Best CD Account Interest Rates (Soc)

A majority of hard-working Americans have savings accounts with traditional “brick and mortar” banks that pay around 0.38% APY. Many do not know they can save more quickly by opening a Certificate of Deposit(CD). But, it’s important to note, not all CDs are the same. We’ve searched thousands of federally-insured banks and credit unions and have compiled a list CD offers from the top banks, including some from our partners. Put your money to work and start saving more now. When you find an offer you like, click “View Details” to start towards your new CD.

How do CDs work?

A certificate of deposit, or CD, is a kind of deposit account that provides a fixed interest rate in return for leaving money with a bank or credit union for a set period. This interest rate is typically higher than what you would receive from depositing your funds in a traditional savings account.

CDs are defined by the interest rate they offer, the length of time that your money must stay untouched (the term), how much money must be invested (principal), and the institution at which you open your account. Upon the term’s conclusion, you may withdraw your funds without penalty.

Each individual bank or credit union decides what rates they will offer on their CD accounts, but these rates are heavily influenced by changes in the federal funds rate. The federal funds rate is the rate at which banks borrow money from the Fed; as this rate increases, CD rates also tend to increase to incentivize consumers to deposit their money. As the federal funds rate decreases, CD rates may fall.

Is it safe to open a CD account?

Because CD accounts have fixed interest rates, they have known returns that are not subject to stock market fluctuations or savings account rate changes. CDs also fall under the same insurance policy that protects other types of deposits; when you open a CD through an FDIC-insured bank or NCUA-insured credit union, your money is protected up to $250,000. If you plan to put more than $250,000 into CDs, spread out your investment among protected institutions to maintain full coverage.

Should I open a CD?

CDs are a viable option if you have extra cash on hand and are looking to secure an interest rate for a fixed term. Unlike high yield savings accounts whose rates may fluctuate, CDs have locked-in interest rates that make for predictable returns.

How to choose the right CD for you

When choosing between CD account options, two of the most important factors are APY and term. CD rates usually increase as the term increases but note that there are penalties for early withdrawals. Although the APY may be better for a 5-year CD than a 12-month one, select the account with the term that aligns best with your financial goals.

Shop for CD accounts

Online shopping for the best CD rates is now easier than ever. Browse our full list of CD options by deposit amount, institution type, and more.