Bread Savings CDs
Finder score
1-year APY | 5.60% |
---|---|
3-year APY | 4.95% |
5-year APY | 4.75% |
Minimum deposit to open | $1,500 |
Certificates of deposit (CDs) rates currently have a national average of 0.23% to 1.85% APY, depending on the term. But you can find CD rates nearly three times higher at online banks. Without the overhead of a physical location, they can pass the savings onto you in the form of more competitive interest rates.
These are currently the top cd rates right now by both term and APY exclusively.
CD term | Highest rate | Where to find it | How it compares |
---|---|---|---|
3 months | 5.66% APY | TotalDirectBank | 3x higher than the national average at 1.62% APY |
6 months | 5.76% APY | TotalDirectBank | 4x higher than the national average at 1.43% APY |
12 months | 5.65% APY | TotalDirectBank | 3x higher than the national average at 1.85% APY |
24 months | 5.6% APY | Newtek Bank | 4x higher than the national average at 1.55% APY |
36 months | 5.6% APY | Valley Direct | 4x higher than the national average at 1.39% APY |
48 months | 4.8% APY | First National Bank of America | 4x higher than the national average at 1.32% APY |
60 months | 4.75% APY | Bread Savings | 3x higher than the national average at 1.39% APY |
The best CDs offer low minimum opening deposits and APYs higher than the national average.
Bread Savings CDs
Finder score
1-year APY | 5.60% |
---|---|
3-year APY | 4.95% |
5-year APY | 4.75% |
Minimum deposit to open | $1,500 |
Crescent Bank CDs
Finder score
1-year APY | 5.50% |
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3-year APY | 5.00% |
5-year APY | 4.70% |
Minimum deposit to open | $1,000 |
First Internet Bank CDs
Finder score
1-year APY | 5.35% |
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3-year APY | 4.75% |
5-year APY | 4.59% |
Minimum deposit to open | $1,000 |
Quontic Bank CD
Finder score
1-year APY | 5.30% |
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3-year APY | 4.40% |
5-year APY | 4.30% |
Minimum deposit to open | $500 |
Barclays Online CDs
Finder score
Barclays has a $0 minimum deposit and an exceptional APY across all six of its CD terms, ranging from 4.45% to 5.50% APY. This is a rarity among CDs on the market, as most banks tend to offer higher rates only on their longer-term products.
Barclays also sets itself apart with its early withdrawal penalties across all its CDs, which are significantly kinder than many competitors. The only downside is that you’ll need to lock away your cash for at least one year — other banks offer CD terms as short as three months
1-year APY | 5.50% |
---|---|
3-year APY | 4.50% |
5-year APY | 4.50% |
Minimum deposit to open | $0 |
Alliant Credit Union CDs
Finder score
Alliant Credit Union offers a modest six terms backed by strong APYs ranging from 4.30% to 5.30%. Alliant also imposes no upper limit on how much you can deposit into your account. Where it especially shines is its generous early withdrawal penalty. Your fee equals the number of days your CD is open with a maximum penalty amount.
For example, Alliant’s 1-year CDs have an early withdrawal penalty of up to 90 days’ worth of interest. So if you withdraw your principal at 45 days, you’ll just pay the interest you’ve accrued so far. That means you’ll never lose your principal. This is head-and-shoulders kinder and more flexible than most banks that charge a flat penalty, and if the early withdrawal fee is more than the interest you’ve earned, you would actually lose money to get your cash out early.
But you’ll need to be an Alliant Credit Union member and fulfill the $1,000 minimum deposit requirement to open an account.
1-year APY | 5.25% |
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3-year APY | 4.45% |
5-year APY | 4.35% |
Minimum deposit to open | $1,000 |
TAB Bank CDs
Finder score
1-year APY | 5.27% |
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3-year APY | 4.25% |
5-year APY | 4.00% |
Minimum deposit to open | $1,000 |
Synchrony Bank CD
Finder score
1-year APY | 5.30% |
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3-year APY | 4.30% |
5-year APY | 4.00% |
Minimum deposit to open | $0 |
Ally High Yield CDs
Finder score
Ally is all about attractive interest rates across its seven terms, with APYs ranging from 3.00% to 5.15% Its CDs are also backed by a 10-day best rate guarantee, which means you’ll automatically get the higher rate within 10 days of your account opening with no funding conditions. This interest rate guarantee also applies to CD renewals, and if you renew your CD, Ally also boosts your APY by 0.05%.
And while you can’t make partial withdrawals to your account, its early withdrawal penalties are some of the lowest in the market.
1-year APY | 5.10% |
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3-year APY | 4.25% |
5-year APY | 4.10% |
Minimum deposit to open | $0 |
Marcus by Goldman Sachs High-yield CD
Finder score
1-year APY | 5.30% |
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3-year APY | 4.40% |
5-year APY | 4.10% |
Minimum deposit to open | $500 |
Capital One 360 CD
Finder score
1-year APY | 5.00% |
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3-year APY | 4.30% |
5-year APY | 4.10% |
Minimum deposit to open | $0 |
First National Bank of America Online CDs
Finder score
1-year APY | 5.15% |
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3-year APY | 4.85% |
5-year APY | 4.75% |
Minimum deposit to open | $1,000 |
Bank | APY | Minimum deposit |
---|---|---|
Ponce Bank CD through Raisin | 5.40% | $1 |
Alliant Credit Union CDs | 4.50% | $1,000 |
First Internet Bank | 4.18% | $1,000 |
EverBank | 4.00% | $1,000 |
Bank | APY | Minimum deposit |
---|---|---|
Bask Bank CD | 5.55% | $1,000 |
TAB Bank CDs | 5.27% | $1,000 |
First Internet Bank | 5.22% | $1,000 |
Quontic Bank | 5.05% | $500 |
Bank | APY | Minimum deposit |
---|---|---|
Forbright Bank | 5.65% | $1,000 |
Bread Savings | 5.60% | $1,500 |
Western Alliance Bank through Raisin | 5.51% | $1 |
Barclays | 5.50% | $0 |
Bank | APY | Minimum deposit |
---|---|---|
First National Bank of America | 4.75% | $1,000 |
Bread Savings | 4.75% | $1,500 |
Crescent Bank | 4.70% | $1,000 |
First Internet Bank | 4.59% | $1,000 |
Finder’s banking experts analyze CDs from more than 65 institutions to choose our best picks. We look at accounts that meet the following criteria.
A CD is a type of savings account with a fixed APY and term length. Once you open the account, you’re guaranteed to earn the advertised APY on your deposit regardless of market changes for the entire term. The tradeoff for this guarantee is you can’t access your funds before the end of the term length without incurring a penalty fee. Any interest earned through your CD account is considered taxable income.
A CD’s interest rate is determined by the bank but is affected by the Federal Reserve’s Federal Funds Rate. As the funds rate increases or decreases, so will the CD’s rate.
Not quite. A CD’s APY is locked in for the set term length. During a period of inflation, interest rates rise over time, which increases APYs. If you lock in a CD at 2% APY but inflation causes interest rates to rise to well over 3%, you’re losing potential interest on that CD. However, the opposite is true as well: When interest rates fall during a recession, your CD continues earning the higher interest rate.
Yes, CD rates have steadily increased since last year as the Federal Reserve continues to raise interest rates. Currently, the national rate for a 12-month CD is 1.85%, up from just 0.13% APY at the beginning of 2020, reflecting a significant increase of 1.63%, and making opening a CD worth it.
Rates have increased significantly this year. Compare standard CD interest rates according to the FDIC to the best CD rates our experts have spotted.
Term | FDIC’s national average | Highest rates we’ve seen |
---|---|---|
3 months | 1.62% | 5.40% |
6 months | 1.43% | 5.22% |
1 year | 1.85% | 5.51% |
3 years | 1.39% | 5.60% |
5 years | 1.39% | 4.75% |
A CD allows you to lock away an investment for months to years in exchange for a higher interest rate than you’d find on an everyday savings account. If you’re looking for the best rates, online banks and fintechs tend to offer the highest rates.
And keep in mind that typically, the longer the term length on a CD, the higher the APY. Since CD terms can range from a few months to more than a year, you’ll want to create a savings plan before you can find the ideal CD for your needs.
As a general rule, CDs offer greater savings the longer you agree to tie up your deposit. You may find that a CD with a 5-year term earns more than a 6-month term CD. This makes CDs great for turning a modest investment into a profit over a short to medium length of time. However, a short-term CD can still prove useful, depending on your savings goal. Here are two examples of ideal savings goals appropriate for each type of term length.
While your CD is open, you won’t have easy access to those funds. If you think you’ll need access to those funds, a savings account or a less restrictive CD might prove a better alternative than a standard CD:
Check APYs from a variety of banks, making sure to use the same term length across banks as you compare. The main features to compare include:
Most CDs charge fees if you take your money out of the account earlier than the end of the term. Fees can vary widely by the bank, but examples of typical withdrawal penalty fees include:
Upon CD maturity, you usually have a grace period to renew your CD or to cash out. These range from 7 to 21 days, with the average at 10 days.
Expert tip: Reduce your risk with a no-penalty CD or CD laddering.
While fixed rates are a benefit to opening a CD, it’s also a drawback if you open it before federal rates rise. If this happens, your money is locked in a term with a lower rate. If you’re set on opening a CD, look at no-penalty CDs, which let you withdraw your money penalty free. Another approach is to try CD laddering, a type of strategy where you place equal amounts of money in varying CD term lengths. This gives you more frequent access to your invested money and helps avoid the risks of changing interest rates.
— Alexa Serrano Cruz, CAMS, Senior Editor, Personal Finance.
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