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Best CD Rates in May 2022

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Certificates of deposit (CDs) are safe, conservative savings vehicles that lock up your money for a guaranteed return after a set term duration. We’ve compiled the highest CD rates today for many terms. Department of Commerce Federal Credit Union was selected as the best overall financial institution for CDs, based on the average rate offered between its 1-year, 3-year and 5-year terms.

Why trust us: MagnifyMoney is a free, independent outlet covering the financial services industry. We reviewed dozens of banks and credit unions using information from DepositAccounts to produce a list of the best banks and credit unions for CDs and the best CD rates available nationwide. Read our methodology to learn how we selected the best CD rates.

Best banks and credit unions for CD rates in May 2022

Financial institutionMinimum deposit to earn APYTerm durationsAPY for 1-year CDAPY for 3-year CDAPY for 5-year CD
Department of Commerce Federal Credit Union$5006-84 months2.15%2.99%3.05%
Crescent Bank$1,0003-60 months2.10%2.90%3.10%
KS StateBank$50012-84 months2.00%2.85%

3.00%

First National Bank of America$1,00012-84 months1.76%

2.35%

2.80%

Live Oak Bank$2,5006-60 months

1.75%

2.30%

2.75%

Seattle Bank$1,0003-60 months1.71%2.33%2.53%
Popular Direct$10,0003-60 months1.55%2.25%2.70%
ConnectOne Bank$50090 days - 60 months1.60%2.25%2.45%

Department of Commerce Federal Credit Union Share Certificates — Logo

  • CD terms: 6 months to 84 months
  • CD APYs: 1.44% APY to 3.05% APY
  • Minimum deposit required to earn APY: $500

Department of Commerce Federal Credit Union is based in the Washington, D.C. area and offers membership to those outside the region if they join the Maryland American Consumer Council.

The credit union offers personal banking services including deposit accounts and loans. There are individual retirement account (IRA) CDs through DOCFCU as well as traditional CDs. If you have a premium credit union membership, you can earn additional basis points of interest on the terms below.

TermAPY
6 months1.44%
12 months2.15%
24 months2.81%
36 months2.99%
48 months3.01%
60 months3.05%

Crescent Bank Certificates of Deposit — Logo

  • CD terms: 3 months to 60 months
  • CD APYs: 0.20% APY to 3.10% APY
  • Minimum deposit required to earn APY: $1,000

Crescent Bank is based in New Orleans and specializes in auto loans. Personal banking services are available in branches in Louisiana, but you can open a CD from outside the area.

Crescent Bank’s shortest CD terms pay a paltry interest rate, but their terms of a year or longer pay some of the best available interest rates for those terms. There’s a $1,000 minimum opening deposit. Be aware that the CDs automatically renew unless you choose to withdraw the money.

TermAPY
3 months0.20%
6 months0.35%
12 months2.10%
18 months2.30%
24 months2.50%
30 months2.60%
36 months2.90%
48 months3.00%
60 months3.10%

KS StateBank Certificates

SEE DETAILS

on KS StateBank’s secure website

Member FDIC

  • CD terms: 12 months to 84 months
  • CD APYs: 2.00% APY to 3.00% APY
  • Minimum deposit required to earn APY: $500

KS StateBank is based in Manhattan, Kan., and has six locations in the state and one branch in Phoenix. Anyone in the country can open a CD with KS StateBank. Additionally, it offers online, mobile and telephone banking for all of its deposit accounts.

KS StateBank has among the highest CD rates among banks and credit unions we analyzed, reaching 3.00% APY for a 5-year term. In addition to its standard CDs, it also has a 27-month “jump-up” CD and internet-only jumbo CD.

TermAPY
12 months2.00%
24 months2.60%
36 months2.85%
48 months2.90%
60 months3.00%
84 months3.00%

First National Bank of America Certificates of Deposit — Logo

SEE DETAILS

on First National Bank Of America’s secure website

Member FDIC

  • CD terms: 12 months to 84 months
  • CD APYs: 1.76% APY to 2.90% APY
  • Minimum deposit required to earn APY: $1,000

First National Bank of America has been in business for more than 65 years. Besides deposit accounts, it provides a range of banking services including personal banking and commercial and mortgage loans.

Its strong CD rates go all the way up to 2.90% APY for a 7-year term. If you don’t wish to hold your money in a CD for that amount of time, its 5-year CD at 2.80% APY is also a solid choice.

TermAPY
12 months1.76%
24 months2.25%
36 months2.35%
48 months2.55%
60 months2.80%
72 months2.85%
84 months2.90%

Live Oak Bank Personal Certificates of Deposit — Logo

SEE DETAILS

on Live Oak Bank’s secure website

Member FDIC

  • CD terms: 6 months to 60 months
  • CD APYs: 1.25% APY to 2.75% APY
  • Minimum deposit required to earn APY: $2,500

Live Oak Bank is an online-only bank serving small businesses across the country, but there are a few personal bank accounts as well such as savings accounts and CDs. Live Oak’s CDs are fairly straightforward, offering competitive rates on standard term durations.

TermAPY
6 months1.25%
12 months1.75%
18 months2.00%
24 months2.20%
36 months2.30%
48 months2.50%
60 months2.75%

Seattle Bank Certificates of Deposit — Logo

SEE DETAILS

on Seattle Bank’s secure website

Member FDIC

  • CD terms: 3 months to 60 months
  • CD APYs: 0.35% APY to 2.53% APY
  • Minimum deposit required to earn APY: $1,000

Seattle Bank originally opened as a mortgage company in the 1940s, but has expanded into personal and business banking services. The bank still offers various types of mortgages and now partners with fintechs.

Seattle Bank’s CDs have terms ranging from 3 months to 5 years. They also have IRA CDs, as well as “bump-up” CDs, which allow you to boost the interest rate on your deposit once during the maturation term.

TermAPY
3 months0.35%
6 months0.55%
9 months0.70%
12 months1.71%
24 months2.12%
36 months2.33%
48 months2.43%
60 months2.53%

Popular Direct Certificates of Deposit — Logo

SEE DETAILS

on Popular Direct’s secure website

Member FDIC

  • CD terms: 3 months to 60 months
  • CD APYs: 0.50% APY to 2.70% APY
  • Minimum deposit required to earn APY: $10,000

Popular Direct offers a robust digital platform for those who prefer to manage their money online, backed by a parent company, Popular Bank, that has a 122-year history.

The bank’s CDs offer competitive rates for term lengths of more than a year, including a 3-year CD with a 2.25% APY and a 5-year CD with a 2.70% APY. Interest on Popular Direct CDs compounds daily.

TermAPY
3 months0.50%
6 months0.80%
12 months1.55%
18 months1.70%
24 months2.10%
36 months2.25%
48 months2.30%
60 months2.70%

ConnectOne Bank Time Deposits — Logo

SEE DETAILS

on ConnectOne Bank’s secure website

Member FDIC

  • CD terms: 90 days to 60 months
  • CD APYs: 0.25% APY to 2.42% APY
  • Minimum deposit required to earn APY: $500

ConnectOne Bank was founded in New Jersey in 2005 and offers online banking services. Their CDs pay better interest rates for unusual term durations, such as 13 months, 23 months and 34 months — their standard term durations pay low interest rates.

TermAPY
90 days, 179 days, 6 months, 12 months0.25%
18 months0.35%
24 months, 36 months, 48 months, 60 months0.50%
13 months1.60%
23 months1.90%
34 months2.25%
46 months2.35%
58 months2.45%

Best CD rates in May 2022 for specific terms

Top CD interest rates less than a year

  • NASA Federal Credit Union — 1.60% APY, $10,000 minimum, 9-month term
  • Department of Commerce Federal Credit Union — 1.44% APY, $500 minimum, 6-month term
  • Live Oak Bank — 1.25% APY, $2,500 minimum, 6-month term

Top 1-year CD interest rates

  • Department of Commerce Federal Credit Union — 2.15% APY, $500 minimum, 12-month term
  • Crescent Bank — 2.10% APY, $1,000 minimum, 12-month term
  • KS StateBank — 2.00% APY, $500 minimum, 12-month term

Top 2-year CD interest rates

  • Department of Commerce Federal Credit Union — 2.81% APY, $500 minimum, 24-month term
  • KS StateBank — 2.60% APY, $500 minimum, 24-month term
  • Crescent Bank — 2.50% APY, $1,000 minimum, 24-month term

Top 3-year CD interest rates

  • Department of Commerce Federal Credit Union — 2.99% APY, $500 minimum, 36-month term
  • Crescent Bank — 2.90% APY, $1,000 minimum, 36-month term
  • KS StateBank — 2.85% APY, $500 minimum, 36-month term

Top 4-year CD interest rates

  • Department of Commerce Federal Credit Union — 3.01% APY, $500 minimum, 48-month term
  • Crescent Bank — 3.00% APY, $1,000 minimum, 48-month term
  • KS StateBank — 2.90% APY, $500 minimum, 48-month term

Top 5-year CD interest rates

  • Crescent Bank — 3.10% APY, $1,000 minimum, 60-month term
  • Department of Commerce Federal Credit Union — 3.05% APY, $500 minimum, 60-month term
  • KS StateBank — 3.00% APY, $500 minimum, 60-month term

Summary of best CD rates in May 2022 for specific terms

TermFinancial institutionAPYMinimum deposit to earn APY
9-month

NASA Federal Credit Union

1.60%

$10,000

1-yearDepartment of Commerce Federal Credit Union

2.15%

$500

2-yearDepartment of Commerce Federal Credit Union

2.81%

$500

3-yearDepartment of Commerce Federal Credit Union

2.99%

$500

4-yearDepartment of Commerce Federal Credit Union

3.01%

$500

5-yearCrescent Bank

3.10%

$1,000

Types of CDs

Some financial institutions offer CDs with different conditions than the standard single deposit with a fixed term and early withdrawal penalties.

  • Traditional CDs: This is the standard CD and tends to offer the best interest rates on the deposits outside of jumbo CDs. In short, you’ll agree to the deposit amount, interest rate and term duration when opening the CD and won’t be able to access those funds without penalty until the maturation date.
  • Jumbo CDs: Some banks and credit unions offer marginally better interest rates on “jumbo” CDs, which generally have a minimum deposit requirement of $100,000 (or another amount significantly over the minimum for a traditional CD).
  • No-penalty CDs: Financial institutions may choose to offer lower rates on CDs in exchange for giving the account holder the ability to withdraw some or all of their funds before the CD reaches maturity without incurring the typical penalty — often calculated as a percentage of the interest borne on the account.
  • Bump-up CDs: One of the key advantages of a CD is that you can lock in your interest rate for the duration of the term, but some banks and credit unions may allow you to “bump up” your interest rate once in the term if the rates offered on the account improve.
  • IRA CDs: Individual Retirement Accounts are a form of tax-advantaged account designed to incentivize retirement savings, and there are a few options for how to structure those types of accounts, including as a CD. There are some yearly contribution limits for IRAs.

Should I open a CD account?

A certificate of deposit has some drawbacks, namely that you can’t access your funds without penalty before the maturation date. Unlike a savings account, which allows for at least a few withdrawals per month, a CD is a deposit account that sacrifices some liquidity (in other words, access to your money) for marginally better interest rates.

However, those rates are low right now. According to the FDIC, the average rate offered on a 1-year CD right now is just 0.17% — which would translate to a yield of $15 on a deposit of $10,000. While the accounts featured on our MagnifyMoney list have much better rates than average, the highest 1-year CD currently offered is Department of Commerce Federal Credit Union’s 2.15% APY CD. A $10,000 deposit would yield $215.

In an environment of low interest rates and high inflation, a CD may actually depreciate in value, especially over the long run. It’s difficult to predict future interest rate trends, but in the event that the Federal Reserve raises the federal funds rate, the interest rates on deposit accounts figure to rise as well. In that case, a key advantage of CDs — that your interest rate is guaranteed for the duration of your term — may actually become a disadvantage if you’re stuck with a lower rate.

One long-term alternative to a CD is an I savings bond, which is issued by the U.S. Treasury. The current rate on I bonds is 7.12% APY, and you have to wait at least a year to redeem the bond — if you redeem it within five years, you lose the last three months of interest. Otherwise, market investments (which carry some risk), other bonds or even precious metals like gold may be a better way to store your funds when inflation exceeds the rate paid on CDs.

Frequently asked questions

A certificate of deposit (CD) is a type of bank account that allows you to make a one-time deposit with a guaranteed interest rate over a predetermined time duration. You usually cannot withdraw funds before the maturation date without incurring a penalty.

The best traditional CD rate offered among financial institutions reviewed by MagnifyMoney is Crescent Bank’s 3.10% APY for a 5-year term. There is a minimum of $1,000 to open a CD with Crescent Bank.

Since the start of the coronavirus pandemic and the Federal Reserve’s subsequent decision to slash the federal funds rate, the rates offered on CDs have fallen to a low point. Banks are also holding significant deposits, which creates less incentive to provide competitive rates on deposit accounts.

Among financial institutions surveyed by MagnifyMoney, Department of Commerce Federal Credit Union had the best 1- and 3-year CD rates, while Crescent Bank had the best 5-year CD rate.

Methodology for determining the best banks and credit unions for CDs and the best CD rates

MagnifyMoney reviewed data from DepositAccounts, covering hundreds of banks and credit unions in order to source a list of the best nationally available financial institutions for CDs and CD rates. Every institution we feature is covered with Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance.

We chose the best financial institutions for CDs by averaging the rates they offered on 1-year, 3-year and 5-year CDs. Other factors like the availability of alternative CD structures were not considered during account selection.

We highlighted the best CD rates for specific terms only if they have a minimum deposit of $10,000 or lower.