Best CD Rates for November 2024: Up to 4.75%
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Certificates of deposit (CDs) can have the highest interest rates among bank accounts. The best CD rates today are mostly in the mid-4% for one-year terms and in the mid-3% for three- to five-year terms.
CDs provide a boost to savings, with certain limits: You agree to lock up a fixed sum for a set period, typically between three months to five years and in exchange, you get a guaranteed interest rate for that time period. High-yield CDs can earn you more money than high-yield savings accounts.
Our list features banks and credit unions that NerdWallet has reviewed and that have nationally available CDs. The selections have competitive APYs across popular short- and long-term CDs.
Annual percentage yields, meaning the rates of return, are current on this page as of Nov. 5, 2024.
Why trust NerdWallet
Certificates of deposit (CDs) can have the highest interest rates among bank accounts. The best CD rates today are mostly in the mid-4% for one-year terms and in the mid-3% for three- to five-year terms.
CDs provide a boost to savings, with certain limits: You agree to lock up a fixed sum for a set period, typically between three months to five years and in exchange, you get a guaranteed interest rate for that time period. High-yield CDs can earn you more money than high-yield savings accounts.
Our list features banks and credit unions that NerdWallet has reviewed and that have nationally available CDs. The selections have competitive APYs across popular short- and long-term CDs.
Annual percentage yields, meaning the rates of return, are current on this page as of Nov. 5, 2024.
The Fed dropped its benchmark rate on Sept. 18, 2024. As a result, banks and credit unions have started lowering CD rates. With a CD, you can lock in high rates while they’re still around.
Best CD Rates for November 2024: Up to 4.75%
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
 Alliant Credit Union Certificate Learn more at Alliant Credit Union, Federally insured by NCUA | Best for CD Rates | $1,000 Federally insured by NCUA | 1-year APY 4.25% 3-year APY 3.65% 5-year APY 3.65% | Learn more at Alliant Credit Union, Federally insured by NCUA |
 Bread Savings™️ CD Learn more at Bread Savings, Member FDIC | Best for CD Rates | $1,500 Member FDIC | 1-year APY 4.30% 3-year APY 3.50% 5-year APY 3.50% | Learn more at Bread Savings, Member FDIC |
 Synchrony Bank CD | Best for CD Rates | $0 Member FDIC | 1-year APY 4.20% 3-year APY 3.90% 5-year APY 4.00% | Read review |
 BMO Alto Certificate of Deposit | Best for CD Rates | $0 Deposits are FDIC Insured | 1-year APY 4.30% 3-year APY 3.90% 5-year APY 4.00% | Read review |
 Marcus by Goldman Sachs High-Yield CD Learn more at Goldman Sachs Bank USA, Member FDIC | Best for CD Rates | $500 Member FDIC | 1-year APY 4.20% 3-year APY 3.90% 5-year APY 3.80% | Learn more at Goldman Sachs Bank USA, Member FDIC |
 Popular Direct CD | Best for CD Rates | $10,000 Member FDIC | 1-year APY 4.00% 3-year APY 3.40% 5-year APY 3.35% | Read review |
 Sallie Mae Bank CD | Best for CD Rates | $2,500 Member FDIC | 1-year APY 4.10% 3-year APY 3.60% 5-year APY 3.75% | Read review |
 NASA Federal Credit Union Share Certificate | Best for CD Rates | $1,000 Federally insured by NCUA | 1-year APY 4.30% 3-year APY 4.00% 5-year APY 3.85% | Read review |
 First Internet Bank CD | Best for CD Rates | $1,000 Member FDIC | 1-year APY 4.42% 3-year APY 3.77% 5-year APY 3.67% | Read review |
 Ally Bank High Yield CD | Best for CD Rates | $0 Member FDIC | 1-year APY 4.10% 3-year APY 3.50% 5-year APY 3.50% | Read review |
 Andrews Federal Credit Union Fixed Rate Share Certificates | Best for CD Rates | $1,000 Federally insured by NCUA | 1-year APY 4.30% 3-year APY 3.85% 5-year APY 3.65% | Read review |
 Capital One 360 CD | Best for CD Rates | $0 Member FDIC | 1-year APY 4.20% 3-year APY 3.60% 5-year APY 3.50% | Read review |
 E*TRADE CD | Best for CD Rates | $0 Member FDIC | 1-year APY 4.25% 3-year APY 3.60% 5-year APY 3.50% | Read review |
Our pick for
CD Rates
Why We Like It
Overview: Founded in 1935 in Illinois, the online-focused Alliant Credit Union is one of the largest credit unions nationwide and offers solid certificate rates. To become a member, the easiest option for most consumers nationwide is to agree to support Alliant's nonprofit partner Foster Care to Success; Alliant will make a $5 donation on your behalf. Alliant’s certificates have a low minimum deposit of $1,000, and terms stretch from three months to five years, which is a typical range.
Fees: No monthly or opening costs, which is standard for CDs. Early withdrawal penalties are more friendly than some banks’; the penalty for certificates of two-year terms or longer consists of up to six months of dividends. Some banks require more than a year of dividends for similar terms.
Other products: Alliant also offers IRA and jumbo certificates for those saving for retirement as well as high-yield checking and savings account.
Alliant Credit Union certificate rates:
1-year: 4.25% APY
3-year: 3.65% APY
5-year: 3.65% APY
See more rates on our Alliant Credit Union review
Why We Like It
Overview: Bread Savings (formerly Comenity Direct) is an online-only banking division of Bread Financial (formerly Comenity Bank). Despite the unusual name, the bank has a lineup of online CD rates worth considering. Terms range from three months to five years. The $1,500 minimum balance is somewhat high among online banks.
Fees: No monthly or opening fees, which is standard for CDs. Bread Savings charges a penalty for early withdrawals that’s a little steeper than some online banks: about six months of interest for CD terms from one to three years and one year of interest for four- and five-year CDs.
Other products: Bread Savings also features a high-yield savings account, but no checking account, so it’s a bank for savers.
Bread Savings™️ CD rates:
1-year CD: 4.30% APY
3-year CD: 3.50% APY
5-year CD: 3.50% APY
See more rates on our Bread Savings review
Why We Like It
Overview: An online bank owned by a Fortune 500 company, Synchrony Bank has a stellar lineup of CDs with terms ranging from three months to five years. The range of terms is fairly standard, but Synchrony stands out for offering more variety of CD types than the typical bank. It offers a no-penalty CD, which allows you to withdraw the full amount early at no cost, and a bump-up CD, which lets you raise your rate once during the term. Unlike many banks, Synchrony has no minimum opening requirement.
Fees: Early withdrawal penalties include: three months of interest for CDs of one-year terms or shorter; six months of interest for CDs of terms longer than one year and shorter than four years; and one year of interest for four-year CDs and longer. These penalties are on the higher side among online banks. No monthly or opening costs outside of these penalties exist, which is standard for CDs.
Other products: Synchrony Bank offers IRA CDs for the retirement-minded as well as a money market account and high-yield savings account. It doesn’t have checking accounts, though, so Synchrony is best for saving money.
Synchrony Bank CD rates:
9-month CD: 4.05% APY
1-year CD: 4.20% APY
3-year CD: 3.90% APY
5-year CD: 4.00% APY
See more rates on our Synchrony review
Why We Like It
Overview: BMO Alto is the U.S. online-only division of BMO, all under the Canada-based parent bank BMO Financial Group. BMO Alto's online CDs have high rates and no minimum opening deposit requirement, whereas many online banks have minimum deposits such as $500 or $1,000. CD terms go from six months to five years, which is a standard range. Note that all the money you have across divisions of BMO Financial Group (including BMO and Bank of the West) counts toward the same FDIC insurance limit for one institution.
Fees: No monthly or opening fees, which is normal for CDs. BMO Alto’s early withdrawal penalties include three months of interest for CD terms of 11 months or shorter and six months of interest for CD terms of one year or longer. These penalties are low.
Other products: BMO Alto also offers a high-yield savings account, but no checking account, so the bank is best for saving money.
BMO Alto CD rates:
1-year CD: 4.30% APY
3-year CD: 3.90% APY
5-year CD: 4.00% APY
See more rates on our BMO Alto review
Why We Like It
Overview: Marcus is the Goldman Sachs branch launched in 2016 that handles online banking products, including an extensive lineup of CDs with terms from six months to six years. Six years is unusual; most banks’ CD terms stop at five years. Rates include its one-year CD with 4.20% APY (annual percentage yield) as of 10/23/2024. The minimum of $500 is lower than at many banks, though some have no minimum. The bank has two specialty types of CDs: a 20-month bump-up CD and three no-penalty CD terms, which include seven months, 11 months and 13 months. These specialty CDs are rare and have perks beyond the typical CD, such as the ability to request a rate increase for a bump-up CD and the freedom to redeem a no-penalty CD earlier than maturity at no cost.
Fees: No monthly or opening fees, which is normal for CDs. If you withdraw early from a standard Marcus CD, the penalty is the following: three months’ worth of interest earned for CD terms up to a year, six months of interest for CD terms of one to five years and nine month’s worth of interest for the six-year CD. These penalties are lower than at some online banks.
Other products: Its savings account’s rate is solid. The bank doesn't, however, offer mobile apps, ATMs, branches or checking accounts, so it’s best for letting the interest on your money grow.
Marcus CD rates:
1-year CD: 4.20% APY
3-year CD: 3.90% APY
5-year CD: 3.80% APY
See more rates on our Marcus review
Why We Like It
Overview: Started in 2016, Popular Direct is the online branch of the New York-chartered Popular Bank. It has one of the highest opening minimum requirements to open a CD among online banks, $10,000, but it may be worthwhile. Terms range from three months to five years.
Fees: No monthly or opening fees. Its early withdrawal penalties include four months of interest for six-month CDs, nine months of interest for CD terms of one- and two-year CDs and one year of interest for CD terms of three and four years. The five-year CD penalty is two years of interest.
Other products: Popular Direct has a high-yield savings account and a minimal mobile app but no branches, ATM network or checking account.
Popular Direct CD rates:
1-year CD: 4.00% APY
3-year CD: 3.40% APY
5-year CD: 3.35% APY
See more rates on our Popular Direct review
Why We Like It
Overview: The online banking arm of student loan provider Sallie Mae provides nearly a dozen CD terms from six months to five years, with a focus on short-term CDs. It’s unusual for a bank to have as many high-yield CD terms as Sallie Mae does, and that can be helpful if you’re looking for that period between one- and two-year savings. The $2,500 minimum is somewhat hefty.
Fees: Withdrawing early results in a penalty, either 90 days of interest for CDs of one year or shorter or 180 days of interest for CDs of longer terms. These penalties are in line with those at other online banks. There are no monthly or opening fees, which is normal for CDs.
Other products: Sallie Mae also has various savings accounts, but no checking account, so the bank is best as a place for savings.
Sallie Mae CD rates:
1-year CD: 4.10% APY
3-year CD: 3.60% APY
5-year CD: 3.75% APY
See more rates on our Sallie Mae Bank review
Why We Like It
Overview: NASA Federal Credit Union is a credit union that serves NASA employees as well as anyone who joins the National Space Society. The credit union offers free one-year membership to the nonprofit. Credit unions with nationwide membership often require prospective members to join an affilitated association, but they don’t always make it free. NASA FCU’s share certificates (or certificates) have strong rates across its standard range of terms from six months to five years. The opening minimum is $1,000 for standard certificates and $10,000 for certificate specials, which have atypical term lengths such as 49 months. While certificate specials have higher rates, they tend to renew into certificates with lower rates at a term length close to the original certificate.
Fees: No monthly or opening fees, which is standard for certificates. Withdrawing funds early, not including dividends (or interest) earned, results in a penalty of about six months’ worth of dividends for terms of two years or shorter. Terms longer than two year have a penalty of one year’s worth of dividends.
Other products: NASA FCU also has checking, savings and loans.
NASA Federal Credit Union share certificate rates:
1-year share certificate: 4.30% APY
3-year share certificate: 4.00% APY
5-year share certificate: 3.85% APY
Why We Like It
Overview: First Internet Bank, as its name suggests, is one of the earliest online banks, created in 1999. Its full name is First Internet Bank of Indiana, though the bank operates nationwide. The bank’s CDs have a standard range of terms from three months to five years and a somewhat low minimum deposit of $1,000. Rates are competitive across the board.
Fees: No monthly or opening fees, which is normal for CDs. Early withdrawal penalties are some of the steepest for online banks, such as 90 days of interest for three-month CDs and 180 days of interest for six-month CDs. The cost of withdrawing early from a CD shorter than one year is effectively all the interest earned. Longer terms have either a half or full year’s worth of interest as a penalty.
Other products: First Internet Bank provides checking and savings accounts as well as loans. Unlike some online banks, it doesn’t limit its offerings to savings-specific accounts.
First Internet Bank CD rates:
1-year CD: 4.42% APY
3-year CD: 3.77% APY
5-year CD: 3.67% APY
See more rates on our First Internet Bank review
Why We Like It
Overview: Ally Bank, an online-only institution originally founded by General Motors, offers a high-quality banking experience. It has an unusually diverse set of CDs, including a no-penalty CD and bump-rate CDs. There’s no minimum deposit.
Fees: If you withdraw early from a regular Ally CD, the penalty varies by term: About two months of interest for two-year terms and shorter, three months of interest for 18-month and three-year CDs, four months of interest for four-year CDs and five months of interest for five-year CDs.
Other products: Ally has a wide variety of accounts and loans.
List of Ally CD rates:
1-year: 4.10% APY
3-year: 3.50% APY
5-year: 3.50% APY
See more rates on our Ally review
Why We Like It
Overview: Andrews Federal Credit Union is a credit union that serves members of the military as well as anyone who joins the nonprofit American Consumer Council. Andrews’ fixed-rate share certificates have a somewhat low minimum deposit of $1,000 and a range of terms from six months to seven years. Yields are mostly competitive. The credit union also has other types of share certificates for higher minimums, retirement and other use cases.
Fees: No monthly or opening fees. Andrews charges an early withdrawal penalty of 90 days (3 months) of dividends for share certificates with terms shorter than two years and 180 days (6 months) of dividends for share certificates with terms of two years or longer, which aren’t too steep as far as certificates’ penalties go.
Other products: Andrews offers a standard range of bank accounts, investments, loans and insurance plans, among other accounts.
Andrews Federal fixed-rate share certificate rates:
1-year share certificate: 4.30% APY
3-year share certificate: 3.85% APY
5-year share certificate: 3.65% APY
Why We Like It
Overview: Capital One, one of the biggest U.S. credit card issuers, is also an online bank with strong savings tools and CD options. Terms have a standard range from six months to five years, and there’s no minimum to open, which is an uncommon perk. Capital One has more customer service channels than most online banks thanks to its handful of cafes in major cities nationwide that function like branches, as well as phone support.
Fees: No monthly or opening fees, which is standard for CDs. The early withdrawal penalty for 1-year CDs and shorter terms is three months of interest and the penalty for longer terms is six months. These are lower penalties than at some banks.
Other products: Capital One boasts a strong selection of online accounts, including checking, savings and money market accounts.
Capital One CD rates:
1-year CD: 4.20% APY
3-year CD: 3.60% APY
5-year CD: 3.50% APY
See more rates on our Capital One review
Why We Like It
Overview: E*TRADE is an online trading platform owned by Morgan Stanley Private Bank, but it also offers bank accounts, including a standard range of CDs. Terms go from six months to five years, and there’s no minimum to open, which is a nice perk. E*TRADE’s bank CDs are distinct from its CDs offered for brokerage accounts, which are brokered CDs.
Fees: Early withdrawal penalties vary by each CD term and tend to be steep among online banks. For example, withdrawing early from one-year CDs costs 90 days’ (3 months’) worth of interest and withdrawing from five-year CDs costs 450 days (15 months) of interest.
Other products: E*TRADE also has high-yield checking and savings accounts.
E*TRADE CD rates:
1-year CD: 4.25% APY
3-year CD: 3.60% APY
5-year CD: 3.50% APY
💬 Our Nerds say:
"When comparing CD rates, aim for the highest APY for the CD term length you need. The best rates right now tend to be on shorter terms such as one-year CDs or less, but a longer-term CD with a lower rate can outearn a shorter-term CD.
"Or, if you’d want the flexibility to redeem a CD early at no cost, a few banks offer no-penalty CDs.”
— Spencer Tierney, NerdWallet senior writer covering consumer banking
2024 news about the best CD rates
The best CD rates above 5% APY have dried up, and promotional CD rates have dropped below that threshold too. The highest CD rate we feature on this page is 4.75% APY for a 7-month CD at NBKC.
Competitive CD rates started to dip gradually in early 2024 with more accelerated drops in late September, according to NerdWallet analysis. Banks and credit unions previously raised CD rates in the past two years to follow the direction of the Federal Reserve’s benchmark rate, which saw almost a dozen increases. However, in its September meeting, the Fed had its first rate cut since March 2020, which has propelled high-yield CD rates downward. Rates on new CDs will likely fall further than they have so far this year.
The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider locking in high CD rates while they last. Learn more about where rates are headed in our CD rate forecast.
CD definition: What is a CD?
A certificate of deposit is a bank account that requires you to lock funds away for a fixed period of months or years in exchange for a fixed interest rate that can be higher than other bank accounts. These accounts are often referred to as CDs.
Historically, CDs took the form of paper certificates, but nowadays, CDs are like other financial accounts that you can manage online. See more about what CDs are.
» Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts
How to choose a CD
Consider each part of a CD to help break down your decision:
CD term: Most terms at a bank or credit union range from three months to five years. Learn how to choose your CD term.
CD type: High-yield CDs work like standard CDs but have the best rates and are often at online banks. Some CDs have an unusual feature, such as a no-penalty CD that doesn’t charge for early withdrawals or a bump-up CD that allows for a rate increase during a term. See types of CDs.
CD rate: Once you’ve narrowed down the term and type of CD, you can compare banks and credit unions to find a competitive rate. You may decide to go with a bank you already have accounts at or choose a new institution, depending on whether convenience matters to you, but aiming for a high rate is ideal. See current CD rates.
CD deposit: The amount you put into a CD depends on your savings goals, but a CD’s opening minimum requirement isn’t a good guide. And, if you’re worried about a bank failing, keep less than the FDIC insurance limit of $250,000 in your accounts to keep your money protected. Learn how to choose your CD deposit.
CD penalty: The early withdrawal penalty only kicks in if you redeem a CD before the term ends. The penalty is usually several months to even a years’ worth of interest, depending on the CD term length. Ideally, you only need to factor in the penalty if there’s a chance you’ll need funds early. See more about CD early withdrawal penalties.
Watch our explainer to further help you decide on CDs:
Choosing multiple CDs
If the pressure of choosing one CD is too much, you might consider a strategy to balance cash access with high yields. Opening multiple CDs with different terms in a CD ladder lets you redeem CDs over time while taking advantage of competitive short- and long-term CD rates.
When to consider CDs
Think about CDs as part of the cash and cash equivalents category of your overall portfolio, which is your overall collection of investments across different types of assets. For many people, CDs can work best in a few situations:
Locking up savings for a big purchase within the next five years, including a down payment on a car or house.
Stashing away a sudden windfall to avoid spending it now.
Earning some returns without market risk, especially closer to or during retirement.
Learn more about when CDs can be worth it.
How much does a $10,000 CD make in a year?
A $10,000 CD with a 5% APY would make $500 in a year. But if you’re eyeing a 6-month CD with that rate and deposit, you’d earn a little less than half that.
The three main factors that impact CD earnings are the rate, the CD term and the CD deposit. Unlike regular savings accounts, you don’t generally have the ability to add money to a CD after the initial deposit. Here’s a look at some scenarios for how much $10,000 in a CD can earn in a year, compared to six months. (Or use our CD calculator.)
Starting balance | APY | Interest earned in 1 year | Interest earned in 6 months (rounded) |
|---|---|---|---|
$10,000. | 3.00%. | $300. | $149. |
$10,000. | 4.00%. | $400. | $198. |
$10,000. | 5.00%. | $500. | $247. |
$10,000. | 5.30%. | $530. | $262. |
A lower rate can outearn a higher rate. A 1-year CD with a 4.50% APY will get you more interest than with a 6-month, 5.00% APY CD. If you had $10,000 to deposit, you'd earn $246.95 with the 6-month CD and $450 with the lower-rate 1-year CD. When comparing CD rates, use a CD calculator to see how much you can earn with different term lengths.
Other CDs: Promotional and No-penalty CDs
Traditionally, one-year, three-year and five-year CDs tend to be the most popular options to consider, but there are other CDs that occasionally provide higher yields or more flexibility.
Promotional CDs refer to CDs with nontraditional term lengths, or less often, CDs with expiration dates on the rates being offered. While these CD rates may be higher than CDs with traditional terms, they may automatically renew into lower-rate CDs by default.
No-penalty CDs are CDs that allow you to withdraw, at no cost, the full amount of a CD anytime after the first few days of opening. Generally, though, no-penalty CDs are uncommon and have lower rates compared to high-yield CDs for similar terms.
Current promotional CD rates
The following promotional CD rates stand out based on NerdWallet’s data analysis in late October 2024. Expiration dates for a promo are shown when available.
In general, promotional rates tend to be for irregular CD terms and featured on banking websites as a “promotional rate” or “CD special.” (For more details, see how promotional CD rates work.)
Name (click to see our review) | CD rate (or certificate rate) |
|---|---|
NBKC Bank: 7-month CD | 4.75% APY. |
Bank of America: 7-month CD | 4.20% APY.* |
NASA Federal Credit Union: 9-month Certificate | 4.64% APY. |
CIBC U.S.: 9-month CD | 4.51% APY. |
Bask Bank: 9-month CD | 4.50% APY. |
Consumers Credit Union: 9-month Certificate | 4.50% APY. |
LendingClub: 10-month CD | 4.00% APY. |
NBKC Bank: 11-month CD | 4.50% APY. |
Capital One: 11-month CD | 4.50% APY. |
NASA Federal Credit Union: 15-month Certificate | 4.39% APY. |
Bank5 Connect: 15-month CD | 4.25% APY. |
NASA Federal Credit Union: 49-month Certificate | 4.09% APY. |
*Bank of America’s rate is based on a San Francisco ZIP code. Rates may vary by location. | |
Best no-penalty CD rates
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 also want the flexibility of needing the money sooner than you expect.
Right now, high-yield savings accounts have comparable rates to CDs (and the flexibility of withdrawal at will) but the main advantage of a no-penalty CDs over one of these accounts is the fixed rate, especially as rates drop.
These four banks offer high no-penalty CD rates:
Ally Bank® (Member FDIC): 4.00% APY, 11 months, no minimum to open.
CIT Bank: 3.50% APY, 11 months, $1,000 minimum to open.
Marcus by Goldman Sachs: 4.00% APY, 13 months, $500 minimum to open.
Climate First Bank: 2.91% APY, 12 months, $500 minimum to open.
» See more details on our list of the best no-penalty CD rates
Other CDs: IRA and jumbo CDs
Some types of CDs have more restrictions, such as funds earmarked only for retirement or high minimum deposits, and aren’t the standard CDs at banks or nationally available credit unions. However, they may work for certain savers:
IRA CDs are used to save a portion of retirement savings, largely for risk-averse savers and folks near or in retirement. You get the tax benefits of an individual retirement account plus the fixed rate of a CD. See the best IRA CD rates.
Jumbo CDs refer to CDs with a high minimum deposit requirement, traditionally $100,000. They’re not available everywhere and don’t often have the highest rates you can find. See the best jumbo CD rates.
Note: While not a special type of CD, CDs at credit unions – or share certificates – aren’t always available nationwide. Credit unions can have membership requirements limited to residents of a certain state or organization, such as the military. See the best credit union CD rates.
Alternatives to CDs
If you’re looking for similarly safe savings or investment vehicles to CDs but want more flexibility or other features, consider the following:
High-yield savings accounts have comparable returns to CDs and let you add or withdraw money typically whenever you want. Compare CDs and high-yield savings accounts.
Money market accounts, like regular savings accounts, let you add and withdraw money over time, but MMAs tend to have higher minimum deposit requirements to open the account or avoid a monthly fee. Compare CDs and money market accounts.
Bonds are loans to companies or the government that pay investors a fixed rate of interest in return. Compare CDs and bonds.
» Want more options? See the best investments in 2024
Last updated on November 4, 2024
Methodology
On a monthly basis, we compare rates at over 40 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyze our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere.
We took a close look at over 90 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings Bank, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Climate First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Delta Community Credit Union, Discover® Bank, E*TRADE, EverBank (formerly TIAA Bank), Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, Forbright Bank, Global Credit Union, GO2bank, Golden 1 Credit Union, Greenwood, Hope Credit Union, Huntington Bank, Industrial Bank, Ivy Bank, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road Bank, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo, Western Alliance Bank and Zynlo Bank.
To recap our selections...
NerdWallet's Best CD Rates for November 2024: Up to 4.75%
- Alliant Credit Union Certificate: Best for CD Rates
- Bread Savings™️ CD: Best for CD Rates
- Synchrony Bank CD: Best for CD Rates
- BMO Alto Certificate of Deposit: Best for CD Rates
- Marcus by Goldman Sachs High-Yield CD: Best for CD Rates
- Popular Direct CD: Best for CD Rates
- Sallie Mae Bank CD: Best for CD Rates
- NASA Federal Credit Union Share Certificate: Best for CD Rates
- First Internet Bank CD: Best for CD Rates
- Ally Bank High Yield CD: Best for CD Rates
- Andrews Federal Credit Union Fixed Rate Share Certificates: Best for CD Rates
- Capital One 360 CD: Best for CD Rates
- E*TRADE CD: Best for CD Rates
Frequently asked questions
Online banks such as BMO Alto and credit unions such as Alliant Credit Union tend to offer some of the most competitive rates, especially compared to national averages.
It’s unlikely, especially since no nationally available bank or credit union NerdWallet reviews has a 6% APY. In general, CD rates are headed downwards, so any credit unions with restrictive membership requirements that have short-term CD specials of around 6% may not offer them much longer.
Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. See more details about how CDs are FDIC insured. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.
Certificates of deposit require more of a commitment than a regular savings account since you're locking away some savings for a future date. This feature can be helpful for some goals but not for others, such as emergency savings, since you’ll want that money to be easy to access when you need it. While CDs have the perks of fixed rates and higher yields traditionally than other bank accounts, withdrawing from CDs early usually results in a penalty. Take a closer look at when CDs are worth it.
Yes. Interest earned in CDs is taxable as interest income. Your bank or credit union will usually give you a Form 1099-INT that states the interest each year, unless the amount is under $10. The IRS notes that you generally include interest from CDs when you receive it, so a CD with a term longer than a year wouldn’t have its interest taxed until the term ends.
A CD rate is quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily. A CD’s term plays a role too: the longer the term, the higher the rate generally. APYs are not the same thing as interest rates since APYs have compounding factored in, making APYs more useful for comparing CDs’ potential returns. Learn more about APY vs. interest rate.
CDs don’t have monthly fees like checking or savings accounts might have, but they generally have a penalty if you withdraw before the CD term expires. This early withdrawal penalty tends to be several months’ to years' worth of interest, so it’s usually best to wait to access funds from a CD once it expires. The exception is no-penalty CDs.
It’s highly unlikely, but possible. Here are three scenarios:
If you withdraw early, the penalty can be steep enough at some banks to dig into the initial amount you put into a CD.
If you put more money into a CD than FDIC insurance covers – such as $250,000 for a single account owner at a bank – and the bank fails, you could possibly lose the amount not covered by the FDIC.
If inflation stays higher than your CD’s rate, the CD’s returns might not be enough to overcome the way inflation erodes purchasing power over time.
The general rule of thumb for CDs is the longer the term, the higher the rate. However, this isn't always true. The best 10-year CD rates aren't necessarily higher than the best five-year CD rates, and locking up your money for a decade might not be in your best interest. Consider current CD rates as well as your savings goals — investing your money in mutual funds might be more worthwhile for a longer term.
» MORE: See the best short-term investments for 5 years or less
