CD Rates

Best CD Rates Effective February 23, 2021

Compare bank rates from across the United States including high yield savings accounts, CD rates, money market accounts, and fixed annuity rates. Our mission to allow you to find the best-fixed rate high-yield savings account to grow your money in an easy convenient way.

You can sort the table below by bank, term of the CD, interest rate and minimum deposit required.

Financial InstitutionTerm (months)RateMinimum
Bethpage Federal Credit Union30.40% APY$50
Navy Federal Credit Union30.40% APY$1,000
BrioDirect30.25% APY$500
Quontic Bank60.60% APY$500
Limelight Bank60.50% APY$1,000
MySavingsDirect60.30% APY$1,000
Navy Federal Credit Union90.50% APY$1,000
VyStar Credit Union90.35% APY$500
Discover Bank90.30% APY$2,500
Delta Community Credit Union120.80% APY$1,000
Quontic Bank120.65% APY$500
Ally Bank120.60% APY$0
Delta Community Credit Union240.95% APY$1,000
Quontic Bank240.70% APY$500
Live Oak Bank240.70% APY$2,500
Delta Community Credit Union361.05% APY$1,000
Quontic Bank360.75% APY$500
Navy Federal Credit Union360.70% APY$1,000
VyStar Credit Union480.90% APY$500
First Internet Bank of Indiana480.86% APY$1,000
Golden 1 Credit Union480.80% APY$500
Delta Community Credit Union601.25% APY$1,000
First National Bank of America601.00% APY$1,000
Golden 1 Credit Union600.90% APY$500

The Federal Reserve and CD Rates

The-us-federal-reserve-building-in-washington-dc

The Federal Reserve’s interest rates decisions can impact the rates that banks offer on CDs. When the Fed raises or lowers the federal funds rate, banks typically respond by moving savings and money market account yields in the same direction. CDs tend to track Treasury’s closely. In 2019, a year when the Fed lowered rates three times, CDs generally decreased before or after a Fed rate cut.

Two emergency Fed rate cuts in March, and decreasing Treasury’s, are reasons many high-yield CDs decreased in 2020.

If you’re concerned about rates potentially decreasing or want to lock in a fixed yield, a CD may be right for you. Savings accounts and money market accounts generally have variable rates, meaning your yield can decrease. Introductory rates on those accounts are an exception to this rule. Intro rates may give you a fixed rate during the introductory period, though there may be certain requirements to keep this rate.

Fixed Annuity vs CD

Certificate of Deposit

Certificate of Deposit (CD) is a savings product sold by banks and credit unions, offering a fixed interest rate (set by the bank) to customers wanting to earn a little more interest than personal savings accounts provide. Each CD offers a term ranging from 6 months to 10 years in length.

Fixed Annuity

Fixed Annuity is a retirement savings plan sold by an insurance company, offering a fixed interest rate (set by the insurance company) to customers wanting to earn more interest than a Certificate of Deposit (CD). Each fixed annuity has a term ranging from 2 years to 20 years in length.

Fixed annuities are work very much like a certificate of deposit (CD). Both a fixed annuity and a CD provide principal protection, meaning your account value will not decrease due to market performance.

 As you can see a fixed annuity or MYGA, guarantees a set interest rate for a specified period of time – just like a CD. However, Fixed annuity guarantees are backed by the claims-paying ability of the issuing insurance company and are not insured by the FDIC like a CD.

While not FDIC insured, State Insurance 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. 

You can view the limits of your state at our State Guarantee Associations Explained page.

 

CD vs Annuity Comparison Table

 FIXED ANNUITYCD (CERTIFICATE OF DEPOSIT)
SOLD BYInsurance CompaniesBanks
AMOUNT YOU CAN INVEST$2,000 - $1,000,000Essentially Any Amount
INVESTMENT DURATION3 years - 10 years3 months - 5 years
INTEREST RATESVaries by insurer, term and investment amount. Typically higher than CDsVaries by financial institution, term and investment amount.
LIQUIDITYVaries by insurer and annuity. Usually either 10% of account value or accumulated interest annually.Almost always accumulated interest.
GUARANTEESBacked by the claims paying ability of issuing Insurer and by State Guaranty Funds.Backed by the FDIC up to $250,000 per depositor, per institution.
DEATH BENEFITAsset passed directly to beneficiary without going through the probate processProbate process required to pass asset to heirs

Calculating Real Rate of Return on a CD

In 18 of the past 30 years, CDs have had a negative return (after taking into account the impact of taxes and inflation), and in three of the positive years, they earned less than a 1% real rate of return.

Have you considered the impact that taxes on interest and adjustments for inflation may have on your overall rate of return? Generally, the interest received in these types of vehicles may not keep pace with inflation. This could mean lower purchasing power for you over time. Also, at renewal, a new rate along with a new withdrawal penalty may apply.

Here’s a quick way to determine your CD’s real rate of return:

3 step process to calculating real rate of return on a cd

Fixed Annuity Rates

If you are disappointed with CD rates you may consider a fixed annuity. Below is a table of today’s best-fixed annuity rates.

Insurance Company/ AnnuityAM BestMinimumTermLiquidityRate
Guaranty Income Life
Guaranty Rate Lock 10 High Band
B++250,00010 yrs0% / 5%3.00
Sentinel Security Life Insurance Company
Personal Choice Annuity 10\
B++2,50010 yrs0% / 0%3.00
Guaranty Income Life
Guaranty Rate Lock 10 Low Band
B++10,00010 yrs0% / 5%2.90
Guaranty Income Life
Guaranty Rate Lock 10 Mid Band
B++100,00010 yrs0% / 5%2.90
Sentinel Security Life Insurance Company
Personal Choice Annuity 10 (CA, FL)
B++2,50010 yrs0% / 0%2.9
Upstream Life
Secure Legacy 10-Year
B++10,00010 yrsInt / Int2.90
Upstream Life
Secure Legacy 10-Year NV
B++10,00010 yrsInt / Int2.80
Guaranty Income Life
Guaranty Rate Lock 10 (Non MVA) High Band
B++250,00010 yrs0% / 5%2.75
Guggenheim Life and Annuity Company
Preserve MYGA 10 High Band
B++250,00010 yrs0% / 10%2.70
Guaranty Income Life
Guaranty Rate Lock 10 (Non MVA) Low Band
B++10,00010 yrs0% / 5%2.65

My Annuity Store, Inc. pulled the CD rate information listed on this page from Bankrate.com. Rates are not guaranteed, can change frequently and may not be available in all states. These rates are meant for general education and comparison purposes only.

The rate information above is obtained by Bankrate from the listed institutions. Bankrate cannot guarantee the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com.

All rates are subject to change without notice and may vary branch to branch. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers’ terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.

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