Today's money world is always changing, and it's tough to find investments that are both safe and make good money.
A lot of people like using Certificates of Deposit, or CDs, for this. CDs are popular because they have set interest rates up to 4.50% with banks like Quontic and are safer than the up-and-down stock market.
We are providing you with the best CD rates right now. It's perfect for people who want to keep their money safe but also see it grow.
We've picked out some of the best and most profitable CD rates for you.
You don't have to change your existing checking account if you decide to open a CD account at another bank.
The Best CD Rates
1. Quontic CDs
Imagine earning up to 4.50% Annual Percentage Yield (APY) on your savings — this is what a Quontic CD can offer you. It starts with a minimum deposit of just $500, making it accessible for various budgets. Remember, like most CDs, withdrawing funds before the maturity date can lead to penalties, so it's important to consider how long you can comfortably set aside your savings.
Understanding the value of your hard-earned money, Quontic ensures that its CD accounts are not only competitive in terms of rates but also secure. Your investment is FDIC insured, which means you have the assurance that your funds are protected up to the maximum allowed by law.
When choosing where to invest your savings, knowing the details matters. With Quontic, the process of opening an account is designed to be quick and straightforward, often taking less than 3 minutes.
It's also worth noting that while a high APY can be a major draw, the quality of service you receive is equally crucial. Quontic is known for its commitment to customer service, ensuring that your banking experience is as rewarding as the returns on your investment.
If you're considering a CD, take the time to weigh these factors. A higher APY can significantly impact your savings growth, but it's vital to balance this with other aspects like access to funds, penalties for early withdrawal, and the level of service you expect from your bank.
Quontic's CD has a 1-year term and a 4.50% APY. Quontic requires a minimum deposit of $500 to open a CD account, and interest is compounded daily and credited monthly. Withdrawals before the maturity date are subject to penalties, including a one-year's worth of interest.
2. Alliant Credit Union Certificates
Alliant Credit Union offers one of the best interest rates on our list if you are looking for a jumbo certificate. Alliant Credit Union allows you to earn up to 4.30% APY on your balance, as long as you qualify for membership (typical of credit unions vs. banks).
Anyone can join Alliant Credit Union by paying a $5 membership fee to become a member of Foster Care to Success (FC2S). FC2S is a non-profit organization that focuses on foster youth. Alliant covers the $5 joining fee.
You’ll get the most bang for your buck if you choose an 12-month term, but you’ll need at least $75,000 to get started. Terms range from 3-month CDs to five years, with tiered withdrawal penalties.
Alliant Credit Union offers share certificates, which are a credit union's version of a certificate of deposit (CD). Alliant's CDs range from three months to five years, and are available with a minimum deposit requirement of either $1,000 or $75,000. Alliant's CD rates range from 3.65% to 4.30% APY, which is higher than the average CD rate.
3. Ally Bank CDs
With up to a 4.80% APY interest rate and no minimum deposit, it’s not hard to see why Ally Bank made our list. Though you’ll get the best rate if you choose an 18-month term, you can pick between a short three-month CD to a five-year-long CD. This bank is online-only but serves over 8.5 million customers. Ally Bank compounds your interest daily, and there’s a bonus APY if you renew your CD once the term is up.
In addition, you can pick one of three CDs. The first is the Ally High Yield Certificate of Deposit, which is anywhere from three months in a term to five years. This is the most basic CD, compared to the Raise Your Rate Certificate of Deposit, which is two or four years per term. You can also choose the No Penalty CD. This one holds a term of 11 months and allows you to withdraw at any time after six days of funding it.
4. American Express National Bank CDs
AmEx is beloved by many, especially since they’ve been operating since 1950. This bank offers up to a 4.25% APY with no minimum deposit or fees.
The rates will depend on which terms you choose but range from six months to five years. Interest is paid out each month but compounded daily, making a CD from AmEx National Bank a smart short-term investment.
5. Barclays Online CDs
This UK-based bank requires no minimum to fund the CD, which earns up to a 5.10% APY interest rate. Terms come anywhere from three to 60 months, but you’d be wise to choose a term longer than nine months to maximize your return. You can also use the CD Calculator from Barclays to see what you’d get.
6. Bread Financial CDs
Since 1986, this Utah-based bank has been offering its customers some of the best banking services. Open a CD online with Bread Financial to earn up to a 4.90% APY, as long as you have a $1,500 minimum deposit.
The terms range from one to five years and interest is compounded daily. There are no monthly fees and your CD renews automatically once it reaches maturity. Within the 10-day grace period between the end of the first term and the beginning of the second, you can withdraw your funds if you’d like.
7. Capital One CDs
High interest rates continue with Capital One. This bank has been public since 1994 and offers terms from six months to five years. As part of a long-term investment strategy, you can earn up to 5.10% APY with no minimum deposit with Capital One.
There are no partial withdrawals. If you do pull your funds out early, you’ll pay a penalty of at least three months' worth of dividends if your term is shorter than a year. This doubles to six months if your terms are longer.
Related: Capital One Promotions, Bonuses, and Offers
8. Discover High Yield CDs
To access the 4.70% APY rate from Discover, you’ll need to fund your new CD with at least $2,500 to start. Discover offers terms starting at three months and extending to 10 years, but there’s no real advantage to going with 10 years over 5 years.
With no fees and the ability to set up a CD ladder, Discover offers comparable rates to other banks and credit unions on our list.
9. Marcus by Goldman Sachs CDs
Did you know Goldman Sachs has been in the business for over 150 years? And with a $500 deposit, you can earn up to 4.90% APY with a CD from Marcus by Goldman Sachs. This CD can run anywhere from six months to six years, but you’ll only get the high APY if you fund your account within the first 10 days.
This CD automatically renews, like many others, with the same 10-day grace period for withdrawal.
As long as you qualify for membership, you can earn up to 4.45% APY with Navy Federal Credit Union (NFCU). This credit union restricts membership to the armed forces, Department of Defense, veterans, and their families, but currently holds over 10 million members.
NFCU offers the Standard, EasyStart, and SaveFirst CDs, which range in terms from three months to seven years. SaveFirst is basic, requiring $5 to open.
You can add money to your CD with EasyStart and SaveFirst CDs, though you’ll need $50 to fund your EasyStart CD and $1,000 to fund the Standard CD.
11. Sallie Mae Bank CDs
This well-known bank offers CDs that automatically renew as well. You’ll still get that 10-day grace period to withdraw your funds, but with a high APY of 4.95%, why would you?
You can choose terms from six months to five years, but you’ll need at least $2,500 to deposit into the account first. Interest does compound daily for this CD, and is paid out monthly.
12. Synchrony CDs
To earn a 4.50% APY on your CD, check out Synchrony. This secure online bank does have four physical locations but does most of its business on the web.
Terms range from three months to five years, but there’s no minimum deposit. Funds are FDIC-insured and you can choose from both fixed and variable-rate CDs to fit your goals.
Related: U.S. Bank Promotions and Bonuses
Best Penalty-Free CD Rates
A no-penalty CD is considered better than a traditional CD because it allows you to access your funds without incurring any early withdrawal penalties.
In a traditional CD, if you withdraw your funds before the maturity date, you may have to pay a penalty, which can be a percentage of the deposit amount or a fixed dollar amount.
With a no-penalty CD, you have more flexibility to access your money if you need it, without having to pay additional fees or charges.
This can be especially useful if you have an unexpected expense or emergency and need to access your savings quickly.
However, it is important to keep in mind that a no-penalty CD may have a lower interest rate compared to a traditional CD, so you need to weigh the trade-off between flexibility and earning potential when deciding which option is best for you.
Here’s a look at some of the best no-penalty CD rates.
CIT Bank 11-month CD – 3.50%
CIT Bank offers a highly attractive 11-month CD that is penalty-free and boasts an impressive 3.50% annual percentage yield (APY).
This short-term investment option is not only free from any penalties but also boasts a competitive APY, making it a great choice for those looking to earn higher returns on their savings.
While there is a minimum balance requirement of $1,000, there are no additional fees associated with this account.
It is also worth noting that CIT Bank consistently ranks highly on lists of the best savings accounts and certificates of deposit, adding to its credibility and reliability as a financial institution.
Related: Best CIT Bank Bonuses and Promotions
CD Calculator
With traditionally higher rates than a savings account, Certificates of Deposits (CDs) are a great way to reach your savings goals on a set schedule. Use this calculator to find out how much interest you can earn.
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What is a Certificate of Deposit (CD)
Banks offer certificates of deposit as a way for members to earn interest. Most CDs require individuals to lend their funds to the bank for an extended period.
During this time, however, the individual earns interest on their balance. Most CD rates range anywhere from a small percentage to a nearly 5% APY.
In comparison to other types of investments, CDs currently have a solid return rate, and they can be incredibly steady and reliable as well. The best portfolios incorporate CDs along with high-risk investments to offset any losses.
CDs differ from savings accounts in key ways. For example, banks allow you to withdraw funds from savings accounts without penalty, as long as you only do it so many times per statement period.
CDs, however, typically don’t allow for withdrawals without a penalty unless you go with a no-penalty CD. For most CDs, think of them like a suitcase that holds your savings that’s locked away like a time capsule until a future date when you can access it.
In addition, though savings accounts and CDs are both low risk, they do tend to vary in terms of APY rates.
Savings account rates depend on market fluctuations while many CDs allow you to lock in your interest rate from the very beginning. Smart investors tend to open CDs when interest rates are high (like they are now) as still part of the low-risk investment portion of their portfolio.
What to Look for in a CD
When shopping for a certificate of deposit, it is important to consider a few key factors to ensure that you find the best option for your savings goals.
At the same time, it’s not all about the rates. You should consider other aspects of the CD to find the best fit for your situation.
Use our checklist below to see what you should look for in a CD account that may or may not offer the best rate in town.
Smart things to look for in a CD include:
1. Interest rates
CD rates can vary significantly from one financial institution to another, so it is important to compare interest rates from multiple sources to find the best deal.
2. Term length
CDs are typically available with terms ranging from a few months to several years. Choose a term that aligns with your financial goals and timeframe.
3. Minimum deposit requirements
Some CDs may have minimum deposit requirements that may be higher than you are comfortable with. Consider your available funds and choose a CD with a minimum deposit that works for you.
4. Early withdrawal penalties
If you need to access your money before the CD matures, you may be subject to early withdrawal penalties unless you opt for no-penalty CDs.
5. FDIC insurance
CDs offered by FDIC-insured banks are insured up to $250,000 per depositor, which can provide added security for your investment.
By considering these factors, you can find a CD that meets your financial needs and helps you reach your savings goals.
FAQs
CDs can be fixed or variable when it comes to interest rates. As the terms imply, fixed rates stay the same throughout the life of the CD, while variable rates respond to and mirror the market. Many investors favor fixed rates to lock in a higher and more profitable rate, while others prefer the volatility of variable rates as a way to potentially earn more for their investments.
It’s often true that you get a higher interest rate if you obtain a longer-term CD, but this is not always the case. If you’d like to compare the rates between terms, check the fine print.
The banks on our list offer some of the best CD rates out there. While they’re not spectacular considering the bank or credit union is using your money to invest in other things, it’s certainly better than nothing. These rates may change in response to the economy as well, depending on what happens.
Cash in On a CD Today
While certificates of deposit certainly aren’t the most interesting type of investment, they can be a great way to earn interest, slowly but surely.
We hope you’ve found this article useful in figuring out which banks and credit unions offer the best CD rates so you can make the most of your money.
The higher the interest rate you can obtain, the more you’ll get paid for the use of your money. That is until you come back to claim it in the future.
Disclosures
APY= Annual Percentage Yield. The APY is accurate as of the 8/9/2024 dividend declaration date. A $1000.00 minimum deposit is required to open a Regular Alliant Certificate. A $75,000 minimum deposit is required to open an Alliant Jumbo Certificate. If you open an Alliant Jumbo Certificate with a minimum deposit of $75,000, but later withdraw funds from the account and bring the balance below $75,000, the Alliant Jumbo Certificate will convert to a Regular Alliant Certificate, which may pay a lower rate. You must be an Alliant member. Alliant Certificates are available as Regular Share Certificates and, Jumbo Share Certificates. Both Regular and Jumbo Certificate types are also offered as Traditional IRA Certificates, Roth IRA Certificates, and SEP IRA Certificates. In addition, prior to opening an IRA Certificate (Traditional, Roth and SEP), you must have or establish an IRA with Alliant. You may not add any additional money to your Certificate after opening. Dividends compound monthly and are paid on the last day of the month and at maturity. There are no penalties for monthly dividend withdrawals. Early withdrawal penalties do apply if the Certificate is closed before the maturity date unless the Certificate funds are moved to Alliant Retirement and Investment Services. If you wish to move your Certificate funds to Alliant Retirement and Investment Services, you must wait until 7 days after your Certificate has been opened. Other exceptions to early withdrawal penalties may be allowed. Monthly dividend withdrawals are not eligible on IRA Certificates if owner is under age 59 1/2. Any monthly withdrawals or transfers reduce earnings. If you change the term of your renewed Certificate, the beneficiary(ies) need(s) to be reestablished by completing a Beneficiary Add/Delete Form. (Not applicable to IRA Certificates). The joint owner designated at the time of Certificate opening will remain as joint owner if you renew your Certificate with Alliant. Neither the primary account owner or joint owner may be a beneficiary on the Certificate account. You are not locked into a rate until you open or renew your Alliant Certificate. Alliant Certificate rates may change daily. Fees may reduce earnings on the account.
