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Comparing the best CD rates—the annual percentage yield, or APY—is an excellent place to start when shopping for a certificate of deposit. But the best CDs are those that most closely align with your savings goals. Often, this means finding a CD with a high APY relative to the national average, a low minimum deposit requirement and a term that matches when you’ll need to access your cash.
We’ve compared 100 CD accounts at 70 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
On this list, you’ll first find the best banks and credit unions for CD rates overall. Then you’ll see the best banks and credit unions by CD term length.
Annual percentage yields (APYs) and account details are accurate as of August 31, 2021.
0.55% to 1.11%
$500
6 Months to 5 Years
Quontic Bank offers some very competitive rates on its CDs. And it also offers innovative online and mobile tools—precisely what you would expect from an online bank. Quontic’s user-friendly mobile app is available on both iOS and Android.
In total, Quontic offers five different CD terms to choose from: six months, 12 months, 24 months, 36 months and 60 months, with APYs ranging from 0.55% to 1.11%. You can fund your account by transferring money from an existing Quontic account, from another bank, by ACH transfer or by mailing a check.
Quontic claims you can open an account online in three minutes or less.
Read our full Quontic Bank review.
Details
Interest compounds daily and is credited monthly. Once your CD matures, Quontic Bank provides a 10-day grace period to withdraw your funds. Otherwise, it automatically renews the CD. Early withdrawal penalties vary by term.
0.70% to 0.95%
$1,000
6 Months to 5 Years
CommunityWide Federal Credit Union provides some of the most competitive yields on its certificate accounts—which at a bank would be called CDs—among nationally available credit unions.
Savers can choose from six different terms: six months, 12 months, 24 months, 36 months, 48 months and 60 months, with APYs ranging from 0.70% to 0.95%.
Unlike many other credit unions and banks, CommunityWide won’t automatically renew your certificate account upon maturity. Instead, you can choose to renew it for another term or deposit the principal and interest into another account at CommunityWide or another institution.
CommunityWide requires membership in the credit union to open a certificate account. Membership is open to U.S. citizens who open a savings account with a $10 minimum deposit, $5 of which goes to an organization of your choice—the Marine Corps, Habitat for Humanity or Goodwill.
Read our full CommunityWide Federal Credit Union review.
Details
The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited to your certificate account monthly. Early withdrawal penalties vary by term.
0.61% to 1.06%
$5,000
12 Months to 5 Years
Connexus Credit Union pays some of the highest yields available on four- and five-year share certificates (which would be called CDs at a bank). Five share certificate terms are available: 12 months, 24 months, 36 months, 48 months and 60 months, with APYs ranging from 0.61% to 1.06%. The minimum deposit is $5,000.
Connexus also ranks well for digital experience. Its mobile app gets rated very highly on the App Store and Google Play.
Unlike some credit unions, Connexus doesn’t require you to open a checking or savings account to open a share certificate. It does, however, require membership. If you do not qualify under the regular group and geographic categories of membership, you can become eligible to be a member of the credit union by making a one-time $5 donation to the Connexus Association.
Read our full Connexus Credit Union review.
Details
The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited to your account quarterly. Early withdrawal penalties vary by term. Share certificates automatically renew at maturity, but there’s a 10-day grace period after maturity to withdraw funds.
0.40% to 0.75%
$1,000
6 Months to 5 Years
TAB Bank offers high-yield CDs of eight different durations: six months, nine months, 12 months, 18 months, 24 months, 36 months, 48 months and 60 months, with APYs ranging from 0.40% to 0.75%. This gives savers interested in building a CD ladder several different options.
But even if you’re only looking for a single CD, TAB Bank’s CD rates are competitive across term. TAB requires a relatively low minimum deposit of $1,000 to open a CD.
For those interested in banking on the go, TAB Bank offers a very highly rated mobile app.
Read our full TAB Bank review.
Details
Interest is compounded daily and credited monthly, quarterly or annually. The early withdrawal penalty for withdrawing principal is 90 days of interest, whether or not earned, on CDs of one year or less. The penalty is 180 days of interest on CDs of more than one year. You can choose whether or not to automatically renew the CD when filling out the application. If you choose to automatically renew the CD and change your mind, there’s a 10-day grace period after maturity to withdraw funds without penalty.
0.60% to 1.15%
$1,000
12 Months to 7 Years
First National Bank of America (FNBA) has seven CD terms—ranging from 12 months to 84 months—with competitive APYs and a relatively easy minimum deposit requirement. CDs from FNBA are particularly good for savers interested in longer-term CDs. It’s one of the few banks in our database that offers CD terms of 72 and 84 months, paying 1.10% and 1.15% on those terms, respectively.
FNBA has a highly rated mobile app on both the App Store and Google Play for those seeking to manage their CD accounts on the go.
Read our full First National Bank of America review.
Details
Interest is compounded and credited to your account quarterly. The early withdrawal penalty is 90 days of interest for terms of one to 11 months, 180 days of interest for terms of 12 to 23 months, 360 days of interest for terms of 24 to 47 months and 540 days of interest for terms above 48 months. The bank provides a notice approximately 30 days before the CD matures, at which time you can decide to withdraw your funds, automatically renew your CD or roll over your funds to a different CD. Rates and CD options may differ slightly for Michigan residents.
0.70% to 0.90%
$1,500
12 Months to 5 Years
Comenity’s CDs allow account holders to deposit up to $10 million, a balance maximum that’s significantly higher than offered by other banks on our list. Like the other banks on this list, CDs at Comenity Direct are insured up to $250,000 per depositor, for each ownership category, by the FDIC in the event of a bank failure. But the option to deposit more is available.
Overall, Comenity offers competitive rates on its CDs and a modest minimum deposit requirement. Five term lengths are available: 12 months, 24 months, 36 months, 48 months and 60 months. APYs range from 0.70% to 0.90%, depending on term length.
Customers can monitor their CD accounts using the Comenity Direct mobile app.
Read our full Comenity Direct review.
Details
Interest is compounded daily and credited monthly. The early withdrawal penalty for CDs of 12 months to 36 months is 180 days’ simple interest. The penalty moves up to 365 days of simple interest for CDs of 48 months or longer. There’s a 10-day grace period to withdraw funds or close the account after maturity. If you don’t take action, your CD will automatically renew.
0.35% to 0.65%
$5,000
6 Months to 3 Years
Consumers who open a CD with My eBanc—called an Online Time Deposit—also get access to its Money Management Tool. This tool aggregates all of your outside accounts and allows you to gain insights into your banking routine. You can spot trends in your spending and budget accordingly.
My eBanc offers competitive rates on its CDs. It also compounds interest daily and offers 24/7 access to your account with online and mobile banking. Five term lengths are available: 6 months, 12 months, 18 months, 24 months and 36 months. APYs range from 0.35% to 0.65%, depending on term length.
Read our full My eBanc review.
Details
Interest is compounded daily and credited to the account on maturity. There’s a grace period of 10 days after maturity to withdraw funds or make other changes. Otherwise, the CD will automatically renew. The early withdrawal penalty varies by term. It’s equal to three months’ interest on the amount withdrawn for terms between six and 12 months, six months’ interest for terms of 18 months to 24 months and nine months’ interest for terms of 36 months.
0.45% to 0.70%
$1,000
6 Months to 3 Years
Limelight may be attractive if you’re looking for an environmentally conscious bank. It has partnerships with national solar product providers throughout the country, and deposits you make to the bank become loans for solar projects.
Limelight Bank also differs from the other institutions on our list in that it only offers CDs. As such, its rates are competitive, earning from 0.45% APY to 0.70% APY, depending on the CD’s term. Four terms are available: 6 months, 12 months, 18 months and 36 months.
Like many other online banks, it has a mobile app that provides 24/7 access to your accounts.
Read our full Limelight Bank review.
Details
Interest is compounded daily and credited monthly. The early withdrawal penalty is 90 days’ worth of interest for terms between six months and 18 months. It moves up to 180 days of interest for terms of 36 months. There’s a 10-day grace period after the maturity date to withdraw funds without penalty.
0.15% to 0.80%
$500
6 Months to 6 Years
Marcus by Goldman Sachs allows for the penalty-free withdrawal of interest earned on your CD each month. You can either transfer the interest to a Marcus Online Savings Account or an external bank account. Just keep in mind that withdrawing interest lowers the overall amount of interest you can earn on your principal investment.
Marcus also offers a 10-day CD rate guarantee. If the rate on the CD term you select goes up within the first 10 days after funding your account, you’ll automatically get the higher rate. You must deposit at least $500 within the first 10 days to get that guarantee.
Overall, the bank offers nine different terms, ranging from six months to six years, with competitive rates and a relatively low minimum deposit requirement.
Like many other online banks, it has a mobile app that provides 24/7 access to your accounts.
Read our full Marcus by Goldman Sachs review.
Details
Interest is compounded daily and credited monthly. The early withdrawal penalty is 90 days of simple interest for terms less than 12 months, 270 days of simple interest for terms of 12 months to five years and 365 days of simple interest for terms over five years. There’s a 10-day grace period after the maturity date to withdraw funds, renew the CD or close the CD and open a new one. The CD automatically renews if you take no action. Marcus also offers a 7-month no-penalty CD that pays 0.45% APY.
0.15% to 0.80%
$0
3 Months to 5 Years
Ally Bank doesn’t have a minimum deposit requirement to open a CD account, setting it apart from other banks on our list and making its CD products very accessible to savers nationwide.
Ally offers seven High Yield CD term lengths, ranging from three months to five years, with APYs ranging from 0.15% to 0.80%. In addition to its traditional CDs, Ally also offers a Raise Your Rate CD and a No Penalty CD.
With all of its CDs, Ally offers a Loyalty Reward when you renew your CD to a CD. If you open a CD or have an existing Ally CD, check Ally’s website 30 days before your CD matures to see what the reward rate is at that time. Ally also provides a Best Rate Guarantee. When you fund your CD within 10 days of your open date, Ally offers the best rate for that term if rates go up during that time. The Guarantee also applies at renewal.
Ally also rises to the top for its high scores on customer and digital experience.
Read our full Ally Bank review.
Details
Interest compounds daily and is credited monthly. Ally Bank provides a 10-day grace period to withdraw your funds after your CD matures. It automatically renews the CD if you take no action. To earn the Loyalty Reward, you must contact Ally 30 days before your CD matures. Ally charges an early withdrawal penalty of 60 days of interest for terms of 24 months or less, 90 days of interest for terms between 25 months and 36 months, 120 days of interest for terms between 37 months and 48 months and 150 days of interest for terms more than 49 months.
If you’re shopping for a particular CD term, check out the best CD rates by term below. Although APY is the main factor here, the banks here also rank well in other categories, such as minimum requirements, compounding interest frequency, customer experience and digital banking options.
Bank/Credit Union | APY | Minimum |
---|---|---|
TotalDirectBank | 0.50% | $25,000 |
TIAA Bank | 0.35% | $1,000 |
BrioDirect | 0.25% | $500 |
Bank/Credit Union | APY | Minimum |
---|---|---|
CommunityWide FCU | 0.70% | $1,000 |
Quontic Bank | 0.55% | $500 |
BankDirect | 0.50% | $10,000 |
Bank/Credit Union | APY | Minimum |
---|---|---|
CommunityWide FCU | 0.75% | $1,000 |
Comenity Direct | 0.70% | $1,500 |
Quontic Bank | 0.60% | $500 |
Bank/Credit Union | APY | Minimum |
---|---|---|
Sallie Mae Bank | 0.65% | $2,500 |
Ally Bank | 0.60% | $0 |
Marcus by Goldman Sachs | 0.55% | $500 |
Bank/Credit Union | APY | Minimum |
---|---|---|
CommunityWide FCU | 0.80% | $1,000 |
Quontic Bank | 0.75% | $500 |
Comenity Direct | 0.75% | $1,500 |
Bank/Credit Union | APY | Minimum |
---|---|---|
Quontic Bank | 1.00% | $500 |
CommunityWide FCU | 0.85% | $1,000 |
iGObanking | 0.70% | $1,500 |
Bank/Credit Union | APY | Minimum |
---|---|---|
Connexus Credit Union | 0.91% | $5,000 |
CommunityWide FCU | 0.90% | $1,000 |
First National Bank of America | 0.90% | $1,000 |
Bank/Credit Union | APY | Minimum |
---|---|---|
Quontic Bank | 1.11% | $500 |
Connexus Credit Union | 1.06% | $5,000 |
First National Bank of America | 1.05% | $1,000 |
Banks and credit unions offer CDs in a wide range of terms and types. While APY may be the main factor in play when shopping for a CD, there are other factors to consider as well. Here’s what to keep in mind when choosing a CD:
Perhaps most importantly, consider your goals. CDs generally work best for short-term financial goals, like saving up for a down payment on a car. The CD you choose should closely match the financial goal you’re trying to meet. For example, if you plan on purchasing a vehicle in a year, consider investing in a one-year CD with a high yield. This allows you to access your money when you need it, and it’s also an excellent way to keep you from dipping into your savings prematurely.
Traditional CDs aren’t your only option. There are a number of different types of CDs available, all of which are beneficial in different ways. If you need more liquidity out of a CD, for example, you may benefit from a no-penalty CD.
Longer-term CDs tend to pay higher yields. They also require you to lock up your money for an extended period, unless you’re willing to incur an early withdrawal penalty. One way to get the best of both worlds is to engage in a CD ladder strategy. This occurs when savers spread their money out across different CDs with varying terms. A portion of the money goes toward short-term CDs, while another portion of the funds is allocated to longer-term CDs.
As one of the CDs matures, the money, for example, may be reinvested in a new five-year CD. Eventually, you would have a five-year CD maturing each year. This will enable you to have some access to your money and, at the same time, keep it in a higher-yielding savings vehicle.
CDs aren’t going to give you a double-digit return, but you can get a higher rate if you are willing to shop around. Thanks to the increased competition in the marketplace, consumers have many options from traditional banks and their online brethren.
Banks and credit unions of all kinds want your business and will pay for it with attractive returns, making comparison shopping nonnegotiable when purchasing a CD.
Bank/Credit Union | Best For |
---|---|
Quontic Bank | Best Overall Bank for CDs |
CommunityWide Federal Credit Union | Best Overall Credit Union for CDs |
Connexus Credit Union | Best Credit Union for Long-Term CDs |
TAB Bank | Best for CD Ladders |
First National Bank of America | Best Bank for Long-Term CDs |
Comenity Direct | Best for High Balances |
My eBanc | Best for Money Management Tools |
Limelight Bank | Best for Environmentally Conscious Banking |
Marcus by Goldman Sachs | Best for Withdrawing Interest |
Ally Bank | Best for Minimum Deposit Requirement |
To create this list, Forbes Advisor analyzed 100 CD accounts across 70 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. For the star rating, we ranked each institution on 10 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and ranked each institution by individual term.
The following is the weighting assigned to each category:
CD accounts with the highest APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
CDs are time deposit accounts. They pay a fixed rate of interest on the money you invest for a fixed period of time. Unlike a savings account, CDs generally don’t allow you to withdraw the principal at any time during the term. If you withdraw money before the maturity date, you’ll often have to pay an early withdrawal penalty.
CDs lock up your money for a set period. In exchange, the bank or credit union pays an interest rate that’s generally higher than that found on a savings account. Banks and credit unions offer CDs in a variety of terms.
Typically, the longer the term, the higher the interest rate. However, the Covid-driven uncertainty in the U.S. economy has caused some banks to price CDs differently in 2021, such as paying the same rate for all terms, or paying a higher APY for a shorter term.
The pros of CDs include a guaranteed, fixed rate of return, higher APYs than those of many savings accounts and a wide selection of terms and types of CDs. CDs can be especially useful for meeting your short-term savings goals and are typically considered safe investments.
The cons of CD include higher minimum deposit requirements, early withdrawal penalties and the lack of liquidity, since your money is committed for a fixed period of time. In the current economy, CD APYs also may be lower than those offered by some high-yield savings accounts.
Regular or traditional CDs are the most common type of certificate of deposit. Banks and credit unions may also offer bump-up CDs, step-up CDs, no-penalty CDs or add-on CDs, to name a few variations.
Mitch Strohm is the Assistant Assigning Editor for Banking and Personal Finance. He has more than a decade of experience as personal finance editor, writer and content strategist. Before joining Forbes Advisor, Mitch worked for several sites, including Bankrate, Investopedia, Interest, PrimeRates and FlexJobs.