Are virtually risk-free: By opening a CD at an FDIC-insured bank, you are federally protected on up to $250,000 of your deposits, in the unlikely case that the bank fails.

Offer a fixed, guaranteed rate: The annual percentage yield (APY) that you sign up for when opening the CD will be fixed for the full term.Often pay higher APYs than liquid accounts: In exchange for you keeping your money on deposit for a specified period of time, banks generally pay higher annual percentage yields (APYs) on CDs than on savings and money market accounts.Typically return less than other investments If rates rise, you may regret being locked into your APY For anyone looking to put $100,000 or more into a CD, you may find even better rates in our roundup of the best jumbo CD rates. If you want to explore more options-including credit union CDs-we also publish a complete list of the best nationwide CD rates, as well as stand-alone pages for the best 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, 4-year, 5-year, and 10-year CD rates. Ranked by highest APY, then shortest term, then lowest minimumĭetailed information on the top nationally available bank CD in each term is provided below, including specifics about minimum deposits and early withdrawal penalties. The trade-off is that joining a credit union often involves paying a small membership fee or making a small donation to a nonprofit affiliated with the credit union.

In fact, the top nationwide credit union CDs often outpay those from nationwide banks. Below is our resulting list of the top CDs from brick-and-mortar banks, internet divisions of traditional banks, and online-only banks.īut be aware that credit unions are also an excellent source of high-paying certificates of deposit. To make your CD shopping easier, we regularly research and compile the best rates from about 200 financial institutions that offer their CDs to customers nationwide. It’s currently unknown if the Fed will implement any further increases this year, but if it does, that could nudge CD rates higher still. CD rates closely follow the fed funds rate, so rates may continue to trend slightly higher. With another increase announced July 26, the Fed has hiked the federal funds rate a cumulative 5.25%. Today’s CD rates are higher than we’ve seen in 16 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame inflation.

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