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Best CD rates for March 2023

Best available rates across different account types for Friday, March 31, 2023

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Best CD rates from top banks

Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision. Here are Bankrate's top picks for banks with the best CD rates:

Bread Savings

Bread Savings Logo
Rating: 4 stars out of 5


Bread Savings is an online bank formerly known as Comenity Direct. Bread Savings offers five terms of CDs. They range from a one-year CD to a five-year CD.

Invest Rate
4.25% - 5.10% APY
$1,500 minimum deposit to open
1 year - 5 years

Marcus by Goldman Sachs

Marcus by Goldman Sachs Logo
Rating: 4.1 stars out of 5


Marcus by Goldman Sachs offers a competitive yield on its CDs. It offers a variety of CD terms and CD types. Its regular CD terms range from a six-month CD to a six-year CD. 

In addition to its nine terms of regular CDs, it also offers three no-penalty CDs and a rate-bump CD. 

All of these CDs have a $500 minimum deposit requirement.

Invest Rate
3.70% - 4.75% APY
$500 minimum deposit to open
6 months - 6 years

Capital One

Capital One Logo
Rating: 4.8 stars out of 5


Capital One offers CDs with terms as short as six months or as long as five years. These CDs have no minimum opening deposit. The bank offers competitive yields, and it doesn’t have a minimum balance requirement.  

Invest Rate
3.30% - 4.30% APY
$0 minimum deposit to open
6 months - 5 years

Synchrony Bank

Synchrony Logo
Rating: 4.4 stars out of 5


Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs. 

Invest Rate
2.25% - 5.00% APY
$0 minimum deposit to open
3 months - 5 years

Barclays Bank

Barclays Logo
Rating: 4.2 stars out of 5


Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. ​​Barclays offers nine terms of CDs ranging from three months to five years.
Invest Rate
4.30% - 5.00% APY
$0 minimum deposit to open
1 - 5 years

Citizens Access

Citizens Logo
Rating: 3.9 stars out of 5


Citizens Access offers five terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one-year to five-years.

Invest Rate
3.30% - 4.75% APY
$5,000 minimum deposit to open
1 - 5 years

American Express National Bank

American Express Savings Logo
Rating: 4.5 stars out of 5


While American Express is perhaps most known for its credit cards, the company also provides savings accounts and CD options. American Express National Bank offers seven terms of CDs. The online bank’s CD terms range from six months all the way to five years.

Invest Rate
0.10% - 4.50% APY
$0 minimum deposit to open
6 months - 5 years

Amerant Bank

Rating: 3.5 stars out of 5


Amerant Bank offers six terms of CDs. Its shortest CD is one year and its longest CD is five years. You’ll need at least $10,000 to open a CD at Amerant Bank.

Invest Rate
2.25% - 5.25%* APY
$10,000 minimum deposit to open
1 - 5 years

Ally Bank

Ally Bank logo
Rating: 5 stars out of 5


Ally Bank offers seven terms of regular CDs. They range from a three-month CD to a five-year CD. 

Invest Rate
2.00% - 5.00% APY
$0 minimum deposit to open
3 months - 5 years

CIT Bank

CIT Bank Logo
Rating: 4.3 stars out of 5


CIT Bank, an online-only bank, is a division of First Citizens Bank. You can open a CIT Bank CD with $1,000 or more. CIT Bank has eight terms of CDs ranging from six months to five years. 

Invest Rate
0.30% - 5.00% APY
$1,000 minimum deposit to open
6 months - 5 years

In the news

The first bank failures since 2020 are a wake-up call for consumers. While failures of this size are unusual, they do occasionally happen. Here’s how you can stay protected: 

  • Make sure your money is deposited at an FDIC bank
  • Avoid having uninsured excess deposits. Confirm your money is within FDIC limits by going to the FDIC’s Electronic Deposit Insurance Estimator (EDIE) or calling the FDIC. 

Top CD rates by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term. (Note: Annual percentage yields (APYs) shown are as of March 31, 2023, and may vary by region for some products.)

Caret Down
Bank Rate Minimum Deposit To Open
Popular Direct 4.10% APY $10,000
Citibank 4.00% APY $500
TIAA Bank 4.00% APY $1,000
Bank Rate Minimum Deposit To Open
Bask Bank 4.85% APY $1,000
Live Oak Bank 4.80% APY $2,500
Bank5 Connect 4.75% APY $1,000
Bank Rate Minimum Deposit To Open
Limelight Bank 5.15% APY $1,000
America First Credit Union 5.10% APY $500
Popular Direct 5.10% APY $10,000
Bank Rate Minimum Deposit To Open
First Internet Bank of Indiana 4.54% APY $1,000
Randolph-Brooks Federal Credit Union 4.51% APY $20,000
Bread Savings 4.50% APY $1,500
Bank Rate Minimum Deposit To Open
BMO Harris 4.50% APY $1,000
Popular Direct 4.50% APY $10,000
First Internet Bank of Indiana 4.49% APY $1,000

National average interest rates for CDs

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average.

Here are the current average rates for the week of March 29, 2023, according to Bankrate's weekly survey of institutions:

CD term CD national average APY
1 year 1.64%
2 year 1.42%
3 year 1.20%
4 year 1.23%
5 year 1.24%

Note: Average APYs are shown. See the table at the top of the page for APY comparisons.

How to choose a CD

CDs are a good option for longer-term goals or for money that you’re comfortable locking away for a set period of time.

A CD can help you save for longer-term goals when you know just when you’ll need this money in the future. Follow the steps below to choose the right CD for you:

  1. Determine what the money will be earmarked for. An emergency fund, a short-term goal or money you’re not sure when you’ll need might work better in a high-yield savings account or money market account. You may also want to consider a no-penalty CD.
  2. Figure out when that money will be needed and decide your risk tolerance for the funds. Money that needs to be safe and can’t be lost should usually be in a Federal Deposit Insurance Corp. (FDIC) account that’s within FDIC limits and guidelines.
  3. Pick a term that aligns with your savings goals. Terms can range from just a few months to several years.
  4. Shop around and compare rates. You’ll want to research banks and credit unions, to find the best rates and make sure the minimum opening deposit is in line with how much you’re putting in this CD. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer a competitive yield.
  5. Open the CD and deposit the funds into your account.

What to know about CDs

Bankrate regularly analyzes banks, gets insights from top financial experts, and compiles industry data to provide the information you need to make an informed financial decision when selecting a CD.

What is a CD and how do they work?

A CD is a type of account offered by banks and credit unions that pays interest on a deposit amount for a set period of time. These accounts typically pay a guaranteed fixed rate of return for the duration of the CDs term. 

Generally, the longer the term, or amount of time you agree to lock up your money, the higher the interest rate. However, withdrawing your money before the term ends will likely result in an early withdrawal penalty.

Types of CDs

Financial institutions offer a wide range of CDs to fit different financial situations. Take time to consider which type of CD is best for you.

Traditional CDs

Traditional CDs are the most common and have a fixed APY for the CD’s term. These CDs usually don't let you deposit additional funds before the CD matures and also tend to have strict early withdrawal penalties.

When this CD makes sense: You know exactly when you need the money and there’s no chance you need it before. Great for CD ladders or another CD investing strategy where timing is important.

No-penalty CDs

Traditionally, CDs are known as time deposit accounts. So if you withdraw from a CD before it matures, you’ll usually incur a penalty that’s equal to a certain amount of interest earned during a period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD earlier than a year. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw your money early without having a penalty fee cut into your interest earnings. 

A bank may require that you wait at least some time, generally around six or seven days, before you’re able to withdraw from a no-penalty CD and some banks may not allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CDs but can be higher than some high-yield savings accounts or money market accounts.

When this CD makes sense: You’re mostly confident that you won’t have to withdraw the money before the CD matures, but you want to keep some flexibility in case you have to tap it. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs

These types of CDs allow you to request an increase in your rate during the CD term under certain conditions. Institutions that issue this CD option usually only allow one bump-up per term. For example, imagine purchasing a three-year CD at a given rate, and one year into the term, the bank offers an additional half-point rate increase. With a bump-up CD, you're allowed to request a rate increase for the remainder of the term. The disadvantage is that bump-up CDs often pay lower initial rates than traditional CDs. 

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

Are CDs safe?

CDs at either a FDIC-insured bank or at a credit union regulated by the NCUA and insured by the NCUSIF are safe as long as it’s within insurance guidelines. These accounts are safe at online banks, brick-and-mortar banks and credit unions because they’re backed by the full faith and credit of the U.S. government. Just make sure you’re not exceeding the insurance limits. The standard insurance limit is $250,000 per depositor, per insured bank, for each account ownership category at an FDIC-insured bank. For federally insured credit unions, the standard share insurance is $250,000 per share owner, per insured credit union, for each account ownership category.

Who should get a CD?

Someone looking for a low-risk place to stash cash and get a guaranteed rate of return should consider getting a CD. They can be good, safe investments for short- to medium-term goals, like saving for a new car or for a down payment on a home.

A CD is worth considering for the following people:
  • Time specific goal-setters: For a person looking to buy something in two years, an 18-month CD could be a great option. Just make sure you definitely won’t need that money during the CD term or else you could get stuck paying a costly penalty for not leaving the money in the account. 
  • Low-risk investors: Instead of guessing what direction savings account yields will be heading in a few years, you can calculate your interest earnings right away with a CD. 
  • Impulse spenders: A CD, with its early withdrawal penalty, can help prevent you from spending your money. 

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

It's important to consider the interest rate you're getting, how often the interest compounds and whether you're more comfortable with a CD from an online bank or from a traditional institution with branches. 

Here are some of the pros and cons of CDs:


  • Longer-term CDs typically have a higher APY than money market accounts or savings accounts.
  • CDs are a good place to keep money that you want to save and don’t want to easily touch and spend.
  • CDs can help you separate money for financial goals or future expenses.
  • Deposit insurance covers accounts at FDIC banks up to at least $250,000. And at an NCUA credit union, your money is federally insured to at least $250,000.
  • A CD can diversify your savings plan with a guaranteed rate.
  • Your principal is safe, if you keep your money in a CD for the full term.


  • Your money is in an account for potentially a long period of time.
  • Many CDs have early withdrawal penalties.
  • Your money is stuck in a lower-yielding CD if rates rise substantially. And the early withdrawal penalty may negate any benefit of switching to a higher-yielding CD.
  • You could potentially earn greater rates of return in the stock market or by investing in other securities.

The Federal Reserve and CD rates

The Federal Reserve's interest rate decisions can impact the rates that banks offer on CDs. When the Fed raises or lowers the federal funds rate, banks typically respond by moving savings and money market account yields in the same direction. CDs tend to track Treasurys closely. In 2019, a year when the Fed lowered rates three times, CDs generally decreased before or after a Fed rate cut.

Two emergency Fed rate cuts in March 2020, and decreasing Treasurys that year, caused high-yield CDs to decrease.

In 2022, the U.S. central bank raised rates several times in a bid to rein in inflation. Even before the Fed's first move in March 2022, some banks that pay competitive yields began offering higher APYs on CDs.

The Fed has raised rates during nine straight meetings, starting in March 2022. 

Are CD rates going up?

The national average for CD rates has been increasing during most of the year. The Federal Reserve and competition among banks are two reasons CD rates have been increasing rapidly this year.

The Fed, whose policies directly affect savings account rates and can also influence CD rates, continues to raise rates — causing competitive banks to raise CD APYs to attract deposits.      

CDs vs. other savings accounts

CDs vs. traditional savings accounts

Savings and money market accounts are more liquid than CDs. That means the funds you store in those types of accounts are easier to access and have fewer withdrawal penalties and limitations. This makes savings accounts better for your emergency fund. You could withdraw the savings you’ve stashed in a CD, but be prepared to pay a penalty if you take your money out before the CD’s maturity date (unless you’ve purchased a no-penalty CD).

CDs vs. high-yield savings accounts

At some banks, it’s common to see a one-year CD with a higher APY than a high-yield savings account. 

The differences between CDs and high-yield savings accounts are: 

  • A high-yield savings account is generally liquid, meaning you can usually withdraw money without a fee. A CD usually has an early withdrawal penalty. (A savings account may charge a fee if a certain amount of withdrawals are made during a monthly statement cycle. And it’s possible for a savings account to have an early closeout fee.) 
  • High-yield savings accounts generally have variable APYs. While CDs usually have fixed APYs.

CDs vs. money market accounts

The gap between interest rates tied to CDs and savings accounts has narrowed. But CDs are more likely to pay a higher yield than savings accounts or money market accounts.

CDs and money market accounts have some similarities. Both are types of savings products that banks and credit unions offer. Both are considered safe, as long as they’re insured by the FDIC at banks or the NCUSIF at credit unions. Savers opening a CD or money market account might have to meet higher minimum deposit requirements than they would with a savings account.

However, money market accounts offer more liquidity than CDs, often providing the ability to write a limited number of checks per month directly out of the account. Some money market accounts offer a debit card. Those liquidity features aren't something you'll find with CDs.

In exchange for less liquidity, however, CDs typically offer a higher interest rate than money market accounts.

CDs vs. bonds

Investors have a lot to consider when deciding between a CD and a bond. Traditional CDs from banks are insured by the Federal Deposit Insurance Corp. (FDIC), or from the National Credit Union Share Insurance Fund if you’re getting a CD from a National Credit Union Administration (NCUA) credit union. CDs are safe investments that typically pay a fixed interest rate. In other words, you know how much you’re earning upfront. You’re also guaranteed to receive that amount of interest for the term and get your full principal amount back, as long as you don’t make any premature withdrawals. 

If you’re interested in having more flexibility and you want the chance to earn a higher yield, you may want to consider investing in a bond. A bond is a loan you make to a government or a corporation to receive a rate of return. You can sell a bond before it matures without getting hit with an early withdrawal penalty, but you may get back more or less than your original investment if interest rates have moved. With municipal bonds, the interest you earn is often exempt from taxes.

There are many different types of bonds, and some are riskier than others. Bonds aren’t protected by FDIC or NCUSIF insurance like CDs are. And the value of your bonds will vary depending on what’s happening with interest rates. If interest rates are rising, the price of your bonds will likely fall and vice versa.

CDs and taxes

Are you taxed on a CD when it matures?

Yes, you will be taxed on the interest earned on a CD that contains non-qualified money — money that you already paid income tax on. However, if the money is in a traditional IRA CD, you will pay taxes when the money is withdrawn. This is because traditional IRAs are tax-deferred accounts.

In some cases, you can deduct your CD on your taxes. If you’re eligible to contribute to a traditional IRA CD, you may be eligible for a full deduction up to your contribution limit or a partial deduction. Your modified adjusted gross income, your marital status and whether you’re covered by a retirement plan at work are some of the factors that will determine if you’re eligible for an IRA deduction.

Does cashing a CD count as income?

Interest earned from CDs is an example of taxable interest, according to the Internal Revenue Service. When you earn $10 of interest or more, you should receive Copy B of Form 1099-INT or Form 1099-OID. Even if you don’t receive a 1099, all taxable and tax-exempt interest must be reported on your federal income tax return. Also, interest may be called dividends.

One exception to this would be, for instance, if the funds were rolled over from a 401(k) into a traditional IRA CD and those funds have never been taxed. If you’re withdrawing from a traditional IRA CD in that situation, the money that you withdraw will count as income.

How to build a CD ladder

CD laddering is a method to space out maturity dates on your CDs. This investment strategy involves savers buying multiple CDs at once that mature at different intervals. It’s a way to both spread out when the money is available and protect yourself from being stuck in a long-term CD if rates rise.

"Looking for a regular stream of interest income? Consider a CD ladder where your money is diversified over a range of maturity dates, structured so you get to reinvest at consistent intervals."
- Greg McBride, CFA, Bankrate’s Chief Financial Analyst

Generally, the longer your CD term, the higher your rate of return. One way to grow your savings and earn as much interest as possible is to build a CD ladder. You could buy several CDs with different term lengths at one time, giving you the chance to invest in a longer-term CD with a higher yield and short-term CDs that will mature within a shorter period of time, like six months or one year. For instance, a CD laddering plan of three CDs might have a one-year CD, a two-year CD and a three-year CD.

If you have $15,000 to invest, you could invest $5,000 in each rung:

  • $5,000 in a one-year CD
  • $5,000 in a two-year CD
  • $5,000 in a three-year CD

CD laddering can also shield you from interest rate changes. If rates are rising, you’ll be able to take advantage of higher yields when your existing CDs mature. And if interest rates are falling, you’ll be happy that you locked up your savings when your bank was paying a higher rate. Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising interest rate environment, so you can more quickly take advantage of higher rates. Conversely, locking into CDs with longer terms makes more sense when rates are moving lower because it enables you to continue earning higher CD yields than the market currently offers.

Certificate of deposit FAQs

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched many banks and at least twice a month go to bank websites to make sure readers stay up to date on the latest rates and bank products.

We select banks that have high annual percentage yields (APYs) and that are popular and broadly available, and we include some of the largest banks.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.