Updated February 5, 2019
If you are looking for a better yield on your savings, a high rate CD (certificate of deposit) offered by an online bank could be a good option. Internet-only banks offer much better interest rates than traditional banks. For example, a 12-month CD at Bank of America would require a $10,000 minimum deposit and would pay only 0.07%. At an online bank, you could earn 2.75% with no minimum deposit. (If you would rather get a savings account or money market with no time restriction, look at the best savings accounts or best money market accounts).
The Best CD Rates in February 2019
This list is updated monthly, and competition continues to intensify. Here are the accounts with some of the best CD rates:
Minimum Deposit Amount
on Synchrony Bank’s secure website
NASA Federal Credit Union
Mountain America Credit Union
Mountain America Credit Union
See a full list of the best CD rates below.
- 3 months – 5 years: Synchrony Bank – 0.75% APY – 3.10% APY; $2,000 minimum deposit
- 3-months: 0.75% APY
- 6-months: 1.00% APY
- 9-months: 1.25% APY
- 12-months: 2.80% APY
- 18-months: 2.75% APY
- 24-months: 2.90% APY
- 36-months: 2.90% APY
- 48-months: 3.00% APY
- 60-months: 3.10% APY
on Synchrony Bank’s secure website
- 6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 3.15% APY; $500 minimum deposit
- 6-month: 0.60% APY
- 9-month: 0.70% APY
- 12-month: 2.75% APY
- 18-month: 2.65% APY
- 2-year: 2.70% APY
- 3-year: 2.75% APY
- 5-year: 3.10% APY
- 6-year: 3.15% APY
on Goldman Sachs Bank USA’s secure website
- 3 months – 5 years: Ally Bank – 0.75% APY – 3.10% APY; $0 minimum deposit (higher APY with higher deposit)
- 3-months: 0.75% APY (less than $5k); 0.75% APY ($5k minimum deposit) and 0.75% APY ($25k minimum deposit)
- 6-months: 1.00% APY (less than $5k); 1.00% APY ($5k minimum deposit) and 1.00% APY ($25k minimum deposit)
- 9-months: 1.25% APY (less than $5k); 1.25% APY ($5k minimum deposit) and 1.25% APY ($25k minimum deposit)
- 12-months: 2.75% APY (less than $5k); 2.75% APY ($5k minimum deposit) and 2.75% APY ($25k minimum deposit)
- 18-months: 2.50% APY (less than $5k); 2.65% APY ($5k minimum deposit) and 2.70% APY ($25k minimum deposit)
- 3-year: 2.60% APY (less than $5k); 2.70% APY ($5k minimum deposit) and 2.75% APY ($25k minimum deposit)
- 5-year: 3.10% APY (less than $5k); 3.10% APY ($5k minimum deposit) and 3.10% APY ($25k minimum deposit)
on Ally Bank’s secure website
- 1 year – 5 years: Barclays Bank – 2.75% – 3.10% APY, no minimum deposit
Barclays is one of the oldest banks in the world. Although they’re based in London, they do have a U.S. presence and offer competitive rates on their CDs and savings account. Currently, they’re offering some of the highest CD rates in the market, and they have an edge over the rest of the institutions on this list: they don’t require a minimum balance to earn the APY or open an account. Deposit as little or as much as you’d like into a term of your choice and you can start earning interest as long as the account is funded within 14 days of opening the CD. Additionally, your funds are insured through the FDIC.
- 1-year: 2.75% APY
- 2-year: 2.80% APY
- 3-year: 2.85% APY
- 4-year: 2.90% APY
- 5-year: 3.10% APY
on Barclays’s secure website
- 6 months – 5 years: Capital One – 0.60% APY – 3.10% APY; no minimum deposit
Capital One is famous for its credit card business. However, it has recently started getting aggressive with its CD rates. There is no minimum deposit for their 360 CDs, which make them comparable to Barclays’ CDs. Capital One CDs are FDIC insured, up to the federal maximum. And you get the comfort of depositing your money with a well-known bank.
- 6-months: 0.60% APY
- 9-months: 0.75% APY
- 12-months: 2.70% APY
- 18-months: 2.70% APY
- 24-months: 2.80% APY
- 30-months: 2.80% APY
- 36-months: 2.85% APY
- 48-months: 2.90% APY
- 60-months: 3.10% APY
on Capital One’s secure website
- 6 months – 120 months: Vio Bank – 2.00% APY – 3.15% APY; $500 minimum deposit
Vio Bank, a division of MidFirst Bank, is an online bank you don’t want to ignore. It launched in August 2018 with highly competitive offerings and it has continued to offer top rates on both its CDs and online savings account. While Vio Bank hasn’t been around very long, they are supported by a financial institution that is established with over $16 billion in assets. We’re extremely impressed with its early start. Here’s a full list its current CD rates:
- 6-months: 2.00%
- 9-months: 2.50%
- 12-months: 2.65%
- 15-months: 2.65%
- 18-months: 2.65%
- 24-months: 2.65%
- 36-months: 2.80%
- 48-months: 3.00%
- 60-months: 3.10%
- 84-months: 3.15%
- 120-months: 3.15%
- 6 months – 7 years: PenFed Credit Union – 2.40% APY – 3.15% APY, $1,000 minimum deposit
PenFed is a credit union that offers very competitive interest rates. You need to join the credit union in order to benefit from their products. If you have a military or government affiliation, it is free to join. Otherwise, you would need to join an organization like Voices for America’s Troops, which costs $17.00. Once you are a member, you can open PenFed products (including this certificate) online. Your deposit would be insured by the NCUA, which is the National Credit Union Administration. There is a $1,000 minimum deposit for the one-year certificate.
- 6-months: 2.40%
- 12-months: 2.60%
- 15-months: 2.70%
- 18-months: 2.75%
- 2-years: 2.80%
- 3-years: 2.90%
- 4-years: 2.95%
- 5-years: 3.15%
- 7-years: 3.15%
- 1-Year CD: Advancial – 2.85%APY, $25,000 minimum deposit
If you’re able to deposit $25,000 into a CD, you’ll want to consider this 1-year CD with an outstanding 2.85% APY. This credit union is only available to those who are employed or are a member of the credit union’s Select Employer Groups or Associations, immediate family members or household members of existing members of Advancial, or those who live, work, worship, or attend school in one of the eligible Louisiana parishes. In order to find out what the Select Employer Groups or Associations are, you’ll need to call the credit union’s Member Service Center.
- 1-Year CD: Ally Bank – 2.85% APY, $0 minimum deposit
Ally Bank is currently offering a 14-Month Select CD with a 2.85% APY. This is a promotional term and will only be available through 2/28/2019. Although this term is two months longer than a full year, the rate is currently one of the best. This promotional CD is 0.10% (or 10bps) above Ally’s 12-month CD. As with all of Ally’s CDs, if you fund this CD within 10 days of applying for the account, the bank will apply its Ten Day Best Rate Guarantee. This means that if you open the CD today and fund the CD five days later, Ally will honor the rate of the day you fund the account if the rate has increased since you opened the CD. There isn’t a minimum deposit amount required to open the CD and interest is compounded daily. Ally’s early withdrawal penalty for this CD is 60 days’ worth of interest.
- 2-Year CD from a Credit Union: NASA Federal Credit Union – 3.25% APY, $10,000 minimum deposit
In 1949, employees of NASA came together to charter a credit union. At the time, membership was only available to NASA employees. Today, its field of membership is open to anyone through a complimentary membership to the National Space Society. Once you become a member, you can open the credit union’s 25-month CD special, which currently has an APY of 3.25%. You will need to deposit at minimum of $10,000 to earn the APY, but deposits made to this credit union NCUA insured. The early withdrawal penalty for this CD is 365 days’ worth of interest.
- 2-Year CD: CD Bank – 3.07% APY, $10,000 minimum deposit
CD Bank is the online division of TBK Bank, which was established in 1981 and has acquired over $4 billion in assets. This online division has only been around since 2017, but it launched with competitive rates at the time and has continued to offer competitive rates on its shorter-term CDs as the CD market has risen. At this moment, CD Bank is offering a 2-year CD with an APY of 3.07%. You will need to deposit a minimum of $10,000 in order to earn this APY. The early withdrawal penalty for this CD is equal to 18 months interest on the withdrawn amount. Be aware that once this CD matures, the only two ways you can receive the fully matured funds is via a cashier’s check or outgoing wire transfer. If you choose to use an outgoing wire transfer, the bank may charge you a $15 fee.
- 3-Year CD from a Credit Union: Mountain America Credit Union, 3.35% APY, $500 minimum deposit
Mountain America Credit Union was established in the 1930s to help its members achieve their financial goals. Today, they have grown to serve hundreds of thousands of members and have acquired over $7 billion in assets. This credit union is open to Utah residents in certain areas, family members of existing members of the credit union, and employees and volunteers of a Select Employer Group. If you are a member or become a member of the American Consumer Council, you’ll qualify for membership at Mountain America Credit Union. Once you become a member, you’ll be able to open a CD. You’ll need to deposit a minimum of $500 in order to earn their outstanding 3.35% APY. Accounts can be managed online or through their mobile app. Deposits made to Mountain America Credit Union are insured by the NCUA.
- 3-Year CD: M.Y. Safra Bank – 3.10% APY, $1,000 minimum deposit
M.Y. Safra Bank, located in New York, NY, was established in 2000. They currently have over $363 million in assets. Their 36 Month Online Promo CD has an APY of 3.10%, which is one of the highest currently available from a bank. You’ll need $1,000 to deposit to open the account and a little patience navigating their website. The early withdrawal penalty for this CD will depend on whether the credited amount of interest or 90 days’ worth of interest is higher. The bank will take whichever amount is higher at the time of your early withdrawal. While they do have a mobile app, you’ll have to first apply for an account online.
- 5-Year CD from a Credit Union: Mountain America Credit Union – 3.51% APY, $500 minimum deposit
Mountain America Credit Union also makes the list for the best 5-year CD rate from a credit union. It actually beats out Georgia Banking Company by 0.01% (or 1 bps). With a minimum deposit of $500, you can earn an APY of 3.51%. Keep in mind, however, that if you withdraw money from this CD prior to its maturity date, you’ll face a penalty of 365 days worth of interest.
While they do have membership requirements based on where you live and work, they also open membership to anyone who’s a member of numerous organizations including the American Consumer Council. To become a member of the American Consumer Council, you can either pay their yearly fee of $8 or $15 for their lifetime membership. Mountain America Credit Union has a mobile banking app as well as an online banking platform. You may also want to consider their Term Deposit Plus products as you’ll be able to add money to the CD at any time throughout the term. These CDs have the same rate as their regular CDs, but only require $5 to open and an automated monthly deposit amount of at least $10.
- 5-Year CD: Georgia Banking Company – 3.20% APY, $500 minimum deposit
Georgia Banking Company is a community bank with over $421 million in assets. While it opened its doors in 2001 to the Atlanta, GA community, it recently started offering its deposit products nationwide. This means that U.S. residents can open Georgia Banking Company’s 5-year CD with a minimum of $500 and start earning an APY of 3.20%. This CD comes with an early withdrawal penalty that is worth six months of interest. The bank has an online banking platform as well as a mobile app. All deposits made to this bank are FDIC-insured.
3 Questions To Ask Before You Open A CD
1. Should I just open an online savings account instead?
With a CD, the saver and the bank make stronger commitments. The saver promises to keep the funds in the account for a specified period of time. In exchange, the bank guarantees the interest rate during the term of the CD. The longer the term, the higher the interest rate – and the higher the penalty for closing the CD early. With a savings account, there are few promises. You can empty the account without paying a penalty and the bank can change the interest rate at any time.
If you have a high level of confidence that you do not need to touch the money for a specified period of time, a CD is a much better deal. However, if you think you might need to use the money in the next couple of months, a savings account is a much better idea.
You can earn a lot more interest with a CD. Imagine you have $10,000 and know that you do not need to touch the money for two years. In a high-yield savings account earning 2.35%, you would earn $475.52 over two years. If you put that money into a 2.65% CD, you would earn $537.02. Given the ease of switching to an online CD, the extra interest income is easy money.
2. What term should I select?
The early withdrawal penalties on CDs can be significant. On a 1-year CD, 90 days is a typical penalty. And on 2 and 3 year CDs, a 6-month penalty is common. The impact of the penalty on your return can be significant. If you opened a one-year CD with a 2.65% APY and closed it after six months, you would forfeit half of the interest and earned only 1.32%. You would have been better off with a savings account paying 2.25%.
The worst case scenario is with the longest CDs. 5-year CDs usually have a one-year penalty for taking out funds early. If you open a 5-year CD and close it quickly, you could actually end up losing money.
Given the early penalties, you need complete confidence that you will not need to withdrawal the money early. Ask yourself this question: “do I have 90% confidence that I will not need access to the cash during the CD term?” If you don’t have confidence, go for a shorter term or a savings account.
3. Should I consider my local bank or credit union?
The interest rates shown in this article are all from online banks that offer products nationally. Our product database includes traditional banks, community banks and credit unions. If traditional banks offered better rates, they would have been featured in this article. The internet-only banks have dramatically better interest rates. That should not be surprising. Because internet-only banks do not have branches, they are able to pass along their cost savings to you in the form of higher interest rates.
However, you can always visit your local bank or credit union and ask them to beat the rates listed in this article. The chance of getting a better deal is extremely low (remember that Bank of America is only paying 0.07%), but you can try.
How To Find The Best Account
If you don’t find an account that meets your needs in this article, you can use the MagnifyMoney CD tool to find the best rate for your individual needs. Input your zip code, deposit amount and term. The tool will then provide you with CD options, from the highest APY to the lowest.
You can learn more about us and how we make money here.
Featured Accounts AD
Barclays 12 Month Online CD
Goldman Sachs Bank USA High-yield 12 Month CD
Capital One 12 Month 360 CD
HSBC Direct HSBC Direct Savings
* Sponsors listed are Member FDIC or NCUA insured.