Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
We check CD rates daily to find the best rates for a variety of CD terms. We also have options for people who want a no-penalty CD, a unique term length, or a CD with no minimum deposit.
Some national brick-and-mortar banks pay decent rates on select CD terms, but it's rare. For example, Chase CD rates go up to 5.00% — but rates vary by location, and most Chase CD rates are significantly lower. Online banks and credit unions offer higher CD rates for most terms. Below are out top picks for best CD rates.
The Best CD Rates by Term
Several of the best CD rates are offered by credit unions right now. But don't worry — anyone is eligible to join these credit unions and open CDs.
| Term | APY | Provider |
| No Penalty CD (1 Year) | 5.37% APY | Greenwood Credit Union, powered by Raisin |
| 3 Month | 5.66% APY |
|
| 6 Month | 5.76% APY | |
| 1 Year | 5.67% APY | |
| 18 Month | 5.20% APY | |
| 2 Year | 5.60% APY | Newtek Bank |
| 3 Year | 5.60% Variable APY | |
| 4 Year | 5.20% APY | BMO Alto |
| 5 Year | 5.25% APY | BMO Alto |
Market Leader
Financial Partners Credit Union (8-month term) paying 6.50% APY
The Financial Partners Credit Union 8-month CD special requires a minimum deposit of $1,000 and a maximum deposit of $5,000. To open this CD at Financial Partners Credit Union, you must be a new member of the credit union. You may be eligible for membership if you live, work, or go to school in an eligible area in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or work for a select employer group.
Compare the Best CD Rates
About the Best CD Issuers
Our top picks for CDs are protected by federal insurance. If you're wary of banks because a few collapsed in 2023, 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.
Financial Partners Credit Union 8-Month CD Special
The Financial Partners Credit Union 8-Month Certificate Special pays the highest CD rate overall. You can earn 6.50% APY on an 8-month CD if you qualify for membership at the credit union.
Membership is open to anyone who lives, works, or goes to school in select areas in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or works for a select employer group.
This promotional CD has specific opening requirements: You must deposit at least $1,000 but no more than $5,000. This offering is also only for new members.
Term options: Financial Partners Credit Union also has terms ranging from 3 months to 5 years.
Penalties: The early withdrawal penalty for the 8-month CD special is 90 days of interest.
Greenwood Credit Union 1 Year No-Penalty CD
The Greenwood Credit Union 1 Year No-Penalty CD offers one the highest no-penalty CD rates at Raisin.
Raisin is an online marketplace with savings accounts, money market accounts, and CDs from different financial institutions. Raisin may be appealing if you'd like to open a CD with a low minimum opening deposit. You only need $1 to get started.
Raisin doesn't have physical locations. It also won't be the best choice if you want to do all your banking at one institution because you can't open checking accounts.
Term options: Raisin is partnered with over 30 banks and credit unions, so it has multiple terms for both no-penalty and regular CDs.
Penalties: This account doesn't have any early withdrawal penalties.
TotalDirectBank CDs
A TotalDirectBank CD may be appealing if you're searching for a 3-month or 6-month term available nationwide.
TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. TotalDirectBank is the online-only division of the City National Bank of Florida. The online division doesn't operate in Florida, Somoa, Guam, the Northern Mariana Islands, or the U.S. Virgin Islands.
Term options: TotalDirectBank has terms ranging from 3 months to 5 years.
Penalties: The following early withdrawal penalties may apply to TotalDirectBank CDs:
- 30 days of interest for terms between 30 days and up to 6 months
- 90 days of interest for terms above 6 months and up to one year
- 180 days of interest for terms over 1 year
Popular Direct 1-Year CD
Popular Direct pays competitive rates on CDs and compounds interest daily.
The downside are that you'll need at least $10,000 to open a Popular Direct CD, and its early withdrawal penalties are pretty steep.
Term options: Popular Direct CD terms range from 3 months to 5 years.
Penalties: Here are the early withdrawal penalties for Popular Direct CDs, sorted by term length:
- 89 days of simple interest for terms under 91 days
- 120 days of simple interest for terms of 91 days to less than 12 months
- 270 days of simple interest for terms of 12 months to less than 36 months
- 365 days of simple interest for terms of 36 months to less than 60 months
- 730 days of simple interest for terms of 60 months or more
USALLIANCE Financial 18-Month Share Certificate
A USALLIANCE Financial Share Certificate offers a competitive interest rate on an 18-month term. It's also a good option if you have at least $500 to open an account.
The early withdrawal penalties at USALLIANCE Financial are a bit higher than other financial institutions. You can also only open a CD if you qualify for membership at the credit union.
You're eligible to become a member from anywhere in the U.S. if you join the American Consumer Council, Arc of Westchester, Tread Lightly!, or Council of Community Services. You also may qualify if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York, or work for a select employment group.
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
Newtek Bank 2 Year CD
Newtek Bank CDs are great options if you're interested in competitive 2-year terms.
In addition to standard CDs, Newtek has a 24-month variable-rate CD paying 5.66% APY. A variable-rate CD means the interest rate may change according to market conditions, similar to a high-yield savings account (going up or down over time). Besides that detail, your account will function similarly to a traditional CD. You'll have to keep money in the account for the full term or pay a penalty for early withdrawals. You also can't make additional deposits until the CD reaches maturity.
Newtek Bank also offers business checking and savings accounts, as well as a personal high-yield savings account.
Newtek Bank CDs require a minimum opening deposit of $2,500, which is higher than other banks.
Term options: Terms range from 6 months to 5 years.
Penalties: The early withdrawal penalties are as follows:
- For standard terms between 30 days and less than 1 year, the penalty is 90 days of simple interest
- For standard terms of 1 year or more, the penalty is 180 days of simple interest
- For the variable rate CD, the penalty is 1% of principal plus accrued interest that has not been credited (maximum 30 days)
Valley Direct 36-Month Variable CD
The Valley Direct 36-Month Variable CD may be a solid choice for a 3-year share certificate if you are comfortable getting a CD where the interest rate can fluctuate. Valley Direct's variable CD rate can go up or down during the term. That said, the rate stays 0.1% above the Federal Funds Target Rate Upper Limit, and any changes occur on the first business day of the month.
The Valley Direct 36-Month Variable CD has a $500 minimum opening deposit and a maximum deposit of $500,000. It is an FDIC-insured bank account, so up to $250,000 per depositor, per category is secure. Anyone in the U.S. can open Valley Direct accounts, regardless of where they live in the U.S.
Valley Direct CDs must be opened online. You won't be able to open a Valley Direct CD at a Valley National Bank branch.
Term options: Valley Direct has a 36-month variable CD as well as 12-month and 24-month fixed-interest CDs.
Penalties: At Valley Direct, the early withdrawal penalties are as follows:
- 90 days of interest for a term of less than one year
- 180 days of interest for terms between 1 year and less than 30 months
- 365 days of interest for terms between 30 months and less than 5 years
- 540 days of interest for terms of 5 years or more
BMO Alto High Yield CDs
BMO Alto CDs offer competitive interest rates, especially for 4-year and 5-year terms. You also might like these CDs if you want to open an account with $0. That said, you have to deposit funds within 10 days of opening your account or it will be closed.
BMO Alto is an online-only division of BMO Bank. You can open a high-yield savings account or CDs.
Term options: Terms range 6 months to 5 years.
Penalties: BMO Alto charges the following early withdrawal penalties on CDs:
- For terms of 11 months or less, the penalty is 90 days of interest
- For terms of 12 months or more, the penalty is 180 days of interest
BMO Alto Savings and CD Accounts
CD FAQs
What is the highest paying CD interest rate right now?
The highest-paying CD is the 8-month certificate special from Financial Partners Credit Union, which pays 6.50% APY. This CD special is only for new members and permits a $5,000 maximum opening deposit. To become a member and open a CD, you must live, work, or go to school in select areas in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the City of South San Francisco, or Alameda) or work for a select employer group.
Can you get 5% APY on a CD?
Yes, several financial institutions have CDs paying 5.00% APY or more. Some examples include (but are not limited to) Raisin, Popular Direct, and TotalDirectBank.
Can you get 6% on a CD?
Yes, a few local institutions pay 6% interest on CDs, including City Credit Union, Financial Partners Credit Union, and more. But these credit unions have membership requirements and are usually limited to people who live in a certain area.
Can you lose money in CDs?
You cannot lose money in a CD if you leave it untouched for the full term length. It is like a locked savings account and the only way you can lose money is if you make an early withdrawal for which you are penalized.
Are 10-year CD rates worth it?
When choosing a CD term, you'll want to consider the timeline of your goal. That said, not many financial institutions offer 10-year CDs, and the rates for short-term CDs are actually better than long-term CDs right now. You could build a CD ladder if you want to diversify your CDs and open multiple terms for more flexibility.
Are CD rates going up?
Yes, CD rates have been going up. Interest rates on CDs follow the federal funds rate, which is determined by the Federal Reserve. Thus far, the Federal Reserve has raised interest rates several times in 2023.
Do you have to pay taxes on CD interest?
Yes, interest earned on CDs is taxable. Banks send a 1099-INT form and you report CD interest in your annual tax return.
How high will CDs go in 2023?
From January 2023 to October 2023, the highest 3-month CD rates increased from 4.61% to 5.46% APY, according to data from the Federal Reserve Bank of St. Louis. Rates have increased on most terms throughout the year, but they'll probably remain relatively stagnant until the end of 2023.
Best 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
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| TotalDirectBank CD | 5.66% | $25,000 |
| Dow Credit Union Simple CD Special | 5.65% | $500 |
| Signature Federal Credit Union Certificate | 5.55% | $500 |
Best 6-Month CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| TotalDirectBank CD | 5.76% | $25,000 |
| Western Alliance High Yield CD, powered by Raisin | 5.70% | $1 |
| Credit Human Share Certificate | 5.55% | $500 |
Best 1-Year CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| Popular Direct CD | 5.67% | $10,000 |
| CIBC Agility CD | 5.66% | $1,000 |
| LendingClub CD | 5.65% | $2,500 |
Best 18-Month CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| USALLIANCE Financial Share Certificate | 5.25% | $500 |
| Newtek Bank CD | 5.55% | $2,500 |
| Popular Direct CD | 5.50% | $10,000 |
Best 2-Year CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| Newtek Bank CD | 5.60% | $2,500 |
| Crescent Bank CD | 5.40% | $1,000 |
| Popular Direct CD | 5.30% | $10,000 |
Best 3-Year CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| Valley Direct 36 Month Variable CD | 5.60% | $500 |
| United States Senate FCU Smart Share Certificate | 5.23% | $1,000 |
| BMO Alto High Yield CD | 5.10% | $0 |
Best 4-Year CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| BMO Alto High Yield CD | 5.20% | $0 |
| United States Senate FCU Smart Share Certificate | 4.81% | $1,000 |
| First National Bank of America CD | 4.80% | $1,000 |
Best 5-Year CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| BMO Alto High Yield CD | 5.25% | $0 |
| U.S. Senate Federal Credit Union Smart Share Certificate | 4.86% | $1,000 |
| MYSB Direct | 4.80% | $500 |
Best No-Penalty CD Rates
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| Greenwood Credit Union 12 Month No Penalty CD, powered by Raisin | 5.37% | $1 |
| Technology Credit Union 5 Month No Penalty CD, powered by Raisin | 5.36% | $1 |
| Mission Valley Bank 3 Month No Penalty CD, powered by Raisin | 5.35% | $1 |
| USALLIANCE Financial 11 Month No Penalty CD | 5.00% | $500 |
Best Rates for No Opening Deposit
| CD account | Annual Percentage Yield (APY) | Minimum deposit |
| BMO Alto High Yield CD | 5.00% to 5.65% | $0 |
| Barclays Online CD | 0.10% to 5.50% | $0 |
| Synchrony CD | 2.25% to 5.65% | $0 |
| Capital One 360 CDs | 4.10% to 5.00% | $0 |
Best Rates for Other CD Terms
| CD account | Term(s) | Annual Percentage Yield (APY) | Minimum deposit |
| Financial Partners Credit Union 8 Month CD Special | 8 months | 6.50% | $1,000 |
| Dow Credit Union 13 Month Special | 13 months | 5.76% | $500 |
| Forbright Bank 9 Month CD | 9 months | 5.75% | $1,000 |
| BluPeak Credit Union 9 Month Promotional Share Certificate | 9 months | 5.75% | $1,000 |
Alternative CD Options
These weren't chosen as our top CDs, but you still might find some of these options appealing depending on your preferences.
- MySavingsDirect: MySavingsDirect offers terms up to 10 years. It pays good rates overall, but rates aren't as high as what you'll earn with our top picks.
- Citibank: Citibank offers a competitive interest rate for an 11-month CD, but it's just short of our best CD rates for other terms.
- Bask Bank: Bask Bank has good CD rates on terms under two years, but our top picks have even higher rates right now.
- Ally Bank: Ally lets you open CDs with $0, but other financial institutions with no minimum deposit offer higher interest rates.
- Bayer Heritage Federal Credit Union Share Certificate: Bayer Heritage FCU CDs have competitive interest rates. The credit union has branches in Ohio, Pennsylvania, South Carolina, Texas, and West Virginia. It isn't one of our top picks because it experienced a cyber incident on November 1, 2023. The credit union is conducting an investigation and will provide updates on its website and social media platforms until services are fully restored.
- Pelican State Credit Union: Pelican State Credit Union has a high CD rate for a 2-year term, but it's just short of the top rates on our list.
- Truliant Federal Credit Union: Truliant Federal Credit Union has an 11-month limited-time CD special paying 5.70% APY, which is a bit lower than our market leader. Truliant Federal Credit Union still might be worth considering if you live in North Carolina, Virginia, South Carolina, Virginia, Georgia, or Tennessee.
- Granite State Credit Union: Granite State Credit Union has an 11-month CD special paying 5.25% APY. To join the credit union, you must live or work in New Hampshire, though.
- Travis Credit Union: Travis Credit Union is a local financial institution in North Carolina. It has a 4-month CD special paying 6.00% APY. To qualify for this offer, you must have an existing or new Travis Credit Union Checking Account, and you'll need to fulfill certain requirements. The CD special also requires new money and has a maximum opening deposit of $50,000.
- Gulf Coast Federal Credit Union: Gulf Coast Federal Credit Union has an 18-month regular share certificate and a 2-year share certificate special with high interest rates. It didn't make our list because it's local financial institution that serves select communities in Texas.
- Latino Community Credit Union: Latino Community Credit Union may be a good option if you value banking with a Hispanic American-owned financial institution with good CD rates. It didn't make our list, though, because there are other financial institutions with even higher CD rates right now.
- GTE Financial: GTE Financial pays solid CD rates, but its terms are currently lower than our top picks.
- Limelight Bank: Limelight Bank has good rates for a variety of CD terms, but none of its terms' rates are quite as high as the rates included in our list.
- Bank5 Connect: Bank5 has a 6-month CD with a great interest rate, but our top choices offer higher rates. The bank's other CD rates also aren't as competitive as other financial institutions.
- Department of Commerce Federal Credit Union: The Department of Commerce Federal Credit Union has a high 5-year CD rate, but it isn't as high as the top rates mentioned.
- Sallie Mae: Sallie Mae CD rates recently dropped. Now Sallie Mae's 12-month and 18-month terms are lower than our top picks.
- First Internet Bank of Indiana: First Internet Bank of Indiana has several CDs with high rates, but they're just short of those on our list.
- Bread Savings: Bread Savings has great CD rates – some above 5.00% APY. However, its CD rates are just short of the rates on our list.
- Delta Community Credit Union: Delta Community Credit Union has a high rate on a 2-year term, but our top picks pay even higher rates right now.
- America First Credit Union: America First Credit Union pays great interest rates on short-term CDs, but its just top rates are just a bit lower than our top picks.
- CIT Bank: CIT Bank has a great interest rate on a 6-month term, but it's just short of the top rates we've included.
- Alliant Credit Union: Alliant Credit Union has high interest rates, but our top picks offer even more competitive rates.
- American Express National Bank: American Express lets you open a CD with $0, but its rates aren't as high as those from other national brands included in our list.
- Vio Bank: Vio Bank has good CD rates for terms between 6 months and 120 months, but our top picks have even more competitive rates right now.
- Consumers Credit Union: Consumers pays some solid rates, and it's a good choice if you're looking for a 10-month term.
- Salem Five Direct: Salem Five Direct has competitive interest rates on short-term CDs, but they aren't quite as high as what you'll earn with our top picks.
- Chase: Chase offers solid interest rates on a 3-month and 12-month term if you qualify for relationship rates by having a Chase checking account. If you don't qualify for a relationship rate, other financial institutions will likely offer much more competitive CD rates.
- Marcus: Marcus pays a high rate on a no-penalty CD, but our top picks offer higher interest rates.
- Air Force Federal Credit Union Certificate Account: Air Force Federal Credit Union has a variety of CDs, but its rates have recently dropped and are lower than our top picks.
- Pentagon Federal Credit Union: PenFed offers solid interest rates on CDs, but our top picks have even more competitive CD rates right now.
- Pure Point Financial: Pure Point's rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.
- USAA Bank: USAA Bank offers a wide range of CD options for military members and families, but rates are mediocre and you'll need at least $1,000 to open an account.
- NBKC: NBKC pays good rates. But unlike most CDs, NBKC CDs pay variable rates, so rates can go up or down after you've opened the account.
- Bethpage Federal Credit Union: Bethpage CDs have a low minimum opening deposit but our top picks offer more competitive interest rates.
- Charles Schwab Bank: Charles Schwab has brokered CDs, meaning Charles Schwab doesn't actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how you bank, you may prefer open a CD directly with the financial institution.
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 high-yield savings accounts to use for your money. You can read their insights at the bottom of this post.
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, certified financial planner 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, certified financial planner at SaverLife:
"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, certified educator in personal finance, banking reporter, Personal Finance 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
Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high Annual Percentage Yield (APY), for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.
We reviewed CD offerings from over three dozen national banks using our CD methodology. All banks included on our list are FDIC-insured and do not impose monthly maintenance fees on CDs.
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.