14 Best CD Rates for June 28, 2024: Up to 5.35%
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ALSO CONSIDER: Best online savings || Best checking || Best high-interest accounts
Certificates of deposit – or CDs – can have the highest interest rates among bank accounts and provide a boost to a fixed sum of savings for a set period. The best CD rates can be higher than yields for other CDs as well as high-yield savings accounts.
Why trust NerdWallet
Online banks and credit unions tend to have the best CD rates. You can find rates far higher than the national averages of 1.86% for one-year terms and 1.43% for five-year terms. The Federal Reserve raised its rate multiple times from March 2022 through July 2023, leading banks to raise their rates too. For more on rate changes, see our analysis of current CD rates.
If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term.
Here’s a look at some of the highest CD rates on the market.
APY research methodology: The APYs shown are current as of the publication date of this page. Each weekday, we review rates to make sure we have the most up-to-date APYs.
APYs shown are current as of June 28, 2024. All other information is current as of June 24, 2024.
Summary of best CD rates
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.
ALSO CONSIDER: Best online savings || Best checking || Best high-interest accounts
Certificates of deposit – or CDs – can have the highest interest rates among bank accounts and provide a boost to a fixed sum of savings for a set period. The best CD rates can be higher than yields for other CDs as well as high-yield savings accounts.
Why trust NerdWallet
Online banks and credit unions tend to have the best CD rates. You can find rates far higher than the national averages of 1.86% for one-year terms and 1.43% for five-year terms. The Federal Reserve raised its rate multiple times from March 2022 through July 2023, leading banks to raise their rates too. For more on rate changes, see our analysis of current CD rates.
If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term.
Here’s a look at some of the highest CD rates on the market.
APY research methodology: The APYs shown are current as of the publication date of this page. Each weekday, we review rates to make sure we have the most up-to-date APYs.
APYs shown are current as of June 28, 2024. All other information is current as of June 24, 2024.
Summary of best CD rates
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.
Some banks have started lowering CD yields, though overall current CD rates remain high. With a CD, you can lock in high rates while they’re still around.
Best CD Rates for June 28, 2024: Up to 5.35%
| Bank/institution | NerdWallet rating | Minimum deposit | APY | Learn more |
|---|---|---|---|---|
 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 5.15% 3-year APY 4.15% 5-year APY 4.00% | Learn more at Goldman Sachs Bank USA, Member FDIC |
 BMO Alto Certificate of Deposit Learn more at BMO Alto, Deposits are FDIC Insured | Best for CD Rates | $0 Deposits are FDIC Insured | 1-year APY 5.05% 3-year APY 4.60% 5-year APY 4.80% | Learn more at BMO Alto, Deposits are FDIC Insured |
 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 5.15% 3-year APY 4.15% 5-year APY 4.00% | 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 5.25% 3-year APY 4.25% 5-year APY 4.15% | Learn more at Bread Savings, Member FDIC |
 Synchrony Bank CD | Best for CD Rates | $0 Member FDIC | 1-year APY 4.80% 3-year APY 4.15% 5-year APY 4.00% | Read review |
 EverBank Performance℠ CD | Best for CD Rates | $1,000 Member FDIC | 1-year APY 4.80% 3-year APY 4.10% 5-year APY 3.90% | Read review |
 LendingClub CD | Best for CD Rates | $2,500 Member FDIC | 1-year APY 5.15% 3-year APY 4.30% 5-year APY 4.00% | Read review |
 Popular Direct CD | Best for CD Rates | $10,000 Member FDIC | 1-year APY 5.30% 3-year APY 4.50% 5-year APY 4.30% | Read review |
 Quontic Bank CD | Best for CD Rates | $500 Member FDIC | 1-year APY 4.50% 3-year APY 4.40% 5-year APY 4.30% | Read review |
 TAB Bank CD | Best for CD Rates | $1,000 Member FDIC | 1-year APY 5.15% 3-year APY 4.25% 5-year APY 4.00% | Read review |
 Sallie Mae Bank CD | Best for CD Rates | $2,500 Member FDIC | 1-year APY 5.15% 3-year APY 4.00% 5-year APY 4.00% | Read review |
 Andrews Federal Credit Union Fixed Rate Share Certificates | Best for CD Rates | $1,000 Federally insured by NCUA | 1-year APY 5.00% 3-year APY 4.10% 5-year APY 3.90% | Read review |
 NASA Federal Credit Union Share Certificate | Best for CD Rates | $1,000 Federally insured by NCUA | 1-year APY 4.50% 3-year APY 4.25% 5-year APY 4.00% | Read review |
 Capital One 360 CD | Best for CD Rates | $0 Member FDIC | 1-year APY 5.00% 3-year APY 4.00% 5-year APY 3.90% | Read review |
Our pick for
CD Rates
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 5.15% APY (annual percentage yield) as of 06/25/2024. 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: 5.15% APY
3-year CD: 4.15% APY
5-year CD: 4.00% APY
See more rates on our Marcus 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: 5.05% APY
3-year CD: 4.60% APY
5-year CD: 4.80% APY
See more rates on our BMO Alto review
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: 5.15% APY
3-year: 4.15% APY
5-year: 4.00% 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 are limited to a range from one to five years, whereas many online banks have CDs with terms shorter than one year. 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: 5.25% APY
3-year CD: 4.25% APY
5-year CD: 4.15% 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: 4.90% APY
1-year CD: 4.80% APY
3-year CD: 4.15% APY
5-year CD: 4.00% APY
See more rates on our Synchrony review
Why We Like It
Overview: EverBank, formerly known as TIAA Bank, is an online bank that offers a standard range of high-yield CDs from three months to five years. The $1,000 minimum to open is somewhat low compared with some banks, and the rates can be worthwhile. In addition to its nationwide online platform, the bank has some branches – rare for a bank with high-yield CDs – but they’re only in Florida.
Fees: Early withdrawal penalties vary for every CD term, ranging from 22 days of interest for three-month CDs to about 15 months of interest for five-year CDs. The penalties are higher than at many banks, and it’s unusual for every CD term to have a different penalty amount. There are no monthly or opening fees, which is standard for CDs.
Other products: Online checking, savings and money market accounts are also available.
EverBank CD rates:
9-month CD: 5.05% APY
1-year CD: 4.80% APY
3-year CD: 4.10% APY
5-year CD: 3.90% APY
See more rates on our EverBank review
Why We Like It
Overview: LendingClub Bank is an online-only financial institution. Its CDs have solid rates for a standard range of terms from six months to five years. The $2,500 minimum opening balance is high compared to other online banks' requirements.
Fees: No monthly or opening fees, which is typical for CDs. LendingClub Bank’s early withdrawal penalties include 90 days of interest for CDs of one year or shorter and 180 days of interest for CDs longer than a year. These penalties are fairly low for an online bank.
Other products: LendingClub Bank also offers a high-yield savings account, rewards checking account and various loans.
LendingClub Bank CD rates:
1-year CD: 5.15% APY
3-year CD: 4.30% APY
5-year CD: 4.00% APY
See more rates on our LendingClub Bank review
Why We Like It
Overview: With roots as a community development financial institution in New York City, Quontic Bank expanded to become a digital bank with a stellar lineup of high-yield CDs. The minimum opening requirement of $500 is on the lower end. Terms have a standard range from three months to five years.
Fees: There are no monthly or opening fees, which is normal for CDs, but early withdrawal fees are steep, especially for shorter-term CDs. For one-year CDs, the penalty is one year of interest; and for two-year CDs and longer, the penalty is two years of interest. The penalty can include part of your initial balance depending on the date of the early withdrawal, meaning a penalty can result in losing you money in a CD.
Other products: Quontic Bank also offers a high-yield savings account, multiple rewards checking accounts, mortgages and more.
Quontic Bank CD rates:
1-year CD: 4.50% APY
3-year CD: 4.40% APY
5-year CD: 4.30% APY
See more rates on our Quontic Bank review
Why We Like It
Overview: TAB Bank is an online bank with roots in Ogden, Utah. Founded in 1998, it started by serving the trucking industry; TAB stands for Transportation Alliance Bank. Its CDs have competitive yields and a standard range of terms from six months to five years. The opening minimum of $1,000 is on the lower end among online banks.
Fees: No opening or monthly fees, which is standard for CDs. If you withdraw before the term ends, you’ll pay a penalty of either about three months’ worth of interest on CD terms one year or shorter; or about six months’ interest on CD terms longer than a year.
Other products: TAB Bank offers a full suite of financial products including checking, high-yield savings and money market accounts.
TAB Bank CD rates:
1-year CD: 5.15% APY
3-year CD: 4.25% APY
5-year CD: 4.00% APY
See more rates on our TAB Bank 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: 5.15% APY
3-year CD: 4.00% APY
5-year CD: 4.00% APY
See more rates on our Sallie Mae Bank 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. The credit union provides a code that allows for free membership to the nonprofit. Andrews’ fixed-rate share certificates have a somewhat low minimum deposit of $1,000 and a wider-than-normal 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, which is standard for certificates. Andrews charges an early withdrawal penalty of 90 days of dividends for share certificates with terms shorter than two years and 180 days 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: 5.00% APY
3-year share certificate: 4.10% APY
5-year share certificate: 3.90% APY
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: 4.50% APY
3-year share certificate: 4.25% APY
5-year share certificate: 4.00% 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 one-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: 5.00% APY
3-year CD: 4.00% APY
5-year CD: 3.90% APY
See more rates on our Capital One review
Want to compare more options? Here are our other top picks:
» Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts
High CD rates for now
CD rates have started to dip and may continue to fall, especially if the Fed decides to drop its rate.
On this page
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.
💬 Our Nerds say:
“CDs work best as an out-of-sight, out-of-mind bank account that gives you three things: predictable returns, federal deposit insurance and more earning potential than a typical savings account.
"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.
"If you’re worried about relying on one rate, consider splitting your investment into multiple CDs using a CD ladder strategy to benefit from short- and long-term yields. 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
CD rates news 2024
Competitive CD rates have started to dip gradually in 2024, according to NerdWallet analysis. Banks and credit unions have generally 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, since late July 2023, the Fed has kept its rate steady and may drop its rate sometime this year. The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider taking advantage of high CD rates while they last. Learn more about where rates are headed in our CD rate forecast.
Current promotional CD rates
The following promotional CD rates stand out based on NerdWallet’s data analysis in June 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) |
|---|---|
Bank of America: 7-month CD | 4.75% APY.* |
U.S. Bank: 7-month CD | Up to 4.75% APY (Varies by location). |
Wells Fargo: 7-month CD | 4.75% APY. |
NASA Federal Credit Union: 9-month Certificate | 5.35% APY. |
Bask Bank: 9-month CD | 5.30% APY. |
CIBC U.S.: 9-month CD | 5.11% APY. |
EverBank (formerly TIAA Bank): 9-month CD | 5.05% APY. |
Synchrony Bank: 9-month CD | 4.90% APY. |
Live Oak Bank: 9-month CD | 4.90% APY. |
NBKC Bank: 11-month CD | 5.00% APY. |
BMO: 13-month CD | 4.90% APY. |
Service Credit Union: 15-month Certificate | 4.75% APY. |
NASA Federal Credit Union: 49-month Certificate | 4.40% APY. |
*Bank of America’s rate is based on a San Francisco ZIP code. Rates may vary by location. | |
Best CD rates for July 2024
Alliant Credit Union: APYs: 5.15% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.
Bread Savings: APYs: 5.25% (1 year); 4.25% (3 years); 4.15% (5 years); Term range: 1 - 5 years; Minimum to open: $1,500.
Popular Direct: APYs: 5.30% (1 year); 4.50% (3 years); 4.30% (5 years); Term range: 3 months - 5 years; Minimum to open: $10,000.
Quontic Bank: APYs: 4.50% (1 year); 4.40% (3 years); 4.30% (5 years); Term range: 6 months - 5 years; Minimum to open: $500.
BMO Alto: APYs: 5.05% (1 year); 4.60% (3 years); 4.80% (5 years); Term range: 6 months - 5 years; Minimum to open: None.
TAB Bank: APYs: 5.15% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.
LendingClub Bank: APYs: 5.15% (1 year); 4.30% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.
EverBank: APYs: 4.80% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.
Marcus by Goldman Sachs: APYs: 5.15% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 6 months - 6 years; Minimum to open: $500.
Synchrony Bank: APYs: 4.80% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: None.
Sallie Mae Bank: APYs: 5.15% (1 year); 4.00% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.
Andrews Federal Credit Union: APYs: 5.00% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 6 months - 7 years; Minimum to open: $1,000.
NASA Federal Credit Union: APYs: 4.50% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.
Capital One: APYs: 5.00% (1 year); 4.00% (3 years); 3.90% (5 years); Term range: 6 months - 5 years; Minimum to open: None.
What to consider about the best CD rates
Rates on new CDs are slowly dropping. While rates aren’t likely to plummet by 1.00% APY (100 basis points) overnight, be careful about waiting too long to get CDs if you’re ready to get them.
Compare CD rates by the same or similar term lengths. CDs for one year, three years and five years are considered some of the most common terms, but you can also consider promotional CDs with irregular terms. Focus on the rough time frame you plan to put money away into a CD as you look at rates.
Some CDs have low or no minimum opening deposits. You can find CDs with no opening minimums, but unlike with regular savings accounts, you rarely can add money to a CD after the initial deposit. Focus on the fixed amount you want to save in a CD.
CDs occupy the cash investment portion of a portfolio, which is your overall collection of investments across different types of assets. Learn how asset allocation works.
Strategies for using multiple CDs may help avoid decision fatigue. 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.
Pros and cons of certificates of deposit
Fixed rate once a CD is opened (or bought).
CDs can have the highest rates among types of bank accounts.
Federally insured, like other bank accounts.
Usually has a penalty to redeem early.
Usually unable to add money over time.
CD rates may not keep up with inflation and aren’t best for long-term investment growth.
How much does a $10,000 CD make in a year?
The three main factors that impact CD earnings are the rate, the CD term and the CD deposit, or the starting amount you put into a CD. 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 three scenarios including how much $10,000 in a CD can earn in a year. (Or use our CD calculator.)
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: 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. High-yield CDs work like standard CDs but have the best rates and are often at online banks. 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 you want to have more funds than a CD’s opening minimum requirement. 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.
See CD rates by term and type
Compare the best rates for various CD terms and types:
How do CDs work?
Learn more about choosing CDs, understanding CD rates, and opening and closing CDs.
Choosing CDs:
What is a no-penalty CD?
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.
Best no-penalty CD rates
If you withdraw money from a CD before the term ends, you generally pay a penalty of at least several months' worth of interest earned. But some providers have CDs without this early withdrawal penalty, though rates are slightly lower than other CD rates.
The following four banks offer no-penalty CDs (click each link to read the full review):
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: 4.70% APY, 13 months, $500 minimum to open.
Climate First Bank: 5.00% APY, 12 months, $500 minimum to open.
» See more details on our list of the best no-penalty CD rates
What happens if I withdraw from a CD early?
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. Learn more about different types of CDs.
Last updated on June 28, 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, Bank7, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, BMO Alto, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Carver Federal Savings 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 National Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, 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, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, 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 and Zynlo Bank.
To recap our selections...
NerdWallet's Best CD Rates for June 28, 2024: Up to 5.35%
- Marcus by Goldman Sachs High-Yield CD: Best for CD Rates
- BMO Alto Certificate of Deposit: Best for CD Rates
- Alliant Credit Union Certificate: Best for CD Rates
- Bread Savings™️ CD: Best for CD Rates
- Synchrony Bank CD: Best for CD Rates
- EverBank Performance℠ CD: Best for CD Rates
- LendingClub CD: Best for CD Rates
- Popular Direct CD: Best for CD Rates
- Quontic Bank CD: Best for CD Rates
- TAB Bank CD: Best for CD Rates
- Sallie Mae Bank CD: Best for CD Rates
- Andrews Federal Credit Union Fixed Rate Share Certificates: Best for CD Rates
- NASA Federal Credit Union Share Certificate: Best for CD Rates
- Capital One 360 CD: Best for CD Rates
Frequently asked questions
Definition: A CD, or certificate of deposit, is a bank account with a fixed interest rate that’s generally higher than that of a regular savings account, and a fixed date of withdrawal, known as the maturity date. Common terms range from three months to five years.
Main advantages: The ability to lock in rates when they’re high is one of the most attractive features of a CD, especially since regular savings accounts have variable rates subject to change at any time. Even outside of high-rate environments, though, CDs provide a safe, federally insured place for short-term savings.
Main downsides: You’ll generally have to pay a penalty if you withdraw your money before a CD matures; the penalty can be equal to several months’ or a year’s worth of interest.
What else to consider: If you’re thinking about CDs, compare the highest CD rates today.
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.
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.
No, competitive CD rates have begun to drop. The Federal Reserve kept its rate the same since late July 2023 and predictions suggest no rate increases — and even rate decreases — in 2024. Banks and credit unions generally adjust their rates in the same direction as the Fed. Learn more in our CD rates forecast. For more context, see how Fed rate increases impact CD rates or, if you want a broader financial picture, see our explainer on historical CD rates.
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. Take a closer look at when CDs are worth it.
It depends on what’s more important to you: rates or access to your money. Some of the current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t work for you, check out our list of best online savings accounts.
CDs can make sense as a way to lock up some savings dedicated to a short-term goal such as buying a car or house in the next few years. Outside of goals, CDs can be a safe place for money you want to get guaranteed returns on without the risk of fluctuation such as in the stock market. 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 ladder can be a helpful strategy if you don’t want to go all in on one CD, especially if you think rates will keep rising. It works like this: you open multiple CDs at different terms, such as one year, two years and three years, which frees up part of your funds more regularly than having, say, just a three-year CD. Each time a CD matures, you can either reinvest in a new CD or withdraw your money. Learn more about how CD ladders work.
It depends on your savings goals and how sure you are that you won't need your funds before the CD term expires. Having to pay an early withdrawal penalty, generally up to one year's worth of interest, can be a blow to your savings. Common CD terms range from six months to five years; if you want to play it safe, go for a shorter CD term or a no-penalty CD.
CD rates are 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.
Both show the rate of interest you can earn on a CD or savings account, but APY factors in compounding interest and the interest rate doesn’t. If you’re comparing CD rates at a glance, APY is more useful. For example, APY brings a CD with interest compounded daily and another with interest compounded monthly onto the same playing field. For CDs of the same term length, a higher APY means a higher return. Learn more about APY vs. interest rate.
Credit unions and online banks are solid places to find competitive CD rates. Credit unions are the nonprofit equivalent of banks, and can generally offer higher savings rates than traditional brick-and-mortar banks. Credit unions’ certificates of deposit are called “shared certificates” and interest “dividends,” and these function as they do at banks. See an analysis of banks vs. credit unions.
A jumbo CD is a type of CD with a traditionally high minimum deposit such as $10,000, though it can be lower. Although jumbo CD rates can be higher than regular CDs, online banks and credit unions offer some of the best rates on CDs with low or no minimums.
A brokered CD is a CD originated by a bank or credit union and offered by a brokerage firm. They function like regular CDs except that they can be traded before their terms end. Check out the pros and cons on our explainer about brokered CDs.
An IRA, or individual retirement account, is a tax-advantaged account that contains investments such as stocks, bonds and CDs. A CD is a type of savings account that locks up money for a set term, generally from three months to five years.
An IRA CD is a type of CD used to save a portion of retirement savings. You get the tax-advantaged status of an IRA and the fixed term and rate of a CD.
No. CDs are meant for savings you can set aside and leave untouched. Consider a high-yield savings account for money you need in a pinch. Learn more about emergency funds, including a calculator to determine the exact amount to aim for.
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.
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. Here’s a closer look at the best no-penalty CD rates.
It depends on what rates and type of access to funds you need. Like high-yield savings accounts, money market accounts have ongoing access to funds, while CDs don’t. Among savings accounts, CD rates are traditionally the highest, then money market accounts, then regular savings accounts. See our list of the best money market account rates.
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.
» For more info, see the best short-term investments for 5 years or less
It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They’re typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses.
Let's say you have an emergency fund that consists of enough cash to cover about three to six months’ worth of living expenses. To grow your long-term savings, consider opening an online brokerage account. Although these financial products come with more risk than CDs, they could lead to higher returns.
Picking the right broker comes down to your priorities. Some investors are willing to pay more for a top-notch platform; others count costs above all else. With brokerage accounts, you don't have to worry about early withdrawal penalties, but your funds may be more difficult to access in a pinch, given that you’ll likely need to sell some investment shares before you can devote that money to anything else.
» For in-depth guidance, check out NerdWallet’s best online stock brokers for beginners
Both CDs and savings bonds offer stable returns over time and can be given to children as long as an adult manages the account on their behalf. Savings bonds have longer time horizons, up to 30 years, and can earn more than many CDs in a low-rate environment. Learn more about savings bonds and how to give them as gifts.
The amount varies based on your savings goals, but CDs aren’t generally best for emergency funds or long-term savings. Keep in mind the minimum opening deposit of the CD you’re considering, as well as the maximum you can have federally insured at a bank, up to $250,000, per depositor, per account ownership category. Learn more about how much money to put into CDs.
