Here Are the Top CD Rates of January 2023

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CDs are an ideal option if you’d like to grow your money but don’t want to deal with fluctuations of the stock market.

Since you’re locking in an interest rate, it’s smart to look for the highest one. However, if you don’t have a lot of money to deposit you might also want to pay attention to minimum deposit requirements.

Below you’ll find our picks for the best CD rates right now. There’s no CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now.

Best rates for a 1-year term

Best rates for a 18-month term

Best rates for a 2-year term

Best rates for a 3-year term

Best rates for a 4-year term

Best rates for a 5-year term

Best rates for other CD terms

Best rates for a no-penalty CD

Best rates for no opening deposit

CD rates at the largest US banks

Learn more about our top picks

Why it stands out: Bread Savings CDs stand out for their competitive interest rates on 1-year, 2-year, 3-year, 4-year and 5-year terms.

Term options: Terms range from 1 year to 5 years.

Penalties: Bread Savings charges standard penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms under 12 months
• 180 days of  interest for terms between 12 months and 36 months
• 365 days of interest for terms between 48 months and 60 months

Keep an eye out for: The minimum opening deposit for Bread Savings CDs is $1,500. Other banks have lower minimum opening deposits.

Why it stands out: CFG Bank pays higher interest rates on 1-year, 18-month, 3-year, and 5-year CDs than what you would earn at many brick-and-mortar or online banks.

Term options: Terms range from 1 year to 5 years.

Penalties: CFG Bank charges standard-to-low penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms of 1 year
• 180 days of interest for terms longer than 1 year

Keep an eye out for: There are only a few terms to choose from. CFG Bank only has 1-year, 18-month, 3-year, and 5-year CDs.

Why it stands out: First Internet Bank of Indiana pays high interest rates, and it has a variety of terms to choose from.

Term options: Terms range from 3 months to 5 years.

Penalties: First Internet Bank of Indiana charges standard-to-high penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms of 3 months
• 180 days of interest for terms between 6 months and 18 months
• 360 days of interest for terms between 24 months and 60 months

Keep an eye out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference.

The early withdrawal penalties may also be steep compared to other financial institutions. 

Why it stands out: Bethpage Credit Union has high CD rates for a 2-year term. It also has a low minimum opening deposit requirement.

Term options: Terms range from 3 months to 5 years.

Penalties: Bethpage charges standard penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for a 1-year term or shorter
• 180 days of interest for a term over 1 year

Keep an eye out for: Credit unions require membership to open accounts. To join Bethpage FCU, you just need to open a Bethpage Federal Credit Union Savings Account with $5.

Why it stands out: Quorum Federal Credit Union has a high interest rate on its 2-year and 13-month term accounts (which is another name for a certificate). 

The 2-year term account pays the highest interest rate out of all its term options. You’ll earn 4.60% APY if you deposit between $1,000 and $99,999, or 4.70% APY if you deposit over $100,000.

The 13-month term account pays 4.50% APY if you use money than hasn’t been deposited into another Quorum bank account.

Term options: Terms range from 3 months to 5 years.

Penalties: At Quorum Federal Credit Union the early withdrawal penalty is as follows:

• For terms between 2 months and 11 months, 1% of the amount withdrawn
• For terms between 12 months and 24 months, 2% of the amount withdrawn
• For terms over 25 months, 3% of the amount withdrawn

Keep an eye out for: You must become a member to open a bank account at Quorum. To become a member, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.

Why it stands out: Connexus has a 15-month CD special with a high interest rate. 

Term options: Terms range from 12 months to 5 years.

Penalties: Connexus charges standard penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms 1 year or less
• 180 days of interest for terms over 1 year

Keep an eye out for: Once the 15-month CD matures, it will renew automatically to 1-year CD term, unless you notify the bank to take out your money at the end of a term.

Why it stands out: Alliant offers certificates (the credit union version of a certificate of deposit). It’s standout certificates are its 1-year, 3-year, and 4-year terms. Its early withdrawal penalties are relatively low, especially for longer-term certificates. 

Term options: Terms range from 1 year to 5 years.

Penalties: Alliant charges standard penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms of 17 months or less
• 120 days of interest for terms of 18 months to 23 months
• 180 days of interest for terms of 24 months to 60 months

Keep an eye out for: To open an account at a credit union, you must become a member first. The easiest way to become a member at Alliant is by joining  Foster Care to Success (Alliant will cover your $5 joining fee). 

Why it stands out: Synchrony offers a variety of term length options, including 13-month, 14-month, and 15-month CDs. Its standout CD is a 14-month CD that pays 4.60% APY.

Term options: Terms range from 3 months to 5 years.

Penalties: Synchrony’s early withdrawal penalty rules are pretty standard, as follows:

• 90 days interest penalty for a term of 12 months or less
• 180 days interest penalty for a term over 12 months but under 48 months
• 365 days interest for a term of 48 months or more

Keep an eye out for: You’ll want to consider whether you have a preference on how you’ll withdraw money from a CD. When you’re ready to cash out your CD, you must call Synchrony. Some other banks will let you cash out your CD through online banking.

Why it stands out: Capital One offers competitive rates, and unlike most banks, you don’t need any money for an initial deposit.

Term options: Capital One offers CD term lengths ranging from 6 months to 5 years.

Penalties: The penalties for early withdrawals are as follows: 

• 3 months interest penalty for a CD term of 1 year or less
• 6 months interest penalty for a CD term greater than 1 year

Keep an eye out for: Capital One is a good choice for people who don’t want to place an initial deposit, but you can find slightly higher rates elsewhere.

Why it stands out: CIT Bank pays a competitive rate on its no-penalty CD (a CD that doesn’t charge any early withdrawal penalties).

It also has a strong 18-month and 13-month CIT Bank Term Certificate of Deposits (CD). 

Term options: 6 months to 5 years.

Penalties: CIT Bank charges standard penalties on term CDs for early withdrawals of your principal balance, as follows:

• 3 months simple interest for terms under 1 year
• 6 months simple interest for terms of 1 to 3 years
• 12 months simple interest for terms over 3 years

What to look out for: When the 13-month CD term matures it will be automatically renewed as a 1-year term. When the 18-month CD term matures it will automatically be renewed to a 2-year term.

Why it stands out: Marcus by Goldman Sachs offers a variety of CDs, including High-Yield CDs and No-Penalty CDs. It’s 13-monthNo-Penalty CD is its most appealing option.

Term options: High-Yield CD terms range from 6 months to 6 years, and No-Penalty CDs come with 7-month, 11-month, and 13-month options.

Penalties: Marcus charges standard penalties for early withdrawals of your principal balance, as follows:

• 90 days interest penalty for a CD term of under 12 months
• 270 days interest penalty for a CD term of 12 months to 5 years
• 365 days interest penalty for a CD term of more than 5 years

Keep an eye out for: You need at least $500 to open a CD with Marcus. Some of our other picks let you open an account with $0.

Why it stands out: Ally has more options for CDs than any other online bank, including an 11-month, no-penalty CD with various interest rates for different balance tiers and a variable-rate CD.

Term options: Ally offers a total of 11 different CD term lengths ranging from 3 months to 5 years.

Penalties: Ally charges standard penalties for early withdrawals of your principal balance, as follows:

• 60 days interest penalty for a CD term of 24 months or less
• 90 days interest penalty for a CD term of 25 months to 36 months
• 120 days interest penalty for a CD term of 37 months to 48 months
• 150 days interest penalty for a CD term of 49 months or more

Keep an eye out for: Ally offers three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs.

Unlike regular High Yield CDs, Raise Your Rate accounts offer 2-year and 4-year terms. APYs on these accounts start lower than High Yield CDs rates, but you can increase your APR once over 2 years or twice over 4 years.

No Penalty CDs do not penalize you for early withdrawal, but the only term available is 11 months.

Why it stands out: America First Credit Union gives you more flexibility with deposits and withdrawals than most banks. Unlike other institutions, America First lets you continue depositing money into your CD after you’ve opened it, up to $10,000 per month. Many banks make you take out all your funds if you need to make an early withdrawal, but America First lets you make partial withdrawals.

Term options: 12 months

What to look out for: Like most credit unions, America First compounds your interest monthly rather than daily, which will limit how much you earn over time.

Why it stands out: American Express doesn’t have a minimum opening deposit requirement. Most banks and credit unions require at least $1,000 for an initial deposit on a CD.

Term options: American Express has CD terms ranging from 6 months to 5 years.

Penalties: The early withdrawal penalties are as follows:

• 90 days interest penalty for a term under 12 months
• 270 days interest penalty for a term between 12 and 47 months
• 365 days interest penalty for a term between 48 and 59 months
• 540 days interest penalty for a term of 60 months or more

Keep an eye out for: American Express’ fees for withdrawing funds before the CD maturity date are higher than most. If you’re worried about early withdrawal penalties, you may want to consider one of the other options from our list.

Why it stands out: Barclays is one of the few banks that doesn’t have a required minimum deposit for CDs. Its early withdrawal penalties are also lower than what you’ll pay with many institutions.

Term options: Term lengths range from 3 months to 5 years.

Penalties: Barclays has standard early withdrawal penalty terms, as follows:

• 90 days interest penalty for a term of 24 months or less
• 180 days interest penalty for a term over 24 months

Keep an eye out for: The Barclays app has good ratings in the Google Play store, but not in the Apple store.

Other CDs that didn’t make the cut and why

We looked at the following CDs as well. These CDs ultimately weren’t chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.

• TIAA Basic Certificate of Deposit: TIAA offers solid CD rates, but our top picks pay higher interest rates or have more lenient early withdrawal penalties.
• HSBC Direct CD(Member FDIC): HSBC’s CD rates were relatively high, but they’ve recently dropped.
• PurePoint Financial(Member FDIC): PurePoint’s rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.
• Chase CD(Member FDIC): While Chase has some truly excellent rewards credit cards, the rates on its CDs do not compete with any of the banks on our list.
• USAA Bank CD (Member FDIC) : USAA Bank offers a wide range of CD options for military members and families, but rates are mediocre and you’ll need at least $1,000 to open an account.
• NBKC CD (Member FDIC): NBKC pays good rates. But unlike most CDs, NBKC CDs pay variable rates, so rates can go up or down after you’ve opened the account.
• Sallie Mae CD (Member FDIC): Sallie Mae pays competitive rates on short terms, but you’ll need $2,500 to open a CD.
• Charles Schwab Bank Certificate of Deposit: Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how your bank, you may prefer open a CD directly with the financial institution.

Why trust our recommendations?

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high Annual Percentage Yield (APY), for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

Methodology: How did we choose the best CDs?

We reviewed CD offerings from around a dozen national banks. All banks included on our list are insured by the FDIC and do not impose monthly maintenance fees on CDs.

In the event two banks offered the same APY on a CD product, we considered minimum deposit requirements and penalties for early withdrawals.

For this list, we did not consider credit unions — though they tend to offer high interest rates on savings accounts and CDs, many limit membership to people who work in a specific industry or live in a designated area. 

Frequently asked questions

Experts’ advice on choosing the best CD

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts to use for your money. You can read their insights at the bottom of this post.

Insider

To learn more about what makes a good CD and how to choose the best fit, four experts weighed in:

Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)

What makes a CD good or not good?

Mykail James, CFEI:

“You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it’s monthly or quarterly.”

How should someone choose a CD term length?

Roger: Ma, CFP

“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”

Mykail James, CFEI:

“I believe in having a plan for whatever the funds are. If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, CFP:

“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”

Laura Grace Tarpley, Personal Finance Insider:

“I would use a high-yield savings account or money market account for short-term goals or an emergency fund. You’ll probably want to choose whichever has a higher rate, but money market accounts can be good for emergency savings because they often come with a debit card or paper checks, making it easy to access money quickly. Then use CDs for longer-term goals, like buying a home in a few years.”

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, wealth building, and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Insider’s “The Road to Home” series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF).
She has written about personal finance for over six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com.
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Sophia Acevedo, CEPF

Junior Banking Reporter