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. NASA FCU has the best CD rates for two terms (under a year and 4-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 |
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| Under a year* | NASA Federal Credit Union (9 months) | 3.55% | $10,000 |
| 1-year | Langley Federal Credit Union (16 months) | 4.00% | $500 |
| 2-year | ConnectOne Bank (23 months) | 3.60% | $500 |
| 3-year | Connexus Credit Union | 3.61% | $5,000 |
| 4-year | NASA Federal Credit Union (49 months) | 3.85% | $10,000 |
| 5-year | Bread Savings | 3.65% | $1,500 |
These are the best available CD rates with minimums of $10,000 or less as of September 22, 2022.
Best CD under a year: NASA Federal Credit Union |
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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: Langley Federal Credit Union |
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At Langley Federal Credit Union, which is headquartered in Newport News, Va., you have several CD options. Their highest rate right now is a promotional offer for new funds only (money not currently in deposit with Langley). There is a penalty for early withdrawal. And while most of their CDs come with an Active Rewards rate enhancement of 0.10%, this promotional offer for the 16-month CD is not eligible. You’ll have access to online and mobile banking with an app that has 4.8 stars in both the Google Play Store and Apple App Store. You can open the account online, by phone or at a branch. They also give you the option to chat with a representative. Anyone can join the credit union as long as they open a Share Savings account with a $5 minimum deposit. |
Best 2-year CD: ConnectOne Bank |
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ConnectOne Bank is headquartered in Englewood Cliffs, N.J.. Although it only has branches in New York and New Jersey (as well as one Florida location), you can access accounts anywhere via online and mobile banking. ConnectOne offers certificates that range from 3 months to 5 years. Right now, you can earn one of the highest rates on their 23-month CD, with interest compounding daily and credited monthly. Just keep in mind that when it hits maturity, your account will automatically renew. |
Best 3-year CD: Connexus Credit Union |
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You’ll find competitive CD rates for many terms at Connexus Credit Union. Interest compounds quarterly, but you can also choose to have dividends posted to another Connexus account or sent to you in the form of a check. Connexus Credit Union is based in the Midwest, and you’re eligible for membership if you’re part of certain communities in Illinois, Minnesota, Ohio or Wisconsin. You can also join the credit union with a one-time $5 donation to the Connexus Association, which opens up membership eligibility nationwide. Connexus has members in all 50 states. |
Best 4-year CD: NASA Federal Credit Union |
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Read more about NASA Federal Credit Union above. |
Best 5-year CD: Bread Savings |
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Bread Savings is a part of Bread Financial, an online-only financial services company that offers various saving, lending and payment solutions. Currently, Bread Savings offers a range of CD terms from 1 year to 5 years at competitive rates, with interest accrued and compounded daily and posted monthly. You won’t be charged a monthly fee, but there is a $25 fee for outgoing wire transfers. An early withdrawal penalty applies but varies based on the term length. Just be aware that, once your account has reached maturity, you’ll have 10 days to withdraw the funds or close the account without penalty. Otherwise, it will renew automatically. While the bank has no physical branches, they do offer ways to get in touch virtually and over the phone. |
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. Right now, every traditional CD term has a better rate than the top jumbo CD rate. If you want to earn the highest APY, consider opening a traditional CD instead of a jumbo CD.
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 4.00% 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 Langley FCU’s 4.00% APY for a 16-month term. There is a minimum deposit of $500 to open a CD with Langley 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, NASA Federal Credit Union has the best CD rates for terms under a year and a 4-year term.
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
