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14 Best CD Rates for October 2022

Spencer Tierney Oct 24, 2022 Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. ALSO CONSIDER: Best online savings Best checking Best high-interest accounts The best CD rates provide a stable way to grow fixed sums of savings faster than other CDs or savings accounts. Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions. Online banks and credit unions tend to have the best yields on certificates of deposit. You can find rates far higher than the national averages of 0.71% for one-year terms and 0.83% for five-year terms. The Federal Reserve has raised its rate multiple times in 2022, leading banks to raise their rates too. For more on rate changes, see our analysis of current CD rates. If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term. Here’s a look at some of the highest CD rates on the market. ALSO CONSIDER: Best online savings Best checking Best high-interest accounts The best CD rates provide a stable way to grow fixed sums of savings faster than other CDs or savings accounts. Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions. Online banks and credit unions tend to have the best yields on certificates of deposit. You can find rates far higher than the national averages of 0.71% for one-year terms and 0.83% for five-year terms. The Federal Reserve has raised its rate multiple times in 2022, leading banks to raise their rates too. For more on rate changes, see our analysis of current CD rates. If you don’t need immediate access to some of your money, high-yield CDs can be a way to build your savings. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term. Here’s a look at some of the highest CD rates on the market.

Best CD Rates

Bank/institutionNerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit1-year APY3-year APY5-year APYLearn more Discover Bank CDLearn more at Discover Bank, Member FDIC 5.0/5$2,500Member FDIC3.25% Annual Percentage Yield (APY) is accurate as of 10/20/20223.40% Annual Percentage Yield (APY) is accurate as of 10/20/20223.50% Annual Percentage Yield (APY) is accurate as of 10/20/2022Learn more at Discover Bank, Member FDIC Marcus by Goldman Sachs High-Yield CDLearn more at Marcus by Goldman Sachs, Member FDIC 5.0/5$500Member FDIC3.25% 3.25% APY (annual percentage yield) as of 10/07/20223.45% 3.45% APY (annual percentage yield) as of 10/07/20223.50% 3.50% APY (annual percentage yield) as of 10/07/2022Learn more at Marcus by Goldman Sachs, Member FDIC Alliant Credit Union CertificateLearn more at Alliant Credit Union, Federally insured by NCUA 4.5/5$1,000Federally insured by NCUA3.50%3.60%3.65%Learn more at Alliant Credit Union, Federally insured by NCUA Barclays Online CDLearn more at Barclays, Member FDIC 5.0/5$0Member FDIC3.25%3.50%3.65%Learn more at Barclays, Member FDIC Synchrony Bank CDRead review 5.0/5$0Member FDIC3.61% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC.4.01% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC.4.01% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC.Read review Capital One 360 CDRead review 5.0/5$0Member FDIC3.25%3.40%3.50%Read review Citizens Online CDRead review 4.5/5$5,000Member FDIC3.25%3.35%3.45%Read review TAB Bank CDRead review 4.5/5$1,000Member FDIC3.25%3.05%2.84%Read review Popular Direct CDRead review 4.5/5$10,000Member FDIC3.85%4.00%3.90%Read review Sallie Mae Bank CDRead review 5.0/5$2,500Member FDIC3.75%4.00%4.05%Read review Ally Bank High Yield CDRead review 5.0/5$0Member FDIC3.25%3.50%3.50%Read review Connexus Credit Union CDRead review 4.5/5$5,000Federally insured by NCUA3.51%3.61%3.01%Read review Quontic Bank CDRead review 5.0/5$500Member FDIC2.50% You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yield3.00% You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yield3.20% You must maintain a minimum balance of $500.00 in the account each day to obtain the disclosed annual percentage yieldRead review Bread Savings CDRead review 5.0/5$1,500Member FDIC3.60% All Bread Savings APYs are accurate as of 09/29/22. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawls on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time.4.00% All Bread Savings APYs are accurate as of 09/29/22. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawls on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time.4.25% All Bread Savings APYs are accurate as of 09/29/22. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawls on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time.Read reviewLearn more at Discover Bank, Member FDIC

Discover Bank CD

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$2,500 Member FDIC 1-year APY3.25% Annual Percentage Yield (APY) is accurate as of 10/20/2022 3-year APY3.40% Annual Percentage Yield (APY) is accurate as of 10/20/2022 5-year APY3.50% Annual Percentage Yield (APY) is accurate as of 10/20/2022 View details Learn moreat Discover Bank, Member FDIC View details 3-year APY 3.40% 5-year APY 3.50% Why we like it Overview: The credit card issuer and online bank Discover offers a wide range of CDs. CD terms start at three months and extend to 10 years, though there tend to be better rates on terms from one to five years. The minimum to open is $2,500, which is somewhat high. Fees: The penalty for withdrawing early from a Discover CD depends on the CD’s term, starting with three months of interest for terms of less than one year. The biggest penalty is two years of interest for terms of seven to 10 years. Like most CDs, there are no monthly or opening fees. Other products: Discover also boasts CDs for individual retirement accounts (or IRA CDs), an online savings account and a cashback checking account. There are also highly rated mobile apps and 24/7 live customer service. Full list of Discover CD rates: 3-month CD: 1.00% APY 6-month CD: 1.75% APY 9-month CD: 1.85% APY 1-year CD: 3.25% APY 18-month CD: 3.25% APY 2-year CD: 3.30% APY 30-month CD: 3.30% APY 3-year CD: 3.40% APY 4-year CD: 3.40% APY 5-year CD: 3.50% APY 7-year CD: 3.50% APY 10-year CD: 3.50% APYRead Full ReviewLearn more at Marcus by Goldman Sachs, Member FDIC

Marcus by Goldman Sachs High-Yield CD

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$500 Member FDIC 1-year APY3.25% 3.25% APY (annual percentage yield) as of 10/07/2022 3-year APY3.45% 3.45% APY (annual percentage yield) as of 10/07/2022 5-year APY3.50% 3.50% APY (annual percentage yield) as of 10/07/2022 View details Learn moreat Marcus by Goldman Sachs, Member FDIC View details 3-year APY 3.45% 5-year APY 3.50% Why we like it Overview: Marcus is the Goldman Sachs branch launched in 2016 that handles online banking products, including an extensive line-up of CDs with terms from six months to six years. Rates include its one-year CD with 3.25% APY (annual percentage yield) as of 10/07/2022. The minimum is lower than many banks, though some have no minimum. Marcus CD rates from the one-year term onward tend to be better. The bank also has two specialty types of CDs: a 20-month bump-rate CD and three no-penalty CD terms, which include seven months, 11 months and 13 months. Live customer service by phone is available every day. Fees: No monthly or opening fees. If you withdraw early from a standard Marcus CD, the penalty is the following: three months’ worth of interest earned for CD terms less than a year, nine months of interest for CD terms of one to five years and one year’s worth of interest for the six-year CD. Other products: Its savings account’s rate is similarly impressive. The bank doesn't, however, offer mobile apps, ATMs, branches or checking accounts, so it’s best for letting the interest on your money grow.List of Marcus CD rates: 6-month CD: 2.50% APY 9-month CD: 2.65% APY 1-year CD: 3.25% APY 18-month CD: 3.30% APY 2-year CD: 3.40% APY 3-year CD: 3.45% APY 4-year CD: 3.45% APY 5-year CD: 3.50% APY 6-year CD: 3.50% APYRead Full ReviewLearn more at Alliant Credit Union, Federally insured by NCUA

Alliant Credit Union Certificate

4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$1,000 Federally insured by NCUA 1-year APY3.50% 3-year APY3.60% 5-year APY3.65% View details Learn moreat Alliant Credit Union, Federally insured by NCUA View details 3-year APY 3.60% 5-year APY 3.65% Why we like it Overview: Founded in 1935 in Illinois, the online-focused Alliant Credit Union is one of the largest credit unions nationwide and offers solid certificate rates. To become a member, one option is to agree to support Alliant's partner charity Foster Care to Success; Alliant will make a $5 donation on your behalf. Alliant’s certificates have a low minimum deposit of $1,000, and terms stretch from one to five years. Unlike at many banks, you can select a term of any month within that range. Phone support is available 24/7. Fees: No monthly or opening costs. Early withdrawal penalties are more friendly than some banks’; the penalty for certificates of two-year terms or longer consists of up to six months of dividends. Some banks require more than a year of dividends for similar terms. Other products: Alliant also offers IRA certificates for those saving for retirement as well as savings accounts and a high-yield checking with an extensive ATM network. List of Alliant Credit Union certificate rates: 1-year: 3.50% APY 18-month: 3.55% APY 2-year: 3.55% APY 3-year: 3.60% APY 4-year: 3.60% APY 5-year: 3.65% APYRead Full ReviewLearn more at Barclays, Member FDIC

Barclays Online CD

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$0 Member FDIC 1-year APY3.25% 3-year APY3.50% 5-year APY3.65% View details Learn moreat Barclays, Member FDIC View details 3-year APY 3.50% 5-year APY 3.65% Why we like it Overview: Barclays, an online-only U.S. branch of a London-based company by the same name, has CD rates with the rare perk of no opening minimum. Terms include one-year to five-year CDs. Customer service is available every day for 12 hours. Fees: No monthly or opening fees. The early withdrawal penalties are three months of interest for two-year CDs and shorter, and six months of interest for CDs with terms longer than two years. Other products: Barclays also has a high-yield savings account with no minimum deposit and a bare-bones mobile app. The bank lacks checking, an ATM network and advanced budgeting tools. Full list of Barclays CD rates: 1-year CD: 3.25% APY 18-month CD: 3.30% APY 2-year CD: 3.40% APY 3-year CD: 3.50% APY 4-year CD: 3.50% APY 5-year CD: 3.65% APYRead Full ReviewRead review

Synchrony Bank CD

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$0 Member FDIC 1-year APY3.61% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC. 3-year APY4.01% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC. 5-year APY4.01% APYs are subject to change at any time without notice. Offers apply to personal accounts only. A penalty may be imposed for early withdrawals from a CD. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. Fees may reduce earnings. Member FDIC. View details Read reviewView details 3-year APY 4.01% 5-year APY 4.01% Why we like it Overview: An online bank owned by a Fortune 500 company, Synchrony Bank has more CD terms than many banks, with eight terms under two years. This can be helpful for creating a short-term CD ladder, which is a more flexible approach to saving in CDs than holding funds only in long-term CDs. Synchrony CD rates have no minimum opening deposit or balance requirement. The bank also has two specialty types of CDs: an 11-month no-penalty CD and a 2-year bump-up CD. Customer service is available by phone every day. Fees: Early withdrawal penalties include: three months of interest for CDs of one-year terms or shorter, six months of interest for CDs between one-year and four-year terms, and one year of interest for five-year CDs. No monthly or opening costs. Other products: Synchrony Bank offers IRA CDs for the retirement-minded as well as a money market account and high-yield savings account that has a program for extra banking perks, including unlimited ATM fee reimbursements. It doesn’t have checking accounts. List of Synchrony Bank CD rates: 3-month CD: 2.00% APY 6-month CD: 3.00% APY 9-month CD: 3.05% APY 1-year CD: 3.61% APY 16-month CD: 3.61% APY 18-month CD: 3.81% APY 2-year CD: 3.96% APY 3-year CD: 4.01% APY 4-year CD: 4.01% APY 5-year CD: 4.01% APYRead Full ReviewRead review

Capital One 360 CD

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$0 Member FDIC 1-year APY3.25% 3-year APY3.40% 5-year APY3.50% View details Read reviewView details 3-year APY 3.40% 5-year APY 3.50% Why we like it Overview: Capital One, one of the biggest U.S. credit card issuers, is also an online bank with strong savings tools and CD options. Terms go from six months to five years, and there’s no minimum to open. Capital One has a handful of cafes in major cities nationwide that function like branches, and its phone support for online customers is available every day. Fees: No monthly or opening fees. The early withdrawal penalty for 1-year CDs and shorter terms is three months of interest and the penalty for longer terms is six months. These are lower penalties than at some banks. Other products: Capital One boasts a strong selection of online accounts, including checking, savings and money market accounts. Its mobile apps have been ranked among the highest in customer satisfaction by J.D. Power. List of all Capital One CD rates: 6-month CD: 2.00% APY 9-month CD: 2.00% APY 1-year CD: 3.25% APY 18-month CD: 3.25% APY 2-year CD: 3.30% APY 30-month CD: 3.30% APY 3-year CD: 3.40% APY 4-year CD: 3.40% APY 5-year CD: 3.50% APYRead Full ReviewRead review

Citizens Online CD

4.5NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.Minimum deposit$5,000 Member FDIC 1-year APY3.25% 3-year APY3.35% 5-year APY3.45% View details Read reviewView details 3-year APY 3.35% 5-year APY 3.45% Why we like it Overview: As the online-only division of Citizens Bank, Citizens, formely known as Citizens Access, has a variety of CDs with terms ranging from one to five years. The $5,000 minimum to open is high. Phone support is available daily. Fees: No monthly or opening fees. Withdrawing early from a CD has a charge of three months for terms of one year or less and a charge of six months for terms longer than one year. Other products: Like other online banks with stellar CD options, Citizens doesn't have checking or branches, but its savings account has a top APY. Citizens doesn’t have mobile apps, but its website is mobile-friendly. Full list of Citizens CD rates: 1-year CD: 3.25% APY 2-year CD: 3.30% APY 3-year CD: 3.35% APY 4-year CD: 3.40% APY 5-year CD: 3.45% APYRead Full Review Want to compare more options? Here are our other top picks:TAB Bank CDPopular Direct CDSallie Mae Bank CDAlly Bank High Yield CDConnexus Credit Union CDQuontic Bank CDBread Savings CD APYs shown are as of October 24, 2022. » Curious about other savings options? Check out NerdWallet’s best high-yield online savings accounts

CD definition

A certificate of deposit is a bank account that requires you to lock funds away for a fixed period of months or years in exchange for a fixed interest rate that can be higher than other bank accounts. See more about what CDs are.

Best CD rates for October 2022

Marcus by Goldman Sachs: 2.50% - 3.50% APY, 6 months - 6 years, $500 minimum to open. Discover Bank: 1.00% - 3.50% APY, 3 months - 10 years, $2,500 minimum to open. Alliant Credit Union: 3.50% - 3.65% APY, 1 - 5 years, $1,000 minimum to open. Barclays: 3.25% - 3.65% APY, 1 - 5 years, no minimum to open. TAB Bank: 2.69% - 2.84% APY, 6 months - 5 years, $1,000 minimum to open. Popular Direct: 2.00% - 3.90% APY, 3 months - 5 years, $10,000 minimum to open. Capital One: 2.00% - 3.50% APY, 6 months - 5 years, no minimum to open. Sallie Mae Bank: 3.00% - 4.05% APY, 6 months - 5 years, $2,500 minimum to open. Synchrony Bank: 2.00% - 4.01% APY, 3 months - 5 years, $2,000 minimum to open. Ally Bank: 1.00% - 3.50% APY, 3 months - 5 years, no minimum to open. Bread Savings: 1.00% - 1.40% APY, 1 - 5 years, $1,500 minimum to open. Citizens: 3.25% - 3.45% APY, 1 - 5 years, $5,000 minimum to open. Connexus Credit Union: 3.51% - 3.01% APY, 1 - 5 years, $5,000 minimum to open. Quontic Bank: 1.70% - 3.20% APY, 6 months - 5 years, $500 minimum to open.

How do CDs work

Learn more about the journey of choosing, opening and closing CDs. For choosing CDs: Are CDs worth it? CDs vs. regular savings accounts. CDs vs. money market accounts. CDs vs. bonds. For understanding CD rates: CD calculator. Current CD rates. Historical CD rates. Fed rate increase: What it means for CDs. For opening CDs: Opening a CD account in 5 steps What is a CD ladder? How to invest in CDs: 3 strategies For closing CDs: When your CD matures: What to know. CD early withdrawal penalty by bank. How to avoid a CD early withdrawal penalty.

See CD rates by term and type

Compare the best rates on certificates of deposit for various CD terms and types: Best CD rates overall. Best 3-month CD rates. Best 6-month CD rates. Best 1-year CD rates. Best 3-year CD rates. Best 5-year CD rates. Best no-penalty CD rates. Best IRA CD rates. Best credit union CD rates. Best jumbo CD rates.

See CD rates by bank

If you want to see CD rates at specific banks, here’s a quick list of both traditional and online banks’ CDs (and one brokerage’s offering): Ally Bank CD rates. Bank of America CD rates. Capital One CD rates. Chase CD rates. Discover Bank CD rates. Fidelity CD rates. Marcus CD rates. Wells Fargo CD rates.

What is a no-penalty CD

A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect.

Best no-penalty CD rates

If you withdraw money from a CD before the term ends, you generally pay a penalty of at least several months' worth of interest earned. But some providers have CDs without this early withdrawal penalty, though rates are slightly lower than other CD rates. Here are some: CIT Bank: 3.05% APY, 11 months, $1,000 minimum to open. Synchrony Bank: 2.40% APY, 11 months, no minimum to open. Marcus by Goldman Sachs: 2.40% APY, 13 months, $500 minimum to open. Ally Bank: 2.20% APY, 11 months, no minimum to open. » See more details on our list of the best no-penalty CD rates.

What happens if I withdraw from a CD early

Most CDs have an early withdrawal penalty that tends to range from several months' to a year's worth of interest earned, depending on the CD term length and the bank's policy. No-penalty CDs are the only type of CD that lets you withdraw money from a CD early without a fee. Learn more about different types of CDs. Last updated on October 24, 2022

Discover Bank Online Savings

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.35% Annual Percentage Yield (APY) is accurate as of 10/20/2022With $0 min. balance for APY Bonus$200 To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code NW922 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200. What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 30 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/15/2022, 11:59 PM ET. Offer may be modified or withdrawn without notice.Requirements to qualifyLearn more at Discover Bank, Member FDIC

LendingClub High-Yield Savings

Marcus by Goldman Sachs Online Savings Account

5.0NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.APY2.35% 2.35% APY (annual percentage yield) with $0 minimum balance to earn stated APY. Accounts must have a positive balance to remain open. APY valid as of 10/14/2022.With $0 min. balance for APYLearn more at Marcus by Goldman Sachs, Member FDIC

Methodology

On a monthly basis, we compare rates at over 30 financial institutions, pulled from our full list, that we’ve seen to be consistently competitive. On a quarterly basis, we analyzed our full list, excluding banks that offered brokered CDs, since those accounts work differently from standard bank CDs. Higher rates might be available elsewhere. We took a close look at over 80 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more. Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, BB&T (now Truist), BMO Harris, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Discover Bank, E-Trade, Fifth Third Bank, First Foundation, First Tech Federal Credit Union, FNBO Direct, GO2bank, Golden 1 Credit Union, HSBC Bank, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Monifi, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Redneck Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, State Employees’ Credit Union of North Carolina, SoFi, Suncoast Credit Union, SunTrust Bank (now Truist), Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank. How we rate banks and credit unions To recap our selections...

NerdWallet' s Best CD Rates for October 2022

Discover Bank CDMarcus by Goldman Sachs High-Yield CDAlliant Credit Union CertificateBarclays Online CDSynchrony Bank CDCapital One 360 CDCitizens Online CDTAB Bank CDPopular Direct CDSallie Mae Bank CDAlly Bank High Yield CDConnexus Credit Union CDQuontic Bank CDBread Savings CD

Frequently asked questions

What is a CD? Definition: A CD, or certificate of deposit, is a bank account with a fixed interest rate that’s generally higher than that of a regular savings account, and a fixed date of withdrawal, known as the maturity date. Common terms range from three months to five years. Main advantages: The ability to lock in rates when they’re high is one of the most attractive features of a CD, especially since regular savings accounts have variable rates subject to change at any time. Even outside of high-rate environments, though, CDs provide a safe, federally insured place for short-term savings. Main downsides: You’ll generally have to pay a penalty if you withdraw your money before a CD matures; the penalty can be equal to several months’ or a year’s worth of interest. What else to consider: If you’re thinking about CDs, compare the highest CD rates today.Which banks have the best CD rates? Online banks such as Capital One and Synchrony Bank and credit unions such as Alliant Credit Union tend to offer some of the most competitive rates, especially compared to national averages.Are CDs safe? Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. See more details about how CDs are FDIC insured. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.Are CD rates going up? Yes. The Federal Reserve has raised its rate multiple times in 2022, which has encouraged banks and credit unions to raise their rates as well. See more insight about current CD rates.Are CDs worth it? Certificates of deposit require more of a commitment than a regular savings account since you're locking away some savings for a future date. This feature can be helpful for some goals but not for others, such as emergency savings. Take a closer look at when CDs are worth it.What’s better: CDs or high-yield savings accounts? It depends on what’s more important to you: rates or access to your money. Some of the current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t work for you, check out our list of best online savings accounts.When should you get a CD? CDs can make sense as a way to lock up some savings dedicated to a short-term goal such as buying a car or house in the next few years. Outside of goals, CDs can be a safe place for money you want to get guaranteed returns on without the risk of fluctuation such as in the stock market.What CD term length should I choose? It depends on your savings goals and how sure you are that you won't need your funds before the CD term expires. Having to pay an early withdrawal penalty, generally up to one year's worth of interest, can be a blow to your savings. Common CD terms range from six months to five years; if you want to play it safe, go for a shorter CD term or a no-penalty CD.How do CD rates work? CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily. A CD’s term plays a role too: the longer the term, the higher the rate generally.How much interest does $10,000 earn in a CD in a year? This largely depends on the CD’s rate. Let’s say you placed $10,000 into a one-year CD with 2.50% APY. You’d earn about $250 in interest. To see what one or more CDs can earn for you, check out our CD calculator.APY vs. interest rate: What’s the difference? Both show the rate of interest you can earn on a CD or savings account, but APY factors in compounding interest and the interest rate doesn’t. If you’re comparing CD rates at a glance, APY is more useful. For example, APY brings a CD with interest compounded daily and another with interest compounded monthly onto the same playing field. For CDs of the same term length, a higher APY means a higher return.How do I choose a CD? The biggest point of comparison for any CD is the rate: the higher it is, the more you save. Compare CD rates by term, for example, one-year CDs with other one-year CDs. Other details to consider would be an unusually high minimum deposit or a harsh early withdrawal penalty (such as cutting into the initial deposit you put into the CD — most early-withdrawal penalties only affect the interest earned, not the initial deposit).Should I get a CD at a bank or credit union? Credit unions and online banks are solid places to find competitive CD rates. Credit unions are the nonprofit equivalent of banks, and can generally offer higher savings rates than traditional brick-and-mortar banks. Credit unions’ certificates of deposit are called “shared certificates” and interest “dividends,” and these function as they do at banks. See an analysis of banks vs. credit unions.What are the best credit union CD rates? See our list of the best credit union CD rates.What is a jumbo CD? A jumbo CD is a type of CD with a traditionally high minimum deposit such as $10,000, though it can be lower. Although jumbo CD rates can be higher than regular CDs, online banks and credit unions offer some of the best rates on CDs with low or no minimums.What is a brokered CD? A brokered CD is a CD originated by a bank or credit union and offered by a brokerage firm. They function like regular CDs except that they can be traded before their terms end. Check out the pros and cons on our explainer about brokered CDs.IRA vs CD vs IRA CD: What’s the difference? An IRA, or individual retirement account, is a tax-advantaged account that contains investments such as stocks, bonds and CDs. A CD is a type of savings account that locks up money for a set term, generally from three months to five years. An IRA CD is a type of CD used to save a portion of retirement savings. You get the tax-advantaged status of an IRA and the fixed term and rate of a CD.Should I put my emergency fund in a CD? No. CDs are meant for savings you can set aside and leave untouched. Consider a high-yield savings account for money you need in a pinch. Learn more about emergency funds, including a calculator to determine the exact amount to aim for.What are the best IRA CD rates? See our list of the best IRA CD rates.Do CDs have fees? CDs don’t have monthly fees like checking or savings accounts might have, but they generally have a penalty if you withdraw before the CD term expires. This early withdrawal penalty tends to be several months’ worth of interest, so it’s usually best to wait to access funds from a CD once it expires. The exception is no-penalty CDs.What is a no-penalty CD A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect. Here’s a closer look at no-penalty CDs: pros, cons, and some of their rates.Do I have to pay taxes on interest in CDs? Yes. Interest earned in CDs is taxable as interest income. Your bank or credit union will usually give you a Form 1099-INT that states the interest each year, unless the amount is under $10. The IRS notes that you generally include interest from CDs when you receive it, so a CD with a term longer than a year wouldn’t have its interest taxed until the term ends.Is laddering CDs a good idea? A CD ladder can be a helpful strategy if you don’t want to go all in on one CD, especially if you think rates will keep rising. It works like this: you open multiple CDs at different terms, such as one year, two years and three years, which frees up part of your funds more regularly than having, say, just a three-year CD. Each time a CD matures, you can either reinvest in a new CD or withdraw your money. Learn more about how CD ladders work.What’s better: CD or money market account? It depends on what rates and type of access to funds you need. Like high-yield savings accounts, money market accounts have ongoing access to funds, while CDs don’t. Among savings accounts, CD rates are traditionally the highest, then money market accounts, then regular savings accounts. However, online high-yield savings account rates now compete with money market rates, which you can see on our list of top rates.Are 10-year CD rates worth it? The general rule of thumb for CDs is the longer the term, the higher the rate. However, this isn't always true. The best 10-year CD rates aren't necessarily higher than the best five-year CD rates, and locking up your money for a decade might not be in your best interest. Consider current CD rates as well as your savings goals — investing your money in mutual funds might be more worthwhile for a longer term. » For more info, see the best short-term investments for 5 years or lessWhat’s better: CDs or investment accounts? It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They’re typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses.What are alternatives to CDs? Let's say you have an emergency fund that consists of enough cash to cover about three to six months’ worth of living expenses. To grow your long-term savings, consider opening an online brokerage account. Although these financial products come with more risk than CDs, they could lead to higher returns. Picking the right broker comes down to your priorities. Some investors are willing to pay more for a top-notch platform; others count costs above all else. With brokerage accounts, you don't have to worry about early withdrawal penalties, but your funds may be more difficult to access in a pinch, given that you’ll likely need to sell some investment shares before you can devote that money to anything else. » For in-depth guidance, check out NerdWallet’s best online stock brokers for beginnersShould I give a child a CD or a savings bond? Both CDs and savings bonds offer stable returns over time and can be given to children as long as an adult manages the account on their behalf. Savings bonds have longer time horizons, up to 30 years, and can earn more than many CDs in a low-rate environment. Learn more about savings bonds and how to give them as gifts.

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Spencer Tierney

Spencer is an expert on certificates of deposit at NerdWallet. His work has been featured by USA Today and the Los Angeles Times. Read moreTwitterEmailLinkedIn

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