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Best CD rates for June 2023

Best available rates across different account types for Thursday, June 01, 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% - 5.20% 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% - 5.05% APY
$500 minimum deposit to open
6 months - 6 years

Capital One

Capital One Logo
Rating: 4.6 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
3.90% - 4.75% APY
$0 minimum deposit to open
6 months - 5 years

Synchrony Bank

Synchrony Logo
Rating: 4.3 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

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% - 5.00% APY
$5,000 minimum deposit to open
1 - 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% - 4.90% APY
$0 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% - 4.25% 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
2.75% - 5.25%* APY
$10,000 minimum deposit to open
1 - 5 years

Ally Bank

Ally Bank logo
Rating: 4.8 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
2.50% - 4.80% APY
$0 minimum deposit to open
3 months - 5 years

CIT Bank

CIT Bank Logo
Rating: 4.6 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 Federal Reserve raised rates for a 10th time on May 3. This could potentially be the Fed’s last rate increase in the current cycle. But it’s impossible to predict the future of rates.

Now could be the time to lock in a long-term CD or even a one-year CD. But before you make this decision, make sure this is money you won’t need for the term of the CD.

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 May 31, 2023, and may vary by region for some products.)

Caret Down
Bank Rate Minimum Deposit To Open
America First Credit Union 4.50% APY $500
Popular Direct 4.50% APY $10,000
Bank of America 4.00% APY $1,000
TIAA Bank 4.00% APY $1,000
Bank Rate Minimum Deposit To Open
Bask Bank 5.10% APY $1,000
First Internet Bank of Indiana 5.06% APY $1,000
Vio Bank 5.05% APY $500
Bank Rate Minimum Deposit To Open
CIBC Bank USA 5.27% APY $1,000
BrioDirect 5.25% APY* $500
Limelight Bank 5.25% APY $1,000
Bank Rate Minimum Deposit To Open
Popular Direct 4.55% APY $10,000
First Internet Bank of Indiana 4.54% APY $1,000
Bread Savings 4.50% APY $1,500
Bank Rate Minimum Deposit To Open
Barclays 4.50% APY $0
Popular Direct 4.50% APY $10,000
First Internet Bank of Indiana 4.49% APY $1,000

*The regular and promotional CDs at BrioDirect have the same APY as of May 31, according to the bank’s website. The bank’s promotional CD is only for new accounts opened on May 18 or after this date. This CD renews as a standard 12-month CD after its original term.

**Rate not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

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 May 31, 2023, according to Bankrate's weekly survey of institutions:

CD term CD national average APY
1 year 1.71%
2 year 1.39%
3 year 1.21%
4 year 1.21%
5 year 1.22%

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. Follow the steps below to choose the right CD for you:

  1. Determine what the money will be earmarked for. Money you may need in the near future, such as for an emergency fund or short-term goals, usually works better in a liquid account such as a high-yield savings account or money market account. A no-penalty CD may also be a good place for money you might need access to before the CD matures.
  2. Figure out when you’ll need the money in the CD and pick a term that aligns with your savings goals. Terms can range from just a few months to several years.
  3. Shop around and compare rates. Research banks and credit unions to find the best rates as well as a minimum opening deposit that’s in line with the amount you plan to put in the 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.
  4. Open the CD and deposit the funds into the 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 earns interest on your money for a set period of time. CDs typically pay a fixed rate of return for the duration of the term. 

Sometimes, longer CD terms will earn higher interest rates than shorter terms. No matter the term length, withdrawing your money before the term ends will likely result in an early withdrawal penalty.

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Caret Down

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.

If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain 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 before the year is up. 

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty. 

A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower 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?

Your CD is safe at either an FDIC-insured bank or an NCUSIF-insured credit union, as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government. Just make sure you’re not exceeding the insurance limits.

For federally insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.

Who should get a CD?

Savers looking for a low-risk place to earn a guaranteed rate of return should consider getting a CD. They can be a good choice for short- to medium-term goals, such as saving for a new car or for a down payment on a home.

A CD is worth considering for the following people:

Invest Rate
Low-risk investors

For a person looking to make a purchase in a set number of years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Clock Wait
Time specific goal-setters

For a person looking to make a purchase in a set number of months or years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Lock Secure
Impulse spenders

A CD can help keep you from spending your money on a whim, thanks to its early withdrawal penalty.

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.


  • Checkmark

    Some CDs earn a higher APY than money market accounts or savings accounts.

  • Checkmark

    CDs are a good place to store funds that you don’t want to be able to dip into too easily.

  • Checkmark

    CDs can help you separate money for financial goals or future expenses.

  • Checkmark

    Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.

  • Checkmark

    A CD can diversify your savings plan with a guaranteed rate.

  • Checkmark

    Your principal remains intact if you keep your money in a CD for the full term.


  • CDs tie up your money for a potentially long period of time.

  • Many CDs have early withdrawal penalties.

  • Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.

  • You could potentially earn better rates of return in the stock market or by investing in other securities.

The Federal Reserve and CD rates

Federal Reserve interest rate decisions can impact the APYs that banks offer on CDs. When the Fed raises or lowers the federal funds rate, competitive banks often respond by moving yields on CDs and other deposit accounts in the same direction. 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 played a role in high-yield CD rates going down.

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.

Are CD rates going up?

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

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


CDs vs. other savings accounts

CDs vs. traditional savings accounts

Savings and money market accounts are more liquid than CDs, meaning the funds you keep in those types of accounts are easier to access without penalties or limitations. This makes savings accounts better for your emergency fund. You could withdraw the savings you’ve placed in a CD, but be prepared to pay a penalty if you take the money out before the CD’s maturity date (unless you’ve purchased a no-penalty CD).

CDs vs. high-yield savings accounts

These days, it’s common enough for banks to offer one-year CDs that pay better APYs than their high-yield savings accounts.

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

  • A high-yield savings account is a liquid account that allows you to withdraw money without a fee, whereas a CD usually imposes an early withdrawal penalty. (A savings account may charge a fee if you exceed a certain number of withdrawals during a monthly statement cycle. It’s also 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 are deposit products that share some key similarities. Commonly offered by banks and credit unions, both are considered safe as long as they’re held with federally insured institutions. Savers opening a CD or money market account might have to meet higher minimum deposit requirements than they would with a savings account.

Money market accounts offer more liquidity than CDs, though, often providing the ability to write a limited number of checks each month directly out of the account — and some also come with a debit card. These 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 CDs and bonds. CDs from federally insured financial institutions are covered by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Share Insurance Fund (NCUSIF) for credit unions.

CDs typically pay a fixed interest rate, so you know how much you’re earning up front. You’re also guaranteed to receive the same interest rate for the entire term and receive your full principal amount back, as long as you don’t make any premature withdrawals. 

On the other hand, bonds offer more flexibility and the chance to earn a higher yield. A bond is a loan you make to a government or a corporation to receive some interest. You can sell a bond before it matures without getting hit with an early withdrawal penalty, and 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 fluctuate based 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 qualify for either a full deduction up to your contribution limit or a partial deduction. 

Factors that determine whether you’re eligible for an IRA deduction include your modified adjusted gross income, your marital status and whether you’re covered by a retirement plan at work.

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 or more in interest, 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.

An 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 stagger the maturity dates on your CDs. This investment strategy involves buying multiple CDs at once that mature at different dates. It’s a way to spread out when the money becomes available and to keep from having all of your money 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

When longer CD terms earn higher rates of return, you can grow your savings and earn as much interest as possible by building a CD ladder. In doing so, you would buy several CDs at the same time that have different term lengths. This gives you the chance to invest in longer-term CDs with higher yields as well as short-term CDs that will free up some of your money sooner. 

For example, 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 that could otherwise hurt you. If rates are rising, you’ll be able to take advantage of higher yields the next time one of your laddered CDs matures. On the other hand, if interest rates are falling, you’ll be glad you locked up your savings when the bank was paying more favorable yields.

Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising rate environment so you can more quickly take advantage of higher rates. Conversely, committing to CDs with longer terms makes more sense when rates are decreasing because it enables you to continue earning higher CD yields than the market currently offers.

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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.
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