros and Cons A certificate of deposit (CD) is a type of savings account offered by banks and credit unions. It pays a fixed interest rate for a set period of time. more CD Ladder: What It Is and How to Build One A CD ladder is an investing strategy which you buy multiple certificates of deposit (CDs) with different maturity dates. Learn how to build a CD ladder. more What Is a Neobank, and Are They Safe? A neobank, sometimes referred to as a challenger bank, is a digital bank that operates solely online or through mobile apps. Neobanks may offer lower fees and better rates. more Money Market Account: How It Works and How It Differs From Other Bank Accounts Money market account is an interest-bearing account at a bank or credit union, not to be confused with a money market mutual fund. more Night Depository: What it is, How it Works, Example A night depository is a bank drop box where merchants can deposit their daily cash, checks, and credit card slips outside of normal banking hours. moreIn the News
BEST NATIONAL BANK CDs Ranked by highest APY, then shortest term, then lowest minimum Best 3-Month Bank CDs Rate Term Minimum Bask Bank 5.25% APY 3 months $1,000 Merchants Bank of Indiana 5.25% APY 3 months $1,000 Popular Direct 5.25% APY 3 months $10,000 Best 6-Month Bank CDs Rate Term Minimum DR Bank 5.35% APY 6 months $500 T Bank 5.35% APY 9 months $500 Climate First Bank 5.34% APY 6 months $500 Best 1-Year Bank CDs Rate Term Minimum West Town Bank & Trust 5.30% APY 13 months $10,000 Northpointe Bank 5.25% APY 11 months $25,000 Prime Alliance Bank 5.25% APY 12 months $500 Best 18-Month Bank CDs Rate Term Minimum Sallie Mae Bank 5.15% APY 15 months $2,500 The Federal Savings Bank 5.05% APY 18 months $5,000 Bask Bank 5.00% APY 18 months $1,000 Best 2-Year Bank CDs Rate Term Minimum West Town Bank & Trust 5.00% APY 24 months $10,000 ableBanking 4.85% APY 24 months $5,000 My eBanc 4.85% APY 24 months $5,000 Best 3-Year Bank CDs Rate Term Minimum The Federal Savings Bank 4.60% APY 36 months $5,000 Luana Savings Bank 4.55% APY 30 months $2,000 NexBank 4.55% APY 36 months $10,000 Best 4-Year Bank CDs Rate Term Minimum The Federal Savings Bank 4.55% APY 48 months $5,000 NexBank 4.45% APY 48 months $10,000 First Internet Bank 4.29% APY 48 months $1,000 Best 5-Year Bank CDs Rate Term Minimum The Federal Savings Bank 4.45% APY 60 months $5,000 First Internet Bank 4.35% APY 60 months $1,000 Quontic Bank 4.30% APY 60 months $500 Best 3-month bank CD: Bask Bank – 5.25% APY
Best 6-month bank CD: DR Bank – 5.35% APY
Best 1-year bank CD: West Town Bank & Trust – 5.30% APY
Best 18-month bank CD: Sallie Mae Bank – 5.15% APY
Best 2-year bank CD: West Town Bank & Trust – 5.00% APY
Best 3-year bank CD: The Federal Savings Bank – 4.60% APY
Best 4-year bank CD: The Federal Savings Bank – 4.55% APY
Best 5-year bank CD: The Federal Savings Bank – 4.45% APY
Fast Fact
Compare the Best Bank CDs
Institution Rate (APY) Term Minimum Deposit Early Withdrawal Penalty DR Bank 5.35% 6 months $500 6 months of interest T Bank 5.35% 9 months $500 1 month of interest Climate First Bank 5.34% 6 months $500 None Bask Bank 5.30% 6 months & 9 months $1,000 3 months of interest ableBanking 5.30% 6 months $5,000 3 months of interest Beal Bank 5.30% 6 months $25,000 The greater of 1% of the amount withdrawn or 50% of the interest that would have been earned on the amount withdrawn West Town Bank & Trust 5.30% 13 months $10,000 3 months of interest Bask Bank 5.25% 3 months & 12 months $1,000 3 months of interest Merchants Bank of Indiana 5.25% 3 months, 6 months, & 12 months $1,000 3 months of interest Popular Direct 5.25% 3 months $10,000 3 months of interest My Banking Direct 5.25% 5 months $2,500 1 month of interest Prime Alliance Bank 5.25% 6 months & 12 months $500 1 month of interest MutualOne Bank 5.25% 6 months $500 3 months of interest iGObanking 5.25% 6 months $1,000 3 months of interest nbkc 5.25% 7 months $1,000 6 months of interest Northpointe Bank 5.25% 11 months $25,000 3 months of interest KS State Bank 5.25% 12 months $500 6 months of interest Beal Bank 5.25% 12 months $25,000 The greater of 1% of the amount withdrawn or 50% of the interest that would have been earned on the amount withdrawn T Bank 5.25% 13 months $1,000 3 months of interest Pros and Cons of Bank CDs
Pros Explained
Cons Explained
Alternatives to Bank CDs
High-Yield Savings and Money Market Accounts
Treasuries
Bonds & Bond Funds
Equities
How To Open a Bank CD
Who Should Get a Bank CD?
How to Choose the Best Bank CD For You
Types of Bank CDs
Frequently Asked Questions
What Is a Bank CD?
Do Brick-and-Mortar Banks Offer the Best CD Rates?
Are Online Bank CDs Safe?
Can You Ever Lose Money in a Bank CD?
How Are Bank CDs Taxed?
What Is the Biggest Negative of Putting Money in a Bank CD?
Why Don't I See My Bank in Your List?
Financial Institutions We Review
Rate Collection Methodology Disclosure
:max_bytes(150000):strip_icc()/bestbankcdrates-35f711262e82446fb29d8b7f394b35b2.jpg "Best Bank CD Rates for August 2024 (1)")
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