A certificate of deposit account is a deposit product available at banks, alongside savings , money market , and checking accounts. But instead of depositing money that you can withdraw from or add to whenever you want, you can generally only make a single initial deposit to a CD. When you open one, you're making an agreement to keep your funds in the account without withdrawals for an established period of time, known as the CD term . In return, you're able to lock in a fixed interest rate for the entire duration of the term.

Do Brick-and-Mortar Banks Offer the Best CD Rates?

CDs are available through both brick-and-mortar banks and online banks, along with credit unions. In general, online banks tend to offer higher rates than brick-and-mortar banks since they have lower overhead costs, but it’s worth comparing specific options to confirm you’ve found the best rate and term for your needs.

Are Online Bank CDs Safe?

The good news for CD shoppers is that the type of bank or credit union offering the CD is of little importance, so long as you verify that it’s FDIC-insured (for banks) or NCUA-insured (for credit unions). The FDIC and NCUA insure bank deposits up to $250,000, giving you peace of mind that your investments are safe.

Can You Ever Lose Money in a Bank CD?

CDs are deposit accounts, so you typically cannot lose money as long as you select a bank backed by the Federal Deposit Insurance Corporation (FDIC) . The FDIC insures eligible deposit accounts up to $250,000. The only ways to lose money are if you withdraw funds before the end of the CD's term (in which case you would pay a penalty), if you sell a brokered CD for less than it’s worth, or if you have over $250,000 deposited and the bank fails.

How Are Bank CDs Taxed?

With a CD, any interest you earn in the account is taxable as ordinary income . If your CD term is longer than one year, you'll have to pay taxes on the interest earned for each year the CD is open. If you earn $10 or more of interest, your bank will send you Form 1099-INT, which you can use when you file your tax return.

What Is the Biggest Negative of Putting Money in a Bank CD?

The biggest drawback to putting money in a CD (whether it’s from a bank or a credit union) is the lack of liquidity . If you need to tap into the account to cover an unexpected expense, you'll have to pay penalties (unless, of course, you chose a no-penalty CD).

Why Don't I See My Bank in Your List?

You typically won't see big names like Chase, Bank of America, or Wells Fargo in our list of the best high-yield savings accounts. While we do monitor their rates, they usually aren't high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do, so their rates tend to be lower . You will sometimes see one of the top 25 U.S. banks in our rankings, such as Citi, BMO, or Ally Bank, as these institutions do occasionally offer competitive high-yield rates. Some banks you may be looking for that we track, but that don't make our list, are Marcus by Goldman Sachs, SoFi, Synchrony Bank, CIBC Bank USA, LendingClub, Bread Savings, FNBO Direct, and Citizens Access. Still other institutions may not appear in our ranking because they don't meet our qualification criteria, such as by not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. These include U.S. Bank, PNC, Varo, American Airlines Federal Credit Union, Delta Community Credit Union, Boeing Employees' Credit Union, Bethpage Federal Credit Union, and Western Alliance Bank.

Financial Institutions We Review

We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank , Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays , BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO , BMO Alto, BrioDirect , Cadets Federal Credit Union, California Coast Credit Union, Capital One , Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank , Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank , Citibank , Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings , Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank , DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments , Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank , Navy Federal Credit Union , nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union , People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct , Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank , Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank , TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan , EverBank , TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank , USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank , Virtual Bank, WebBank, Webster Bank, Wells Fargo , Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America , Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA , Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub , Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard , All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank.

Best Bank CD Rates for September 2024

BEST NATIONAL BANK CDs
_{Ranked by highest APY, then shortest term, then lowest minimum}

Best 3-Month Bank CDs	Rate	Term	Minimum
Merchants Bank of Indiana	5.25% APY	3 months	$1,000
TotalBank	5.15% APY	3 months	$25,000
Brilliant Bank	5.10% APY	3 months	$1,000
Best 6-Month Bank CDs	Rate	Term	Minimum
DR Bank	5.35% APY	6 months	$500
Climate First Bank	5.34% APY	6 months	$500
My Banking Direct	5.25% APY	5 months	$2,500
Best 1-Year Bank CDs	Rate	Term	Minimum
Merchants Bank of Indiana	5.25% APY	12 months	$1,000
National Cooperative Bank	5.18% APY	12 months	$2,500
LendingClub	5.10% APY	10 months	All earned interest
Best 18-Month Bank CDs	Rate	Term	Minimum
Bask Bank	4.90% APY	18 months	$1,000
LendingClub	4.90% APY	18 months	$2,500
Brilliant Bank	4.85% APY	15 months	$1,000
Best 2-Year Bank CDs	Rate	Term	Minimum
Bask Bank	4.75% APY	24 months	$1,000
TAB Bank	4.65% APY	24 months	$1,000
Colorado Federal Savings Bank	4.55% APY	24 months	$5,000
Best 3-Year Bank CDs	Rate	Term	Minimum
MYSB Direct	4.40% APY	36 months	$500
TAB Bank	4.35% APY	36 months	$1,000
Northpointe Bank	4.35% APY	36–47 months	$1,000
Best 4-Year Bank CDs	Rate	Term	Minimum
Northpointe Bank	4.35% APY	36–47 months	$1,000
The Federal Savings Bank	4.15% APY	48 months	$5,000
First Internet Bank	4.14% APY	48 months	$1,000
Best 5-Year Bank CDs	Rate	Term	Minimum
Northpointe Bank	4.25% APY	48–59 months	$1,000
First Internet Bank	4.19% APY	60 months	$1,000
MYSB Direct	4.11% APY	60 months	$500

Best 3-month bank CD: Merchants Bank of Indiana – 5.25% APY

Early withdrawal penalty: 3 months of interest
Overview: FDIC-insured since 1934, Merchants Bank of Indiana operates six branches in the greater Indianapolis area, while serving online customers across the country. It is headquartered in Carmel, Indiana.

Best 6-month bank CD: DR Bank – 5.35% APY

Early withdrawal penalty: 6 months of interest
Overview: DR Bank was founded in 2006 in Connecticut, where it still operates two branches. Accounts are available nationally through digital banking.

Best 1-year bank CD: Merchants Bank of Indiana – 5.25% APY

Early withdrawal penalty: 3 months of interest
Overview: FDIC-insured since 1934, Merchants Bank of Indiana operates six branches in the greater Indianapolis area, while serving online customers across the country. It is headquartered in Carmel, Indiana.

Best 18-month bank CD: Bask Bank – 4.90% APY

Early withdrawal penalty: 6 months of interest
Overview: Bask Bank is a division of FDIC-insured Texas Capital Bank, headquartered in Dallas. As an online-only bank, Bask has no physical branches.

Best 2-year bank CD: Bask Bank – 4.75% APY

Early withdrawal penalty: 6 months of interest
Overview: Bask Bank is a division of FDIC-insured Texas Capital Bank, headquartered in Dallas. As an online-only bank, Bask has no physical branches.

Best 3-year bank CD: MYSB Direct – 4.40% APY

Early withdrawal penalty: All interest (3 months minimum)
Overview: MYSB Direct is the online banking arm of M.Y. Safra Bank, which is headquartered in New York City and operates a single branch there.

Best 4-year bank CD: Northpointe Bank – 4.35% APY

Early withdrawal penalty: 8 months of interest
Overview: Northpointe was established in 1999 in Grand Rapids, Michigan, where it still maintains its one brick-and-mortar location. Anyone nationwide can open an account online.

Best 5-year bank CD: Northpointe Bank – 4.25% APY

Early withdrawal penalty: 8 months of interest
Overview: Northpointe was established in 1999 in Grand Rapids, Michigan, where it still maintains its one brick-and-mortar location. Anyone nationwide can open an account online.

Fast Fact

When asked in August what they would invest in if they had an extra $10,000, 9% of Investopedia readers said they would open a CD, behind individual stocks, ETFs, and stock index funds. That number is unchanged from June. While CDs sit below individual stocks as the top response (at 22%), CDs are always a good option for those looking for safer investments.

Compare the Best Bank CDs

Ranked below are the top 15 or more APYs on nationally available CDs from banks with minimum deposits of no more than $25,000. In the case of ties, we rank them first by the shortest available term, then by the lowest minimum deposit, and finally by the smallest early withdrawal penalty.

Institution	Rate (APY)	Term	Minimum Deposit	Early Withdrawal Penalty
DR Bank	5.35%	6 months	$500	6 months of interest
Climate First Bank	5.34%	6 months	$500	None
Merchants Bank of Indiana	5.25%	3 months, 6 months, & 12 months	$1,000	3 months of interest
My Banking Direct	5.25%	5 months	$2,500	1 month of interest
AloStar	5.25%	5 months	$10,000	3 months of interest
MutualOne Bank	5.25%	6 months	$500	3 months of interest
Pacific National Bank	5.25%	9 months	$1,000	7 days of interest if withdrawal is within 6 days of opening; otherwise 1 month of interest
ableBanking	5.20%	6 months	$5,000	3 months of interest
National Cooperative Bank	5.18%	12 months	$2,500	6 months of interest
TotalBank	5.15%	3 months	$25,000	1 month of interest
Citizens State Bank	5.11%	7 months	$10,000	6 months of interest
CIBC Agility	5.11%	9 months	$1,000	1 month of interest
Brilliant Bank	5.10%	3 months	$1,000	Half the interest that would have been earned if held to maturity
Bask Bank	5.10%	3 months & 6 months	$1,000	3 months of interest
Banesco USA	5.10%	3 months	$1,500	3 months of interest
Barclays	5.10%	6 months	Any amount	3 months of interest
Quontic Bank	5.10%	6 months	$500	All interest
BankUnited	5.10%	6 months	$1,000	3 months of interest
Discover Bank	5.10%	9 months	$2,500	3 months of interest
LendingClub	5.10%	10 months	$2,500	All earned interest on amount withdrawn
Northpointe Bank	5.10%	11 months	$25,000	3 months of interest
MapleMark Bank	5.10%	12 months	$25,000	6 months of interest

Pros and Cons of Bank CDs

Pros

Often pay higher APYs than liquid accounts
Offer a fixed, guaranteed rate
Are virtually risk-free
Can help deter spending

Cons

Incur a penalty for early withdrawal
If rates rise, you may regret being locked into your APY
Typically return less than other investments
Only allow one deposit

Pros Explained

Often pay higher APYs than liquid accounts: In exchange for you keeping your money on deposit for a specified period of time, banks generally pay higher annual percentage yields (APYs) on CDs than on savings and money market accounts.
Offer a fixed, guaranteed rate: The annual percentage yield (APY) that you sign up for when opening the CD will be fixed for the full term. The bank cannot alter it.
Are virtually risk-free: By opening a CD at an FDIC-insured bank, you are federally protected on up to $250,000 of your deposits, in the unlikely case that the bank fails.
Can help deter spending: Funds committed to a CD cannot be withdrawn early without a penalty, making CDs a good vehicle for keeping, rather than spending, your savings.

Cons Explained

Incur a penalty for early withdrawal: If you need to withdraw your money before the CD's maturity date, the bank will impose an early withdrawal penalty that will reduce your earnings.
If rates rise, you may regret being locked into your APY: If the interest rate environment improves after you buy a CD, you may wish you had committed later, when you could have earned a higher rate.
Typically return less than other investments: The earnings on CDs are modest compared to what you can potentially earn by investing in the stock market, though stock investments are much riskier and not guaranteed to provide a return during your time horizon.
Only allow one deposit: Unlike a savings account where you can continue to make deposits whenever you like, CDs allow just a single investment at the time when you open the account.

Alternatives to Bank CDs

High-Yield Savings and Money Market Accounts

Stashing your cash in a savings or money market account offers much more flexibility than a CD, letting you add and withdraw funds as you like. The trade-off is that interest rates on liquid accounts can change at any time. So if rates are declining, the annual percentage yield on your high-yield savings or money market account will almost certainly go down, while any rate on a CD will hold.

Also, liquid accounts don't always offer as high of a return as CDs. So committing your funds to a CD can usually boost your earnings by a substantial margin.

Treasuries

Another possible investment for your cash is a bond offered by the U.S. Treasury. Treasury notes are very similar to CDs in that the rate is typically predictable if you hold the bond until maturity. They are also backed by the federal government, so like CDs, they are exceptionally safe.

U.S. Treasury I bonds are another option. But their fixed rate is only known for six months at a time, with the rate being adjusted twice a year based on the current inflation rate (hence the name I bonds). Like CDs, I bonds have an early withdrawal penalty, but it's a relatively mild three months' worth of interest. But unlike a CD, you cannot for any reason cash in an I bond during its first 12 months.

Bonds & Bond Funds

Diversified bond funds are another idea, as they can potentially return quite a bit more than a fixed-rate CD. Of course, there's always a risk that bond returns could be negative from one year to the next, so the longer your time horizon, the less risky an investment in bonds would be. If you're considering a relatively short CD term, like 1 to 2 years, or even less, then bonds represent a much riskier option than a CD, with no guarantee of delivering a return.

Equities

If your time horizon for investing is several years long, you could instead consider investing in equities, or stocks. The upside is that you could potentially earn quite a bit more in the stock market than with a fixed CD rate. But the significant downside is that you can always lose money on equities, including scenarios where you lose most of your investment. So while CDs won't return as much as stocks that are doing well, on the flip side, CDs are guaranteed to grow with no risk of you losing your initial principal.

How To Open a Bank CD

Opening a certificate of deposit generally follows the same steps as opening any new bank account, and the number of steps involved depends on whether you are a new customer of the bank or an established one.

You’ll first need to fill out an application. You can usually do this online, but you can do it in-branch if you’re opening the certificate at a bank that operates in your community. Some banks also allow you to send paper applications via U.S. mail. If you’re not already a customer of the bank, you’ll need to prove your identity with photo identification. And you’ll be presented with various written account terms and disclosures that you’ll need to sign off on.

Just like with a savings or checking account, you’ll be offered various options for making your initial deposit, whether that’s at the time of account opening or slightly later. Most banks offer transfers from another account at that bank, an external transfer from another bank, or a check that’s mailed in or submitted via mobile deposit. Just remember that you can only make one deposit to the CD, so choose your amount carefully.

As soon as you’ve completed the account opening process, it’s smart to put a reminder on your calendar a month or two before the CD will mature. That way you can think ahead about what you want to do with the money when it becomes available, and can also watch your mail for a notice from your bank about how to convey your CD maturity instructions.

Who Should Get a Bank CD?

A CD is a useful option for people who are looking to grow their money but may need to use the funds within the next few years. For example, if you plan on buying a home within three to five years, a CD could help you earn more interest than you would in a basic savings account without the risks of investing in the stock market.

For longer-term goals, such as retirement if you’re currently in your thirties, a CD may not be a wise choice. Your money may perform better if you invest in the stock market. Historically, the stock market has delivered annual returns of about 10% (or 6% to 7% when considering the effects of inflation).

CDs are not a good option for money you may need to access in the short-term. For example, stashing your emergency fund in a CD is probably a poor decision. If an unexpected expense pops up and you need to withdraw money before your CD matures, you'll have to pay an early withdrawal penalty. A high-yield savings account might work better in such situations.

How to Choose the Best Bank CD For You

Many banks offer CDs. When shopping for one, consider the following:

APY: APYs can vary significantly between banks and between CDs with different terms. Nationally, the average rate is under 2% for all terms, but many banks offer much higher rates.
CD terms: CD terms generally range from 3 months to 10 years. A longer term allows you to lock in the APY for years to come, even if interest rates drop.
Penalties: If you need to withdraw money before your CD's maturity date, you typically have to pay a penalty. In most cases, the penalty consists of forfeiting some or all of the interest your CD accrued. The penalty varies by bank and CD term, so read the fine print before committing to a CD. For example, a CD with a term of 3 months may have an early withdrawal penalty of 30 days' interest, and a CD with a term of 24 months may have a penalty of 365 days’ interest.
Minimum deposit: Minimum deposit requirements vary by bank. Depending on the bank you choose, you may need anywhere from $5 to $5,000 to open a CD.
Call features: Some bank CDs have a call feature, meaning they reserve the right to end or "call" the CD early if interest rates drop. However, callable CDs don't give consumers the same early-termination rights.

Types of Bank CDs

CDs come in a wide variety of flavors. In addition to traditional CDs, you can find:

Add-on CDs: Typically, CDs are limited to one upfront deposit; you cannot deposit additional funds. However, add-on CDs allow you to make additional deposits to the CD during the term.
Jumbo CDs: Some banks offer jumbo CDs for those with large sums to deposit, such as $100,000 or more. These CDs may offer higher APYs than other CDs.
No-penalty CDs: With a no-penalty CD, you can withdraw cash from your CD without worrying about penalties. However, these CDs tend to pay lower APYs.
Variable-rate CDs: Most CDs have fixed rates that stay the same for the entirety of the term. But some banks offer variable-rate CDs, whose rates fluctuate along with economic conditions. That feature can benefit you if rates go up, but it can negatively affect you if rates decrease.
Brokered CDs: In most cases, you open a CD directly through a bank. However, you also have the option of opening a brokered CD with an investment firm or financial services company. These companies negotiate with CD providers to offer higher rates in exchange for a certain amount in deposits. Brokered CDs can have higher rates than other CDs, but there are more risks associated with them.

Frequently Asked Questions

What Is a Bank CD?

A certificate of deposit account is a deposit product available at banks, alongside savings, money market, and checking accounts. But instead of depositing money that you can withdraw from or add to whenever you want, you can generally only make a single initial deposit to a CD. When you open one, you're making an agreement to keep your funds in the account without withdrawals for an established period of time, known as the CD term. In return, you're able to lock in a fixed interest rate for the entire duration of the term.
Do Brick-and-Mortar Banks Offer the Best CD Rates?

CDs are available through both brick-and-mortar banks and online banks, along with credit unions. In general, online banks tend to offer higher rates than brick-and-mortar banks since they have lower overhead costs, but it’s worth comparing specific options to confirm you’ve found the best rate and term for your needs.
Are Online Bank CDs Safe?

The good news for CD shoppers is that the type of bank or credit union offering the CD is of little importance, so long as you verify that it’s FDIC-insured (for banks) or NCUA-insured (for credit unions). The FDIC and NCUA insure bank deposits up to $250,000, giving you peace of mind that your investments are safe.
Can You Ever Lose Money in a Bank CD?

CDs are deposit accounts, so you typically cannot lose money as long as you select a bank backed by the Federal Deposit Insurance Corporation (FDIC). The FDIC insures eligible deposit accounts up to $250,000. The only ways to lose money are if you withdraw funds before the end of the CD's term (in which case you would pay a penalty), if you sell a brokered CD for less than it’s worth, or if you have over $250,000 deposited and the bank fails.
How Are Bank CDs Taxed?

With a CD, any interest you earn in the account is taxable as ordinary income. If your CD term is longer than one year, you'll have to pay taxes on the interest earned for each year the CD is open. If you earn $10 or more of interest, your bank will send you Form 1099-INT, which you can use when you file your tax return.
What Is the Biggest Negative of Putting Money in a Bank CD?

The biggest drawback to putting money in a CD (whether it’s from a bank or a credit union) is the lack of liquidity. If you need to tap into the account to cover an unexpected expense, you'll have to pay penalties (unless, of course, you chose a no-penalty CD).
Why Don't I See My Bank in Your List?

You typically won't see big names like Chase, Bank of America, or Wells Fargo in our list of the best high-yield savings accounts. While we do monitor their rates, they usually aren't high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do, so their rates tend to be lower. You will sometimes see one of the top 25 U.S. banks in our rankings, such as Citi, BMO, or Ally Bank, as these institutions do occasionally offer competitive high-yield rates.
Some banks you may be looking for that we track, but that don't make our list, are Marcus by Goldman Sachs, SoFi, Synchrony Bank, CIBC Bank USA, LendingClub, Bread Savings, FNBO Direct, and Citizens Access.
Still other institutions may not appear in our ranking because they don't meet our qualification criteria, such as by not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. These include U.S. Bank, PNC, Varo, American Airlines Federal Credit Union, Delta Community Credit Union, Boeing Employees' Credit Union, Bethpage Federal Credit Union, and Western Alliance Bank.
Financial Institutions We Review

We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision:
1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, 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Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank.

Rate Collection Methodology Disclosure

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, banks must be federally insured by the FDIC, the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.The banks must also be available in at least 40 states. For more about how we choose the best rates, read our full methodology.

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