Certificate of deposit rates remain high, with top accounts offering annual percentage yields, or APYs, as high as 5.5%. And while rates have been dropping since the end of 2023, there’s still time to snag a great APY and protect your earnings from future drops.
When you open a CD, your rate is locked in for the entire term. And terms range from a few months to several years, so there’s likely a CD out there that fits your savings timeline. And with experts expecting APYs will continue falling in the coming months, now’s the time to open an account and secure a still-high rate.
Read on to find out where you can find today’s best rates across CD terms.
Average CD rates
Since APYs represent the yield you’ll earn for a year, CD terms shorter than 12 months typically have lower returns. Right now, however, short-term CDs have higher APYs than most long-term CDs. That means you can earn a decent return for locking up your money for a short time, and you’ll have access to your funds sooner. It’s always a good idea to compare rates at different banks and credit unions before opening a CD to get the best offer to fit your financial goals.
Below is a look at the average CD rates by term based on those tracked by the Federal Deposit Insurance Corporation and those we tracked at CNET. The FDIC includes rates from major national banks, which are historically lower than online-only banks.
| Type | 6-month | 1-year | 3-year | 5-year |
| FDIC-tracked | 1.53% | 1.83% | 1.40% | 1.40% |
| CNET-tracked | 4.88% | 5.04% | 4.14% | 3.95% |
Best CD rates
| Bank | 6-month APY | 1-year APY | 3-year APY | 5-year APY |
|---|---|---|---|---|
| BMO Alto | 5.50% | 5.15% | 4.60% | 4.60% |
| CommunityWide Federal Credit Union | 5.50% | 5.25% | 4.40% | 4.00% |
| First Internet Bank of Indiana | 5.24% | 5.36% | 4.76% | 4.61% |
| Bread Savings | N/A | 5.35% | 4.25% | 4.15% |
| CFG Bank | N/A | 5.35% | 4.35% | 4.05% |
| LendingClub | 5.00% | 5.00% | 4.30% | 4.00% |
| MYSB Direct | 5.26% | 5.30% | 4.46% | 4.31% |
| NexBank | 5.25% | 5.35% | 4.55% | 4.25% |
Best CD rates by bank
BMO Alto
- 6-month APY APY = Annual Percentage Yield.
- 5.50%
- 1-year APY APY = Annual Percentage Yield.
- 5.15%
- 3-year APY APY = Annual Percentage Yield.
- 4.60%
- 5-year APY APY = Annual Percentage Yield.
- 4.60%
BMO Alto is the online arm of BMO, offering competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.
However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use the BMO Alto website. Since BMO Alto is separate from BMO Bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for assistance.
- No specialty CDs.
- No minimum balance required.
- No mobile app available.
- Interest paid monthly.
- Early withdrawal penalties range from 90 to 180 days of interest.
BMO Alto is the online arm of BMO, offering competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.
However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use the BMO Alto website. Since BMO Alto is separate from BMO Bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for assistance.
- No specialty CDs.
- No minimum balance required.
- No mobile app available.
- Interest paid monthly.
- Early withdrawal penalties range from 90 to 180 days of interest.
CommunityWide Federal Credit Union
- 6-month APY APY = Annual Percentage Yield.
- 5.50%
- 1-year APY APY = Annual Percentage Yield.
- 5.25%
- 3-year APY APY = Annual Percentage Yield.
- 4.40%
- 5-year APY APY = Annual Percentage Yield.
- 4.00%
CommunityWide Federal Credit Union offers high-yield share certificates (the credit union equivalent of CDs) ranging from six months to five years. But unlike other banks and credit unions, your share certificate won’t automatically roll into a new share certificate after it matures. Your interest is credited monthly and can be paid into your share certificate or rolled into the bank account of your choosing.
We like that CommunityWide will try to match share certificate rates if you find better rates elsewhere. You’ll need to meet eligibility requirements to open an account, and there’s a minimum deposit of $1,000. You’ll also incur a one-time $4.95 processing fee to open a debit card, and you can only use the card for funding.
- No specialty CDs.
- $1,000 minimum deposit and a $4.95 processing fee are required.
- CommunityWide may match better rates.
- Certificates don’t automatically renew.
- Early withdrawal penalty varies based on the amount of the withdrawal and the number of days remaining in the term.
CommunityWide Federal Credit Union offers high-yield share certificates (the credit union equivalent of CDs) ranging from six months to five years. But unlike other banks and credit unions, your share certificate won’t automatically roll into a new share certificate after it matures. Your interest is credited monthly and can be paid into your share certificate or rolled into the bank account of your choosing.
We like that CommunityWide will try to match share certificate rates if you find better rates elsewhere. You’ll need to meet eligibility requirements to open an account, and there’s a minimum deposit of $1,000. You’ll also incur a one-time $4.95 processing fee to open a debit card, and you can only use the card for funding.
- No specialty CDs.
- $1,000 minimum deposit and a $4.95 processing fee are required.
- CommunityWide may match better rates.
- Certificates don’t automatically renew.
- Early withdrawal penalty varies based on the amount of the withdrawal and the number of days remaining in the term.
First Internet Bank of Indiana
- 6-month APY APY = Annual Percentage Yield.
- 5.24%
- 1-year APY APY = Annual Percentage Yield.
- 5.36%
- 3-year APY APY = Annual Percentage Yield.
- 4.76%
- 5-year APY APY = Annual Percentage Yield.
- 4.61%
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but there’s a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly.
First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest -- which is standard for long-term CDs.
- No specialty CDs.
- Terms range from three months to five years.
- Early withdrawal penalties range from 60 to 360 days of interest.
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but there’s a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly.
First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest -- which is standard for long-term CDs.
- No specialty CDs.
- Terms range from three months to five years.
- Early withdrawal penalties range from 60 to 360 days of interest.
Bread Savings
- 6-month
- N/A
- 1-year
- 5.35%
- 3-year
- 4.25%
- 5-year
- 4.15%
Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit -- $1,500 and $100, respectively. Its CDs come with a few free services that are common among banks but worth noting, including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
- No specialty CDs.
- Terms range from one to five years.
- Early withdrawal penalties range from three months to one year of interest.
Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit -- $1,500 and $100, respectively. Its CDs come with a few free services that are common among banks but worth noting, including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
- No specialty CDs.
- Terms range from one to five years.
- Early withdrawal penalties range from three months to one year of interest.
CFG Bank
- 6-month
- N/A
- 1-year
- 5.35%
- 3-year
- 4.35%
- 5-year
- 4.05%
CFG Bank offers money market, CD and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG charges a few fees that are higher than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10, depending on the account.
Branches are available only in Maryland, which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
- No specialty CDs.
- Terms range from one to five years.
- Requires a $500 minimum deposit.
- CDs can’t exceed $500,000.
- Early withdrawal penalty of seven days of interest within six days of account opening.
CFG Bank offers money market, CD and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG charges a few fees that are higher than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10, depending on the account.
Branches are available only in Maryland, which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
- No specialty CDs.
- Terms range from one to five years.
- Requires a $500 minimum deposit.
- CDs can’t exceed $500,000.
- Early withdrawal penalty of seven days of interest within six days of account opening.
LendingClub
- 6-month APY APY = Annual Percentage Yield.
- 5.00%
- 1-year APY APY = Annual Percentage Yield.
- 5.00%
- 3-year APY APY = Annual Percentage Yield.
- 4.30%
- 5-year APY APY = Annual Percentage Yield.
- 4.00%
LendingClub offers a traditional certificate of deposit account with five different terms ranging from six months to five years. APYs offered on CDs are competitively priced. There’s a minimum $2,500 deposit required to open a CD, and it automatically renews with a 30-day grace period.
Keep in mind that LendingClub is an online-only bank, so you’ll need to be comfortable managing your account digitally.
- No specialty CDs.
- Terms range from six months to five years.
- Early withdrawal penalties vary by term.
LendingClub offers a traditional certificate of deposit account with five different terms ranging from six months to five years. APYs offered on CDs are competitively priced. There’s a minimum $2,500 deposit required to open a CD, and it automatically renews with a 30-day grace period.
Keep in mind that LendingClub is an online-only bank, so you’ll need to be comfortable managing your account digitally.
- No specialty CDs.
- Terms range from six months to five years.
- Early withdrawal penalties vary by term.
MYSB Direct
- 6-month
- 5.26%
- 1-year
- 5.30%
- 3-year
- 4.46%
- 5-year
- 4.31%
M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts. When it comes to CDs, MYSB Direct is a solid option with a competitive rate and a wide range of terms to choose from, including a 13-month no-penalty CD. And you can use the bank’s online CD calculator to help estimate your return before opening an account.
However, the CDs require a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. However, you can also manage your account online.
- No-penalty CD available.
- Terms range from three to 60 months.
- Requires a $500 minimum deposit.
- Early withdrawal penalty of all earned interest or 90 days of interest, whichever is higher.
M.Y. Safra Bank Direct is a full-service bank that offers a range of checking, savings, money market and CD accounts. When it comes to CDs, MYSB Direct is a solid option with a competitive rate and a wide range of terms to choose from, including a 13-month no-penalty CD. And you can use the bank’s online CD calculator to help estimate your return before opening an account.
However, the CDs require a $500 deposit. Another downside is that this bank charges a $5 monthly fee for select accounts. You can visit the local branch if you live in New York City or call 212-652-7200 during business hours. However, you can also manage your account online.
- No-penalty CD available.
- Terms range from three to 60 months.
- Requires a $500 minimum deposit.
- Early withdrawal penalty of all earned interest or 90 days of interest, whichever is higher.
NexBank
- 6-month
- 5.25%
- 1-year
- 5.35%
- 3-year
- 4.55%
- 5-year
- 4.25%
NexBank offers high-yield CDs with terms ranging from three months to five years -- all with competitive rates. The bank also offers jumbo and promotional CDs with rates as high as 5.55%. However, the bank has a high minimum deposit requirement. Standard CDs require $10,000, while the bank’s other CD types require $25,000 to $100,000.
- Jumbo and promotional CDs available.
- Terms range from three months to five years.
- Requires a $10,000 minimum deposit.
- Early withdrawal penalties range from one month to six months of interest.
NexBank offers high-yield CDs with terms ranging from three months to five years -- all with competitive rates. The bank also offers jumbo and promotional CDs with rates as high as 5.55%. However, the bank has a high minimum deposit requirement. Standard CDs require $10,000, while the bank’s other CD types require $25,000 to $100,000.
- Jumbo and promotional CDs available.
- Terms range from three months to five years.
- Requires a $10,000 minimum deposit.
- Early withdrawal penalties range from one month to six months of interest.
Is now a good time to open a CD?
Whether now is a good time to lock in a CD depends on your financial goals.
But Bernadette Joy, founder of Crush Your Money Goals, notes that whether you lock in a high rate now or wait to see if rates creep back up, the real benefit of a CD is locking in a fixed return. Joy put her money into two one-year CDs that offered a bit over 4% in February 2023, then witnessed rates go even higher.
“I have zero regrets on not waiting -- that money in the CD was not money I was planning to spend any time soon, and it actually helped me take the mental gymnastics out of thinking of what to do with the money,” Joy said. She also opened an 11-month CD with a 6.15% APY.
Joy said high-yield CDs are a great option for anyone who is nervous about what’s happening in the economy and “needs to save up some cash right now with very little risk.”
If you haven’t considered putting your money into a CD, this savings option can make sense if you have money earmarked for a goal that you won’t need for a few months or years. CDs work well for many financial goals, such as Joy’s plan to buy a car this year and take an extended vacation.
Rita-Soledad Fernández Paulino, who goes by Soledad, a personal finance coach and founder of Wealth Para Todos, plans to buy a house in the future and is using CDs to help grow money for a down payment. While comparing rates, she found a 10-month CD offering a 5.00% APY.
Originally, Soledad had her down payment fund spread across Series I bonds, the stock market and a high-yield savings account offering around 4% APY. She has since moved the funds from her high-yield savings account to the short-term CD to earn a bigger return.
To help decide if a CD is the best savings vehicle for your financial goals, categorize your plans into months and years. Any money you plan to use within six months should be in a high-yield savings account, Joy said. If you already have money saved for a future expense and don’t plan to use it for a while -- whether that’s in six months or six years -- consider putting the money in a CD.
“For someone looking for a conservative way to earn higher-than-average interest on their savings, [a CD] could be a good approach,” said Bola Sokunbi, founder of Clever Girl Finance. “Especially for funds tied to short-term goals that fit into the timeline of whatever CD they select.”
However, it’s important to keep in mind that because CDs are low-risk compared with stocks, you may not earn the same high returns that come with riskier investments, Sokunbi added.
There’s a chance the Federal Reserve is done raising rates, especially after its fourth consecutive rate hike pause in January. CD rates rose steadily throughout 2022 and 2023 as the Fed raised its federal funds rate to combat rampant inflation. But now, many banks are holding rates steady or slightly dropping them.
“With a slowdown in rate hikes, it could be a good time to lock in some longer-term CDs while they’re still available at 5% or more,” said Maggie Gomez, a certified financial planner.
And though some banks have started lowering CD rates slightly, experts still expect rates to remain relatively high for the next few months.
Keep an eye on the Fed’s remarks, said Shang Saavedra, a CNET Money expert and founder of Save My Cents. Even though the central bank doesn’t directly influence CD rates, most financial institutions tend to move rates in the same direction as the Fed.
“When the Federal Reserve believes that inflation is under control and there’s no great risk of us sliding into a significant recession, then it is likely that they would drop interest rates, and other banks would then follow suit as they issue new CDs,” Saavedra said.
What is a CD?
A CD is a low-risk way to earn a guaranteed return on your savings. CDs are considered safe investments because they’re typically insured by either the Federal Deposit Insurance Corporation or the National Credit Union Administration for up to $250,000 per person, per account.
A CD has a fixed interest rate for a specific period, or term. You can open a CD at a bank with a one-time deposit, and you’ll receive your principal plus interest when the term ends. If you take money out before the term ends, you’ll usually pay an early withdrawal penalty, which is a period’s worth of interest, depending on the bank.
That’s why it’s important to consider your unique financial needs. Joy weighs two factors when investing in a CD: liquidity and yield. She measures when she’ll need access to her cash versus how much return she’ll get for the CD term.
CDs are a good option if you want to put aside money for your children, save for an upcoming expense or create a “rainy day” fund separate from your emergency fund. (We recommend storing your emergency fund in an account you can easily access that earns interest, like a high-yield savings account, instead of a CD.)
CDs are also great for investors who want a guaranteed interest rate with little hassle and low risk. Unlike investments in stocks and bonds, CDs aren’t volatile. And unlike the variable rates you’ll get with checking or savings accounts, CD rates are fixed when you open the account, so if a CD aligns with your financial goals, it could be worthwhile to lock in a high rate, Joy said.
What to know before opening a CD
When you’re ready to open a CD, here are a few factors to consider:
- Term: Think about how long you can leave the money deposited in a CD account. If you’ll need access to your funds before a CD term ends, consider a high-yield savings account with more liquidity, a shorter CD term or a no-penalty CD to avoid paying an early withdrawal penalty.
- APY: Look for the highest yield available for the CD term you’ve selected. Online-only banks and credit unions usually offer the best rates, but if a minimum deposit is required, make sure you’re comfortable with the amount or choose another bank that doesn’t have that requirement.
- Type: There are many types of CDs that still give you a guaranteed rate of return while offering more flexibility than a standard CD. But some CD types have lower APYs and limited CD terms to choose from. Consider your financial goals and various CD options to determine what’s best for your money.
- Early withdrawal penalty: Unless you choose a no-penalty CD, most banks charge an early withdrawal penalty if you need to pull money from your CD before the term ends. This is usually a period’s worth of interest, depending on the term and the bank. If you’re worried about not having access to your funds, consider another savings option or a bank with a lower early withdrawal penalty.
- Minimum deposit: CDs allow only a one-time initial deposit, and some banks require a minimum amount to open an account. If this is a problem, consider an account with a lower (or no) deposit requirement.
Alternatives to CDs
If you want to make regular contributions to your savings, or you’re looking for a higher rate, there are other savings options worth exploring.
High-yield savings accounts: If you need the flexibility to deposit and withdraw money regularly while still earning a high yield, consider a high-yield savings account. Although high-yield savings accounts have variable interest rates -- meaning they rise and fall based on the economy and the bank’s preferences -- rates are currently above 5% and expected to remain high in the coming months.
The main appeal of a high-yield savings account over a CD is flexibility. While you may be charged an early withdrawal penalty if you take money out of a CD before the term ends, you can access funds in a savings account whenever you need them. This makes it a good spot to stash your emergency fund or money for short-term goals like a holiday fund or concert tickets.
Money market accounts: A money market account functions like a savings account but often has checking account privileges like the ability to write checks or make transactions with a debit card. Money market accounts also have competitive APYs, though most are lower than the best CD rates.
However, most money market accounts require a high minimum balance to earn interest. And even though these accounts usually come with a debit card and check writing, you’ll be limited to a certain number of transactions per month.
Treasury bonds: Both CDs and treasury bonds are low-risk savings options with a fixed rate. While most CDs are insured by the National Credit Union Association or the Federal Deposit Insurance Corporation, bonds are backed by the government or company that sells them.
You’ll have a guaranteed return as long as you don’t withdraw money before the bond or CD matures. If you do, you could miss out on future interest and pay a penalty that lowers the value.
Other types of CDs to consider
Several types of CDs offer more flexibility than a standard CD. For example, an add-on CD lets you add funds after your initial deposit, while a bump-up or step-up CD increases your yield if rates go up. A no-penalty CD allows you to withdraw your money without incurring an early withdrawal penalty.
No-penalty CDs
If there’s a chance you’ll need access to the money in your CD before the term ends, a no-penalty CD is a good option. No-penalty CDs typically offer lower yields than traditional CDs because you can take your funds out before maturity, said Chelsea Ransom-Cooper, managing partner and financial planning director at Zenith Wealth Partners.
If you’re looking for flexibility and a better return, another option would be a money market account, Ransom-Cooper added. Here’s a look at rates for no-penalty CDs.
Bump-up CDs
A bump-up CD allows you to take advantage of a higher rate for your CD term if one becomes available after you open your account. However, the APY still may be lower than a standard CD.
The advantages of a bump-up CD are determined by the rate environment. If you think rates might go up and don’t want to be stuck with a low APY, this could be a fail-safe technique.
But because inflation is starting to recede and interest rate hikes have likely come to an end, you should evaluate if this kind of account makes sense for you.
What is a CD ladder?
CDs require you to lock up your money for a specific period, and you may be reluctant to set aside all of your funds for multiple years. A CD ladder can give you more flexibility. By depositing your money into multiple CDs with varying terms, you’ll get access to some of your funds as each CD term expires. Then you can decide how you want to use that portion of the money and if you want to reinvest it into a longer-term CD.
Short-term CDs of one year or less have higher rates than most long-term CDs right now. But if long-term CD rates are as good as they’re going to get, it’s worth considering a mix of short- and long-term CDs. Here’s an example of how a CD ladder can work with a one-, three- and five-year CD if you deposit $1,000 into each account:
| CD term | Amount deposited | APY | Return | Balance at maturity |
| 1-year | $1,000 | 5.04% | $50.40 | $1,050.40 |
| 3-year | $1,000 | 4.14% | $130.771 | $1,129.41 |
| 5-year | $1,000 | 3.95% | $213.73 | $1,213.73 |
Although you could earn more interest by investing all your money into the 12-month CD, this strategy helps you get some of your funds back sooner. That means if interest rates increase, you can access some of your money and reinvest it into a higher APY account, while still earning a good return on your initial CD deposits.
Pros and cons of CDs
Pros
Fixed APY: CDs offer a guaranteed rate of return for your term, regardless of the rate environment.
Federally insured: Your deposit and interest are protected for up to $250,000 per person and account category in case of bank failure, as long as your account is held at an FDIC- or NCUA-insured institution.
Several CD options: Most banks offer several types of CDs and terms to choose from.
Option to ladder multiple terms: You can open several CDs at different term lengths to take advantage of rates and maintain flexibility.
Cons
Early withdrawal penalty: If you withdraw funds before the CD term matures, you’ll typically pay a few weeks or months of interest.
Less flexibility: You won’t be able to withdraw and deposit funds regularly. Other savings options, like high-yield savings and money market accounts, provide more access to your money.
Risk of a lower return: If rates go up, you’re locked into a lower APY unless you have a bump-up CD.
How to open a CD
Here’s a step-by-step guide to help you open a CD.
- Compare banks and rates. You can open a CD at your local physical branch or online. Most retail banks and credit unions also offer CDs or share certificates, as do online-only banks. Make sure the bank or credit union you choose is FDIC- or NCUA-insured to protect your funds. All the banks we track above are FDIC- or NCUA-insured.
- Choose the CD type and term. When you’re ready to open an account, you’ll choose the CD type and term you want. Be sure to compare rates and weigh all options based on your savings goals.
- Complete an application. Just like with a checking or savings account, you’ll fill out an application with your personal information, including your name, birth date, Social Security number (or Individual Taxpayer Identification Number) and address.
- Fund your account. When opening a CD, you’ll need to make a one-time deposit. You won’t be able to make any additional contributions, so you should only open the CD when you have the funds available.
After you’ve set up your account, you’ll begin earning interest. When your CD matures at the end of the term, you can withdraw your funds or reinvest them into another CD at the then-current rate.
FAQs
Choosing between a CD, money market or high-yield savings account depends on your financial goals, timeframe and liquidity needs.
For instance, if you’re starting from scratch, you may choose a high-yield savings account to build up your savings. If you plan to have a high balance but need debit card access, you might go with a money market account. If you already have the funds and won’t need them for a while, a CD is a good option.
Because early withdrawal penalties vary depending on the bank and CD term, there isn’t a standard way to calculate them. Most early withdrawal penalties equal a loss of interest or dividends for a certain period of time. A longer CD term generally has a greater penalty for early withdrawal.
If you need access to your funds before the CD matures, some banks require you to withdraw the entire amount of the account, while others charge a penalty only on the amount of a partial withdrawal. If the early withdrawal penalty exceeds the interest you’ve earned, you’ll lose money on your principal investment.
Many banks tie the APY that CDs earn to the federal funds rate established by the Federal Reserve. The federal funds rate is the rate banks use to lend and borrow money. The rates on CDs can rise and fall based on actions taken by the Fed to regulate the health of the economy.
For instance, the sequence of Fed rate hikes from 2022 to 2023 caused APYs to increase. If the Fed decides to decrease rates -- as experts expect it will in 2024 -- savings rates will likely move downward, too.
You typically won’t lose money with a CD, as long as you keep your funds invested until the term ends. If you withdraw money from your CD early, you’ll often pay an early withdrawal fee that’s equal to a certain amount of interest. This fee could cut into your principal -- the amount you initially deposited -- if the fee is greater than the interest you accrued.
In addition, a CD at an FDIC- or NCUA-insured bank or credit union protects your deposit for up to $250,000 per person, per account category in case of a bank failure or loss. However, the value of a brokered CD purchased through an investment firm or brokerage can fluctuate and isn’t always protected by federal insurance.
You should leave your money untouched in a CD until the term you’ve chosen ends. Then, you can renew it for the same period, choose another CD term or bank altogether or withdraw your funds for something else.
If you don’t withdraw your money when the term ends, some CDs are set up to automatically renew, and you might get locked into a lower interest rate. CDs generally offer a grace period of a few days so you can decide whether to withdraw the money or renew the CD. It’s a good idea to have a plan for your funds once the CD term ends.
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Our CD methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for five-year terms from among the organizations we surveyed and considered rates for shorter terms if five-year terms were identical or unavailable. All information is reviewed by experts for accuracy.
Banks we reviewed
Alliant Credit Union, Ally Bank, America First FCU, American Express National Bank, Barclays, Bask Bank, Bethpage, BMO Alto, Bread Savings, Capital One, CFG Bank, CIT, CommunityWide Federal Credit Union, Connexus Credit Union, Discover, EverBank, First Internet Bank of Indiana, First National Bank of America, Forbright, Lending Club, Limelight Bank, Marcus by Goldman Sachs, MYSB Direct, NexBank, Popular Bank, Quontic, Rising Bank and Synchrony.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
