Use this free CD calculator to find out how much interest is earned on a CD.
The experts at Bankrate have compiled our best available CD rates into an easy-to-read table so you can compare rates and minimum deposits across banks.
|Term||Bank||CD Rate (APY)||Minimum Deposit|
|6 months||TIAA Bank||1.75%||$5,000|
|1 year||PurePoint Financial||2.60%||$10,000|
|18 months||Goldman Sachs Bank USA||2.45%||$500|
|2 years||Capital One 360||2.50%||$0|
|3 years||TIAA Bank||2.80%||$5,000|
|4 years||Synchrony Bank||2.80%||$2,000|
|5 years||Capital One 360||3.00%||$0|
|6 years||Goldman Sachs Bank USA||3.10%||$500|
A CD is a Certificate of Deposit, which is a type of savings account, found at banks and credit unions, that pays a set interest rate on money deposited. In exchange, you agree to keep the full deposit in the account for a set term. Common terms include 6, 12, 18, 24, 36, 48 and 60 months.
Generally, the longer the term, the higher the interest rate. CDs with higher APY rates give you a better yield on your deposited money. Just be sure to consider factors like minimum deposit requirements and monthly fees when choosing the best CD rate for your financial goals.
The biggest risk associated with traditional CD accounts is the penalty institutions charge for withdrawing money before the CD's maturity date. Early withdrawal penalties can often eat up any interest earned and some of the principal investment.
But overall, certificates of deposit are a safe place to stash cash. They are insured up to $250,000 at banks by the Federal Deposit Insurance Corp. and at credit unions by the National Credit Union Administration.
In addition to traditional CDs, some institutions offer specialty CD rate options. These can include jumbo CDs, bump-up CDs, liquid CDs, callable CDs and zero-coupon CDs.
Certificates of deposit are best for those with some financial flexibility seeking a safe investment with a fixed return. If you're positive you won't need the cash for a set period of time and you can meet the minimum deposit required, a CD can be great way to save money over time.
CDs can also be a great alternative to stashing money in a savings account, since CDs often pay more than high-interest savings vehicles found at banks or credit unions.
Choosing the best CD rate can be tricky, but it is certainly not impossible. There are thousands of banks out there, each with multiple CD term options offering different APY rates with varying minimum deposits and fees. Bankrate is here to help you choose the best CD rate for your savings and spending needs. Our experts regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of rates.
All of the CD accounts below are insured by the FDIC at banks or the NCUA at credit unions. Find the best CD rates for you by considering the annual percentage yield (APY), term, minimum deposit required and the penalty charged for early withdrawal. Our goal is to help you make the safest financial decision possible.
The average interest on a CD varies by term. Typically, shorter-term CDs have lower rates than longer-term CDs.
Here are the current average rates for the week of August 1, 2018, according to Bankrate's weekly survey of institutions:
|CD Term||CD Rate National Average|
Note that those are average rates. Savvy savers can almost always find banks and credit unions offering well above those averages.
The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
Traditional CDs come with a fixed interest rate that's locked in for the entire term. While it's possible to withdraw money before the CD's maturity date, most institutions have stiff early withdrawal penalties for doing so. That makes it wise to keep the full deposit in the CD account until the term is completed.
However, some banks and credit unions offer specialty CDs that allow some flexibility. One such CD is a liquid CD account, which provides the option to withdraw money without incurring a penalty. The interest rate paid on liquid CDs, and similar types of CDs, is typically lower than that of a traditional CD.
The duration of CD accounts typically determines the rate; the longer the term, the better your CD interest rate will be. Luckily, CD rates come in a wide variety of terms, from a 1-year CD that offers a 2.25% APY with no minimum deposit to a 5-year CD rate that offers a 2.85% APY with a $2,000 minimum amount.
Overview: Capital One is often associated with credit cards, but it also provides a range of depository and lending products to consumers through Capital One 360, an online banking subsidiary. Capital One 360 offers a wide range of CDs, a savings account, a savings IRA and a checking account. Yields from Capital One 360 tend to be highly competitive. In fact, CD rates from the bank are consistently among the top nationally available options. Along with stellar rates, Capital One's banking products come with the security of being insured by the Federal Deposit Insurance Corp.
Perks: High yields and low fees make CDs from Capital One 360 top contenders. And it offers a wide range of term options, from six months to 60 months. But Capital One also provides quality banking tools for money management and excellent customer service. In fact, it has a number of Capital One Cafes spread throughout the country, where you can go to bank, get answers to financial questions and connect with other people.
What to watch for: Capital One has limited branch access, other than Capital One Cafes, which are located in 10 states. Deposits and transfers are mainly done through the bank's mobile app. And while Capital One's CD rates are very competitive, it's often possible to find better yields from other banks.
Overview: Marcus is the consumer banking arm of investment firm Goldman Sachs. It offers a range of savings products and personal loans. That includes a number of CD options and a high-yield savings account. And like other online banks, its rates are highly competitive. Marcus often is found within the group of banks offering the highest CD rates across all terms. In fact, Marcus guarantees that you'll receive the highest rate it offers on a CD within 10 days of opening an account, as long as you deposit $500 during that time. So, if you purchase a CD and the bank's rate goes up within 10 days after you purchase, you'll receive the higher rate.
Perks: In addition to high yields, Marcus offers a wide range of terms on its CDs — from six months to six years — providing plenty of flexibility. And its 10-day guaranteed rate on CDs means you won't miss out on a higher return.
What to watch for: Because it's an online bank, Marcus doesn't have any branches. It also doesn't have a mobile app. That means you'll need to call customer service on weekdays or look at the FAQ section to get answers about your account. Marcus also doesn't offer a checking account. If you're looking for a full-service bank, you may be better served elsewhere.
Overview: Synchrony Bank, formerly known as GE Capital Retail Bank, offers a number of depository products for consumers, including CDs, money market accounts and savings accounts. As an online bank, it has limited branches. It also doesn't offer a checking account. But it does consistently offer some of the best rates available on CDs, with terms ranging from three months up to 60 months. And Synchrony has a highly rated customer service department available by online chat or by phone seven days per week. Customers of Synchrony get access to loyalty perks, including complimentary identity theft resolution services and travel and leisure discounts. "Diamond customers" get a dedicated customer service number, access to webinars, three free wire transfers per statement cycle and unlimited ATM reimbursements.
Perks: High rates are undeniably one of the biggest perks of CDs at Synchrony. But Synchrony also frequently offers CD specials that come with specialty terms. Those specials often come with high rates and provide an alternative to the typical CD terms. In addition, you'll find 24/7 online account management access, no monthly service fees and perks for being a customer.
What to watch for: Synchrony Bank isn't a full-service bank. It doesn't offer a checking account. That means you won't have much liquidity. But sometimes that can be a good thing, if you're looking to keep your hands off your cash while it grows.
Overview: Barclays is popular for its credit cards and personal loans, but it's also a strong contender in the category of deposit accounts. In fact, the bank offers a full suite of products, including a slew of online CDs and an online savings account. Its rates are competitive across the board. In the U.S., its banking operation is only online. That means Barclays can save on overhead costs and consistently pass that savings on to customers by offering some of the top available rates on CDs and savings accounts. The bank's CD terms range from three months to 60 months and require no minimum deposit, something that's hard to find out of a high-yield CD.
Perks: Very competitive interest rates, no minimum deposit requirement and daily compounding interest make CDs from Barclays hard to beat. You'll also get the benefit an online banking experience and no hidden monthly fees.
What to watch for: Barclays, like many other online-based banks, isn't a full-service banking institution. It doesn't have a checking account, ATM network, mobile app or branch locations. If you're comfortable banking online, and only want to use Barclays for its savings products, credit cards or personal loan features, it can be a good fit. Otherwise, you might want to look elsewhere. And though Barclays CD rates are very competitive, you may be able to lock in a higher rate from another online institutions.
Overview: Over the past several years, Ally Bank has become well-known for offering high-yield savings products to consumers. It not only offers a suite of high-yield CDs, including a raise-your-rate CD and no-penalty CD, it also provides an online savings account, money market account and a checking account. CDs terms from the bank range from three months to five years, offering some flexibility. In addition to its savings products, it also provides credit cards, auto financing, home loans and investment products. If you're searching for a full-service online banking experience, Ally is worth consideration.
Perks: Ally consistently offers some of the highest CD rates available. And it has tier levels for its CD terms according to your deposit. The more you deposit, the better your return. It also doesn't charge any maintenance fees and compounds interest daily.
What to watch for: Notably, Ally doesn't require a minimum deposit to open a CD. But you'll earn less. In order to earn the highest rate out of a CD at Ally, you'll need to put down a steep minimum deposit of $25,000. And while the top rates from Ally Bank are very competitive, you can often earn more with a smaller minimum deposit requirement from other online banks. That said, if you're looking for a full-service banking experience, you may be able to overlook the slightly lower rates and hefty minimum deposit requirement.
Overview: PenFed, or Pentagon Federal Credit Union, offers a wide range of savings products to its customers, including money market certificates, Coverdell Education certificates, checking, savings and even IRAs. That's in addition to offering auto financing, credit cards, mortgages and loans. The credit union serves more than 1.6 million members, including members of the U.S. military or uniformed services, employees of the U.S. government and other groups and associations. But membership is also open to those who join Voices for America ($17 per year) or the National Military Family Association ($17 donation). That makes it easy to join this national credit union, which typically offers some of the most competitive rates in the country.
Perks: It's often tough to beat the rates PenFed pays on its CDs. And it's a full-service credit union, making it a very attractive place to stash savings while taking care of other banking needs. If you prefer credit unions to banks, PenFed offers the credit union experience with a membership model that's available nationally.
What to watch for: The $1,000 minimum to open a CD at PenFed is somewhat high. And although its membership is technically available nationwide, PenFed does require that you join via employment, association membership, through volunteerism or by military affiliation. So, you'll have to jump through some hoops in order to join. But the high rates you'll receive on CDs may be worth it.
Bankrate has provided a quick-hit comparison of some top banks that offer competitive CD rate options so that you can see rates side-by-side before choosing the best CD for your financial goals.
Check out the tables below for a breakdown of Bankrate's available CD rates for these financial institutions. Be sure to factor in minimum deposit amounts and other fees when applying for a certificate of deposit.
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