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Best CD Rates in July 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. Connexus Credit Union has the best CD rate for four different 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 CD rates available nationwide. Read our methodology to learn how we selected the best CD rates.

Best CD rates in June 2022

TermFinancial institutionAnnual percentage yield (APY)Minimum deposit to earn APY
Under a year*NASA Federal Credit Union2.00%$10,000
1-yearConnexus Credit Union1.76%$5,000
2-yearConnexus Credit Union2.06%$5,000
3-yearConnexus Credit Union3.01%$5,000
4-yearConnexus Credit Union2.66%$5,000
5-yearConnexus Credit Union2.96%$5,000

*9 months

These are the best available CD rates for these terms as of June 16, 2022.

Best CD under a year: NASA Federal Credit Union

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on NASA Federal Credit Union’s secure website

NCUA Insured

  • Term: 9 months
  • APY: 2.00%
  • Minimum deposit required to earn APY: $10,000

NASA Federal Credit Union is headquartered in the Washington, D.C. area and has branches throughout Maryland and Virginia, but anyone can join with a complimentary one-year affiliated membership to the National Space Society.

There are several types of certificates available through NASA FCU, including the standard Share Certificate (with terms ranging from 6 months to 5 years), Early Savers Certificates for members 23 and under, Add-On Certificates that let you deposit additional funds and Premier Bump-Rate Certificates, which allow you to increase rates once per term.

NASA FCU’s 9-month CD special has a higher minimum balance than many of its other CDs, but it pays a strong  2.00% APY on the balance.

Best 1-year CD: Connexus Credit Union

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on Connexus Credit Union’s secure website

NCUA Insured

  • Term: 12 months
  • APY: 1.76%
  • Minimum deposit required to earn APY: $5,000

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.

Connexus currently offers the most competitive CD rates for many terms, paying at least 1.76% on 1-year CDs and up to 2.96% APY on 5-year CDs. 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.

Best 2-year CD: Connexus Credit Union

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on Connexus Credit Union’s secure website

NCUA Insured

  • Term: 24 months
  • APY: 2.06%
  • Minimum deposit required to earn APY: $5,000

Read more about Connexus Credit Union above.

Best 3-year CD: Connexus Credit Union

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on Connexus Credit Union’s secure website

NCUA Insured

  • Term: 36 months
  • APY: 3.01%
  • Minimum deposit required to earn APY: $5,000

Read more about Connexus Credit Union above.

Best 4-year CD: Connexus Credit Union

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on Connexus Credit Union’s secure website

NCUA Insured

  • Term: 48 months
  • APY: 2.66%
  • Minimum deposit required to earn APY: $5,000

Read more about Connexus Credit Union above.

Best 5-year CD: Connexus Credit Union

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on Connexus Credit Union’s secure website

NCUA Insured

  • Term: 60 months
  • APY: 2.96%
  • Minimum deposit required to earn APY: $5,000

Read more about Connexus Credit Union above.

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. We’ve rounded up the best no-penalty CD rates here.
  • 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. We’ve rounded up the best IRA CD rates here.

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 0.21% — which would translate to an annual yield of $21 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 Connexus Credit Union’s 2.26% APY CD. A $10,000 deposit would yield $226.

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 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. 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.

Summary of the best CD rates in June 2022

  • 9-month: NASA Federal Credit Union (1.60% APY)
  • 1-year: Connexus Credit Union (2.26% APY)
  • 2-year: Connexus Credit Union (2.86% APY)
  • 3-year: USALLIANCE Financial (3.25% APY)
  • 4-year: Connexus Credit Union (3.11% APY)
  • 5-year: Connexus Credit Union (3.21% APY)

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 USALLIANCE Financial’s 3.25% APY for a 3-year term. There is a minimum of $500 to open a CD with USALLIANCE Financial.

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, Connexus Credit Union had the best 1-year, 2-year, 4-year and 5-year CD rates.

Methodology for determining 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. Our picks for best CD rates have minimum deposits of $10,000 or lower.