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We check financial institutions daily to find the best CD rates for a variety of terms. We also have options for people who want a no-penalty CD, a unique term length, or a $0 minimum opening deposit requirement.

Some national brick-and-mortar banks pay decent rates on select CD terms, but it's rare. For example, Bank of America CD rates pay up to 5.00% APY (Annual Percentage Yield) — but rates vary by location, and many terms only pay around 0.03% APY. Below are our 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.

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 the CD 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).

Calculate Your CD Earnings

Compare the Best CD Rates

Technology Credit Union 5 Month No Penalty CD

Annual Percentage Yield (APY)

5.36%

Minimum Deposit Amount

$1

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. No terms under 6 months or over 5 years

• Terms ranging from 6 months to 5 years
• Early withdrawal penalties: Terms of 12 months or less are charged 90 days simple interest; terms of over 12 months are charged 180 days simple interest
• Interest compounded daily, paid monthly

TotalDirectBank 3 Month CD

Deposits through TotalDirectBank deposit products are FDIC insured

Annual Percentage Yield (APY)

5.66%

Minimum Deposit Amount

$25,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. High minimum opening deposit
• con icon Two crossed lines that form an 'X'. Limited customer support

• Doesn't operate in Florida, Somoa, Guam, Northern Mariana Islands, and US Virgin Islands
• Online-only division of City National Bank of Florida
• Early withdrawal penalties: 30 days of interest for terms between 30 days 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
• Maximum deposit of $1 million
• Interest compounded daily and deposited monthly
• FDIC insured

Signature Federal Credit Union 6 Month Certificate

Annual Percentage Yield (APY)

5.50%

Minimum Deposit Amount

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $500 opening deposit

• con icon Two crossed lines that form an 'X'. High early withdrawal penalties
• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
• con icon Two crossed lines that form an 'X'. No terms over 5 years

• Become a Signature FCU member by depositing $5 in a Signature savings account
• Terms ranging from 3 months to 5 years
• 45 days to 900 days interest early withdrawal penalty
• Interest compounded monthly and paid monthly

CIBC Agility 1 Year CD

Annual Percentage Yield (APY)

5.51%

Minimum Deposit Amount

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rates, especially if deposit $25,000 or more
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard-to-low early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit
• con icon Two crossed lines that form an 'X'. Limited CD terms

• Earn a higher interest rate if you deposit $25,000 or more
• Terms range from 9 months to 30 months
• Early withdrawal penalty: 30 day of interest if you withdraw before the end of your term
• Interest compounded and deposited monthly
• Member FDIC

Alliant 18 Month CD

Annual Percentage Yield (APY)

5.30%

Minimum Deposit Amount

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily
• con icon Two crossed lines that form an 'X'. $1,000 minimum deposit
• con icon Two crossed lines that form an 'X'. No terms over 5 years

• Several ways to become a member; the easiest is to join Foster Care to Success (Alliant will cover your $5 membership fee)
• Terms ranging from 3 months to 5 years
• Early withdrawal penalty is dividends for the number of days the certificate is open. Up to 90 days dividends for terms of 17 months or less; up to 120 days dividends for terms of 18-23 months; up to 180 days interest for terms of 24 months or more; 7 days dividends if you withdraw during the 7-day grace period, even though no interest has accumulated yet
• Interest compounded monthly
• Federally insured by the NCUA

Pelican State Credit Union 2 Year Share Certificate

Annual Percentage Yield (APY)

5.27%

Minimum Deposit Amount

$500

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate

• con icon Two crossed lines that form an 'X'. Steep early withdrawal penalties
• con icon Two crossed lines that form an 'X'. Interest compounded monthly, not daily

• 18 locations in Louisiana
• To join Pelican State Credit Union, you are an employee or retiree of a credit union partner; live in Rapise, St. Landry, or St. Tammany Parish; are a credit union employee or become a member of ARC Baton Rouge, the Parents Association of Northwest Support and Services or Pinecrest Parents Assoication
• Early withdrawal penalties: 180 days of interest for terms of one year or less; 270 days of interest for terms between 13 months to 36 months; 365 days of interest for terms between 37 months
• Interest compounded and deposited monthly
• Federally insured by the NCUA

United States Senate Federal Credit Union 3 Year Smart Share Certificate

Annual Percentage Yield (APY)

5.23%

Minimum Deposit Amount

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit

• Locations in Alexandria, Virginia and Washington, DC
• To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
• All members have to pay a one-time $1 membership fee
• Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
• Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
• Interest compounded and deposited monthly
• Federally insured by the NCUA

United States Senate Federal Credit Union 4 Year Smart Share Certificate

Annual Percentage Yield (APY)

4.81%

Minimum Deposit Amount

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit

• Locations in Alexandria, Virginia and Washington, DC
• To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
• All members have to pay a one-time $1 membership fee
• Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
• Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
• Interest compounded and deposited monthly
• Federally insured by the NCUA

United States Senate Federal Credit Union 5 Year Smart Share Certificate

Annual Percentage Yield (APY)

4.86%

Minimum Deposit Amount

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit

• Locations in Alexandria, Virginia and Washington, DC
• To join USSFCU, you must work for a Select Employee Group; have a family member that’s a current member; become a member of the U.S. Capital Historical Society or the American Consumer Council
• All members have to pay a one-time $1 membership fee
• Early withdrawal penalties: 90 days of interest for terms of 1 year or less; 120 days of interest for terms greater than 2 years and up to 3 years; 360 days of interest for terms greater than 3 years
• Earn higher interest rates with a higher account balance (Tiers: $100,000 and $200,000)
• Interest compounded and deposited monthly
• Federally insured by the NCUA

Financial Partners Credit Union 8 Month CD Special

Fees

no monthly maintenance fee

Annual Percentage Yield (APY)

6.50%

Minimum Deposit Amount

$1,000

Bonus

None

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. High APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalty

• con icon Two crossed lines that form an 'X'. $1,000 minimum opening deposit
• con icon Two crossed lines that form an 'X'. $5,000 maximum deposit
• con icon Two crossed lines that form an 'X'. New members only

• Offer limited to one CD per new member
• Locations in Los Angeles Metro, Orange County, San Diego, and San Francisco areas
• To be eligible for membership at Financial Partners Credit Union you must live in a select 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
• The early withdrawal penalty for the 8-month special is 90 days of interest
• Interest compounded and deposited monthly
• Federally insured by the NCUA

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

About the Best CD Issuers

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

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 meet certain requirements.

To open the CD special, you must live in an eligible area in Southern California (Los Angeles County, Orange County, Riverside County, San Diego County, the city of San Francisco, or Alameda, California). 

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. 

OptimumBank 5-Month No-Penalty CD

The OptimumBank 5-Month No-Penalty CD offers the highest no-penalty CD rate 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.

Raisin Review

TotalDirectBank 3-Month CD

A TotalDirectBank CD may be appealing if you're searching for a 3-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

Signature Federal Credit Union 6-Month Certificate

Signature Federal Credit Union is a solid choice if you prioritize banking with a credit union. The Signature Federal Credit Union Certificate has a $500 minimum opening deposit and pays a high interest rate on a 6-month term.

Credit unions require membership to open an account. However, Signature Federal Credit Union lets you join regardless of where you live in the United States. The easiest way to become a member of Signature FCU is to enroll in the American Consumer Council. Then you'll just need to open a savings account.

Term options: Terms range from 3 months to 5 years.

Penalties: Signature Federal Credit Union charges standard penalties for early withdrawals of your principal balance, as follows:

• 45 days of interest for a 3-month term
• 90 days of interest for a 6-month term
• 135 day of interest for a 9-month term
• 180 days of interest for terms of 12 months and 4 years
• 365 days of interest for a 5-year term

Signature Federal Credit Union Review

CIBC 1-Year Agility CD

CIBC Bank USA, the U.S. division of the Toronto-based bank Canadian Imperial Bank of Commerce, has a competitive CD rate on a 1-year term.

You can open CIBC Bank USA's online CDs and savings account from anywhere in the United States. CIBC Bank USA also has checking accounts and a money market account, but you have to open them at a banking center. Banking centers are located in select cities in California, Florida, Illinois, Michigan, Missouri, and Wisconsin.

Term options: Agility CD terms range from 9 months to 30 months

Penalties: If you withdraw money from a CD before it reaches maturity, CIBC Bank USA may charge a 30-day interest penalty.

CIBC Bank USA Review

Alliant 18-Month Certificate

Alliant Credit Union is a strong choice if you would rather be part of a credit union than a bank. Alliant certificates offer competitive interest rates, particularly for 18-month terms.

Credit unions require you to become a member to open accounts. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.

Term options: Certificate terms range from 3 months to 5 years.

Related stories

Penalties: The early withdrawal penalties are as follows:

• 90 days of interest for terms of 17 months or less
• 120 days of interest for terms between 18 months and 23 months
• 180 days of interest for terms 2 years and over

Alliant Credit Union Review

Pelican State Credit Union 2-Year Share Certificate

The Pelican State Credit Union Share Certificate offers the highest interest rate for a 2-year term. You also might like this account if you'd prefer to open a CD with a low minimum opening deposit. You only need $500 to open a CD.

Pelican State Credit Union is a financial institution based in Louisiana, but you don't have to live in the state to become a member and open a certificate. The easiest way to join is to become a member of Arc Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee).

Pelican State Credit Union has steep early withdrawal penalties. You may prefer another financial institution if you're worried about early withdrawal penalties.

Term options: Pelican State Credit Union offers share certificates ranging from 6 months to 60 months.

Penalties: The following early withdrawal penalties may apply to Pelican State Credit Union Share Certificates:

• 80 days of interest for terms of one year or less
• 270 days of interest for terms between 13 months and 36 months
• 365 days of interest for terms of 37 months or more

United States Senate Federal Credit Union Smart Share Certificates

United States Senate Federal Credit Union offers competitive interest rates, especially for 3-year, 4-year and 5-year terms.

To join the United States Senate Federal Credit Union, you must work for a Select Employee Group, have a family member who is a current member, or become a member of the U.S. Capital Historical Society or the American Consumer Council (you can join these organizations from anywhere in the US).

Term options: Terms range from 3 months to 5 years.

Penalties: United States Senate Federal Credit Union charges the following early withdrawal penalties on CDs:

• For terms of 12 months or less, the penalty is 90 days of interest
• For terms greater than 12 months and shorter than 24 months, the penalty is 120 days of interest
• For terms greater than 24 months and shorter than 36 months, the penalty is 180 days of interest
• For terms greater than 36 months, the penalty is 360 days of interest

CD FAQs

A CD is a time-sensitive savings account that holds your money at a fixed interest rate for a specified period of time. You can open one at almost any bank or credit union.

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).

Yes, several financial institutions have CDs paying 5.00% APY or more. Some examples include (but are not limited to) Raisin, Synchrony, and TotalDirectBank.

Yes, a few local institutions pay 6% interest on CDs, including Resource One Credit Union, First Financial Federal 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.

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.

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.

Timing matters. CDs can be a good investment if interest rates are currently high and/or expected to fall. The biggest benefit of a CD is your ability to lock in a fixed interest rate. If interest rates fall during the term of your CD, the APY on your CD will not be affected. Conversely, if rates are expected to rise, then it may not be a good time to put money in a CD.

Yes, interest earned on CDs is taxable. Banks send a 1099-INT form and you report CD interest in your annual tax return.

Are CDs safe? 

CDs are safe because you open these accounts at federally insured financial institutions. If a bank shuts down, the FDIC will keep up to $250,000 per depositor, per ownership category secure.

Will CD rates drop in 2024? 

In early 2024, experts predict CD rates will be on par with current rates. However, CD rates are likely to drop in 2024 when the Federal Reserve starts cutting rates.

It may be worthwhile to lock in a CD rate if it fits with your savings goals. If you don't need to have access to your money a CD could be a good place for short-term goals. However, you'll need to be mindful of early withdrawal penalties.

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

Best 6-Month CD Rates

Best 1-Year CD Rates

Best 18-Month CD Rates

Best 2-Year CD Rates

Best 3-Year CD Rates

Best 4-Year CD Rates

Best 5-Year CD Rates

Best No-Penalty CD Rates

Best Rates for No Opening Deposit

Best Rates for Other CD Terms

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.

• LendingClub: LendingClub's CD rates dropped and other financial institutions offer higher rates.
• Ally Bank: Ally lets you open CDs with $0, but other financial institutions with no minimum deposit offer higher interest rates.
• Forbright Bank: Forbright has a solid 9-month CD that pays over 5% APY. However, other financial institutions have unique CD terms with even higher rates available.
• Popular Direct: Our top picks pay higher CD rates overall. 
• Resource One Credit Union: Resource One Credit Union has several types of CDs paying 6.17% APY. This wasn't one of our top picks because another credit union has the top CD rate overall right now, but you still might like this credit union if you live in Texas. You can become a member of the credit union and open bank accounts if you live or work in Carrollton, Cedar Hill, Dallas, Houston, Garland, Irving, Jersey Village, Mesquite, Oak Forest, Spring, or Northwest Harris Counties in the state.
• Dow Credit Union: Other financial institutions have higher CD rates for most terms right now. 
• Valley Direct: The 36-month variable CD is no longer available. Valley Direct only offers a 12-month CD that pays less than our top picks, and a high-yield savings account with a competitive savings rate. If you're interested in CDs or more savings account options, you'll have to open an account through Valley National Bank, which is a regional institution in New York, New Jersey, Florida, and Alabama.
• Limelight Bank: Limelight pays strong CD rates overall, but they're not as competitive as what you'll earn with our top picks.
• PenFed Credit Union: Our top picks pay more competitive CD rates.
• Sallie Mae: Sallie Mae CD rates are higher than average CD rates, but our top picks have more competitive options overall. 
• Crescent Bank: Crescent's CD rates are pretty good, but they recently dropped.
• Bask Bank: Bask Bank pays solid CD rates on terms ranging from 6 months to 2 years, but our top picks are more competitive. 
• BluePeak Credit Union: BluPeak Credit Union's 9-month CD rate recently dropped and its now less competitive than 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. 
• Credit Human Federal Credit Union: Credit Human has good CD rates on terms under two years, but our top picks have even higher rates right now. 
• MYSB Direct: MYSB Direct has online CDs with high rates, but our top picks are even more competitive. 
• 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.
• Truliant Federal Credit Union: 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.
• 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. 
• 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. 
• 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.
• 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.
• 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.
• 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 CDs 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.

Banking Reporter

Compliance Associate

Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team's mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

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