Best CD Rates for November 2022
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Here are the current average rates for the week of Oct. 26, 2022, according to Bankrate's weekly survey of institutions:
CD term CD national average APY 1 year 1.05% 2 year 1.07% 3 year 0.97% 4 year 0.95% 5 year 1.00% Note: Average APYs are shown. See the table at the top of the page for APY comparisons.
Note: Bankrate doesn't include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.
Best CD rates for November 2022
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience. Best available rates across different account types for Sunday, November 13, 2022 Book What to know first Menu List On this page Bankrate logo The Bankrate promise At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Learn more about and our promise to guide you through life's financial journey.Editorial Integrity
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Bankrate's editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you're reading an article or a review, you can trust that you're getting credible and dependable information.How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life's financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We're transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.What To Know First
Collapse Caret Up A certificate of deposit (CD) generally earns savers a fixed annual percentage yield (APY) on money that's deposited for a set period. Typically, the APY on a CD is higher than a bank's savings account since it requires your funds to be locked in for the term of the CD. Try not to touch your money before the CD matures, as you can be hit with a costly early withdrawal penalty.Best CD rates of November 2022
Bankrate conducts market research on over 4,000 banks and credit unions nationwide to find accounts with the best CD rates. Here is Bankrate's list of top banks with overall great rates: : 1 year – 5 years, 4.00% APY – 4.25% APY; $1,500 minimum deposit to open : 6 months – 5 years, 2.70% APY – 4.25% APY; no minimum deposit needed to open : 6 months – 6 years, 3.25% APY – 4.25% APY; $500 minimum deposit to open : 3 months – 5 years, 2.00% APY – 4.01% APY; no minimum deposit needed to open : 3 months – 5 years, 0.10% APY – 4.25% APY; no minimum deposit needed to open : 1 year – 5 years, 3.25% APY – 3.45% APY; $5,000 minimum deposit to open : 6 months – 5 years, 0.10% APY – 3.50% APY; no minimum deposit needed to open : 1 year – 5 years, 1.50% APY – 3.25% APY; $10,000 minimum deposit to open : 3 months – 5 years, 1.50% APY – 3.60% APY; no minimum deposit needed to open : 6 months – 5 years, 0.30% APY – 4.00% APY; $1,000 minimum deposit to open CollapseOn This Page
Collapse Caret Up Advertiser disclosureAdvertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We've maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we're putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most - the best banks, latest rates, different types of accounts, money-saving tips and more - so you can feel confident as you're managing your money.Advertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.Best CD rates for November 2022
Matthew Goldberg is a consumer banking reporter at Bankrate. Matthew has been in financial services for more than a decade, in banking and insurance. Brian Beers is the managing editor for the Wealth team at Bankrate. He oversees editorial coverage of banking, investing, the economy and all things money. Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience. Best available rates across different account types for November 13, 2022Best CD rates of November 2022
Bankrate conducts market research on over 4,000 banks and credit unions nationwide to find accounts with the best CD rates. Here is Bankrate's list of top banks with overall great rates: : 1 year – 5 years, 3.00% APY – 3.65% APY; $1,500 minimum deposit to open : 6 months – 5 years, 2.00% APY – 3.50% APY; no minimum deposit needed to open : 6 months – 6 years, 2.00% APY – 3.30% APY; $500 minimum deposit to open : 3 months – 5 years, 1.50% APY – 3.50% APY; no minimum deposit needed to open : 3 months – 5 years, 0.10% APY – 3.25% APY; no minimum deposit needed to open : 1 year – 5 years, 3.00% APY – 3.30% APY; $5,000 minimum deposit to open : 6 months – 5 years, 0.10% APY – 3.00% APY; no minimum deposit needed to open : 1 year – 5 years, 1.50% APY – 2.60% APY; $10,000 minimum deposit to open : 3 months – 5 years, 0.75% APY – 3.10% APY; no minimum deposit needed to open : 6 months – 5 years, 0.15% APY – 2.00% APY; $10,000 minimum deposit to open : 6-10 months, 0.15% APY; $500 minimum deposit to open : 6 months – 5 years, 0.30% APY – 2.20% APY; $1,000 minimum deposit to open Bankrate logoThe Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logoThe Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our banking reporters and editors focus on the points consumers care about most — the best banks, latest rates, different types of accounts, money-saving tips and more — so you can feel confident as you’re managing your money. Bankrate logoEditorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logoHow we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.Show me: The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit CD
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.Savings Money Market Accounts MMA
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations. Filters Reset Arrow Up Close XNational average interest rates for CDs
Researching provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average.Here are the current average rates for the week of Oct. 26, 2022, according to Bankrate's weekly survey of institutions:
CD term CD national average APY 1 year 1.05% 2 year 1.07% 3 year 0.97% 4 year 0.95% 5 year 1.00% Note: Average APYs are shown. See the table at the top of the page for APY comparisons.
Best CD rates from top banks
Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision. Here are Bankrate's top picks for banks with the best CD rates: (formerly Comenity Direct): 1 – 5 years, 4.00% APY – 4.25% APY; $1,500 minimum deposit to open 4.1Overview
Invest Rate 4.00% - 4.25% APY Loan $1,500 minimum deposit to open Calendar 3 months - 5 yearsTerm APY Minimum Deposit 1 year 4.00% $1,500 2 years 4.00% $1,500 3 years 4.00% $1,500 4 years 4.15% $1,500 5 years 4.25% $1,500
Bread Savings does have a higher minimum deposit requirement than some other online banks. : 6 months - 5 years, 2.70% APY - 4.25% APY; $0 minimum deposit to open 4.9
Overview
Invest Rate 2.70% - 4.25% APY Loan $0 minimum deposit to open Calendar 6 months - 5 yearsTerm APY Minimum Deposit 6 months 2.70% $0 9 months 2.70% $0 1 year 4.00% $0 18 months 4.05% $0 2 years 4.10% $0 30 months 4.10% $0 3 years 4.15% $0 4 years 4.20% $0 5 years 4.25% $0
With no minimum opening deposit, Capital One's CDs are a good choice for pretty much anyone looking for a fixed yield. Capital One also offers nearly any term of CD you'd need for a CD ladder or other long-term saving strategy.
Capital One doesn't offer a no-penalty CD or a rate bump CD. : 6 months – 6 years, 3.25% APY – 4.25% APY; $500 minimum deposit to open 4.2
Overview
Invest Rate 3.25% - 4.25% APY Loan $500 minimum deposit to open Calendar 6 months - 6 yearsTerm APY Minimum Deposit 6 months 3.25% $500 7 months* 0.45% $500 9 months 3.30% $500 11 months* 0.35% $500 1 year 4.00% $500 13 months* 3.05% $500 18 months 4.15% $500 2 years 4.25% $500 3 years 4.00% $500 4 years 4.00% $500 5 years 3.80% $500 6 years 3.70% $500 *No-penalty CD
: 3 months – 5 years, 2.00% APY – 4.01% APY; $0 minimum deposit to open 4.3
Overview
Invest Rate 2.00% - 4.01% APY Loan $0 minimum deposit to open Calendar 3 months - 5 yearsTerm APY Minimum Deposit 3 months 2.00% $0 6 months 3.00% $0 9 months 3.05% $0 11 months* 2.60% $0 1 year 3.61% $0 13 months 3.61% $0 14 months 3.61% $0 15 months 3.91% $0 16 months 3.61% $0 18 months 3.81% $0 19 months 3.81% $0 2 years 3.96% $0 2 years ** 3.10% $0 3 years 4.01% $0 4 years 4.01% $0 5 years 4.01% $0 *No-penalty CD **Bump-up CD
: 3 months–5 years, 0.10% APY – 4.25% APY; $0 minimum deposit to open 3.9
Overview
Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. Barclays offers nine terms of CDs ranging from three months to five years. Invest Rate 0.10% - 4.25% APY Loan $0 minimum deposit to open Calendar 3 months - 5 yearsTerm APY Minimum Deposit 3 months 0.10% $0 6 months 0.10% $0 9 months 0.10% $0 1 year 4.00% $0 18 months 4.05% $0 2 years 4.10% $0 3 years 4.15% $0 4 years 4.20% $0 5 years 4.25% $0
Barclays offers competitive yields on most of its CD terms. Also, the bank doesn't require a minimum opening deposit.
: 1 – 5 years, 3.25% APY – 3.45% APY; $5,000 minimum deposit to open 3.5
Overview
Invest Rate 3.25% - 3.45% APY Loan $5,000 minimum deposit to open Calendar 1 - 5 yearsTerm APY Minimum Deposit 1 year 3.25% $5,000 2 years 3.30% $5,000 3 years 3.35% $5,000 4 years 3.40% $5,000 5 years 3.45% $5,000
Citizens offers competitive yields on its five terms of CDs.
Citizens requires at least $5,000 to open a CD. The bank also no longer offers a no-penalty CD. : 6 months – 5 years, 0.10% APY – 3.50% APY; $0 minimum deposit to open 3.9
Overview
Invest Rate 0.10% - 3.50% APY Loan $0 minimum deposit to open Calendar 6 months - 5 yearsTerm APY Minimum Deposit 6 months 0.10% $0 1 year 3.25% $0 18 months 1.00% $0 2 years 3.40% $0 3 years 1.15% $0 4 years 1.20% $0 5 years 3.50% $0
American Express offers competitive yields on some of its CDs and it doesn't have a minimum opening deposit requirement.
: 1 – 5 years, 1.50% APY – 3.25% APY; $10,000 minimum deposit to open 3.4
Overview
Invest Rate 1.50% - 3.25% APY Loan $10,000 minimum deposit to open Calendar 1 - 5 yearsTerm APY Minimum Deposit 1 year* 3.25% $10,000 18 months 1.50% $10,000 2 years 2.20% $10,000 3 years 2.40% $10,000 4 years 2.40% $10,000 5 years 2.60% $10,000 Note: Rates aren't valid in Florida or Texas. * This is a promotional CD that requires new money to be deposited into Amerant Bank.
Amerant Bank offers CD yields that are well above the national average.
: 3 months – 5 years, 1.50% APY – 3.60% APY; $0 minimum deposit to open 5
Overview
Invest Rate 1.50% - 3.60% APY Loan $0 minimum deposit to open Calendar 3 months - 5 yearsTerm APY Minimum Deposit 3 months 1.50% $0 6 months 2.75% $0 9 months 2.85% $0 11 months 2.75%* $0 1 year 3.50% $0 18 months 3.60% $0 2 years 3.00%** $0 3 years 3.60% $0 4 years 3.00%** $0 5 years 3.60% $0 *No-penalty CD **Raise your Rate CD
Ally Bank offers competitive yields on its CDs, and it doesn't require a minimum opening deposit. It also offers nearly every type of CD you'd ever need. This includes regular CDs, a no-penalty CD and a rate bump CD.
: 6 months – 5 years; 0.30% APY – 4.00% APY; $1,000 minimum deposit to open 4.6
Overview
Invest Rate 0.30% - 4.00% APY Loan $500 minimum deposit to open Calendar 6 months - 5 yearsTerm APY Minimum Deposit 6 months 2.75% $1,000 11 months* 3.05% $1,000 1 year 0.30% $1,000 13 months 3.75% $1,000 18 months 4.00% $1,000 2 years 0.40% $1,000 3 years 0.40% $1,000 4 years 0.50% $1,000 5 years 0.50% $1,000 *No-penalty CD
Top CD rates by term
When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you're making a commitment to the bank that you'll keep your money in the account for one year. Here's where you'll find some of the top yielding CDs by term. (Note: Annual percentage yields (APYs) shown are as of Nov. 1, 2022, and may vary by region for some products.) Caret Down 3-month rates 6-month rates 1-year rates 3-year rates 5-year rates Bank Rate Minimum Deposit To Open 2.00% APY $50 Bank Rate Minimum Deposit To Open 3.56% APY $1,000 3.40% APY $10,000 3.30% APY $500 Bank Rate Minimum Deposit To Open 4.00% APY $500 4.00% APY $500 Bank Rate Minimum Deposit To Open $0 4.15% APY $0 4.02% APY $1,000 Bank Rate Minimum Deposit To Open 4.25% APY $0 4.25% APY $1,000How to choose a CD
CDs are a good option for longer-term goals or for money that you're comfortable locking away for a set period of time. A CD can help you save for longer-term goals when you know just when you'll need this money in the future. Follow the steps below to choose the right CD for you: 1. Determine what the money will be earmarked for. An emergency fund, a short-term goal or money you're not sure when you'll need might work better in a high-yield savings account or money market account. You may also want to consider a no-penalty CD. 2. Figure out when that money will be needed and decide your risk tolerance for the funds. Money that needs to be safe and can't be lost should usually be in a Federal Deposit Insurance Corp. (FDIC) account that's within FDIC limits and guidelines. 3. Pick a term that aligns with your savings goals. Terms can range from just a few months to several years. 4. Shop around and compare rates. You'll want to research banks and credit unions, to find the best rates and make sure the minimum opening deposit is in line with how much you're putting in this CD. Generally, rates are highest at online banks, but it's possible for a brick-and-mortar bank or a credit union to offer a competitive yield. 5. Open the CD and deposit the funds into your account.What to know about CDs
Bankrate regularly analyzes banks, gets insights from top financial experts, and compiles industry data to provide the information you need to make an informed financial decision when selecting a CD.What is a CD and how do they work
A CD is a type of account offered by banks and credit unions that pays interest on a deposit amount for a set period of time. These accounts typically pay a guaranteed fixed rate of return for the duration of the CDs term. Generally, the longer the term, or amount of time you agree to lock up your money, the higher the interest rate. However, withdrawing your money before the term ends will likely result in an early withdrawal penalty.Types of CDs
Financial institutions to fit different financial situations. Take time to consider which type of CD is best for you.Traditional CDs
Traditional CDs are the most common and have a fixed APY for the CD's term. These CDs usually don't let you deposit additional funds before the CD matures and also tend to have strict early withdrawal penalties. When this CD makes sense: You know exactly when you need the money and there's no chance you need it before. Great for CD ladders or another CD investing strategy where timing is important.No-penalty CDs
Traditionally, CDs are known as time deposit accounts. So if you withdraw from a CD before it matures, you'll usually incur a penalty that's equal to a certain amount of interest earned during a period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD earlier than a year. However, some banks offer - also known as liquid CDs - which allow you to withdraw your money early without having a penalty fee cut into your interest earnings. A bank may require that you wait at least some time, generally around six or seven days, before you're able to withdraw from a no-penalty CD and some banks may not allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CDs but can be higher than some or money market accounts. When this CD makes sense: You're mostly confident that you won't have to withdraw the money before the CD matures, but you want to keep some flexibility in case you have to tap it. As a result, you're willing to give up a little return for added liquidity.Bump-up CDs
These types of CDs allow you to request an increase in your rate during the CD term under certain conditions. Institutions that issue this CD option usually only allow one bump-up per term. For example, imagine purchasing a three-year CD at a given rate, and one year into the term, the bank offers an additional half-point rate increase. With a bump-up CD, you're allowed to request a rate increase for the remainder of the term. The disadvantage is that bump-up CDs often pay lower initial rates than traditional CDs. When this CD makes sense:Are CDs safe
CDs at either a FDIC-insured bank or at a credit union regulated by the NCUA and as long as it's within insurance guidelines. These accounts are safe at online banks, brick-and-mortar banks and credit unions because they're backed by the full faith and credit of the U.S. government. Just make sure you're not exceeding the insurance limits. The standard insurance limit is $250,000 per depositor, per insured bank, for each account ownership category at an FDIC-insured bank. For federally insured credit unions, the standard share insurance is $250,000 per share owner, per insured credit union, for each account ownership category.Who should get a CD
Someone looking for a low-risk place to stash cash and get a guaranteed rate of return should consider getting a CD. They can be good, safe investments for short- to medium-term goals, like saving for a new car or for a down payment on a home. A CD is worth considering for the following people: Time specific goal-setters: For a person looking to buy something in two years, an 18-month CD could be a great option. Just make sure you definitely won't need that money during the CD term or else you could get stuck paying a costly penalty for not leaving the money in the account. Low-risk investors: Instead of guessing what direction savings account yields will be heading in a few years, you can calculate your interest earnings right away with a CD. Impulse spenders: A CD, with its early withdrawal penalty, can help prevent you from spending your money.Pros and cons of CDs
Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation. It's important to consider the interest rate you're getting, how often the interest compounds and whether you're more comfortable with a CD from an online bank or from a traditional institution with branches. Here are some of the pros and cons of CDs:Pros
Longer-term CDs typically have a higher APY than money market accounts or savings accounts. CDs are a good place to keep money that you want to save and don't want to easily touch and spend. CDs can help you separate money for financial goals or future expenses. Deposit insurance covers accounts at FDIC banks up to at least $250,000. And at an NCUA credit union, your money is federally insured to at least $250,000. A CD can diversify your savings plan with a guaranteed rate. Your principal is safe, if you keep your money in a CD for the full term.Cons
Your money is in an account for potentially a long period of time. Many CDs have early withdrawal penalties. Your money is stuck in a lower-yielding CD if rates rise substantially. And the early withdrawal penalty may negate any benefit of switching to a higher-yielding CD. You could potentially earn greater rates of return in the stock market or by investing in other securities.The Federal Reserve and CD rates
The interest rate decisions can impact the rates that banks offer on CDs. When the Fed raises or lowers the federal funds rate, banks typically respond by moving savings and money market account yields in the same direction. CDs tend to track Treasurys closely. In 2019, a year when the Fed lowered rates three times, CDs generally decreased before or after a Fed rate cut. Two emergency Fed rate cuts in March 2020, and decreasing Treasurys that year, caused high-yield CDs to decrease. So far in 2022, the U.S. central bank has raised rates several times in a bid to . Even before the , some banks that pay competitive yields began offering higher APYs on CDs.Are CD rates going up
The has been increasing during most of the year. The Federal Reserve and competition among banks are two reasons CD rates have been increasing rapidly this year. The Fed, whose policies directly affect savings account rates and can also influence CD rates, continues to raise rates – causing competitive banks to raise CD APYs to attract deposits.CDs vs other savings accounts
CDs vs traditional savings accounts
. That means the funds you store in those types of accounts are easier to access and have fewer withdrawal penalties and limitations. This makes savings accounts better for your . You could withdraw the savings you've stashed in a CD, but be prepared to pay a penalty if you take your money out before the CD's maturity date (unless you've purchased a no-penalty CD).CDs vs high-yield savings accounts
At some banks, it's common to see a one-year CD with a higher APY than a high-yield savings account. The differences between CDs and high-yield savings accounts are: A high-yield savings account is generally liquid, meaning you can usually withdraw money without a fee. A CD usually has an early withdrawal penalty. (A savings account may charge a fee if a certain amount of withdrawals are made during a monthly statement cycle. And it's possible for a savings account to have an early closeout fee.) High-yield savings accounts generally have variable APYs. While CDs usually have fixed APYs.CDs vs money market accounts
The gap between interest rates tied to CDs and has narrowed. But CDs are more likely to pay a higher yield than savings accounts or money market accounts. . Both are types of savings products that banks and credit unions offer. Both are considered safe, as long as they're insured by the FDIC at banks or the NCUSIF at credit unions. Savers opening a CD or money market account might have to meet higher minimum deposit requirements than they would with a savings account. However, money market accounts offer more liquidity than CDs, often providing the ability to write a limited number of checks per month directly out of the account. Some money market accounts offer a debit card. Those liquidity features aren't something you'll find with CDs. In exchange for less liquidity, however, CDs typically offer a higher interest rate than money market accounts.CDs vs bonds
Investors have a lot to consider when deciding between a CD and a bond. Traditional CDs from banks are insured by the Federal Deposit Insurance Corp. (FDIC), or from the National Credit Union Share Insurance Fund if you're getting a CD from a National Credit Union Administration (NCUA) credit union. CDs are safe investments that typically pay a fixed interest rate. In other words, you know how much you're earning upfront. You're also guaranteed to receive that amount of interest for the term and get your full principal amount back, as long as you don't make any premature withdrawals. If you're interested in having more flexibility and you want the chance to earn a higher yield, you may want to consider investing in a bond. A bond is a loan you make to a government or a corporation to receive a rate of return. You can sell a bond before it matures without getting hit with an early withdrawal penalty, but you may get back more or less than your original investment if interest rates have moved. With municipal bonds, the interest you earn is often exempt from taxes. There are many different types of bonds, and some are riskier than others. Bonds aren't protected by FDIC or NCUSIF insurance like CDs are. And the value of your bonds will vary depending on what's happening with interest rates. If interest rates are rising, the price of your bonds will likely fall and vice versa.CDs and taxes
Are you taxed on a CD when it matures
Yes, you will be taxed on the interest earned on a CD that contains non-qualified money – money that you already paid income tax on. However, if the money is in a traditional IRA CD, you will pay taxes when the money is withdrawn. This is because traditional . In some cases, you can deduct your CD on your taxes. If you're eligible to contribute to a traditional IRA CD, you may be eligible for a full deduction up to your contribution limit or a partial deduction. Your modified adjusted gross income, your marital status and whether you're covered by a retirement plan at work are some of the factors that will determine if you're eligible for an IRA deduction.Does cashing a CD count as income
Interest earned from CDs is an example of , according to the Internal Revenue Service. When you earn $10 of interest or more, you should receive Copy B of Form 1099-INT or Form 1099-OID. Even if you don't receive a 1099, all taxable and tax-exempt interest must be reported on your federal income tax return. Also, interest may be called dividends. One exception to this would be, for instance, if the funds were rolled over from a 401(k) into a traditional IRA CD and those funds have never been taxed. If you're withdrawing from a traditional IRA CD in that situation, the money that you withdraw will count as income.How to build a CD ladder
is a method to space out maturity dates on your CDs. This investment strategy involves savers buying multiple CDs at once that mature at different intervals. It's a way to both spread out when the money is available and protect yourself from being stuck in a long-term CD if rates rise. "Looking for a regular stream of interest income? Consider a CD ladder where your money is diversified over a range of maturity dates, structured so you get to reinvest at consistent intervals." - Generally, the longer your CD term, the higher your rate of return. One way to grow your savings and earn as much interest as possible is to build a CD ladder. You could buy several CDs with different term lengths at one time, giving you the chance to invest in a longer-term CD with a higher yield and short-term CDs that will mature within a shorter period of time, like six months or one year. For instance, a of three CDs might have a one-year CD, a two-year CD and a three-year CD. If you have $15,000 to invest, you could invest $5,000 in each rung: $5,000 in a one-year CD $5,000 in a two-year CD $5,000 in a three-year CD CD laddering can also shield you from interest rate changes. If rates are rising, you'll be able to take advantage of higher yields when your existing CDs mature. And if interest rates are falling, you'll be happy that you locked up your savings when your bank was paying a higher rate. Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising interest rate environment, so you can more quickly take advantage of higher rates. Conversely, locking into CDs with longer terms makes more sense when rates are moving lower because it enables you to continue earning higher CD yields than the market currently offers.Certificate of deposit FAQs
Research methodology
Bankrate's editorial team regularly updates rates featured on this page about every two weeks. We mainly look for the highest APYs and break ties using the minimum balance to open a CD. Bankrate's editorial team has that it tracks, and researches rates weekly for more than 70 popular banks and credit unions. These institutions were selected because they offer competitive APYs, are larger (based on the amount of deposits or assets), frequently appear in internet searches or other possible factors. These banks and credit units typically offer accounts that are available nationwide. All of these banks are insured by the Federal Deposit Insurance Corp. (FDIC) and all of the credit unions are National Credit Union Administration (NCUA) credit unions, insured by the National Credit Union Share Insurance Fund (NCUSIF). Choosing an FDIC-insured bank or NCUA-backed credit union ensures your money is safe as long it's within . These financial institutions are featured in our CD rate research: Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.Note: Bankrate doesn't include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.