MagnifyMoney 
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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.
| Financial institution | Minimum deposit to earn APY | Term durations | APY for 1-year CD | APY for 3-year CD | APY for 5-year CD |
|---|---|---|---|---|---|
| Department of Commerce Federal Credit Union | $500 | 6-84 months | 2.15% | 2.99% | 3.05% |
| Crescent Bank | $1,000 | 3-60 months | 2.10% | 2.90% | 3.10% |
| KS StateBank | $500 | 12-84 months | 2.00% | 2.85% | 3.00% |
| First National Bank of America | $1,000 | 12-84 months | 1.76% | 2.35% | 2.80% |
| Live Oak Bank | $2,500 | 6-60 months | 1.75% | 2.30% | 2.75% |
| Seattle Bank | $1,000 | 3-60 months | 1.71% | 2.33% | 2.53% |
| Popular Direct | $10,000 | 3-60 months | 1.55% | 2.25% | 2.70% |
| ConnectOne Bank | $500 | 90 days - 60 months | 1.60% | 2.25% | 2.45% |
Department of Commerce Federal Credit Union Share Certificates — Logo |
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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.
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Crescent Bank Certificates of Deposit — Logo |
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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.
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KS StateBank Certificates |
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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.
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First National Bank of America Certificates of Deposit — Logo |
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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.
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Live Oak Bank Personal Certificates of Deposit — Logo |
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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.
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Seattle Bank Certificates of Deposit — Logo |
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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.
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Popular Direct Certificates of Deposit — Logo |
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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.
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ConnectOne Bank Time Deposits — Logo |
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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.
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| Term | Financial institution | APY | Minimum deposit to earn APY |
|---|---|---|---|
| 9-month | NASA Federal Credit Union | 1.60% | $10,000 |
| 1-year | Department of Commerce Federal Credit Union | 2.15% | $500 |
| 2-year | Department of Commerce Federal Credit Union | 2.81% | $500 |
| 3-year | Department of Commerce Federal Credit Union | 2.99% | $500 |
| 4-year | Department of Commerce Federal Credit Union | 3.01% | $500 |
| 5-year | Crescent Bank | 3.10% | $1,000 |
Some financial institutions offer CDs with different conditions than the standard single deposit with a fixed term and early withdrawal penalties.
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.
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.
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.
Alex Cook
