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Article updated on Dec 10, 2024
The sooner you open one of these top CDs, the greater the APY you could score.
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Written by Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
Edited by Courtney Johnston Senior Editor Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
Reviewed by Bernadette Joy Money coach and founder of Crush Your Money Goals Bernadette Joy is a money expert that offers relatable advice on achieving financial freedom. She paid off $300,000 of debt in three years and invested enough to retire by 40. Bernadette has shared her expertise on TEDx, South By Southwest, and Nasdaq. Bernadette's upcoming book, CRUSH Your Money Goals, will be released in December 2024.
Written by
Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
Edited by
Courtney Johnston Senior Editor Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
Reviewed by:
Bernadette Joy Money coach and founder of Crush Your Money Goals Bernadette Joy is a money expert that offers relatable advice on achieving financial freedom. She paid off $300,000 of debt in three years and invested enough to retire by 40. Bernadette has shared her expertise on TEDx, South By Southwest, and Nasdaq. Bernadette's upcoming book, CRUSH Your Money Goals, will be released in December 2024.
Article updated on Dec 10, 2024
A certificate of deposit lets you earn interest on a sum of money with a fixed annual percentage yield, or APY, over a fixed period of time, or term. CDs are a good savings option to park money for a few months or years with minimal risk of losing your earnings.
If you need to access the money before it fully matures, you’ll often pay an early withdrawal penalty that can reduce your interest earnings. Most CD options require a single deposit and don’t allow additional deposits, so you’ll need to gather your funds before opening an account. When you’re ready to open a CD, compare the best terms and rates among local credit unions and banks to find the right fit for your savings.
Best CD Rates
- BMO Alto 4.30% 6-month APY, 4.20% 1-year APY, 3.80% 3-year APY, 3.90% 5-year APY
- CommunityWide Federal Credit Union 4.65% 6-month APY, 4.45% 1-year APY, 3.80% 3-year APY, 3.40% 5-year APY
- First Internet Bank of Indiana 4.35% 6-month APY, 4.42% 1-year APY, 3.77% 3-year APY, 3.67% 5-year APY
- Bread Savings 4.65% 6-month APY, 4.30% 1-year APY, 3.90% 3-year APY, 3.85% 5-year APY
- CFG Bank N/A 6-month, 4.25% 1-year, 3.85% 3-year, 3.75% 5-year
- LendingClub 4.00% 6-month APY, 4.00% 1-year APY, N/A 3-year APY, 3.40% 5-year APY
- MYSB Direct 4.45% 6-month, 4.25% 1-year, 3.90% 3-year, 3.90% 5-year
- NexBank 4.24% 6-month, 4.37% 1-year, 3.44% 3-year, 3.29% 5-year
Certificate of deposit (CD)
A type of savings account in which a lump-sum deposit accrues interest at a fixed rate for a fixed term, usually with an early withdrawal penalty.
Annual percentage yield (APY)
A CD’s interest rate that represents the return from the compounded interest you’ll earn in 12 months on your deposit. The higher the APY, the faster your money grows.
CD term
The fixed period in which your deposit earns interest. The maturity date is the end of the term, which can range from one month to 10 years or more.
Early withdrawal penalty
The fee for withdrawing your CD funds before maturity, often equalling a period's worth of interest, which varies by institution and length of CD term.
Share certificate
Similar to a CD, but issued by a credit union, in which a credit union member deposits a lump sum that accrues interest for a fixed term.
Our Experts
Written by Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
Edited by Courtney Johnston Senior Editor Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.
Reviewed by Bernadette Joy Money coach and founder of Crush Your Money Goals Bernadette Joy is a money expert that offers relatable advice on achieving financial freedom. She paid off $300,000 of debt in three years and invested enough to retire by 40. Bernadette has shared her expertise on TEDx, South By Southwest, and Nasdaq. Bernadette's upcoming book, CRUSH Your Money Goals, will be released in December 2024.
Kelly is an editor for CNET Money focusing on banking. She has over 10 years of experience in personal finance and previously wrote for CBS MoneyWatch covering banking, investing, insurance and home equity products. She is passionate about arming consumers with the tools they need to take control of their financial lives. In her free time, she enjoys binging podcasts, scouring thrift stores for unique home décor and spoiling the heck out of her dogs.
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