The following is a list of the nationally available highest yields CD rates. In general, certificates of deposit (CDs) are great short-term investments because your principal is protected by FDIC insurance and your interest rates are guaranteed. Moreover, you can use a CD Ladder to make your CD savings more flexible and effective. You can open certificates of deposit at your local bank, but with a little more effort you can secure the best rates through online banks.
| Bank | 12-month CD Rate (APY) | Notes |
| TIAA Bank | 1.35% ⇓ | $5,000 minimum deposit. |
| Marcus by Goldman Sachs | 1.35% ⇓ | $500 minimum deposit. 10-Day Rate Guarantee. |
| Synchrony | 1.35% ⇓ | $2,000 minimum deposit. |
| Ally Bank | 1.35% ⇓ | |
| CIT Bank | 1.35% ⇓ | $1,000 minimum deposit. |
| Discover | 1.25% ⇓ | $2,500 minimum deposit. |
| Apple Federal Credit Union | 0.90% ⇓ | $500 minimum deposit. |
Certificates of Deposit (CDs)
When you put money into a Certificate of Deposit (CD), you are essentially promising the bank or credit union that they can use your money for a set period of time. In return for making this commitment with your money, a financial institution will offer a yield that is usually higher than what you could get with a savings account. Your money, if you open a CD at an FDIC or NCUA insured bank or credit union, is safe — up to $250,000.
However, most financial institutions have rather onerous penalties if you withdraw your money ahead of the maturity date. If you put money in a CD, you need to make sure that it won’t be a problem to have the money tied up for however long you have the CD.
You can create a CD ladder that allows you to access the money regularly, rolling over the money into new CDs as the old ones expire. This will also let you take advantage of rising interest rates while ensuring regular access to your money. Short-term CD ladders, which change out every three months, can be used as part of an emergency fund plan.
Please review the information associated with each offer before you sign up. Rates and conditions change constantly, and I have reported what I believe to be the most accurate information at the time the article was updated.
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Pinyo Bhulipongsanon is the owner of Moolanomy Personal Finance and a Realtor® licensed in Virginia and Maryland. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, financial literacy author, and Realtor®.
I think opening a CD even with a small amount is okay as long as the bank you transact with is legitimate. A small amount when saved and added up will always become big savings if handled by a trustworthy individual/company.
Those CD rates are so disappointing. It’s better to pay off any high interest debt with some of the money, them start automatically saving money each month. I think.
I agree with you 100%. If you have debts, pay it off first. There’s no sense putting your hard-earned money into CD’s at 3% rate of return when you have debts charging you 8-15% interest.
Too many buy CD’s when they would be better served by a short term bond fund.
Good to know. I’ve been thinking about a CD lately. Not sure if I’m a big fan of the CD route… Still thinking.
I use to have have 2 CD’s & once I stopped getting over 5% interest on them I cash them out & paid off my mortgage that was 4.75%. It worked out well for me. I enjoy having no mortgage. This freed up cash so that I could buy a new car.
It seems that only the long term CD’s have much of a return rate at the moment. It’s unfortunate, but I would only invest in long term CD’s until the rates go up. There are a few gems worth checking out, as well as ING DIRECT.
The rates have been going higher since the last time I saw. I’ve wanted to have a CD account for awhile but the rates weren’t satisfactory for my taste. Probably will wait a little while until I make one since it seems the rates are going up.