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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. PenFed 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
PenFed Credit Union$1,0006-84 months1.25%2.10%2.50%
Lafayette Federal Credit Union$5007-60 months1.21%1.56%1.91%
KS StateBank$50012-84 months2.00%2.85%3.00%
Luana Savings Bank$1,0003-96 months1.51%1.92%2.07%
First National Bank of America$1,00012-84 months1.76%2.35%2.80%
Popular Direct$10,0003-60 months0.50%2.25%2.70%
CFG Bank$50012-60 months1.52%2.22%2.52%
Synchrony BankNo minimum3-60 months1.30%2.00%2.40%

PenFed Credit Union Money Market Certificates

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on PenFed Credit Union’s secure website

NCUA Insured

  • CD terms: 6 months to 84 months
  • CD APYs: 0.60% APY to 2.75% APY
  • Minimum deposit required to earn APY: $1,000

PenFed Credit Union makes it very easy to join: if you fund a Regular Share account or a Premium Online Savings account with an opening deposit of $5, you can become a member. As far as credit union membership requirements go, it doesn’t get much simpler than PenFed.

PenFed’s Money Market Certificate works much like a traditional CD. They also offer an IRA Certificate and a Coverdell Education Savings Certificate. The minimums for the money market and IRA CDs are $1,000, while the minimum for the Coverdell CD is $500.

TermAPY
6 months0.60%
12 months1.25%
15 months1.40%
18 months1.60%
24 months1.75%
36 months2.10%
48 months2.25%
60 months2.50%
84 months2.75%

Lafayette Federal Credit Union Fixed-Rate Certificates

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on Lafayette Federal Credit Union’s secure website

NCUA Insured

  • CD terms: 7 months to 60 months
  • CD APYs: 1.01% APY to 1.91% APY
  • Minimum deposit required to earn APY: $500

Lafayette Federal Credit Union is located in the Washington, D.C., area and has membership criteria related to living and working in that region — but the credit union offers membership eligibility if you join the Home Ownership Financial Literacy Council.

In addition to the traditional CDs offered by Lafayette, there are variable rate certificates: they have lower dividend rates than traditional CDs and also have early withdrawal penalties, but there’s a lower minimum balance to open an account (just $50) and the APY offered on the balance is subject to change.

TermAPY
7 months1.01%
12 months1.21%
24 months1.41%
36 months1.56%
48 months1.71%
60 months1.91%

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 2.10% 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%

Luana Savings Bank Certificates

SEE DETAILS

on Luana Savings Bank’s secure website

Member FDIC

  • CD terms: 3 months to 96 months
  • CD APYs: 0.75% APY to 2.12% APY
  • Minimum deposit required to earn APY: $1,000

Luana Savings Bank is based in Northeast Iowa and was founded in 1908. It specializes in agricultural lending, and is one of the largest agricultural lenders in Iowa. In addition to its certificates, it also offers a variety of other deposit products, loans and add-on services like bookkeeping.

In addition to its strong CD rates, Luana Savings Bank also offers a wide variety of term lengths, providing enhanced flexibility to customers. For instance, if its 3-year CD is just a bit too long for your preferences, the bank also has a 30-month CD at only a slightly lower APY.

TermAPY
3 months0.75%
6 months0.95%
12 months1.51%
18 months1.66%
24 months1.82%
30 months1.87%
36 months1.92%
42 months1.87%
48 months2.02%
60 months2.07%
72 months2.17%
84 months2.22%
96 months2.12%

First National Bank of America Certificates

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%

Popular Direct Certificates

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%

CFG Bank Certificates

SEE DETAILS

on CFG Bank’s secure website

FDIC Insured

  • CD terms: 12 months to 60 months
  • CD APYs: 1.52% APY to 2.52% APY
  • Minimum deposit required to earn APY: $500

CFG Bank is a relative newcomer that was founded in 2009. In addition to CDs, it provides checking accounts, money market and savings accounts, and online and mobile banking tools.

CFG Bank offers CDs at five different term lengths. While those are fewer term options than most other institutions on this list, CFG Bank’s interest rates are competitive, reaching up to 2.52% for a 5-year CD.

TermAPY
12 months1.52%
13 months1.07%
18 months1.72%
36 months2.22%
60 months2.52%

Synchrony Bank Certificates

SEE DETAILS

on Synchrony Bank’s secure website

Member FDIC

  • CD terms: 3 months to 60 months
  • CD APYs: 0.25% APY to 2.40% APY
  • Minimum deposit required to earn APY: No minimum required

Synchrony Bank is an online bank that offers a variety of savings products, as well as credit cards.

They also have a wide range of CD term lengths. Rates get significantly more competitive for CDs of longer term lengths, particularly more than two years. Its 5-year CD stands out with an APY of 2.40%.

TermAPY
3 months0.25%
6 months0.50%
9 months0.60%
12 months1.30%
13 months1.15%
14 months1.40%
15 months0.90%
18 months1.70%
24 months1.80%
36 months2.00%
48 months2.00%
60 months2.40%

Best CD rates in May 2022 for specific terms

Top CD interest rates less than a year

  • Lafayette Federal Credit Union — 1.01% APY, $500 minimum, 7-month term
  • NASA Federal Credit Union — 1.60% APY, $10,000 minimum, 9-month term
  • CommunityWide Federal Credit Union — 0.95% APY, $1,000 minimum, 6-month term

Top 1-year CD interest rates

  • CFBank — 1.35% APY, $10,000 minimum, 12-month term
  • Lafayette Federal Credit Union — 1.21% APY, $500 minimum, 12-month term
  • TIAA Bank — 1.30% APY, $1,000 minimum, 12-month term

Top 2-year CD interest rates

  • Genisys Credit Union — 1.60% APY, $500 minimum, 25-month term
  • PenFed Credit Union — 1.75% APY, $1,000 minimum, 24-month term
  • Synchrony Bank — 1.80% APY, no minimum required, 24-month term

Top 3-year CD interest rates

  • PenFed Credit Union — 2.10% APY, $1,000 minimum, 36-month term
  • North American Savings Bank — 1.87% APY, $1,000 minimum, 36-month term
  • KS StateBank — 2.85% APY, $500 minimum, 36-month term

Top 4-year CD interest rates

  • PenFed Credit Union — 2.25% APY, $1,000 minimum, 48-month term
  • USALLIANCE Financial — 2.00% APY, $500 minimum, 48-month term
  • KS StateBank — 2.90% APY, $500 minimum, 48-month term

Top 5-year CD interest rates

  • PenFed Credit Union — 2.50% APY, $1,000 minimum, 60-month term
  • KS StateBank — 3.00% APY, $500 minimum, 60-month term
  • Synchrony Bank — 2.40% APY, no minimum required, 60-month term

Summary of best CD rates in May 2022 for specific terms

TermFinancial institutionAPYMinimum deposit to earn APY
7-monthLafayette Federal Credit Union1.01%$500
1-yearCFBank1.25%$10,000
2-yearGenisys Credit Union1.60%$500
3-yearPenFed Credit Union2.10%$1,000
4-yearPenFed Credit Union2.25%$1,000
5-yearPenFed Credit Union2.50%$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 0.15% — 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 CFBank’s 1.25% APY CD. A $10,000 deposit would yield $125.

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 PenFed Credit Union’s 2.50% APY for a 5-year term. There is a minimum of $1,000 to open a CD with PenFed Credit Union.

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, CFBank had the best 1-year CD rate, while PenFed Credit Union had the best rates for 3- and 5-year CDs.

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.