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Best CD Rates of December 2023: Highest Rates Up to 6.00%

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To find you the best CD rates nationwide, we review CD rates from hundreds of banks and credit unions every weekday morning. Right now, the best CD rate across all terms is 6.00% APY, which is being offered by Securityplus Federal Credit Union until Nov. 30, 2023. The top CD rates in our rankings typically pay three to five times as much as the national average—or even more. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.

In the News

Today’s CD rates are higher than we’ve seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. Though the Fed held its benchmark rate steady for a second consecutive meeting on Nov. 1—after 11 hikes in the previous 12 meetings—it has indicated that an additional increase is still on the table. CD rates closely follow the fed funds rate, so if the Fed implements a further increase, that could nudge CD rates higher still.

In cases where more than one institution offers the same top rate, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum opening deposit, and if there's still a tie, we sort alphabetically by institution name.

Ranked by highest APY, then shortest term, then lowest minimum
Best 3-Month CDs Rate Term Minimum
TotalDirectBank 5.66% APY 3 months $25,000
Dow Credit Union 5.65% APY 3 months $500
BECU 5.60% APY 3–5 months $500
For more options, see our in-depth 3-month CD rankings
Best 6-Month CDs Rate Term Minimum
Securityplus Federal Credit Union 6.00% APY* 8 months $1,000
West Town Bank & Trust 5.88% APY 7 months $10,000
TotalDirectBank 5.76% APY 6 months $25,000
For more options, see our in-depth 6-month CD rankings
Best 1-Year CDs Rate Term Minimum
West Town Bank & Trust 5.77% APY* 11 months $10,000
Dow Credit Union 5.76% APY 13 months $500
All In Credit Union 5.75% APY 12 months $25
For more options, see our in-depth 1-year CD rankings
Best 18-Month CDs Rate Term Minimum
Seattle Bank 5.80% APY 18 months $1,000
First Harvest Credit Union 5.75% APY 15 months $1,000
Alabama Credit Union 5.71% APY 15 months $10,000
For more options, see our in-depth 18-month CD rankings
Best 2-Year CDs Rate Term Minimum
Newtek Bank 5.60% APY 24 months $2,500
Vibrant Credit Union 5.50% APY 23 months $5
Seattle Bank 5.50% APY 24 months $1,000
For more options, see our in-depth 2-year CD rankings
Best 3-Year CDs Rate Term Minimum
Workers Credit Union 5.50% APY 36 months $500
Luana Savings Bank 5.32% APY 30 months $2,000
SouthEast Bank 5.25% APY 36 months $1,000
For more options, see our in-depth 3-year CD rankings
Best 4-Year CDs Rate Term Minimum
BMO Alto 5.20% APY 48 months $0
Wellby Financial 5.13% APY 48 months $1,000
Farmers Insurance Federal Credit Union 5.00% APY 48 months $1,000
For more options, see our in-depth 4-year CD rankings
Best 5-Year CDs Rate Term Minimum
BMO Alto 5.25% APY 60 months $0
Workers Credit Union 5.25% APY 60 months $500
The Federal Savings Bank 5.12% APY 60 months $5,000
For more options, see our in-depth 5-year CD rankings
Best 6- to 9-Year CDs Rate Term Minimum
First National Bank of America 4.60% APY 6 years $1,000
Department of Commerce Federal Credit Union 4.44% APY 5–7 years $25,000
Luana Savings Bank 4.30% APY 6 years $2,000
KS State Bank 4.06% APY 7 years $500
INOVA Federal Credit Union 4.00% APY 6 years $200
Marcus by Goldman Sachs 4.00% APY 6 years $500
Apple Federal Credit Union 4.00% APY 7 years $500
Credit Human 4.00% APY 7 years $500
Best 10-Year CDs Rate Term Minimum
Apple Federal Credit Union 4.00% APY 10 years $500
Credit Human 4.00% APY 10 years $500
Discover Bank 3.80% APY 10 years $2,500
For more options, see our in-depth 10-year CD rankings

Why You Can Trust Our Expert Recommendations for the Best CD Rates

Investopedia collects thousands of CD rates from hundreds of banks and credit unions every weekday. When ranking CD rates, we look at factors that will help readers choose the best CD, like term, early withdrawal penalty, and minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best CD rates since 2019.

The CDs we recommend must be available nationwide and these certificates typically pay three to five times as much as the national average—or even more. To be eligible for our rankings, each CD's minimum opening deposit requirement cannot exceed $25,000 and must be offered by an FDIC-insured bank or NCUA-insured credit union (which covers up to $250,000 per depositor).

Best 3-Month CD Rate: TotalDirectBank – 5.66% APY

  • Early-withdrawal penalty: 1 month of interest
  • Minimum opening deposit: $25,000
  • About: TotalDirectBank is an online-only operation of City National Bank of Florida, established in Miami in 1946. Today, it has over $22 billion in assets.
  • 3-, 6-, and 12-month CDs all have rates over 5.60%

  • High minimum opening deposit

  • TotalDirectBank can't conduct business in Florida

Best 6-Month CD Rate: Securityplus Federal Credit Union – 6.00% APY*

  • Early-withdrawal penalty: 3 months of interest
  • Minimum opening deposit: $1,000
  • Membership: Anyone is eligible to join Securityplus by paying the $15 fee to become a member of the American Consumer Council and opening a savings account with a minimum deposit of $5.
  • About: Founded in 1938, Securityplus has physical branches in Maryland and over 34,000 members.

*Promotional rate is available until Nov. 30.

  • Highest nationwide rate available as of Nov. 21

  • Promotional rate that expires Nov. 30

Best 1-Year CD Rate: West Town Bank & Trust – 5.77% APY*

  • Early-withdrawal penalty: 3 months of interest
  • Minimum opening deposit: $10,000
  • About: Founded in 1922 and based in North Riverside, Illinois, West Town Bank & Trust also operates out of Raleigh, North Carolina.

*West Town Bank & Trust does not offer online account opening, but CD accounts are available nationwide and can be opened by phone.

  • Rate available to new and existing customers

  • Can't open a new CD account online

Best 18-Month CD Rate: Seattle Bank – 5.80% APY

  • Early-withdrawal penalty: 6 months of interest
  • Minimum opening deposit: $1,000
  • About: Established in 1999, Seattle Bank serves online customers across the country as well as operates a branch in downtown Seattle, Washington.
  • Lower minimum opening deposit

  • 18-month CD auto renews at maturity and rolls into 12-month CD, which may not be right for all customers

Best 2-Year CD Rate: Newtek Bank – 5.60% APY

  • Early-withdrawal penalty: 6 months of interest
  • Minimum opening deposit: $2,500
  • About: FDIC-insured since 1963 as the National Bank of New York City, Newtek is the bank's 2023 rebranded identity, which operates one branch in New York and one in Miami while serving nationwide customers online.
  • Only 6 months of interest lost if you withdraw early

  • Online customer service offers video, audio, phone calls, and text chat

  • Only two physical branches

Best 3-Year CD Rate: Workers Credit Union – 5.50% APY

  • Early withdrawal penalty: 50% of interest that would have been earned
  • Minimum deposit: $500
  • Membership: Anyone can join Workers Credit Union through a complimentary 1-year membership through the Financial Fitness Association and by keeping $5 in a credit union savings account.
  • About: Workers Credit Union was founded in 1914 in Massachusetts, where it is home to physical branches today.
  • Lower minimum opening deposit

  • Physical branches only in one state

Best 4-Year CD Rate: BMO Alto – 5.20% APY

  • Early withdrawal penalty: 6 months of interest
  • Minimum opening deposit: Any amount
  • About: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account. It was founded in 1817 in Montreal, Canada. BMO Alto currently operates out of Chicago, Illinois.
  • No minimum opening deposit

  • No banking app

Best 5-Year CD Rate: BMO Alto – 5.25% APY

  • Early withdrawal penalty: 6 months of interest
  • Minimum opening deposit: Any amount
  • About: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account. It was founded in 1817 in Montreal, Canada. BMO Alto currently operates out of Chicago, Illinois.
  • No minimum opening deposit

  • No banking app

Best 6- to 9-Year CD Rate: First National Bank of America – 4.60% APY

  • Early withdrawal penalty: 18 months of interest
  • Minimum opening deposit: $1,000
  • About: Headquartered in East Lansing, Michigan, First National Bank of America serves customers nationwide through online banking. It was founded in 1955 and has three locations in Michigan.
  • Lower minimum opening deposit

  • Large early withdrawal penalty

  • To earn full APY, must leave money in CD for 72 months

Best 10-Year CD Rate: Apple Federal Credit Union – 4.00% APY

  • Early withdrawal penalty: All interested earned, up to max of 36 months' worth
  • Minimum opening deposit: $500
  • Membership: Anyone can join Apple Federal by signing up for a $20 membership in the Northern Virginia Athletic Directors, Administrators, and Coaches Association, as well as keeping at least $5 in a savings account.
  • About: Apple Federal was founded in 1956 in Virginia, where it operates over 20 branches today.
  • Low minimum opening deposit

  • 10 years is a long time to leave money in a CD


Many of the banks and credit unions in our best CD rates rankings above also offer high-yield savings accounts and/or money market accounts with competitive rates. These accounts are more liquid, so if you feel you may need access to your money sooner, consider a savings or money market account rather than a CD.

What Is a CD Rate?

A CD rate is an interest rate that shows what a bank or credit union will pay you for depositing your money with them for a certain period of time. For example, if the rate is 5.50% for a 1-year CD, the bank or credit union will pay you 5.50% in interest on your money for keeping it in the account, untouched, for 12 months.

Historical CD Rates

CD rates typically follow the trend of the fed funds rate. So when the fed funds rate is low, CD rates tend to be lower. When the fed funds rate is higher, CD rates tend to be higher.

CD rates hit historic highs in 2023, but that was not always the case. In 2020, the Federal Reserve lowered the fed funds rate to near zero. CD rates followed suit and dropped. In November 2021, the best CD rates nationwide across terms of 6 months to 5 years ranged from 0.70% to 1.35% APY. Over the next two years, the Fed increased the fed funds rate to combat high inflation. By November 2023, the fed funds rate was a target of 5.25%-5.50%, and the best CD rates were between 5.25% and 6.00%.

If and when the Fed lowers its target rate, then CD rates may also decrease. Locking in a high CD rate now could help you maximize your savings.

How Does a CD Work?

Opening a certificate of deposit (CD) is very similar to opening any bank deposit account. The difference is what you're agreeing to when you sign on the dotted line (even if that signature is now digital).

After you've shopped around and identified which CD(s) you'll open, completing the process will lock you into four things:

  1. The interest rate: Locked rates are positive in that they provide a clear and predictable return on your deposit over a specific time period. The bank cannot later change the rate and therefore reduce your earnings. On the flip side, a fixed return may hurt you if rates later rise substantially and you've lost your opportunity to take advantage of higher-paying CDs.
  2. The term: This is the length of time you agree to leave your funds deposited to avoid any penalty (such as 6 months or 1 year, etc.) The term ends on the "maturity date," when you can withdraw your funds penalty-free.
  3. The principal: With the exception of some specialty CDs that allow add-on deposits, this is the amount you agree to deposit into the CD, at the time of opening.
  4. The institution: The bank or credit union where you open your CD will determine aspects of the agreement, such as early withdrawal penalties and whether your CD will be automatically reinvested if you don’t provide other instructions at the time of maturity. Credit unions may also require you to have open a high-yield savings account or money market account before you open a CD.

Once your CD is established and funded, the bank or credit union will administer it like most other deposit accounts, with either monthly or quarterly statement periods, paper or electronic statements, and usually monthly or quarterly interest payments deposited to your CD balance, where the interest will compound.

How Much Does $10,000 Earn in a CD in One Year?

If you invest $10,000 in a CD for one year, you could earn $577—that's based on the best 1-year CD rate offered right now (5.77% APY). CD rates fluctuate and can change, so locking in a high interest rate today could guarantee you the maximum earnings, especially if CD rates drop by next year.

Investors Favor CDs Over Stocks

Investopedia's November 2023 Investor Sentiment Survey found that 28% of readers are choosing CDs more often than other investment accounts due to recent market events. This is slightly down from what readers told us in October when 29% of investors said they were choosing CDs over stocks. CDs and money market funds were at the top of their list, followed by government bonds, ETFs, and stocks. However, only 14% of readers said they would open a CD if they had an extra $10,000 to invest.

Types of CDs

There are several types of CDs in which you can deposit your money. Some have variable rates, while others have fixed rates (like those listed above). Others are connected to a brokerage, and some have large minimum opening requirements.

  • Regular CDs: A regular CD is a CD with a fixed interest rate for a set period of time. Brick-and-mortar traditional banks, as well as online institutions and credit unions, offer these kinds of CDs. They may also be called traditional CDs.
  • Variable-rate CDs: This kind of CD is one where the interest rate can change based on the prime rate, the Consumer Price Index (CPI)Treasury bills, or a market index. The entire term for the CD is still fixed, though, and does not change. These are sometimes called "flex" CDs.
  • Jumbo CDs: A jumbo CD is a CD that requires a larger opening deposit, such as $50,000 or $100,000.
  • No-penalty CDs: A no-penalty CD is exactly what it sounds like—you do not pay a fee for withdrawing your money early.
  • Brokered CDs: A brokered CD is one that an investor can buy through a brokerage firm or from a sales representative other than a bank or credit union.
  • Step-up CDs: A step-up CD is one that allows you to increase your interest rate when you can. Your rate is not fixed for the entire term; you can capitalize on higher interest rates with a step-up CD. A step-up CD may also be called a bump-up CD.
  • Promotional-rate CDs: This CD offers a promotional rate that may be higher than a regular CD rate and is only offered for a certain time period. You may be able to lock in a high rate by opening this kind of CD within a promotional period, like 30 days or before the end of the month.


There are several kinds of CDs you can open. Do your research and ask questions to be sure you understand how the CD works for your savings goals before you buy it.

Pros and Cons of CDs

  • Guaranteed yield for the CD's full term

  • Higher interest rates than liquid accounts

  • Fully predictable earnings and withdrawal date

  • Extremely safe, with virtually no bank or market risk

  • Can deter spending temptations

  • Early withdrawal of the funds incurs a penalty

  • You can’t add to your deposit

  • If rates rise, you may miss out on a higher yield

  • If rates drop, you may wish you’d chosen a longer CD

  • Typically return less than stocks over long periods

What Are the Benefits of a CD?

  • Guaranteed yield for the CD's full term: CDs are a fixed-rate product, so you're guaranteed to earn the rate you lock in until the CD's maturity date, no matter what the Federal Reserve does with the fed funds rate in the future.
  • Higher interest rates than liquid accounts: Banks generally offer higher rates on CDs than on liquid accounts such as savings and money market accounts, in exchange for you keeping the funds reliably on deposit and not being allowed any transactions until the final withdrawal.
  • Fully predictable earnings and withdrawal date: Because you know the CD's rate and term, you can calculate exactly how much you'll earn and when you can withdraw the funds without penalty.
  • Extremely safe, with almost no bank or market risk: When you open a CD at an FDIC bank or an NCUA credit union, up to $250,000 in deposits are federally protected against the institution's failure. You're also safe from the market volatility—and potential loss in value—that can occur with stock and bond investments.
  • Can deter spending temptations: Withdrawing funds before your CD matures cause you to pay an early withdrawal penalty, which can help keep you from giving into temptations to dip into your savings for an unplanned purchase.

What Are the Downsides of a CD?

  • Early withdrawal of the funds incurs a penalty: If you do need to withdraw your CD funds before maturity, the bank or credit union will impose an early withdrawal penalty. Typically, it's calculated as a certain number of months of forfeited interest earnings.
  • You can’t add to your deposit: With the rare exception of add-on CDs, you can only deposit funds into the certificate at the time of initial deposit.
  • If CD rates rise, you may miss out on a higher yield: If you lock in your CD rate, but rates increase shortly after, you may wish you'd waited to score a higher return.
  • If CD rates drop, you may wish you’d chosen a longer CD: Though you'll still be well-served by any CD yield you have locked in before interest rates drop, you may wish you'd locked in a longer-term CD to extend that competitive yield for a longer period.
  • Typically return less than stocks over long periods: Though stock investments involve more risk and less predictability, they may offer greater returns over long periods.

How To Pick the Best CD for You

When choosing a CD, consider the following:

  • Your financial goals: Both short-term goals and long-term goals are important.
  • How much money you have to deposit: CDs have minimums, so if you only have $500 to deposit, you'll need to find a CD with that minimum balance requirement.
  • How long you can leave that money in the CD without touching it: This will help you determine the right term—whether that's a one-year CD or a three-year CD.
  • Interest rates offered for your term and minimum deposit: The higher rate, the more you will earn on your deposit during the CD term.
  • CD type: Is it a bump-up CD or a regular CD? This will ensure you're choosing one that meets your needs and goals.

Once you choose a CD, open the account, and deposit your money to start earning interest.

Christine DiGangi, Investopedia Product Reviews Team

I had two short-term savings goals, so I looked for a 6-month and a 1-year CD with a high APY that I could ladder. I checked out a few of the options on our list and decided to go with CIT Bank and Bread Savings, because applying for the CDs online was really easy, and they offered mobile apps—I’m one of those people who checks their financial accounts frequently, if not daily. I’d keep accounts with both of them (assuming the rates are good when the two terms end).


Some of the best CD rates are offered by online banks and credit unions. So don't just settle for opening a CD with the bank you use every day for your checking account. Big banks like Bank of America, Chase, Capital One, Wells Fargo, American Express, and more offer CDs too, but they may not pay the highest CD rates. It's important to shop around and consider all financial institutions before choosing a CD.

How To Build a CD Ladder

Smart CD investors have a specific tactic for hedging against rate changes over time and maximizing their return. It's called a CD ladder and it enables you to access the higher rates typically offered on 5-year CDs, but with the twist that a portion of your money becomes available every year, rather than every five years. Here's how to do it.

  1. Take the amount of money you want to invest in CDs and divide it by five.
  2. Put one-fifth of the funds into a top-earning 1-year CD, another fifth into a top 2-year CD, another into a 3-year CD, and so forth through a 5-year CD. Let’s say you have $25,000 available. That would give you five CDs of varying lengths, each with a value of $5,000.
  3. When the first CD matures in a year, you take the resulting funds and open a top-rate 5-year CD.
  4. One year later, your initial 2-year CD will mature, and you'll invest those funds into another 5-year CD.
  5. Continue doing this every year with whichever CD is maturing until you end up with a portfolio of five CDs all earning 5-year APYs, but with one of them maturing every 12 months, keeping your money a bit more accessible than if all of it were locked up for a full five years.

CDs and Taxes

Just like how the interest you earn on any money you have in savings, money market, and checking accounts is taxable as interest income at both the state and federal levels, the interest you earn on your money in a CD is too.

Your CD earnings will be reported to the IRS in the year they were earned and posted to your account, so that's when they're taxable—even though you may not withdraw the funds for one or more years into the future.

For example, if you have $1,000 in a 1-year CD with a 5.00% interest rate, you'll earn $50 in interest. You owe taxes on that $50, but not on the $1,000 principal you deposited at the start of the term.

Alternatives to CDs

CDs vs. Traditional Savings Accounts

Traditional savings accounts tend to offer a low interest rate. Banks or credit unions with no high-yield savings account options may only offer traditional savings accounts that pay 0.01% to 0.10%. While the national average for savings rates is 0.46%, according to the FDIC, many banks pay much less. For example, Wells Fargo's Way2Save account pays 0.15% APY and Chase offers just 0.01% with its Chase Savings account. When interest rates are high, the top CD rate can be up to 600x the rate you may be earning on your money in a traditional savings account.

CDs vs. High-Yield Savings Accounts

If you just aren't sold on committing your funds for a certain amount of time, or simply can't afford to because you may need the money in the near term, a high-yield savings account. You'll be free to withdraw and deposit funds as you like, though some institutions will limit how many withdrawals you can make each month. Some savings accounts may also require a minimum balance.

CDs vs. Money Market Accounts

If you're looking for other high-yield accounts, a money market account may serve your needs. Money market accounts offer the feature of allowing you to write checks on the account. They may also come with minimum deposit or balance requirements like savings accounts, and money market account rates can easily compete with savings account rates.

You can always find the top nationally available rates in our daily rankings of the best high-yield savings accounts and best money market account rates. Both accounts have deposit insurance through the FDIC or NCUA.


Some money market accounts come with debit cards, but money market accounts tend to act more like savings accounts.

CDs vs. Bond Options

If you're interested in venturing out of the bank and into the world of bonds, you have numerous options. You could put cash savings into U.S. government I bonds, which are designed to track or beat the inflation rate. Or you could invest in U.S. Treasuries, in which you lend money to the U.S. government for a fixed amount of time. The Treasury notes with durations of four weeks to one year are called T-Bills.

Another option is corporate and municipal bonds. Though it's difficult to research individual bonds on your own, you can easily invest in a bond mutual fund or bond exchange-traded fund which is diversified across a bundle of different bond issues. You can also enter and exit these funds at any time.

CDs vs. Brokerage Options

If you have a brokerage account, you can also hold savings in the brokerage’s cash reserve account or their money market fund (not to be confused with the money market accounts offered by banks). Just be sure to research what rate you’ll earn because in many cases, these brokerage cash accounts pay far less than what you can earn by keeping your money in an outside CD, savings account, or money market account.


Some brokerages may also offer brokered CDs, another option if you're already investing with a broker and want to open a CD.

CDs vs. Annuities

An annuity is a type of fixed-income investment provided by financial institutions. You can buy an annuity and pay into it with monthly payments or a lump sum. Then, in the future, you receive fixed monthly payments. Annuities are insurance contracts that can guarantee income. While they are similar to a CD in that the income is guaranteed as long as you follow the rules of the contract, they are not as short-term as CDs may be. Annuities are most often used in retirement planning. CDs can also be used for retirement planning, but they are usually bought and held for terms of 6 months to 5 years, rather than an annuity which could be owned for 20 years, or something similar. There may also be different withdrawal rules and limits, as well as tax consequences with annuities.

CDs vs. Treasury Bills

Treasury bills are debt obligations backed by the U.S. government. They usually have maturities of one year or less. That timing is similar to CDs with shorter terms, but Treasury Bills may not offer the same level of return on the investment. Rates are comparable, around the 5.50% mark as of the end of October 2023, but they can fluctuate daily. CD rates can also change daily. The thing with T-bills is that you buy them at a discount and when they mature, you receive the full amount back, plus a little more. For example, you might buy a $1,000 T-bill for $950. When the bill matures, you will get $1,000, or $50 more than what you paid for it. This increase of $50 is the interest you earn. CDs are a little less complicated, where you put in a set amount, and then receive a fixed interest rate when it matures.

CD Rates vs. Inflation

CD rates reached historic highs in 2023, while inflation cooled from its recent high of 9.1% in June 2022. In October 2023, inflation was down to 3.2%, while the top rate offered across all CDs was over 6.00%, almost double what inflation was. CDs can help you combat inflation by paying you interest on your money, even though you may be paying more for goods and services. This will not always be the case, though. Interest rates are often increased to help combat high inflation. When inflation drops back to the standard 2% mark the Federal Reserve aims for each year, then interest rates may also drop back from their highs.

Learn More About CDs

Frequently Asked Questions

  • What Is the Highest Paying CD Today?

    The highest-paying CD right now offers a rate of 6.00% APY. That could change, though, as interest rates fluctuate daily and institutions can offer CDs with high interest rates for as long or as short of a time as they want.

  • Who Is Offering High CD Rates?

    Banks and credit unions are both offering high CD rates right now. The best bank CD rates and the best credit union CD rates both are over 5.50%. There also are brokered CDs, such as Vanguard CDs, Charles Schwab CDs, and Fidelity CDs. The rates on these brokered CDs are around 5.00% APY.

  • Are Higher CD Rates Coming?

    The Fed raised interest rates again in July 2023, but held them steady in September 2023 and again in November 2023. And while CD rates have continued to rise higher, what happens to rates further down the road, however, is a guessing game. It's too early to predict whether the Fed will raise rates again in 2023, or if the July increase is the last one of its historic kind.

  • How Can I Earn as Much as Possible With a CD?

    The No. 1 strategy for earning as much as you can from a CD investment is to diligently shop for the top rates. After that, the next most important thing is to keep the funds invested for the CD's full term, to avoid incurring an early withdrawal penalty that will reduce your earnings.

    But unexpected things happen in life, and you may find yourself having no choice but to cash in a CD early. Because of that possibility, it's best to pay attention to the early withdrawal penalties of different CDs you're considering before you buy one.

    Another strategy is not to put all of your CD investment into a single certificate. Instead of opening, say, one $25,000 certificate, you could open five for $5,000 each. That way if you do need to access some cash prematurely, you may only have to break one CD and can keep the other four intact. Additionally, you could open the five CDs at different places at different times, to try to capture rates that may be rising or from institutions that are offering limited-time promotional CDs.

  • Are High Interest CDs Worth It?

    High interest CDs may be worth it if you want to a fixed interest rate and guaranteed returns on your money. In order to get the highest interest offered, you will need to lock up your money for a set period of time. You may also need to deposit a required minimum amount. High interest CDs can be a good part of an investment, saving, or retirement planning strategy.

  • Why Don't I Recognize the Bank Names in Your Rankings?

    You typically won't see big names like Chase, American Express, or Bank of America in our rankings of the best-paying CDs. We do research their rates, but they don't make our list simply because they don't pay enough. Extremely large banks typically don't need to attract customers and deposits in the way that smaller institutions do, so they don't need to use rates as a way to win business. In fact, some of the biggest banks pay interest rates very close to zero, but it depends and can change from month to month. For example, in October 2023, Capital One offered a CD rate of 5.30% for a 1-year CD.

    Our rankings instead bring readers a carefully researched list, updated every day, of the very best rates that are available to anyone nationwide, most of which are provided by small to medium-sized banks, online banks, and credit unions.

  • What Is Considered a Jumbo CD?

    A CD with a minimum deposit requirement of $100,000 or more is usually considered a jumbo CD. While the required minimum deposit is higher than traditional CDs, the interest rates on jumbos are not always higher. That means you could earn a higher interest rate by depositing $100,000 in a traditional CD instead of a jumbo CD. Just shop around to learn which CD is best for your money and situation.

  • Is It Worth Putting Money in a CD Right Now?

    Putting money into a CD right now may be a smart move if you're looking to earn a high interest rate on money you don't need. CD rates are over 5.00% for many terms right now, and locking up your money for six, 12, or even 24 months could help you in the long run if CD rates decline in the next year or two.

  • Financial Institutions We Reviewed

    We researched and reviewed over 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision:

    1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial,, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank,, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

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Investopedia / Alice Morgan

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Board of Governors of the Federal Reserve System. "Open Market Operations."

  2. Federal Deposit Insurance Corporation. “Your Insured Deposits.”

  3. National Credit Union Administration. “Share Insurance Fund Overview.”

  4. IRS. "Topic No. 403, Interest Received."

  5. FDIC. "National Rates and Rate Caps."

  6. U.S. Department of Treasury, TreasuryDirect. “Treasury Bills.”

  7. U.S. Department of the Treasury. "Daily Treasury Bill Rates."

  8. Bureau of Labor Statistics. "Consumer Prices up 9.1 Percent Over the Year Ended June 2022, Largest Increase in 40 Years."

  9. Bureau of Labor Statistics. "Consumer Price Index - October 2023."

  10. Federal Reserve. "Press Release, June 14, 2023."