Key Takeaways
CDs are a safe investment, especially for savings you may need in the short-to-medium term.
CDs lock in your interest rate for the duration of the certificate, so if rates drop, your interest rate will stay fixed until your CD matures. That’s unlike high-yield savings accounts, where rates can rapidly rise or drop.
With rates at near record highs and likely to drop later in the year, now may be the time to lock in interest rates on a longer-term CD, pros tell us.
Featured CDs
Best CD Rates of October 2024
For our list of the best CD rates, the MarketWatch Guides team evaluated 154 banks and credit unions and selected the highest-scoring financial institutions. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms.
Our Top Pick
Synchrony Bank
Why We Picked Synchrony
We found Synchrony Bank to be a transparent and user-friendly online bank with several savings products such as a high-yield savings account (HYSA), a money market account and a wide range of CD terms – many with APYs between 4% and 5%.
We liked the seamlessness of Synchrony’s online platform, which allows you to transfer interest payments from your CD account to another internal or external account. We also liked that Synchrony CDs have no minimum balance requirements.
Synchrony Bank CD Rates
Term
APY
Changes Over Last Quarter
3 months
0.25%
1 time
6 months
4.20%
3 times
9 months
4.50%
5 times
1 year
4.40%
4 times
13 months
4.00%
4 times
14 months
4.00%
4 times
15 months
4.00%
3 times
16 months
4.00%
1 time
18 months
4.25%
2 times
19 months
3.90%
4 times
2 years
3.90%
3 times
3 years
4.00%
2 times
4 years
4.00%
1 time
5 years
4.00%
1 time
Pros and Cons
Pros
Transparent about CD rates and required balance tiers
Offers some of the highest CD rates available
No minimum deposit requirements on CDs
Has a no-penalty CD and a bump-up CD
Cons
Difficult to reach a customer service agent, according to our experience
No physical branch locations
No checking account option
Our Experience Opening a Synchrony Bank CD
We opened a nine-month CD with Synchrony Bank in February of 2024 to give you a first-hand look at the application process. Our experience with Synchrony Bank was positive overall, starting with the fact that the provider was transparent about its APYs and related balance tiers during sign-up. Other highlights include:
Seamless account integrations, such as the ability to set up recurring deposits
Option to transfer CD interest payments to an external account or a Synchrony money market or high-yield-savings account
Accessible application process with checkbox for those without phone numbers due to hearing or speech disabilities
However, Synchrony fell short in a couple of areas when we opened our CD. The main thing we noted was difficulty with customer service in these areas:
Difficulty finding the customer service phone number followed by completing seven voice prompts to reach a live agent
For chat, must request a live agent
Unable to connect with Synchrony’s budgeting tool
What Reviewers Say About Synchrony Bank
Most Praised Features
Multiple account options: Some reviewers liked the fact that Synchrony offers a variety of account types.
Most Common Complaints
Customer service: The most common customer service complaints noted long wait times, unhelpful phone reps and frequently getting disconnected.
Unjustified account closures/limit reductions: Synchrony received a lot of complaints that their accounts were closed without warning.
We reached out to Synchrony for comment on its negative customer reviews but did not receive a response.
*To provide these insights, we compiled and analyzed 11,704 reviews from user-review sites such as Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best Online Experience
Ally Bank
Why We Picked Ally
We chose Ally for its history of high APYs and solid customer service. The online bank offers many ways to save, including several high-yield CDs, bump-up CDs and a no-penalty CD that allows you to withdraw your money as soon as seven days after you fund the account. We were also impressed with Ally’s best-rate guarantee that automatically increases the APY on your CD if rates rise within 10 days of opening your account. We found Ally’s customer service and user experience top-notch, even while its security measures slowed down our application process.
Ally Bank CD Rates
Term
APY
Changes Over Last Quarter
3 months
3.00%
1 time
6 months
4.60%
5 times
9 months
4.50%
4 times
1 year
4.25%
2 times
18 months
4.10%
2 times
3 years
3.60%
3 times
5 years
3.60%
3 times
Pros and Cons
Pros
Loyalty APY increase (an additional 0.05%) when you renew an Ally CD
Bump-up CD allows you to increase your rate if rates rise during your term
No-penalty CD offers a competitive 4.00% APY and the ability to withdraw your money during the 11-month term with no charge
Cons
No physical branch locations
Our Experience Opening an Ally Bank CD
Our research team opened a six-month CD and a three-month CD to test Ally’s CD application process. Ally Bank has several helpful features that stand out, including:
A series of FAQ articles available within the application
Convenient customer support options, including chat and phone, with estimated wait times posted
A 0.05% loyalty bonus that’s automatically added to your interest rate when you renew a CD term
We also encountered the following drawbacks when opening an Ally CD:
Required a picture of our Social Security card during the application process, which none of the other banks we tested did
Because our tester already had an Ally account, the process to open a CD only took a few minutes. But if you don’t have an existing account, Ally warns it can take up to five to seven days for Ally to review an application.
What Reviewers Say About Ally
Most Praised Features
High interest rates: Reviewers like the high interest rates offered by some of Ally’s products, including CDs, savings and money market accounts.
Online banking ease: Some positive reviews praised Ally’s online banking, saying it was user-friendly and highly functional.
Responsive customer service: A few positive reviews mentioned Ally’s helpful customer service.
Most Common Complaints
Poor customer service: While some reviewers thought Ally’s customer service was great, there were more negative comments about it, including rude representatives and unresolved issues.
Loan and account management issues: Account management issues were a common complaint. They cited problems with loan payoffs, billing mistakes and poor account management overall.
Ally had the following comment in response to these negative reviews: “Ally is committed to providing high quality customer service. We consistently have customer retention rates (currently at 96%) that exceed industry averages. We monitor service quality through standard customer satisfaction surveys (CSAT) where our results are consistently above 90%. Ally attempts to act with professionalism and treat every customer fairly and with respect. Customer feedback is taken very seriously, and upon receipt of a concern, our team escalates for educational and/or training measures.”
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Fastest Customer Service
Quontic Bank
Why We Picked Quontic
While Quontic is a newer online bank, we like its high APYs for certificates of deposit, two of which top 5.00%. And it was a breeze to set up our Quontic account, once one of our researchers was able to get past the bank’s third-party verification system and have an application approved.
When it comes to CDs, we like Quontic’s simple but thorough offerings. Quontic offers six traditional fixed-rate options with terms ranging from three months to five years. All terms have high APYs that beat national averages and a minimum deposit requirement of only $500.
Quontic is also the only bank on our list that’s a certified Community Development Financial Institution, meaning its mission is to support economically disadvantaged communities through access to financial products such as mortgages.
Quontic Bank CD Rates
Term
APY
Changes Over Last Quarter
3 months
4.95%
3 times
6 months
4.60%
2 times
12 months
4.00%
2 times
2 years
3.35%
3 times
3 years
3.25%
3 times
5 years
3.00%
3 times
Pros and Cons
Pros
Earn interest the day you initiate a money transfer into the account
Easy, fast and secure account setup
Fast U.S.-based customer service with no prompts
Cons
No physical branch locations
Third-party verification may reject your application if you’ve recently moved
Our Experience Opening a Quontic Bank CD
Three MarketWatch Guides team members attempted to open CDs with Quontic Bank, and two were rejected via email. When we reached out to a Quontic customer service representative, the rep said that rejections are common because the bank uses a third-party system for verification.
She added that two common causes are the use of virtual private networks (VPNs) and recent address changes. The two Guides team members had moved within the last 14 months, which could have been a factor in the approval process.
We were able to open a six-month CD and fund it with $500. It was easy to set up an account with the bank, which we created in just nine clicks. We particularly liked:
You start earning interest the day you initiate your transfer, not the day your transfer is received.
To reach a customer service agent, you input your number into the website and within seconds you’re connected to a U.S.-based agent – no phone prompts or account numbers are required.
Seamless integration with budgeting apps
The biggest issue our team faced with Quontic was the rejected CD applications. We reached out to Quontic’s corporate team to comment on our experience and received the following response: “Given Quontic is a digital-only bank, we take a strong approach to identifying someone’s digital identity and there is always a possibility that someone triggers false positives for a decline. We use a third-party platform in which we leverage best practices for an approval/denial workflow. There can be many reasons in which an applicant could be declined. Due to fraud prevention reasons, we do not disclose the exact reason for the denial. However, we continue to meet and exceed industry benchmarks for approval rates so we feel comfortable that our workflow is configured as appropriately as possible.”
What Reviewers Say About Quontic
Most Praised Features
Exceptional customer service: Many reviewers praised Quontic’s staff for their professionalism and patience.
Competitive CD rates: Positive reviews repeatedly mentioned the high CD rates offered by Quontic as compared to other institutions.
Most Common Complaints
Technical issues with online banking: Many of the complaints about Quontic relate to its online platform. Customers state that the account setup, navigation and transaction processes leave a lot to be desired.
Inconsistent information from staff: Some reviewers complained that they received unclear or inconsistent information from Quontic staff.
Account closure without clear explanation: Several reviewers mentioned unexpected account closures with little to no explanation.
Quontic Bank had the following comment in response to these negative reviews:
Regarding technical issues: “We released (our app) about a year ago, and we’ve gotten really good feedback.”
Regarding inconsistent information from staff: “This isn’t really about staff or information. It honestly seems to be a user error. There is no ‘open an account’ request. You need to go through the full online application process. We haven’t heard any confusion around this in general.”
Regarding account closure without clear explanation: “As an online bank, we take the risk of fraud very seriously and do our very best to identify actual fraudulent activity. There is no perfect 100% solution from a technology standpoint for online banks, unfortunately.”
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best for No-Penalty CDs
Marcus by Goldman Sachs
Why We Picked Marcus by Goldman Sachs
We found Marcus, an online bank backed by finance giant Goldman Sachs, to be flexible and user-friendly, although we did have to do a separate Google search to find the best rate on its one-year CD. The bank offers three types of CDs — no penalty, traditional fixed-rate and rate-bump — all with competitive rates and terms ranging from six months to six years.
Marcus has a referral offer for its current online HYSA customers: If you refer a new customer who opens a savings or CD account, you’ll receive a 1% boost on your CD or savings account rate for three months. Depending on which CD you own, this could temporarily push your rate to one of the highest available at any bank.
Marcus CD Rates
Term
APY
Changes Over Last Quarter
6 months
4.30%
6 times
7 months (No-Penalty)
4.20%
4 times
9 months
4.30%
6 times
11 months (No-Penalty)
4.20%
4 times
1 year
4.30%
7 times
13 months (No-Penalty)
4.20%
4 times
18 months
4.10%
4 times
2 years
3.90%
4 times
3 years
3.90%
2 times
4 years
3.85%
3 times
5 years
3.80%
2 times
6 years
3.75%
2 times
Pros and Cons
Pros
A competitive APY on three no-penalty CDs terms (7, 11, or 13 months)
Allows depositors to withdraw the accrued interest on CDs each month without penalty
Allows unlimited deposits within the first 30 days of a high-yield or rate-bump CD’s term
Lets you select what to do when your CD matures up to one year before the date
Cons
No physical branch locations
Lack of a checking account means it might not be a good choice for someone looking to keep all their money at one bank
Can take two or three days for an external account to be verified manually
Our Experience Opening a Marcus by Goldman Sachs CD
We opened a 14-month CD with $500 to gather insights into the application process and digital platform experience. We liked Marcus by Goldman Sachs for its flexibility and streamlined features, some include:
Gives you 30 days after account opening to add additional money (except for no-penalty CDs)
Lets you add a joint account holder up to three business days after you open your account
Option to open multiple CD and savings accounts at the same time
Tips and FAQs on screen provide helpful information during the application process
Guarantees the highest rate it offers for your CD within 10 days of account opening if you make the minimum deposit
Here are the areas we highlighted for improvement:
Limited visibility of promotional CD options on parts of the website
Manual process for verifying an external account with small test deposits took two days
What Reviewers Say About Marcus by Goldman Sachs
Most Praised Features
High-yield savings and CD accounts: Some reviewers appreciated the competitive interest rates.
Customer service: Some reviewers were highly satisfied with the customer service they received with this bank.
Most Common Complaints
Poor customer service: Many reviewers mentioned their dissatisfaction with the customer service they received, citing long wait times, multiple phone transfers and unresolved issues.
Account and transaction issues: A lot of complaints mentioned having accounts closed or frozen or having trouble with transfers and delays.
We reached out to Marcus by Goldman Sachs for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best for Military Families
USAA Bank
Why We Picked USAA
USAA is well-known for its affordable insurance and wide variety of banking products, which are accessible only to members of the military and their families. We loved how USAA educated us on different types of CDs while we were setting up our account. USAA has over a dozen CD terms, though the most notable are the 182-day term at 4.90% APY and its nine-month term at 4.75% APY. If you qualify for membership with USAA, it’s easy to add a CD to an existing checking or savings account.
While USAA offers four adjustable-rate CDs and two variable-rate CDs, the current APY of 0.01% is so low we don’t recommend them. All three types of CDs have early withdrawal penalties.
USAA Bank CD Rates
Term
APY
Changes Over Last Quarter
3 months
0.05%
1 time
6 months
3.80%
6 times
7 months
0.05%
1 time
9 months
3.55%
6 times
1 year
3.35%
6 times
15 months
3.25%
6 times
18 months
3.15%
6 times
2 years
2.90%
6 times
30 months
2.75%
1 time
3 years
2.75%
1 time
4 years
2.50%
1 time
5 years
2.50%
1 time
7 years
2.02%
1 time
Pros and Cons
Pros
Some of the top rates available for select terms
A wider range of CD term lengths than many banks
Doesn’t require a larger deposit amount to get the best rates
Cons
Low APYs on terms under nine months
Minimum opening deposits of $1,000 for fixed- and adjustable-rate CDs
Membership is restricted to current and former military members and USAA members’ spouses and children
Our Experience Opening a USAA CD
We opened a 182-day USAA CD with $1,000 to show you the process from a customer’s point of view. Our experience was fairly seamless, and we found the company to be user-friendly. Highlights include:
Easy to transfer money from existing USAA accounts
Detailed guidance on CD types during the application process
Pre-application checklist displaying the required documentation and information needed
Lower minimum deposits for variable-rate CDs
It’s also important to note this limitation with USAA Bank:
Exclusively available to military members, veterans and their spouses and children
What Reviewers Say About USAA Bank
Most Praised Features
Ease of access to services: USAA Bank reviewers liked how easy their accounts were to manage and the availability of various services. They also liked how user-friendly the online services were.
Security and fraud protection: Some reviewers praised USAA’s fraud protection services for speed and efficiency.
Most Common Complaints
Decline in customer service quality: Many reviews complained of USAA’s customer service deteriorating, citing issues like long wait times and unhelpful representatives.
Account freezes and restrictions: Several complaints mentioned having accounts frozen or restricted without any clear explanation.
We reached out to USAA Bank for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best Long-Term CDs
Discover Bank
Why We Picked Discover
We like Discover because its CD terms range from three months to 10 years — the longest range among our picks. While Discover’s CD rates aren’t as high as some other banks, it may be a convenient option for existing Discover customers.
We didn’t love the lengthy application process, but the bank did offer many security features like multiple verification codes and CAPTCHA. We also liked the transparency of Discover’s account dashboard, which clearly displays our CD’s interest rate and maturity – a feature we didn’t find with most other banks.
Discover Bank’s CD Rates
Term
APY
Changes Over Last Quarter
3 months
2.00%
1 time
6 months
3.90%
3 times
9 months
4.00%
4 times
1 year
4.10%
4 times
18 months
3.80%
3 times
2 years
3.60%
2 times
30 months
3.50%
2 times
3 years
3.50%
2 times
4 years
3.40%
3 times
5 years
3.40%
3 times
7 years
3.40%
3 times
10 years
3.40%
3 times
Pros and Cons
Pros
Rare seven- and 10-year long-term CDs offered at 3.40% APY, abnormally high for this time frame
APY, interest rate and maturity date are clearly displayed on a user dashboard
Offers live customer service via phone 24/7
Cons
$2,500 minimum deposit on CDs, which is higher than many competitors’ requirements
Steep early withdrawal penalties, especially on longer-term CDs
Our Experience Opening a Discover CD
We opened a six-month Discover CD with $2,500 to give you a first-hand look into the process. We like Discover for its transparency on its account options, and we took note of the following:
APY and CD account details are clearly displayed on the brand’s website
Included a CAPTCHA anti-bot verification step in the application for security
Here are the areas where we think Discover could improve its customer experience:
Lengthy 19-step application process, including inquiries about paperless statements and using money internationally
Deposit not available for five days
No chat option for customer support
What Reviewers Say About Discover Bank
Most Praised Features
Digital banking services: A large number of reviewers praised Discover’s mobile app and online banking services. They liked how easy it was to manage their accounts and transfer money.
Customer service: Discover’s customer service was praised frequently with mentions of the U.S.-based service and 24/7 availability.
Most Common Complaints
Customer service inconsistency: Despite Discover getting rave reviews for its customer service, it also had some negative feedback. These complaints included inconsistent service and frustration with getting complex issues resolved.
Account issues: Many complaints were related to accounts getting frozen with unclear explanation, restricting customers’ access to their funds.
We reached out to Discover for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best for Small Investments
BMO Alto
Why We Picked BMO Alto
We liked BMO Alto, an online-only subsidiary of BMO Financial Group, for its competitive CD rates on longer-term CDs with no minimum deposit. And while it doesn’t offer a mobile app, it was easy to set up our account on its website, which is also accessible via mobile. Customer service is available via phone 24/7.
BMO Alto is limited to savings accounts and CDs, though, so if you want a one-stop financial institution, this isn’t it.
BMO Alto’s CD Rates
Term
APY
Changes Over Last Quarter
6 months
4.70%
3 times
1 year
4.50%
3 times
2 years
3.90%
4 times
3 years
3.90%
4 times
4 years
3.90%
4 times
5 years
4.00%
4 times
Pros and Cons
Pros
Has one of the highest rates offered for a five-year CD
No minimum opening deposit
Fund your account within 10 days and if rates rise, you’ll get the higher rate
Cons
Only allows CD funding through a BMO Alto bank account or an automated clearing house transfer from an external bank account
Only offers savings accounts and CDs – no checking accounts, credit cards or loans
Our Experience Opening a BMO Alto CD
For a personal look into the BMO account process, we opened a $2,500 CD with a six-month term. Here’s what we liked about becoming a BMO Alto account holder:
Gives you the higher APY if the offered rate increases between when you open your account and fund your CD
Convenient option to save the application and finish it later
Two options for linking an external account to fund your CD
Lets you cancel online instead of requiring you to call
Since the bank doesn’t offer a mobile app, we tested its online banking platform. There were several technical glitches we had to work through:
Asked for location during the application process
Aggressive account timeout mechanisms, leading to unintended logouts
Error when linking bank accounts forced us to link manually
What Reviewers Say About BMO Alto
Most Praised Features
Helpful and knowledgeable staff: Many reviewers agree that BMO Alto’s staff is helpful and well-informed when it comes to helping them resolve issues.
Customer service responsiveness: Some reviewers had even more positive things to say about customer service and how well BMO Alto handles account-related issues.
Most Common Complaints
Difficulty opening accounts: Complaints frequently mentioned issues with opening accounts, especially CDs and savings. They stated they couldn’t get any clear reasons for the rejections.
Poor customer service: While BMO did have some positive reviews based on customer service, it also received its fair share of negative ones. Some customers criticized it for unprofessional, unresponsive and unclear assistance.
Account management issues: Some reviews complained about account-management issues, including unauthorized holds, access to their funds and difficulty transferring money.
We reached out to BMO Alto for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Why We Picked Barclays
It was quick and easy to set up an account with Barclays, requiring just eight clicks to complete the process. Rates for all Barclays online CDs are competitive, and there are no minimum opening deposit requirements. Barclays also gives you a little longer than other banks to fund your CD — up to 14 days.
Barclays CD Rates
Term
APY
Changes Over Last Quarter
3 months
0.10%
1 time
6 months
5.10%
3 times
9 months
4.25%
3 times
1 year
3.75%
3 times
18 months
3.25%
2 times
2 years
3.00%
2 times
3 years
3.00%
2 times
4 years
3.00%
2 times
5 years
3.25%
2 times
Pros and Cons
Pros
5% APYs on shorter-term CDs
No minimum balance requirements for CDs or the savings account
No penalty for withdrawing interest earned on a CD before its maturity date
Cons
Only offers savings and CD accounts
Has just seven CD term lengths
Live customer support only available from 8 a.m. to 8 p.m. EST
Our Experience Opening a Barclays CD
We opened a one-year CD and funded it with $500 for a hands-on look at Barclays’ application process. It was efficient:
Had the fewest number of steps in its application process among the top 10 CDs we reviewed
Option to set up two-factor authentication for additional security
However, we had some challenges with Barclays:
One of only two accounts we tested that didn’t provide instant approval, instead making us wait for email confirmation and manual account review
Prompted us to reset our password during the initial login, which was confusing
Linked external account didn’t show up as an option for transferring money
Phone system required us to enter a Social Security number to speak with an agent, unlike other banks
Our review team reached out to Barclays for comment on our experience with opening a CD and received the following response:
“We strive to provide a simple and easy experience for our customers. The majority of our customers are pleased with their online experience and savings rates that are roughly five times the national average.”
What Reviewers Say About Barclays
Most Praised Features
High-interest savings accounts: Several customers expressed their appreciation for Barclays’ high-yield savings accounts. They mentioned good interest rates, often exceeding expectations.
Easy-to-use online platform for CDs: Some reviewers said they found the CD opening and management process straightforward and reliable.
Customer Support in Account Management: Some users reported efficient customer service when managing certain account changes or issues.
Most Common Complaints
Poor customer service and communication: Many of the negative reviews pointed out long wait times, unresponsiveness and difficulty in understanding representatives.
Issues with fraud handling and dispute resolution: Many users claimed they felt unsupported and ignored when reaching out with fraud claims and disputes.
Frequent unjustified credit limit reductions: Customers reported sudden reductions in their credit limits without warning, affecting their credit scores.
We reached out to Barclays for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Top Credit Union Pick
Alliant Credit Union
Why We Picked Alliant
Credit unions typically offer more favorable rates than traditional brick-and-mortar banks, and Alliant is no exception. It calls its CDs certificates, and top certificate rates are above 5%. If you invest in a jumbo certificate for $75,000 or more, you’ll earn an extra 0.05% APY for some term lengths. Otherwise, the minimum deposit to open a regular Alliant CD is $1,000.
Alliant also offers an array of tax-exempt certificates, including three types of IRA certificates: Traditional, Roth and Simplified Employee Pension (SEP).
We found Alliant’s customer service to be top-notch. After we called their customer service number, an agent answered our call directly. While Alliant is a credit union and membership is required, they make it easy to join by automatically setting up an account for you after your certificate application is approved.
Alliant Credit Union CD Rates
Term
APY
Changes Over Last Quarter
3 months
4.25%
1 time
3 months (Jumbo)
4.25%
1 time
6 months
4.45%
3 times
6 months (Jumbo)
4.45%
3 times
1 year
4.50%
4 times
1 year (Jumbo)
4.55%
4 times
18 months
4.25%
3 times
18 months (Jumbo)
4.30%
3 times
2 years
4.00%
3 times
2 years (Jumbo)
4.10%
3 times
3 years
3.80%
3 times
3 years (Jumbo)
3.90%
3 times
4 years
3.65%
2 times
4 years (Jumbo)
3.70%
2 times
5 years
3.65%
2 times
5 years (Jumbo)
3.70%
2 times
Pros and Cons
Pros
Large selection of traditional fixed-rate certificates, plus retirement CD options
24/7 customer service by phone
Cons
$1,000 minimum deposit for non-jumbo CDs
Membership requirements to join the credit union
Interest on CDs compounded monthly rather than daily
Our Experience Opening an Alliant CD
We opened a three-month CD with $1,000 to share our personal experience with Alliant. Alliant had several features we liked, including one that made it stand out from the nine other banks we opened CD accounts with:
Instant funding from an external account, which took days with other CD providers we used
Security measures such as naming the devices you log in with and automatically logging out after 10 minutes of inactivity
Exceptional customer service that directly links you with an agent — no prompts
While you do need to join the credit union to be a customer, you can first apply for a CD, and if the application is approved, Alliant will automatically set up the membership for you. To maintain your membership, you must keep a $5 balance in your Alliant savings account. Alliant funds this initial deposit for you.
We thought Alliant could improve in some areas:
Difficult to find the chat option for customer support
CDs renew automatically and may renew at a lower rate
What Reviewers Say About Alliant Credit Union
Most Praised Features
Effective online and mobile banking: Common praise for Alliant related to its online banking services for a seamless and user-friendly experience.
High savings and CD rates: Several reviews mentioned Alliant’s competitive rates on deposit accounts, especially savings and CDs.
Most Common Complaints
Customer service issues: Many reviewers complained about longer wait times and poor problem resolution.
Account management problems: A common complaint was the difficulty with managing accounts, such as trouble accessing funds or unexpected fees.
Technical glitches: A few reviewers mentioned their frustration with the technical difficulties they had with Alliant’s online banking platform.
We reached out to Alliant Credit Union for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Best for Large Investments
Citizens Access
Why We Picked Citizens Access
We like that Citizens Access, an online-only division of Citizens Bank, offers a straightforward application process and ample FAQs if you run into an issue. Since it doesn’t have physical branches to maintain, Citizens Access is able to offer high rates with no monthly fees on its savings products. The one-year CD is a standout at 5.00% APY.
The minimum deposit to open a Citizens Access CD is $5,000, so it’s best for savers who have more to invest.
Citizens Access CD Rates
Term
APY
11 months
0.05%
1 year
4.25%
2 years
3.75%
3 years
3.10%
4 years
3.00%
5 years
3.00%
Pros and Cons
Pros
Offers a competitive APY for one-year CDs
Allows you to create a CD ladder within one simple online application
Ample customer service hours with live phone support seven days a week
Cons
The $5,000 minimum opening deposit for CDs is higher than the amount required by most online banks
Only allows deposit accounts to be funded via online bank transfer or mailed checks
Our Experience Opening a Citizens Access CD
We opened a Citizens Access one-year CD with a $5,000 deposit in February 2024 to test the overall user experience. Here’s what we liked:
User-friendly interface, making it easy to see the number of steps in the application process and a timeline
Helpful FAQs to guide you along the account creation process
Combines several questions on each screen and provides clear confirmations for each step
Certain aspects of our experience with Citizens Access, however, were not as positive:
Waited on hold for eight minutes to speak with a representative
Deposit took five days to reach the account
What Reviewers Say About Citizens Access
Most Praised Features
Responsive customer service: Reviewers commonly praised Citizens Access for its superior customer service.
Competitive rates: Reviewers were satisfied with this bank’s competitive rates.
Most Common Complaints
Technical issues with online and mobile banking: Several reviews mentioned issues with the online banking process, stating that it was often down.
Inconsistent or unhelpful customer service: Some reviewers received inconsistent information from representatives.
Account closures without explanation: Several reviews cited unexpected account closures without clear explanation.
We reached out to Citizens Access for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
CD Rates In the News
Fed Announces Aggressive Rate Drop
The attractive CD rates we’ve seen in the last few years will likely start to come down in the coming days due to the Federal Reserve’s latest announcement on Sept. 18 that it’s cutting rates by 0.50%. While this can mean good things for consumers purchasing or refinancing things like homes or cars, it’s not always great news for fixed-income investments like CDs.
When interest rates drop, the yield on new CDs will likely be lower, making it harder to find competitive returns. As a result, you may need to reassess your strategy, depending on where the market is when your current CDs mature. Since this is the first cut since 2020, it’s a little too soon to tell exactly how this will affect investing and spending, but historically speaking, the banking industry follows the Fed in terms of raising or decreasing rates.
“For new issue CDs, interest rates will likely drop in tandem with the federal funds rate,” said Jake Skelhorn, a certified financial planner and partner at Spark Wealth Advisors. “Some smaller banks may use this as an opportunity to stay competitive by reducing their CD rates less than 50 basis points to attract new business. Brokered CDs that are trading on the secondary market, similar to bonds, will see an increase in their market price as they now have more attractive yields than new issues.”
Top CD Rates Today by Term
Depending on your financial goals, the term length of a CD is an important factor to consider as APYs vary based on the duration of the term. Plus, you typically pay a penalty to withdraw your money before the term is up, so consider whether you can keep your money locked up for the duration of the term you choose. In our latest MarketWatch Guides team CD survey, over 78% of people chose their term based on interest rate, while 28% based their decision on when they’d need their money.
Common CD terms range from three months to five years. The following CDs assume a $10,000 deposit and are accurate as of October 6, 2024. Rate data is sourced by Curinos, a provider of retail banking research that collects deposit pricing data from more than 3,600 financial institutions. These products may have stricter requirements than our picks above – see the institution’s website for more details.
3-Month CDs
3-Month CDs
6-Month CDs
1-Year CDs
2-Year CDs
3-Year CDs
5-Year CDs
3-Month CDs
6-Month CDs
1-Year CDs
2-Year CDs
3-Year CDs
5-Year CDs
Institution
APY
Compounding Frequency
Interest Earned
(On a $10,000 Investment)
HomeTown Bank
5.43%
monthly
$136.37
Piedmont Bank
5.25%
daily
$132.11
M C Bank & Trust Company
5.09%
semi-annually
$126.45
American Metro Bank
5.10%
daily
$128.31
First Western Bank
5.05%
quarterly
$126.25
Institution
APY
Compounding Frequency
Interest Earned (On a $10,000 Investment)
HomeTown Bank
5.38%
monthly
$272.03
Lone Star State Bank of West Texas
5.25%
quarterly
$264.22
Able Bank
5.20%
daily
$263.39
M C Bank & Trust Company
5.09%
semi-annually
$254.50
VisionBank
5.06%
Institution
APY
Compounding Frequency
Interest Earned (On a $10,000 Investment)
Merchants Bank of Indiana
5.39%
daily
$553.75
First Merchants Bank
5.25%
quarterly
$535.43
Northwest Bank
5.25%
Bank of Utah
5.20%
quarterly
$530.23
Cumberland Valley National Bank & Trust
5.15%
monthly
$527.33
Institution
APY
Compounding Frequency
Interest Earned (On a $10,000 Investment)
Merchants Bank of Indiana
5.39%
daily
$1,138.16
United Business Bank
4.86%
daily
$1,020.74
Alliance Bank Central Texas
4.58%
quarterly
$953.56
Sterling Bank
4.50%
daily
$941.68
My eBanc
4.40%
daily
$919.82
Institution
APY
Compounding Frequency
Interest Earned (On a $10,000 Investment)
Merchants Bank of Indiana
5.39%
daily
$1,754.94
Alliance Bank Central Texas
4.73%
quarterly
$1,515.02
CommunityBank
4.50%
annually
$1,411.66
Sterling Bank
4.35%
daily
$1,393.89
First Financial Bank
4.33%
monthly
$1,384.48
Institution
APY
Compounding Frequency
Interest Earned (On a $10,000 Investment)
Alliance Bank Central Texas
4.32%
quarterly
$2,396.66
Bank of Clovis
4.33%
daily
$2,417.07
Sterling Bank
4.25%
daily
$2,367.51
Big Horn Federal Savings Bank
4.24%
daily
$2,361.33
Lone Star State Bank of West Texas
4.20%
quarterly
$2,323.28
Is Now the Right Time to Buy a CD?
In our survey of Americans who have used a CD within the past five years, over half of the respondents told us they opened a CD in either 2023 or 2024. High interest rates were the main reason why people opened a CD, and 40% of respondents reported earning a rate between 4% and 6%.
Historical Trends
Historical Trends
Federal Reserve News
Expert Commentary
Historical Trends
Federal Reserve News
Expert Commentary
The last time CD rates reached 5% was December 2007. From 2008 to early 2023, rates averaged at 0.94% and only briefly surpassed 2%. The chart to the right shows average 3-month CD rates over the past 20 years.
Over the past year, the top CD rates offered by the online banks and credit unions we track have remained steady but have taken a slight dip in recent weeks. Now may be an opportune time to open an account and maximize your savings before rates likely fall later in 2024.
While the Federal Reserve has indicated that interest rate cuts are coming in 2024, no cuts have been made yet. Federal Reserve Chair Jerome Powell told a House Financial Services Committee in early March that the Federal Reserve would likely cut interest rates but is keeping a keen eye on inflation before making any decisions. So far this year, the Reserve has held rates between 5.25% and 5.50%.
We spoke to Preston Caldwell, chief U.S. economist at Morningstar Research Services, on the future outlook for CDs. He expects the federal funds rate to drop from its current range of 5.25% to 5.5% to 3.75% to 4% by the end of the year. When that happens, he expects short-term CDs to see a similar dip of around 1.5%.
How To Choose the Best CD
There are four primary factors to keep in mind when choosing a CD. They are the interest rate, term length, early withdrawal penalty and deposit requirement.
Annual Percentage Yield (APY)
The annual percentage yield (APY) measures the total return on your savings, taking into account both interest rate and compounding frequency. The higher your APY, the more your money will earn over the life of the CD. The APYs offered on CDs vary greatly based on the length of the CD. Right now, short-term CDs offer much higher rates than longer-term CDs (4% to 5.5% for 3-month CDs compared to 4% to 4.5% for 5-year CDs). If you find a CD at or above this range from a reputable bank, you can be fairly certain you’re getting a good deal.
Term Length
CDs are time-based deposit accounts, and most CDs require you to keep your money in the account for a set period of time. Common CD term lengths range from three months to five years. Shorter-term CDs often offer higher APYs, but you run the risk of rates being lower when you need to renew them. Longer-term CDs have lower rates, but offer you a guaranteed return for longer. A CD ladder may be able to give you the best of both worlds, splitting your savings between multiple CDs of different term lengths.
Early Withdrawal Penalty
Most CDs come with early withdrawal penalties if you take money out of the account before your CD term ends. In most cases, this penalty is imposed as a certain number of days’ worth of interest. The best CDs typically charge you 30 days worth of interest, while other banks may charge as much as 180 days or more. Some banks allow you to withdraw the interest you’ve earned on your account without penalty. If you think you might need access to cash during your CD term, make sure to look for this feature.
Minimum Deposit
Most banks require you to start your account at a minimum dollar amount. Others may tier their APYs, offering higher rates to people with larger deposits. The best CDs have low ($500 or less) or no minimum deposit requirement. On the other side of the range, some banks may require $100,000 or more to earn their best rate.
Types of CDs
The first way to maximize your CD’s potential is to consider the type you need. Here’s a quick breakdown of how they differ.
Traditional CD
Best for: Savers seeking a predictable, guaranteed return on their investment
Traditional CDs have a fixed APY for the entire term and don’t generally allow you to withdraw your principal until they have matured. They typically offer higher APYs than a savings account.
Bump-Up CD
Best for: Investors who expect CD interest rates to increase
Bump-up CDs allow you to get a higher rate if the available rate rises during your CD’s term. Bump-up CDs provide flexibility in case rates increase before your CD matures.
No-Penalty CD
Best for: Those who may need to access their funds before the CD matures
No-penalty CDs don’t charge a penalty if you withdraw the principal before your CD matures. This is the only type of CD that allows for early withdrawal with no costs or fees.
YOUR ENDING BALANCE
$1,025
Pros and Cons of CDs
Pros
A fixed interest rate means you lock in your APY for the entire length of the term.
A fixed interest rate also means you’ll know exactly how much you’ll earn at the end of the term.
CDs can keep you from spending your savings by limiting access to your money until the CD matures.
CDs are considered very safe investments for money you need in the short or medium term, and they’re FDIC- or NCUA-insured for up to $250,000.
CDs are not subject to market fluctuations, making them a stable investment during market instability.
Cons
CDs limit access to your money during the term of the CD unless you take an early withdrawal penalty.
You can’t usually add money to a CD after you’ve funded your account.
If interest rates rise, you’ll miss out — your CD rate will stay the same.
Withdrawing your money before the maturity date can result in penalties, reducing your overall returns.
CDs typically offer lower returns than higher-risk investments like stocks.
Alternatives to CDs
While CDs are a reliable way to earn money on cash investments, there are several alternatives. CDs may offer higher interest rates than traditional savings accounts or money market accounts, and can be less risky than bonds, but their downside is less liquidity.
CDsHigh-Yield Savings AccountsMoney Market AccountsBondsType of InvestmentTime deposits where you deposit your money for a set term in exchange for a fixed interest rateSavings accounts that offer higher variable interest rates than regular savings accounts, usually offered by online banks or other financial institutions with low overheadSavings accounts that work more like checking accounts, offering higher variable interest rates than regular savings accounts with check writing capabilitiesDebt securities, short term loans you provide to a company or municipality in exchange for a fixed interest rate paid back over a specific termAPYOffer higher APYs than HYSAs or MMAs but lower than some bondsLower APYs than CDs or bonds but higher rates than a regular savings accountAPYs similar to HYSAs, higher than regular checking or savings accounts but lower than CDs or bondsOffer the most competitive APYs — the riskiest bonds generally offer the highest interest ratesRiskExtremely safe as the vast majority are insured by the FDIC or NCUA up to $250,000 per depositorVery safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositorVery safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositorSlightly riskier as companies could default and you’d lose your principal and the promised interest (but U.S. Treasury bonds are considered very safe investments)AccessibilityLimited access until CD maturity unless you pay an Early Withdrawal PenaltyFull accessibility — withdraw your money any time and for any reason (although some banks may limit the number of withdrawals you make per month)Full accessibility — withdraw your money at any time and write checks or pay bills out of your account (although some banks may limit monthly transactions)Some accessibility — you could sell your bond on the secondary market if you needed your money sooner
Expert Insights and Tips
We asked five experts to share their insights about CD Rates.
What are the pros and cons of a CD?
What are the pros and cons of a CD?
What factors are important to consider when evaluating a CD rate?
How will CD rates be affected when the Federal Reserve cuts interest rates?
What are the pros and cons of a CD?
What factors are important to consider when evaluating a CD rate?
How will CD rates be affected when the Federal Reserve cuts interest rates?
Common Questions About CDs
What is the highest-paying CD right now?
Online banks have some of the highest-paying CD rates right now, reaching 5.30% APY or more. There are some smaller credit unions offering higher rates, but these typically have membership requirements and geographic restrictions.
Can you get 6% on a CD?
The top rates are now just under 6.00%. These are typically offered by a handful of credit unions that may have membership restrictions. However, because CD rates can rise and fall based on economic conditions, CDs paying 6.00% APY could be more common if interest rates increase.
What is the best CD rate for $100,000?
The best CD rates for $100,000 are above 5.50% APY and tend to come from credit unions (though these usually have membership restrictions) or online banks. For larger sums such as $100,000, it may be more lucrative to open a CD that compounds interest daily rather than monthly, even if the APY is slightly lower.
What is the best CD for a high-risk investor?
High-risk investors may not find CDs attractive since their guaranteed payouts mean they often have lower rates of return than other types of investments. But variable-rate CDs may satisfy those looking for more risk since their interest rates can change when benchmark rates go up or down.
Bump-up CDs also allow for some risk since they often have lower APYs than some fixed-rate CDs but allow you to request a higher rate at least once during the CD’s term if the bank raises rates for new account holders. Additionally, you might consider a brokered CD that comes with a higher risk and higher APYs.
Our Methodology
For our list of the best CD rates, we at the MarketWatch Guides team evaluated 154 banks and credit unions and selected the highest-scoring financial institutions. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms.
Our comprehensive methodology examines over a dozen customer experience data points, including branch and ATM locations, mobile app ratings, reputation and customer service access. We focus on key categories such as savings accounts, money market accounts, checking accounts, CDs and overall banking experience. We also consider any legal settlements or agreements with regulators.
Our ratings are continuously updated to reflect changes in rates and features to ensure that our recommendations are current and reliable.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
*Annual Percentage Yield. Rates accurate as of October 4, 2024.
Customer Review Methodology
To provide in-depth perspective on how customers feel overall about banks that offer certificates of deposit, the MarketWatch Guides team compiled 11,704 reviews from publicly available user-review sites such as Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company.
We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. With this data, we highlighted the most praised features and most common complaints for each bank.
While most of our banks had hundreds or thousands of reviews, BMO Alto only had 40 reviews. This small sample size should be taken into consideration before you choose a financial institution.
