MagnifyMoney 
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. Lafayette Federal Credit Union has the best CD rates for four terms (2-year, 3-year, 4-year and 5-year).
Why trust us: MagnifyMoney is a free, independent outlet covering the financial services industry. We reviewed thousands of banks and credit unions using information from DepositAccounts to produce a list of the best CD rates available nationwide.
| Term | Financial institution | APY | Minimum deposit to earn APY |
|---|---|---|---|
| Under a year* | NASA Federal Credit Union (9 months) | 4.60% | $10,000 |
| 1-year | Parsons Federal Credit Union | 4.00% | $10,000 |
| 2-year | Lafayette Federal Credit Union | 4.47% | $500 |
| 3-year | Lafayette Federal Credit Union | 4.52% | $500 |
| 4-year | Lafayette Federal Credit Union | 4.58% | $500 |
| 5-year | Lafayette Federal Credit Union | 4.63% | $500 |
These are the best available CD rates with minimums of $10,000 or less as of October 5, 2022.
Best CD under a year: NASA Federal Credit Union |
|
|
NASA Federal Credit Union is headquartered in the Washington, D.C. area and has branches throughout Maryland and Virginia. Anyone can join with a complimentary one-year affiliated membership to the National Space Society. NASA FCU offers several CDs:
NASA FCU’s CD specials have a higher minimum balance than many of its other CDs, but it pays a strong APY on the balance. |
Best 1-year CD: Parsons Federal Credit Union |
|
|
Anyone can join Parsons Federal Credit Union by first joining the American Consumer Council for free. PFCU has only two branches (in Pasadena, Calif., and Centreville, Va.), but customers also have access to over 5,600 CO-OP Shared Branch locations and over 30,000 CO-OP ATMs nationwide. This 13-month CD rate is available through the end of October 2022. It requires a minimum opening deposit of $10,000 in new money — that means money that isn’t already on deposit with PFCU. You must meet these requirements to earn the 4.00% APY. |
Best 2-year CD: Lafayette Federal Credit Union |
|
|
Lafayette Federal Credit Union (LFCU) is headquartered in Rockville, Md., and offers its members various savings and checking account options, loans and investment products. Members gain access to eight branches across Maryland, Virginia, and District of Columbia, more than 6,000 shared branches and a widespread footprint of in-network, fee-free ATMs. There are several ways to join LFCU. People outside of the region can join if they are members of the Home Ownership Financial Literacy Council, meet certain employment qualifications or are an immediate family member of a current LFCU member. The credit union offers fixed-rate certificate accounts that range from seven months to five years at rates that are higher than the national averages for those terms. LFCU’s 2-year CD earns its members 4.47% APY and requires a minimum deposit of $500 to open and earn interest. |
Best 3-year CD: Lafayette Federal Credit Union |
|
|
Read more about Lafayette Credit Union above. |
Best 4-year CD: Lafayette Federal Credit Union |
|
|
Read more about Lafayette Credit Union above. |
Best 5-year CD: Lafayette Federal Credit Union |
|
|
Read more about Lafayette Credit Union above. |
Some financial institutions offer CDs with different conditions than the standard single deposit with a fixed term and early withdrawal penalties.
Sometimes banks and credit unions offer higher rates for bigger deposits with jumbo CDs. However, right now, traditional CDs are showing higher rates than jumbo CDs. Here are the best rates today for CDs that require at least $50,000 to earn the APY.
A certificate of deposit has some drawbacks, namely that you can’t access your funds without penalty before the CD matures. 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.
CD rates have been rising in 2022. According to the FDIC, the average national rate offered on a 1-year CD right now is just 0.60% — which would translate to an annual yield of $60 on a deposit of $10,000. The accounts featured on our MagnifyMoney list have much better rates than average, and the highest 1-year CD currently offered isLangley Federal Credit Union’s 2.30% APY CD. A $10,000 deposit would yield $400.
In an environment of lower interest rates and high inflation, a CD may actually depreciate in value, especially over the long run. It’s difficult to predict future inflation or 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 a period of time — may actually become a disadvantage if you’re stuck with a lower rate. You can build a CD ladder to spread out your deposit over several smaller deposits that renew more quickly so you aren’t locked into lower rates for longer terms.
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 9.62% 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.
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 for a specific period of time. 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 Lafayette FCU’s 4.63% APY for a 5-year term. There is a minimum of $500 to open a CD with Lafayette FCU.
The Federal Reserve sets the federal funds rate, which affects the interest rates for loans between banks. The rates for interest-bearing accounts, especially CDs, tend to rise and fall with the federal funds rate and other economic conditions.
Among the financial institutions surveyed by MagnifyMoney, Lafayette Federal Credit Union has the best CD rates for 2-year, 3-year, 4-year and 5-year terms.
Most CD rates are fixed, but sometimes financial institutions offer variable-rate CDs. For instance, bump-up CDs give you the option to increase the rate on your CD over time. Check the fine print of any CD you’re considering to confirm whether the rate is fixed or variable.
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. Our picks for best CD rates have minimum deposits of $10,000 or lower.
Alex Cook
