Best CD Rates for December 2024

If you’re looking to save money, there are many types of bank accounts to consider, from high-yield savings accounts to money market accounts (MMAs), and others. Today, we’re going to take a closer look at CDs – or Certificates of Deposit.

CDs offer the safety of a savings account and can earn you much higher interest rates by locking in your money for a set time. In most cases, CDs also come with a fixed interest rate, which can help you better plan for your future earnings.

In this article, we’ll look at the best CD rates available today.

Who Has The Best CD Rates Right Now?

Most financial institutions offer CDs, which can make choosing one difficult. There are several things to consider including:

• Term Length
• Interest Rate
• Early Withdrawal Penalties
• Deposit Requirements

CD rates are typically tiered, meaning you’ll earn the highest rates by choosing the longest term. Terms lengths can vary from one bank or credit union to another. Generally speaking, the shortest-term CDs are for 1 or 3 months. At the other end of the spectrum, you’ll find CDs with terms as long as 5 or more years.

While shopping for CDs, make sure you keep everything in mind, including any deposit requirements that might be in place.

Best CD Rates by Term

Click on each term length below to discover which banks and credit unions are offering the highest CD rates.

Note: Rates last updated December 26, 2024. May vary by region.

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Lock in high interest rates on your savings with a term CD from banks partnered with the Raisin platform. Their cds comes with no minimum deposit and could be beneficial as rates begin to slide on high yield savings accounts.

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Our Top Financial Institutions For CDs

In addition to a competitive rate, you’ll want to work with a top bank or credit union – one that you trust, possibly with locations conveniently near you.

We recommend working with any of the following banks and credit unions:

1. Discover Bank®
2. Barclays
3. Sallie Mae Bank
4. Connexus Credit Union
5. Ally Bank
6. Capital One
7. Bread Financial
8. Alliant Credit Union
9. Synchrony
10. Navy Federal Credit Union
11. American Express National Bank
12. Marcus by Goldman Sachs

1. Discover Bank®

While Discover is best known for credit cards and debit cards, there’s also a fully-fledged online bank with a wide range of different financial products and services.

Discover® CDs start at 3 months. The longest term available is for 10 years or 120 months, but it typically won’t net you more than their 5 year or 60-month option.

There is no longer a minimum opening deposit requirement. The account has no fees meaning you get to keep all of the interest you earn. Should you need to withdraw your money before the term expires, you will have to pay a penalty. Penalties start at 3 months’ worth of simple interest for terms less than one year and all the way to 2 years’ worth of interest for CDs with a term of 7 years or more.

You can also set up a CD ladder where you open multiple CDs with different term lengths to help you better manage liquidity and interest rate risks.

Read our full Discover® Bank Review

2. Barclays

Barclays is a very well-established financial services company and investment bank headquartered in London, United Kingdom.

In the US, they have 3 locations with New York housing Barclays’ US headquarters, a campus in Whippany, and Wilmington, where you’ll find Barclays’ US Consumer Bank.

Barclays Online CDs offer interest that compounds daily. There are no minimum balance or minimum opening deposit requirements, which means you can save as much as you like.

Terms range from 3 months to 60 months. Typically, choosing a term that’s shorter than 9 months will earn you the least, and anything above that will earn you their higher rates.

Barclays’ website also offers a CD calculator that can help you work out just how much money you’ll save.

Read our full Barclays Bank review

3. Sallie Mae Bank

Sallie Mae is best known for student loans, but they also offer several savings products, including their “SmartyPig” savings account, a Money Market Account, High Yield Savings Account, and, you guessed it: certificates.

CD terms range from 6 months to 5 years. Interest compounds daily and is credited monthly.

Be mindful that, like some of the others on this list, your CD will automatically renew at the end of its term. You’re given a 10-day grace period to withdraw your funds, otherwise, they’ll be locked into a new CD with the same term as before, but with whatever rate is currently being offered.

Even if you do ultimately decide to renew, be sure to be hands-on enough to make that decision purposefully!

Open a Sallie Mae CD Today!

4. Connexus Credit Union

Connexus Credit Union has branches in several different states, including Minnesota, New Hampshire, Ohio, and Wisconsin. They also share branches and ATMs with CO-OP and Money Pass, which means you’ll have access to more than 6,000 branches and over 54,000 fee-free ATMs. Even so, you can sign up online through their website, with the entire process taking just minutes to complete.

There is a minimum deposit of $5,000 to open a CD with this credit union, and you do not need to have a checking account with them. The shortest term available is one full year (compared to other banks which offer CDs as short as 3 months), and the longest CD term available is 60 months.

Early withdrawal will incur a penalty, depending on the original term of your CD. If the original term was one year, the penalty is of 90 days worth of dividends. CDs with a term that ranges between 1 year and 5 years have an early withdrawal penalty of 180 days worth of dividends while longer terms see the penalty go up to 365 days.

Read our full Connexus Credit Union review

5. Ally Bank

Ally Bank is an online bank with no branches. They’ve been operating since 1919 and have over 8.5 million customers and some 9,500 employees. They offer a range of products and services with 3 different CDs to choose from.

Ally Bank compounds the interest daily so that you make the highest return possible on what you deposit. If you renew your CD, you also get a bonus APY, which is a ‘bonus’ percentage on top of their advertised rates.

The basic CD is called the Ally High Yield Certificate of Deposit. Terms range from 3 months to 5 years, with no minimum deposit required to open the account.

Alternatively, you can check out the Raise Your Rate Certificate of Deposit. This comes in two different terms – 2 years or 4 years. If the bank’s rate goes up, you’ll have the opportunity to raise your rate. The 2-year term allows you to do this once, while the 4-year term allows you to do this twice.

The last type of CD Ally offers is called the No Penalty Certificate of Deposit. This is available for a fixed term of 11 months. Unlike most CDs, you can withdraw the money from this option at any time once 6 days has passed since you initially funded it.

Read our full Ally Bank review

6. Capital One

Capital One is one of the largest 100 companies in the US and one of its 10 largest banks. This is no small feat considering they only went public in 1994. The bank also runs an initiative that aims to improve socioeconomic mobility.

Capital One’s Online CD Savings Accounts have no minimum balance requirements, making them accessible to many different people.

Terms start at 6 months, and will typically net you the same as choosing any term up to 1 year. To get a higher rate, you’ll need to choose a term between 18 months and 5 years.

The CDs do not allow partial withdrawals. Choosing to withdraw completely is an option, however, you’ll lose 3 months’ worth of interest on terms shorter than 1 year or 6 months of interest for any CD longer than that.

Read our full Capital One Bank Review

7. Bread Savings™

Bread Savings™ is a product of Comenity Capital Bank – a Utah-based bank that’s been around since 1986. Comenity Capital Bank recently became part of Bread Financial.

Bread Financial offers Certificates of Deposit accounts that can be opened easily online. There is a $1,500 minimum opening balance with terms ranging from 1 year to 5 years.

Interest is compounded daily but paid out once a month. There are no monthly fees, but early withdrawals incur a penalty.

One thing to note: once the CD reaches maturity, it will auto-renew. There is a 10-day grace period in which you can withdraw without incurring any fees once the term is up, so you’ll need to move quickly.

Read our full Bread Savings™ (formerly Comenity Direct) review

8. Alliant Credit Union

Alliant Credit Union is one of the nation’s largest credit unions, and has won a ton of awards from ‘Best Overall’ to ‘Best Online Experience’.

While membership is technically restricted, it’s actually very easy to qualify. For example, a $5 donation to Foster Care to Success (that Alliant will pay on your behalf) will grant you and any immediate family members of your lifetime membership.

Alliant CDs start at 3-month terms, and cap at 5 years.

Withdrawal penalties are tiered based on your CD term, from 90 days of interest lost on CDs up to 17 months, up to 180 days of interest lost for CDs that were supposed to be longer than 24 months.

One neat feature that Alliant offers, however, is the option of dividend withdrawals. This allows you to collect an interest payment each month instead of letting the interest compound. While this obviously decreases your overall return, it’s a flexible choice if your situation needs it, and is penalty-free.

Read our full Alliant Credit Union review

9. Synchrony

Synchrony Bank is an online bank offering many different CDs and other depository products (like MMAs, and savings accounts).

There are only 4 bank locations as it is an online bank. If this worries you, rest assured that Synchrony’s customer service department receives a lot of praise as help is available by phone or online chat 7 days a week.

Synchrony offers some excellent rates for CDs, with their terms ranging from 3 months to much longer-term (like 60 months). There are also perks like travel and leisure discounts (as well as identity theft resolution, which is always handy!).

However, early withdrawal penalties are strict with Synchrony, so think carefully if you can commit to the term you’re choosing.

Read our full Synchrony Bank review

10. Navy Federal Credit Union

Navy Federal Credit Union exclusively serves those in the armed forces, the DoD, veterans, and their families. They have more than 10 million members, and if you’re fortunate enough to be one of them, you can enjoy competitive rates on both your savings and loans.

Navy Federal offers 3 different types of certificates: Standard, EasyStart, and SaveFirst.

Standard certificates are comparable to CDs at other institutions, with terms that start at 3 months and up to 7 years. These have a $1,000 minimum deposit.

EasyStart certificates have just a $50 minimum deposit and allow you to add money at any time. These have terms ranging from 6 months to 2 years.

If you also have a checking account with Navy Federal and receive direct deposits, you can opt for a special EasyStart Certificate, which is 12 months at their highest rate (3% at the time of writing!). This bonus rate is only offered on balances up to $3,000, however, so we don’t include it for consideration in their best CD rate listed below.

Lastly, Navy Federal offers their SaveFirst Account, which offers their lowest rates, but lets you get started with as little as $5. Like their EasyStart certificates, however, you can add money at any time. The terms offered are 3 months to 5 years.

Read our full Navy Federal Credit Union review

11. American Express National Bank

American Express has been in operation since 1850. While today they’re an online-only bank, they started as a freight forwarding company.

Their first financial product was the Travelers Check, which was launched in 1891. Since then, they have expanded its financial offerings to include several different products and services, including CDs.

American Express CD terms range from a minimum of six months to a maximum of 5 years (60 months). The rate you’ll get depends on the term you choose, with no minimums required and no fees to pay.

Once you open your CD, the rate is locked in, making it easier to know how much money you’ll earn at the end of the term.

Interest is compounded daily and paid out every month.

Read our full American Express Bank review

12. Marcus by Goldman Sachs

Marcus by Goldman Sachs is a brand of Goldman Sachs Bank. With over 150 years of financial products and services experience, they offer many loans and savings accounts.

Marcus by Goldman Sachs has many CD options with CD terms starting at 6 months, and up to 6 years. Regardless of which term you choose, the minimum balance amount is set at $500.

If you deposit the money within the first 10 days of opening the account, you will get the highest advertised rate. If it takes you longer than 10 days to reach the $500 balance, you risk getting a lower rate if the APY has since dropped.

CDs are automatically renewed, but there is a grace period of 10 days during which you can withdraw the money or opt for different CD terms.

Read our full Marcus by Goldman Sachs review

What is a CD?

CD is short for Certificates of Deposit, and in a nutshell, it works just like a savings bank account. While you’re most likely to invest in CDs with banks and credit unions, you can also buy them from brokerage firms.

The biggest difference you’ll find is that unlike a standard savings account, which allows you to deposit and withdraw money whenever you want, a CD account locks you in for a while.

Typically, banks and credit unions offer a wide range of terms. A term is the amount of time during which your savings are locked in.

Available terms can range from 1 or 3 months to 6 years or more. The longer the period, the higher the interest rate you’ll earn. Once the period elapses, you can withdraw the money or start a new term. Most financial institutions offer an automatic renewal, with a grace period in which you can withdraw your funds.

Most CDs have a penalty for withdrawing your funds early, usually based on the interest earned. It is important to note here that early withdrawals can make losses on your principal – the original sum of money you saved in the CD.

CD rates can fluctuate because it’s based on the rate offered by the federal reserve board. That said, some CDs offer a fixed interest rate which gives you the option to lock in your rate. When you do that, you get the same rate regardless of whether the federal reserve rate goes down or up.

How Do Certificates of Deposit Work?

Most seasoned savers will know what a Certificate of Deposit is, as it’s a popular savings option most banks offer.

Most CDs come with a fixed term, meaning that the money you deposit cannot be withdrawn for a set period of time. Withdrawals may incur a penalty, but increasingly, financial institutions are offering special CDs with no-penalty withdrawals. As you might imagine, these types of CDs have lower rates than the ones that lock you in.

Since CDs have a fixed term, they tend to offer a higher yield than many other options. In most cases, it’s even higher than what you might find in a High-Yield Savings account. However, to enjoy the full rate, you can expect to choose a longer-term CD, generally three years or more.

Many banks and credit unions also offer IRA CDs. These types of CDs are held inside an IRA, with the money invested in a CD.

CD Rates & The Federal Reserve

Another interesting fact about Certificates of Deposit is that the Federal Reserve’s interest rate decisions tend to impact the CD rates banks offer. This means that the Fed raising or lowering the federal funds rate makes banks respond accordingly.

Learn More:

• Guide to Historical CD Rates
• Are CD’s Taxable?

How CDs Are Paid Out

CDs come with an interest rate that is quoted as an APY (Annual Percentage Yield). APYs compound interest means that the interest paid on the principal amount (your initial deposit) will earn interest.

In most cases, banks will compound the interest daily and pay it out to the account monthly. This will help you earn more money since the next time the interest is worked out; it will be worked out on the sum you deposited + the interest earned.

Once the CD reaches the maturity date, most banks and credit unions will give you the option to cash out to renew. Keep in mind that typically, CDs will renew automatically with a short grace period afforded right after the maturity date to withdraw without incurring a penalty. Banks should advise you of this well in advance, but it doesn’t hurt to pencil the date in your diary anyway.

Are CDs Insured?

Many banks and credit unions insure their CD account. Banks will do this through FDIC insurance, while credit unions will do this through NCUA (National Credit Union Administration). In most cases, accounts are insured for up to $250,000.

Some financial institutions will also take out additional insurance, helping you get coverage for even higher amounts. If you’re planning on taking out Cd with a high principal, make sure you speak to a financial planner to get advice on how to make sure that you are covered.

Types of CDs

• Traditional CDs. The most common type – a depositor will deposit money for a specific term (like 3 months, 12 months, or 60 months) – and be given a fixed interest rate on their principal investment. No additional funds can be deposited – and you may face strict early withdrawal penalties.
• No penalty CDs. The name gives it away, with no penalty CDs, there are no penalties for withdrawing your money before the CD matures. But, of course, these will offer lower interest rates than regular CDs.
• Add-on CDs. With add-on CDs, you can make multiple deposits during your CD term.
• Brokered CDs. Brokered CDs are sold by brokerage firms, and you’ll need a brokerage account to be able to buy one. Sometimes they may have higher rates – but they could also be riskier.
• Jumbo CDs. Jumbo CDs require a higher investment (usually $100,000 or more), and for that, you get a little extra yield.
• Callable CDs. They offer higher interest rates but come with a higher risk.
• Bump-up CDs. You can request the bank to increase your rate during the CD term (if you meet certain conditions).
• Step-up CDs.With types of CDs, the bank will automatically increase your rate at certain intervals.
• IRA CDs. These are held inside your IRA and typically offer guaranteed returns.
• Zero-coupon CDs. CDs that you can buy at a discounted rate. When it matures, you’ll receive the full value.

More About Jumbo CDs

To entice customers, financial institutions offer different CDs, including brokered CDs, no-penalty CDs, and several others. While they all work the same, the different CDs have diverse requirements and terms.

These include the possibility to make an early withdrawal without penalty or imposing a larger minimum deposit requirement. The more restrictive the conditions, the higher the interest rate the bank or credit union will pay.

Jumbo CDs are one such type of CD.

Jumbo CDs have a significantly higher minimum deposit requirement, which can go as high as $50,000 or $100,000 in some cases. You can expect a jumbo-sized interest rate to match the jumbo-sized deposit requirement.

Jumbo CD terms can vary from 3 months to 60 months, depending on the financial institution offering the certificate.

One other difference that comes with Jumbo CDs is that they apply a high rate on high balances. Traditional CDs, in most cases, will lower the rate when the balance gets over a certain threshold, but Jumbo CDs don’t.

When to get a Jumbo CD

Jumbo CDs offer relatively high interest for very low risk. As we said earlier, interest rates can go higher than you can expect to make with savings accounts or checking accounts.

Even so, it is lower than what you can make when investing in the market. The upside to this is that your investment is safe. Except for early withdrawals, it is virtually impossible to lose your money when investing in a CD.

That’s mainly because the bank doesn’t use your money to invest it in risky investments. In most cases, your money is protected up to $250,000 by the FDIC (or NCUA for credit unions).

Learn More:

• 6% CD Rates: Can You Earn Interest That High?
• How Much Does a $10,000 CD Make in One Year?