The Best CD Rates From 423 Banks

Shawn Plummer

CEO, The Annuity Expert

Compare the best CD rates today from 423 banks and credit unions across the United States.

The Best CD Rates At Banks and Credit Unions

Highest Guaranteed Interest Rates

TermCompany/BankCDAnnuity
12 MonthsCommunityWide FCU0.75%N/A
24 MonthsSILAC Annuity2.15%
36 MonthsCanvas Annuity*2.60%
48 MonthsOceanview Annuity2.60%
60 MonthsCanvas Annuity*3.05%

Certificates of Deposit vs. Fixed Annuity

The Top Fixed Annuities

Fixed annuities offer a guaranteed return for a set amount of years, similar to a CD. Guaranteed crediting rates for the terms below:

  • 2 YEAR TERM: 2.15%
  • 3 YEAR TERM: 2.60%
  • 4 YEAR TERM: 2.60%
  • 5 YEAR TERM: 3.05%
  • 7 YEAR TERM: 3.25%
  • Grow your money as fast as possible
  • Principal protection
  • Interest rate is locked for the term you select
  • Tax deferred growth
  • Withdraw annually without penalty
  • Lump sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between a Fixed Annuity and CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 3.25%Up to 1.25%
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured, but they have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations in each state where they do business. Each state insurance guarantee association protects consumers in the unlikely event that their insurance company fails and defaults on their obligations to their consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

Disclaimer: I may receive a small referral fee if you purchase something using a link in this article.

The Highest CD Rates By Term

3 Month CD Rates

Best 3-Month CD RatesRateTermMinimum
Spectrum Federal Credit Union0.50% APY3 Months$500.00
Service Credit Union0.40% APY3 Months$500.00
Chevron Federal Credit Union0.50% APY3 Months$500.00

6 Month CD Rates

Best 6-Month CD RatesRateTermMinimum
CommunityWide FCU0.70% APY6 Months$500.00
Lafayette Federal Credit Union 0.70% APY7 Months$500.00
Spectrum Federal Credit Union0.50% APY6 Months$500.00

1 Year CD Rates

Best 12 Month CD RatesRateTermMinimum
Lafayette Federal Credit Union 0.80% APY12 Months$5,000.00
CommunityWide FCU0.75% APY12 Months$1,000.00
Live Oak Credit Union0.75% APY12 Months$2,500.00

2 Year CD Rates

Best 2-Year CD RatesRateTermMinimum
Lafayette Federal Credit Union 0.80% APY24 Months$500.00
Live Oak Credit Union0.75% APY24 Months$2,500.00
SILAC Fixed Annuity2.15% APY24 Months$10,000.00
Oceanview Fixed Annuity1.80% APY24 Months$20,000.00

3 Year CD Rates

Best 3-Year CD RatesRateTermMinimum
First National Bank of America0.90% APY36 Months$1,000.00
Lafayette Federal Credit Union 1.00% APY36 Months$500.00
Canvas Annuity*2.60% APY36 Months$2,500.00

4 Year CD Rates

Best 4-Year CD RatesRateTermMinimum
First National Bank of America0.95% APY48 Months$1,000.00
Lafayette Federal Credit Union 1.15% APY48 Months$500.00
Hiway Federal Credit Union1.10% APY48 Months$25,000.00
Nassau Fixed Annuity2.50% APY48 Months$5,0000.00

5 Year CD Rates

Best 5-Year CD RatesRateTermMinimum
First National Bank of America 1.20% APY60 Months$1,000.00
Lafayette Federal Credit Union1.26% APY60 Months$500.00
Canvas Annuity*3.05% APY60 Months$2,500.00

Which Accounts Offers The Best Bank Rates?

What is a CD?

What is a CD in banking? A certificate of deposit (CD) is a savings account that you can get at banks and credit unions and earn a fixed rate of interest. You invest the money for a fixed number of months, and you can’t take the money out until the maturity date is completed; otherwise, an early withdrawal penalty will be applied.

A minimum deposit requirement is standard when buying a CD.

If you want to get competitive rates, then make sure that the term of your CD is long. Longer terms mean higher CD interest rates.

There is a penalty if you take your money out of a CD before it matures. However, early withdrawal penalties can often offset any interest earned and some of the principal investment.

Certificates of Deposits are an excellent way to keep money safe. The money is insured up to $250,000 at banks by the Federal Deposit Insurance Corporation (FDIC) and credit unions by the National Credit Union Administration (NCUA). Certificates of Deposits don’t go down in value when bad things are happening with markets.

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How does a CD work?

A CD in banking is a lot like a bank’s savings account. You put money in it, and then you get interested every month. The interest compounds, growing your principal at a fixed rate until the term length has been completed.

CD account holders can get a higher rate (APY) because the bank knows how long you will use your money.

The bank will charge you if you take out your money. Traditional CDs are accounts for holding money. They have a term, and when the term ends, you can take out the money without being charged.

You get the money back that you put in, plus any interest. Banks will usually contact you before your CD accounts mature to tell you when they will mature.

Once the CD matures, you can decide whether to take your money out, renew the current CD term, or put it in another CD. You will have a certain amount of time for this decision called a grace period.

No-penalty CD rates

You might have to pay a penalty if you take money out before the CD term is up. But some CDs don’t have this penalty, and these rates are lower than other high-yield CDs. Here are some:

CD vs. Savings

Certificates of deposit (CD) are bank accounts with a fixed interest rate for a set term. You have to keep your money invested in the CD until the end of that term; otherwise, you may need to pay a penalty if you withdraw it early.

Savings accounts are a type of bank account that usually earn little interest, while certificates of deposit offer higher rates but have requirements such as a minimum opening balance.

CD or Money Market

A money market account is a type of bank account that pays a higher interest rate than traditional savings.

If you’re looking for the best option for money available, a money market account prevails. The significant difference between traditional savings accounts and money market accounts is that the latter have checks and debit cards.

A money market account is a great place to save your liquid assets while also earning some interest. Put away enough for the long term, like retirement or college savings, and still have access to your full balance with no penalties.

Most money market rates are variable, not fixed, meaning the rate can change.

Frequently Asked Questions

Which banks have the best CD rates?

Online banks and credit unions tend to offer some of the most competitive certificate of deposit rates, especially when compared to national averages.

Are CDs safe?

Yes. Banks and credit unions insure your money in CDs up to $250,000 per person.

Are CD rates going up?

The Federal Reserve cut rates in March 2020, encouraging banks and credit unions to lower their CD rates. The most competitive CD account rates have fallen dramatically since then, but they have remained mostly flat so far in 2021.

CDs or high yield savings accounts?

It depends on what is more important to you. Savings accounts or a high yield certificate deposit? Some CD rates are higher than savings account rates, but you don’t get to take out your money.

When should you buy a CD?

CDs can be an excellent way to save money for a short-term goal, like buying a car or house in the next few years. But they are not good if you want to invest your money and have it grow.

Are CDs FDIC insured?

CDs are protected up to $250,000 at banks that the FDIC insures.

What does CD mean?

CD stands for Certificate of Deposit.

What are alternatives to CDs?

Fixed annuities are the direct alternative to the CD. Their similarities are they both are savings plans that guarantee a fixed interest rate, protect your investment, avoid probate if set correctly. The difference between CDs and fixed annuities is CD’s interest is taxed annually. In contrast, a fixed annuity offers tax-deferred growth, CDs do not provide liquidity, and fixed annuities do. Finally, a fixed annuity can provide a guaranteed income for life, and a CD can not.

Are CD rates going up in 2021?

Online banks typically pay higher interest rates on CDs than national brick-and-mortar banks. Online CD rates went down in 2020, but they probably won’t decrease much more in 2021 because they need to pay higher rates to compete with large banks like Wells Fargo or Bank of America.

What are the best CD rates going right now?

What is the average 5-year CD rate?

As of November 2021, the national average APY on a 5-year CD is 0.27% and 2.50% on a 5-year fixed annuity – depending on your risk aversion, one may be more appropriate than the other.

Why are CD rates so low now?

CD rates are based on the Federal Reserve’s rate, which has been zero since March 2020.

What is the highest CD rate in history?

The most lucrative CD rates were prevalent more than 30 years ago, with an 18.65% return on three-month CDs in 1980, according to the data from the Federal Reserve Bank of St. Louis.

How much does a $10,000 CD make in a year?

You will earn $150 in interest if you invest $10,000 for five years at 0.30% APY.

Which credit union has the highest CD rates?

Are CDs really worth it?

CDs are safe investments that have federal deposit insurance. CDs have no risk of losing money, except if you withdraw early.

Will CD rates ever go up?

CD rates could surge in the future, but it will likely depend on two major factors: if inflation gets higher and interest rates increase.

What is better, a CD or IRA?

The main difference between an IRA CD and a regular CD is that they offer tax advantages. In terms of security, the interest rate on an IRA CD is not determined by fluctuations in the market, so it’s safer.

Can you retire on CDs?

CDs that are specifically for retirement saving usually have long-term contracts of about ten years with higher yields.

What is the average CD rate now?

The average 1-year CD has a rate of 0.17 percent, the average 5-year CD has a rate of 0.31%, and the average 1-year jumbo CD is at 0.19%. Thus, the typical certificate of deposit interest rate for a 5-year jumbo CD range from 0.32 to .79%.

What is a Jumbo CD?

A jumbo CD is a type of high-yield certificate of deposit that requires more capital than a traditional CD. Both CDs and savings accounts offer fixed or variable interest in exchange for depositors keeping their funds in the account until maturity.

Can you open a CD online?

Depending on the bank you choose, you can open a CD either online or in person.

What are CD Relationship rates?

A relationship rate CD refers to an increased interest rate for those with an account with the institution.

Do credit unions have better CD rates than banks?

Credit unions pay higher rates on CDs than banks since they can do so without the need to maximize profits for outside shareholders.

How safe are online CDs?

Online CDs are as safe as any other CDs and offer the same FDIC insurance. In addition, online banks usually provide customer support by phone, but it only is available over an online platform rather than in a branch setting like traditional banks.

How much does a 10 year CD pay?

Today’s most competitive rates for 10-year CDs are around 0.70 percent APY or lower. So you’re likely to get a higher yield by investing in shorter-term CDs or fixed annuities.

Are CDs safe if the market crashes?

CDs are a safe investment. They can provide stable income even when the stock market is doing poorly. When considering CDs or a CD ladder, always consider having an emergency backup fund for future use.

What is the catch with putting your money in a CD?

Although most CDs have penalties for early withdrawal, you can put up to $250,000 in a CD and never lose it as long as your account is with an FDIC-insured bank or NCUA-insured credit union.

What are the disadvantages of a CD?

  • The owner of a CD cannot access their money as easily as someone with a savings account. Withdrawals from a CD before the term come with an up-front penalty.
  • CD rates are lower than the rate of inflation.

Is a CD or money market account better?

Money market accounts are generally preferred to CDs if you’re looking for higher accessibility. However, MMA rates are typically the same as the rates of a regular savings account, while CD rates can be more competitive at greater lengths; these suggest that CDs should be considered in case you’re willing to commit your money for an extended period of time.

What happens to a CD if the bank fails?

The FDIC protects your accounts if a bank may fail.

Can I transfer my 401k to a CD?

If you want to rollover funds from a 401k into an IRA CD, you will need to do so within 60 days. This will help avoid paying fees or penalties. If funds are rolled over into a CD, your money is put in what many consider a low-risk account.

Can I move a 401k to a CD without paying taxes?

If you are age 59 ½ or older, withdrawing money from your traditional IRA and depositing it into a bank CD will not incur the 10% penalty. However, you must report the withdrawal as income on your annual tax return and pay taxes accordingly.

Can you roll a CD into an IRA?

Your CD may be eligible for an IRA contribution.

Who has the highest 60-Month CD Rate?

As of November 2021, First National Bank of America’s APY on a 60-month CD is 1.20%.

Shawn Plummer

CEO, The Annuity Expert

I’ve sold annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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