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It’s not always easy finding competitive yields if you own a business. A business CD can be a great way to earn a fixed annual percentage yield (APY) on longer term money.
This page will provide you with some of the top yields available for your business.
What is a business CD?
A business CD is a CD that only a business can open. It’s probably easier to find a competitive yield on a personal CD than a business CD because some online banks that are federally insured by the Federal Deposit Insurance Corporation (FDIC) don’t have business CDs.
Bankrate’s picks for the top business one-year CDs
- First Internet Bank: 5.35 percent APY
- America First Credit Union: 5.25 percent APY
- Zions Bank: 5.20 percent APY
- Live Oak Bank: 5.20 percent APY
- Santander Bank: 5.00 percent APY
- Suncoast Credit Union: 5.00 percent APY
- EverBank: 4.75 percent APY
- First Technology Federal Credit Union: 4.55 percent APY
Note: Annual percentage yields (APYs) shown are based on a $25,000 balance and as of Sept. 21, 2023. They may vary by region for some products. Bankrate includes only Federal Deposit Insurance Corp. (FDIC) banks or National Credit Union Administration (NCUA) credit unions in its listings. Relationships CDs weren’t considered in this list.
A closer look at the top one-year business CDs
First Internet Bank, 5.35 percent APY
Overview: First Internet Bank has been around since the late ’90s. It offers eight business CDs ranging from three months to five years.
Perks: First Internet Bank offers business CDs with terms ranging from three months to five years. It offers eight terms of business CDs.
What to watch out for: Its CDs that have a term of two years or longer have an early withdrawal penalty of 360 days of interest.
America First Credit Union, 5.25 percent APY
Overview: You only need $500 to open one of its business CDs. You should be able to find any business CD term you’re looking for at America First Credit Union.
Perks: America First Credit Union offers a full range of bump-up CDs and a flexible CD.
What to watch out for: Each member of America First Credit Union can only have a total of $100,000 in all of their flexible CDs at the credit union.
Zions Bank, 5.20 percent APY
Overview: You can open a Zions Bank with $1,000. Zions Bank has business CD APYs on its website for CDs with terms ranging from one month to five years.
Perks: Zions Bank offers what is generally the shortest CD term available: a one-month CD.
What to watch out for: Only business CD APYs for Idaho and Utah are on Zions Bank’s website.
Also, the bank’s one-month CD earned a very low APY during Bankrate’s view of Zions Bank.
Live Oak Bank, 5.20 percent APY
Overview: Live Oak Bank offers terms of CDs ranging from three months to five years. It also has a business savings account that earns a competitive yield.
Perks: Live Oak Bank offers an insured cash sweep up to $10 million worth of deposits with the bank.
What to watch out for: You need at least $2,500 to open a Live Oak Bank business CD. Also, Live Oak Bank business CDs have an early withdrawal penalty of 90 days of interest on the principal amount you withdraw for its three month through 18 month CDs. And on CDs with a term two years or longer you’ll pay 180 days of interest on the principal amount that you withdraw.
Santander Bank, 5.00 percent APY
Overview: Santander Bank offers business CDs with terms ranging from 3 months through 35 months. The bank has around 420 locations in nine states in the U.S.
Perks: Santander Bank had some competitive yields on some of its terms of business CDs during Bankrate’s review.
What to watch out for: Santander Bank doesn’t have business CDs with a term of longer 35 months on its website. And a couple of terms of CDs had very low yields during Bankrate’s review.
Suncoast Credit Union, 5.00 percent APY
Overview: Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union is the largest credit union in Florida and in early 2022 it surpassed one million members.
Perks: You only need $500 to open a Suncoast Credit Union business CD.
What to watch out for: You need at least $100,000 to earn the most competitive yield on a CD at Suncoast Credit Union.
EverBank (formerly TIAA Bank), 4.75 percent APY
Overview: TIAA became EverBank on Aug. 1.
Perks: EverBank has a 3-month CD for businesses.
What to watch out for: The bank’s business CDs charge an early withdrawal penalty of .25 of the amount of interest you would have earned on the principal balance during the CD’s term.
First Technology Federal Credit Union: 4.55 percent APY
Overview: First Tech Federal Credit Union has five terms of regular business CDs. They range from a six-month CD to a five-year CD.
Perks: First Tech Federal Credit Union has a 13-month bump up CD.
What to watch out for: You have to meet the First Tech Federal Credit Union membership requirements to open a CD at this credit union. Membership can be obtained by joining the Financial Fitness Association or the Computer History Museum. Also, you can become a member if someone in your household or family is a member. And you can become a member if you live or work in Lane County in Oregon or if a family member – or you – work for the state of Oregon or a company listed on First Tech’s website.
What to look for in a business CD
- You want to try to find a competitive yield for your money. As a brick-and-mortar business it's worth checking the bank down the street to see if it has a competitive yield. (And it might have a competitive yield through a relationship rate.) But often online banks have the most competitive CD yields.
- The early withdrawal fee is going to be the main fee to know before opening a business CD. This way you know what the worst-case scenario is if you have to break a CD term early.
- Branch access
- In a lot of cases, you might not need to have a CD – or CDs – at the bank down the street. But businesses that accept cash are generally going to need a brick-and-mortar bank – and a checking account – that's convenient to you.
- When you’ll need the money
- You'll probably want to consider a business savings account instead of a business CD if you don't know the time horizon for this money. Or if you think you'll need to use it soon. This will save you from incurring an early withdrawal penalty.
Methodology for Bankrate’s best business CDs
Bankrate’s editorial team receives no direct compensation from advertisers, and our content is fact-checked to ensure accuracy. Our editorial and research teams analyze more than 100 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
Account minimums, monthly service fees and ATM charges are some important things to consider when choosing a savings account. It’s easy to find a savings account that doesn’t charge fees and has minimal balance requirements. Many online banks offer them, and they are a good fit for many consumers.
Choosing a bank or credit union that’s backed by the federal government will ensure your money is safe. Be sure to follow FDIC and NCUA limits and guidelines.
These financial institutions are featured in our rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, UFB Direct, U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.