Business CDs: Compare Rates and Top Options

A business certificate of deposit can be a smart savings vehicle for business owners to park cash they don't need for at least six months. The best business CDs earn a fixed annual percentage yield of 4.00% or higher. The catch: You'll pay a penalty if you withdraw that money before your CD term ends.

Best business CD rates

We scoped out business CDs from dozens of online, national and regional banks to find the best business CD rates. Only accounts that earned at least 4.00% APY were included in this list, though we've included CDs with varying term lengths.

Interest rates on business CDs have trended down in recent months as financial institutions adjust to declining interest rates. The Federal Reserve cut rates on Sept. 18 — the first rate cut since March 2022. Additional rate cuts are expected over the next year.

Up and down arrows indicate rates that increased or decreased in October. No arrow means rates were unchanged over the past month.

(Note: Interest rates and APYs may vary depending on your location.)

Keep a close eye on the term if you opt for a promotional CD rate. When your CD’s promotional rate term ends, the certificate may automatically renew at a much lower rate. Instead, set your CD to automatically transfer funds to another high-yield account when your term ends.

Dive deeper: NerdWallet's picks for best business CDs

The Live Oak Bank 12 Month Business CD earns 4.30% APY. Prefer a shorter term? The bank’s 6-month CD currently earns 4.10% APY. Live Oak's business savings account also earns 3.80% APY and has unlimited transactions.

• Term: 12 months.

• Minimum deposit: $2,500.

• APY: 4.30% APY. 

• Early withdrawal penalty: 90 days of interest.

Prime Alliance Bank offers a strong APY on its 6-month business CD: 4.90%. Prime Alliance has a single branch location near Salt Lake City, and opening an account isn’t as straightforward as it is at other banks — you’ll have to email Prime Alliance. But that minor inconvenience may be worth the major yield.

• Term: 6 months.

• Minimum deposit: $500.

• APY: 4.90%.

• Early withdrawal penalty: Not disclosed.

First Internet Bank is known for offering some of the best rates on business savings accounts, and its business CD is no different. You can choose term lengths ranging from three months to five years, but you’ll get the best rate with the bank’s 12-month business CD, which earns 4.42% APY.

• Term: 12 months.

• Minimum deposit: $1,000.

• APY: 4.42% APY.

• Early withdrawal penalty: 180 days of interest.

TAB Bank’s business CD terms range from 12 months to 5 years, but the bank’s 12-month CD lets you lock in its best rate (4.25%).

• Term: 12 months.

• Minimum deposit: $1,000. 

• APY: 4.25%.

• Early withdrawal penalty: 90 days of interest.

Bank of America's Featured CD earns the best rate (4.20%) on its shortest term: seven months. The bank also offers a 10-month Business Featured CD that earns 3.85% APY.

• Term: 7 months.

• Minimum deposit: $1,000. 

• APY: 4.20%.

• Early withdrawal penalty: Up to 180 days of interest, depending on the term.

EverBank, formerly known as TIAA, offers business CDs with terms ranging from three months to five years. But the highest APY, 4.00%, comes with the 12-month term. You’ll need a minimum deposit of $1,500 for all business CDs.

• Term: 12 months.

• Minimum deposit: $1,500.

• APY: 4.00%.

• Early withdrawal penalty: 91 days of interest.

Regions offers a 6-month business CD that earns a promotional rate of 4.25% APY to those who qualify for relationship pricing (primarily having a Regions checking account). If you don't, the non-relationship promo rate is 4.00% APY.

• Term: 6 months.

• Minimum deposit: $500. 

• APY: 4.25% (relationship rate); 4.00% (non-relationship rate).

• Early withdrawal penalty: All interest earned on the amount withdrawn as of the date of withdrawal or 2% of the amount withdrawn, whichever is less. 

Wells Fargo offers 4.25% APY on its 4-month Special Fixed Rate Business CD. Longer terms are available but rates on those CDs are much lower. You need a minimum deposit of at least $5,000 to qualify for a Special Fixed Rate Business CD.

• Term: 4 months.

• Minimum deposit: $5,000. 

• APY: 4.25%.

• Early withdrawal penalty: 90 days of interest.

NBKC Bank's best business CD rates are on its 7-month and 11-month business CDs, which offer 4.50% APY. Both require a minimum opening deposit of $1,000 and can be opened online.

• Term: 7 or 11 months.

• Minimum deposit: $1,000.

• APY: 4.50%.

• Early withdrawal penalty: 90 days of interest.

What is a business CD?

A business CD is a high-yield account that locks your funds up for a designated term — anywhere from a few weeks to a few years. In exchange, certificates of deposit typically offer interest rates far higher than traditional business savings or business checking accounts. Like other business bank accounts, business CDs are FDIC insured up to $250,000 per depositor.

Withdrawing funds from your CD early will result in a penalty of one month’s to one year’s interest, depending on your original term and the financial institution’s rules. You won’t lose any of your initial deposit, though.

Business CD vs. business money market account

Business CDs and business money market accounts are both low-risk, high-reward ways to invest longer-term savings, but there are a few key differences.

Interest rates: Business CDs typically yield a better return than money market accounts. A 12-month CD earns 1.81% APY, on average, compared with 0.61% APY for money market accounts, according to the latest data from the Federal Deposit Insurance Corp. ^[0]

Business CDs also have a fixed rate for the term, while the rate on money market accounts is variable and can change as interest rates rise or fall.

That combo of higher rates and guaranteed returns makes business CDs a good tool to save for specific goals, like expansion plans or major equipment purchases, that are at least a year out.

Access to your money: Business money market accounts typically include check-writing and debit card access, so you can withdraw money as needed. With a business CD, your funds are tied up until the term ends and you’ll get hit with a penalty if you withdraw your money early.

Withdrawals on money market accounts are traditionally capped at six per month, per Regulation D, but those limits were relaxed during COVID-19 and some banks still don’t enforce them. The flexibility of a money market fund makes it a better choice than a CD for your emergency fund or excess operating funds.

Average business CD rates

Business CD rates can vary widely depending on the business bank, the length of the CD term and where you live. In most cases, you’ll get the best yield with a 12-month CD, a departure from years past when a longer term equaled a higher rate.

The national average APY for a certificate of deposit, according to the most recent data from the FDIC:

• 1-month CD: 0.23%.

• 3-month CD: 1.54%.

• 6-month CD: 1.75%.

• 12-month CD: 1.81%.

• 24-month CD: 1.48%.

• 36-month CD: 1.37%.

• 48-month CD: 1.29%.

• 60-month CD: 1.37%.

Rates are current as of Oct. 21, 2024.

Compare business CD rates: 12-month term

This table reflects the APY for a 12-month business CD across multiple business banks as of Nov. 4, 2024. This term length often delivers the best rate, though banks are increasingly offering better rates on shorter terms.

Up and down arrows indicate rates that increased or decreased after the Federal Reserve cut rates in September. No arrow means rates have remained unchanged. Note: Rates may vary by location.

Rates are current as of Nov. 4, 2024.