Who Has the Best CD Rates Today?

What is the Best CD Rate Available Today?

Are you in the market for a certificate of deposit (CD) but feeling overwhelmed by all the options out there? 

Look no further! We’ve compiled the best cd rates from all around the web.

With so many banks vying for your business, it can be tough to know which one offers the best deal. No need to worry, we’ve dug deep researching short-term and long-term CD rates, features, and fees to bring you the top contenders. 

So sit back, relax, and let us guide you through the best CD rates available today.

Best 3 Month CD Rates

TotalDirect Bank5.16% APY3 Months$25,000.00
Ponce Bank N.A.5.15% APY3 Months$50,000.00
Brilliant Bank5.10% APY3 Months$1,000.00
Alliant Credit Union4.50% APY3 Months$1,000.00
Popular Direct4.50% APY3 Months$10,000.00

Best 6 Month CD Rates

As of June 19, 2023, Bellco Credit Union offers the best 6 month CD rate of 5.50%.

NASA Federal Credit Union5.65% APY9 Months$10,000.00
Bellco Credit Union5.50% APY6 Months$500.00
Mountain America Credit Union5.50% APY6 Months$500.00
Bask Bank5.10% APY6 Months$1,000.00
Western Alliance Bank5.00% APY6 Months$1,000.00

Best 12 Month CD Rates

Below are the best one-year CD rates for June 2023. Currently, Evergreen Bank Group has the best interest rate for a 12-month CD at 5.50% APY.

Evergreen Bank Group5.50% APY13 Months10000
NexBank5.40% APY12 Months25000
BrioDirect5.35% APY12 Months500
Bread Savings5.25% APY12 Months1000
Barclays4.80% APY12 Months0

Best 2 Year CD Rates

The following banks and credit unions have the highest CD rates for 24 months.

U.S. Senate Federal Credit Union5.28% APY24 Months1000
Summit Credit Union5.25% APY22 Months5000
Idabel National Bank5.05% APY24 Months1000
Bread Savings5.00% APY24 Months1500
PenFed Credit Union4.45% APY24 Months1000

Best 3 Year CD Rates

Top 3-year rate for a Certificate of Deposit: U.S. Senate Federal Credit Union – 5.13% APY

  • Early withdrawal penalty: 4 months of interest
  • Membership: Anyone can join USSFCU by agreeing to a free one-year membership in the nonprofit American Consumer Council and keeping at least $5 in a savings account.
U.S. Senate Federal Credit Union5.23% APY36 Months1000
Quorum Federal Credit Union4.85% APY36 Months1000
Popular Direct4.55% APY36 Months10000
Bread Savings4.50% APY36 Months1500
Barclays4.30% APY36 Months0

Best 4 Year CD Rates

Best 4 year CD rate for June 2023: NASA Federal Credit Union – 4.85% APY

  • Early withdrawal penalty: All interest up to 6 months’ worth
  • Membership: Anyone can join NASA FCU by signing up for a free membership in the National Space Society and holding $5 or more in a savings account.
Best 4-Year CD RatesRateTermMinimum
NASA Federal Credit Union4.85% APY49 Months10000
GTE Financial4.85% APY48 Months500
First National Bank of America4.50% APY48 Months1000
Bread Savings4.35% APY48 Months1500

Best 5 Year CD Rates

Best 5-year CD rate as of June 19, 2023: Lafayette Federal Credit Union – 4.68% APY

  • Early withdrawal penalty: 20 months of interest
  • Membership: Anyone can join Lafayette Federal with a $10 membership in the Home Ownership Financial Literacy Council and $50 or more held in a savings account.
Lafayette Federal Credit Union4.68% APY60 Months500
Department of Commerce Federal Credit Union4.67% APY60-84 Months25000
GTE Financial4.54% APY60 Months500
Popular Direct4.53% APY60 Months10000
Bread Savings4.25% APY60 Months1500

What Is a Certificate of Deposit (CD)?

A certificate of deposit (CD) is a type of savings account offered by banks and credit unions that allows you to earn a fixed interest rate. When you deposit money into a CD, you agree to keep it there for a specific period of time, called the term. During this time, you cannot withdraw the money without facing a penalty.

The interest rate on a CD depends on the length of the term you choose. It’s important to consider factors like the minimum deposit required to open the account and any penalties for early withdrawal, as these can affect your earnings.

CD terms typically range from three to sixty months, offering flexibility in choosing a term that suits your goals.

By depositing a higher amount or selecting a longer-term CD, you can often secure a better interest rate. However, keep in mind that withdrawing money from a CD before it matures will result in penalties that may eat into your earnings.

Certificates of deposit provide a secure way to save money. They are federally insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 at banks, and by the National Credit Union Administration (NCUA) at federal credit unions. 

Unlike investments tied to the stock market, the value of CDs does not decrease due to market fluctuations.

How Do CDs Work?

A CD works similarly to a high-yield savings account offered by banks and credit unions. You deposit money into the CD and earn monthly interest. The interest compounds, meaning it adds up over time and grows your principal at a fixed rate called the annual percentage yield (APY).

CD rates are usually higher than high-yield savings account interest rates because banks and credit unions know how long they will have access to your money.

CD accounts are designed assuming the financial institution will hold your money for a fixed period, and in return, they guarantee you a set interest rate for the duration of your certificate.

In exchange for making a commitment to hold your CD for a specified period of time, the bank guarantees your interest rate for the duration of the term. If you withdraw your money before the CD’s term ends, the bank or credit union will typically charge you a fee equal to a few months’ worths of the interest you earned.

When your CD matures, you have options:

  • you can withdraw the money,
  • renew the current CD for another term at the new money rates,
  • or transfer it to a different CD or investment account.

Usually, you must make this decision during a specified “grace period” (typically 30 days), otherwise the bank may renew your CD for another term.

Common Types of CDs

There is a wide range of CD options that cater to different preferences, such as the amount of money you wish to deposit, the flexibility of accessing funds before maturity, and more. Here are some of the frequently encountered types of CDs:

High-yield CDs: These CDs offer a higher annual percentage yield (APY) compared to most CDs in the market.

Jumbo CDs: Typically requiring a larger minimum deposit, usually $100,000 or more (varies by financial institution).

No-penalty CDs: Also known as liquid CDs, these allow you to withdraw funds before maturity without incurring any penalties.

Brokered CDs: You can purchase these CDs from a broker or brokerage firm rather than a traditional bank.

Step-up CDs: This type of CD gradually increases its APY during the term, following a predetermined schedule set by your bank or credit union.

Bump-up CDs: Referred to as “jump-up” CDs, they enable depositors to take advantage of a one-time APY increase to match the prevailing rate for their CD term at their financial institution.

Add-on CDs: Unlike regular CDs, these allow you to contribute additional funds to your account after making the initial deposit.

How to Choose the Best CD

Here are the main factors to consider when shopping for a certificate of deposit:

  1. Interest rates: This is the most important factor to consider when choosing a CD. Generally, the longer the term of the CD, the higher the interest rate.

  2. Term length: The term length of a CD can range from a few months to several years. Consider your financial goals and needs when choosing a term length.

  3. Minimum deposit requirements: Some banks require a minimum deposit to open a CD. Make sure you can meet this requirement before choosing a bank.

  4. Early withdrawal penalties: If you need to withdraw your money before the end of the term, you may be subject to penalties. Make sure you understand these penalties before investing in a CD.

  5. FDIC insurance: The FDIC insures bank deposits up to $250,000 per depositor, per bank. Make sure your bank is FDIC-insured for added protection.

How to Open a Bank CD

Once you’ve chosen a bank and CD, the next step is to open the account. You can do this in a few ways, depending on the bank’s options. Here are the general steps:

Gather your personal and financial information: Before you begin the account opening process, make sure you have all the required personal and financial information on hand. This may include your full name, Social Security number, address, employment information, and funding source.

Decide how you want to open the account: Many banks offer multiple options for opening a CD account, such as in-person at a branch, online, or by phone. Choose the option that works best for you.

Fill out the application: Whether you’re opening the account in person or online, you’ll need to fill out an application. This will include your personal and financial information, as well as the details of the CD you’ve chosen.

Fund the account: To start earning interest on your CD, you’ll need to fund the account with the required minimum deposit. This can be done through a transfer from another account, a check, or cash.

Confirm the details: Once your account is set up, make sure to double-check all the details, including the interest rate, term length, and maturity date.

Keep track of your account: It’s important to keep track of your CD account and its maturity date, so you can plan accordingly and avoid any penalties for early withdrawal.

By following these steps, you can open a bank CD account with confidence and start earning interest on your savings.

Best CD Rates Today

Bank Term Rate
Credit Human 2 Years 5.50%
Credit Human 18 Months 5.25%
State Bank of Texas 1 Year 5.05%
Western Alliance 1 Year 5.01%
Bread Savings 1 Year 5.00%
Ally Bank 18 Months 5.00%
Capital One 11 Months 5.00%
Alliant Credit Union 6 Months 5.00%
Bethpage FCU 1 Year 5.00%
Metro Credit Union 2 Years 5.00%
Allin Credit Union 5 Years 5.00%
Bankwell 1 Year 5.00%
CFG Bank 1 Year 5.00%
Umbrella Bank 1 Year 5.00%
Garden Savings Federal Credit Union 13 Months 5.00%
Utah Credit Union 22 Months 5.00%
Credit Human 1 Year 5.00%
Bellco Credit Union 17 Months 5.00%
Popular Direct 1 Year 4.96%
First Internet Bank 1 Year 4.96%
Idabel National Bank 15 Months 4.95%
Synchrony Bank 19 Months 4.90%
Synchrony Bank 18 Months 4.90%
Security Service Credit Union 15 Months 4.90%
Idabel National Bank 1 Year 4.90%
Idabel National Bank 2 Years 4.90%
North American Savings Bank 13 Months 4.86%
Vio Bank 1 Year 4.85%
Sallie Mae 27 Months 4.85%
Sallie Mae 23 Months 4.85%
Connexus Credit Union 15 Months 4.85%
Summit Credit Union 3 Years 4.85%
TruMark Financial CU 5 Years 4.85%
Freedom Credit Union 5 Years 4.85%
NASA Federal Credit Union 15 Months 4.85%
Spectra Credit Union 14 Months 4.85%
Spectra Credit Union 7 Months 4.85%
USAlliance Financial 2 Years 4.85%
Brilliant Bank 15 Months 4.85%
Umbrella Bank 9 Months 4.85%
Idabel National Bank 9 Months 4.85%
Genisys Credit Union 30 Months 4.84%
First Central Savings Bank 9 Months 4.81%
North American Savings Bank 2 Years 4.81%
Popular Direct 18 Months 4.80%
TotalDirectBank 1 Year 4.80%
TruMark Financial CU 4 Years 4.80%
Allin Credit Union 4 Years 4.80%
Umbrella Bank 6 Months 4.80%
Blue FCU 15 Months 4.80%
TDECU 18 Months 4.75%
Bread Savings 2 Years 4.75%
Merrick Bank 1 Year 4.75%
Marcus by Goldman Sachs 18 Months 4.75%
Discover Bank 18 Months 4.75%
Limelight Bank 1 Year 4.75%
Prime Alliance Bank 2 Years 4.75%
First Internet Bank 18 Months 4.75%
TruMark Financial CU 3 Years 4.75%
TruMark Financial CU 30 Months 4.75%
TruMark Financial CU 2 Years 4.75%
TruMark Financial CU 18 Months 4.75%
Allin Credit Union 3 Years 4.75%
GreenState Credit Union 15 Months 4.75%
NASA Federal Credit Union 9 Months 4.75%
GreenWood Credit Union 18 Months 4.75%
GreenWood Credit Union 13 Months 4.75%
AFFCU 1 Year 4.75%
Alabama Power Credit Union 6 Months 4.75%
America First Credit Union 2 Years 4.75%
CFG Bank 18 Months 4.75%
Rising Bank 15 Months 4.75%
Rising Bank 1 Year 4.75%
Crescent Bank 1 Year 4.75%
Ivy Bank 1 Year 4.75%
Merrick Bank 18 Months 4.70%
PENFED Credit Union 18 Months 4.70%
Popular Bank 13 Months 4.70%
First Internet Bank 2 Years 4.70%
Mid Penn Bank 1 Year 4.70%
University of Kentucky FCU 9 Months 4.70%
CommunityWide FCU 1 Year 4.70%
Beehive Federal Credit Union 18 Months 4.70%
Quorum Federal Credit Union 2 Years 4.70%
Crescent Bank 18 Months 4.70%
Seattle Bank 5 Years 4.70%
TotalDirectBank 6 Months 4.65%
Alliant Credit Union 1 Year 4.65%
Limelight Bank 18 Months 4.65%
PENFED Credit Union 15 Months 4.65%
CIT Bank 13 Months 4.65%
Metro Credit Union 18 Months 4.65%
Allin Credit Union 2 Years 4.65%
Beehive Federal Credit Union 1 Year 4.65%
Veridian Credit Union 1 Year 4.65%
USAlliance Financial 18 Months 4.65%
Crescent Bank 2 Years 4.65%
Umbrella Bank 18 Months 4.65%
Seattle Bank 4 Years 4.65%
Credit Human 3 Years 4.65%
American First Credit Union 2 Years 4.65%
Lafayette Federal Credit Union 5 Years 4.63%
Pelican State Credit Union 4 Years 4.61%
Popular Direct 2 Years 4.60%
PENFED Credit Union 1 Year 4.60%
Valley National Bank 3 Years 4.60%
Sallie Mae 2 Years 4.60%
Mid Penn Bank 18 Months 4.60%
Members Heritage Credit Union 6 Months 4.60%
CIT Bank 18 Months 4.60%

Frequently Asked Questions

While not FDIC insured, State Guaranty Associations provide a safety net for their state’s annuity policyholders. These Guaranty Associations guarantee policyholders continue to receive coverage (up to the limits spelled out by state law) even if their insurer is declared insolvent. 

Source: “Learn to Invest, Investment Types, Annuities, Fixed Annuities.”  Financial Industry Regulatory Authority (FINRA).  Visit FINRA’s Fixed Annuities Webpage

You can not lose money in a fixed annuity. However, guarantees are backed by the claims-paying ability of the issuing insurance company so it is important to consider an insurer’s financial rating when shopping for an annuity.

Fixed Annuities do not have any fees or expenses unless you add an additional rider that was not mentioned on this page.

A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect.

Most CDs have an early withdrawal penalty that tends to range from several months to a year’s worth of interest earned, depending on the CD term length and the bank’s policy. No-penalty CDs are the only type of CD that lets you withdraw money from a CD early without a fee.

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