Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS. For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.

Your CD is safe at either an FDIC-insured bank or an NCUSIF-insured credit union, as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government. Just make sure you’re not exceeding the insurance limits. For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.

Are there fees associated with CDs?

CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.

What is considered a good CD rate?

A good CD rate depends on a few factors, but the true answer depends on your personal financial situation. If you need to access your money in a year, for example, your best CD options will be those with a one-year term or less. If you’re able to lock up your money for longer, you may be able to achieve a higher yield with a longer-term CD. In general, longer terms may pay better yields. Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time. Compare CD rates to the national average to make sure you’re getting a competitive return. For example, the national average APY for 1-year CDs is 1.76 percent as of December 26, 2024, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.52 percent.

Is an online bank the best choice for a CD?

Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.

How long can you leave money in a CD?

You can keep your money in a CD and let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.

Do CDs have beneficiaries?

Banks give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take. If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.

Can you lose money on a CD?

As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.

Best CD Rates Of January 2025 - Up to 5.25%

Best CD rates from top banks for January 2025

Note: Annual percentage yields (APYs) shown were updated between Dec. 19 and Dec. 25. All other information is current as of Dec. 23. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Read review

Popular Direct

4.0 Bankrate CD score

Bankrate CD rating = 4/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

4.20% – 4.65%
Min. deposit to open

$10,000
Term

3 months - 5 years

Why Popular Direct?

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 130-year-old financial services company. Popular Direct was previously known as Banco Popular North America. Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

Pros

Popular Direct consistently offers competitive rates across their CDs and savings accounts.

Cons

Popular Direct has a $10,000 minimum deposit to open. They also don't offer specialty CDs like bump-up or no-penalty CDs.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Popular Direct

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Popular Direct APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	4.25%	1.41%
11/05/2024	3.35%	1.42%
10/22/2024	3.45%	1.42%
10/01/2024	3.55%	1.42%
09/24/2024	3.65%	1.43%
09/17/2024	3.85%	1.43%
09/03/2024	3.95%	1.43%
08/20/2024	3.95%	1.44%
08/13/2024	4.00%	1.44%
08/06/2024	4.30%	1.44%
07/02/2024	4.30%	1.42%
06/04/2024	4.30%	1.43%
04/02/2024	4.30%	1.42%
03/26/2024	4.30%	1.43%
03/19/2024	4.35%	1.43%
03/12/2024	4.45%	1.43%
02/06/2024	4.45%	1.42%
01/30/2024	4.45%	1.43%
01/23/2024	4.35%	1.43%
01/09/2024	4.40%	1.43%
01/02/2024	4.50%	1.43%
12/26/2023	4.60%	1.40%

Read review

America First Credit Union

5.0 Bankrate CD score

Bankrate CD rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

4.10% – 4.55%
Min. deposit to open

$500
Term

3 months - 5 years

Why America First Credit Union?

America First Credit Union offers a wide range of CD terms between three and 60 months, and all earn rates that are highly competitive. Also offered are specialty CDs such as a bump-rate CD and a flexible CD. All CDs require a manageable minimum opening deposit.

Pros

CD rates from America First are highly competitive. Specialty CDs are available, including a bump-up option. Both the standard and specialty CDs require low minimum deposits.
Cons

Bump rates may only be adjusted once per term.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

America First Credit Union

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	America First Credit Union APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	4.25%	1.41%
11/19/2024	4.25%	1.42%
10/29/2024	3.90%	1.42%
10/01/2024	3.85%	1.42%
09/24/2024	3.85%	1.43%
09/17/2024	3.95%	1.43%
09/10/2024	4.00%	1.43%
09/03/2024	4.10%	1.43%
08/27/2024	4.10%	1.44%
08/06/2024	4.20%	1.44%
07/02/2024	4.20%	1.42%
06/04/2024	4.20%	1.43%
04/02/2024	4.20%	1.42%
03/12/2024	4.20%	1.43%
02/06/2024	4.20%	1.42%
01/02/2024	4.20%	1.43%
12/26/2023	4.20%	1.40%

Term	APY	Min. deposit
3 months	4.65% APY	$500
6 months	4.55% APY	$500
9 months	4.55% APY	$500
1 year	4.45% APY	$500
18 months	4.10% APY	$500
2 years	4.15% APY	$500
30 months	4.15% APY	$500
3 years	4.15% APY	$500
4 years	4.20% APY	$500
5 years	4.25% APY	$500

Read review

Quontic Bank

4.0 Bankrate CD score

Bankrate CD rating = 4/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.00% – 4.50%
Min. deposit to open

$500
Term

3 months - 5 years

Why Quontic Bank?

Quontic Bank offers six terms of CDs, ranging from three months to five years, that require $500 to open. The rates for all six terms are very competitive.

Pros

Quontic pays competitive rates on the five CD terms it offers.
Only $500 is needed to open a CD.
Cons

Some banks have lower minimum deposit requirements.
Quontic Bank’s early withdrawal penalties are higher than those of some other banks.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Quontic Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Quontic Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	3.00%	1.41%
10/01/2024	3.00%	1.42%
09/24/2024	3.00%	1.43%
09/03/2024	3.50%	1.43%
08/27/2024	3.50%	1.44%
08/06/2024	4.30%	1.44%
07/02/2024	4.30%	1.42%
06/04/2024	4.30%	1.43%
04/02/2024	4.30%	1.42%
03/12/2024	4.30%	1.43%
02/06/2024	4.30%	1.42%
01/02/2024	4.30%	1.43%
12/26/2023	4.30%	1.40%

Term	APY	Min. deposit
3 months	4.50% APY	$500
6 months	4.25% APY	$500
1 year	4.00% APY	$500
2 years	3.35% APY	$500
3 years	3.25% APY	$500
5 years	3.00% APY	$500

Read review

Vio Bank

4.1 Bankrate CD score

Bankrate CD rating = 4.1/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

2.75% – 4.30%
Min. deposit to open

$500
Term

6 months - 5 years

Why Vio Bank?

Vio Bank offers traditional CDs with terms ranging from six months to 10 years, an extensive variety compared to some other banks. The minimum deposit for each account is relatively low at $500. CDs automatically renew once they mature following a 10 day grace period. Yields are competitive for all CDs, but Vio’s highest APYs are for CDs with terms of three years or less.

Pros

There is a wide variety of terms available.
Some banks have much higher minimum deposit requirements.
CD rates are highly competitive.
Cons

Early withdrawals come with a high penalty.
There are no special types of CDs or promotions available.
Some online banks offer higher CD rates.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Vio Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Vio Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	2.75%	1.41%
10/01/2024	2.75%	1.42%
09/03/2024	2.75%	1.43%
08/06/2024	2.75%	1.44%
07/02/2024	2.75%	1.42%
06/04/2024	2.75%	1.43%
04/02/2024	2.75%	1.42%
03/12/2024	2.75%	1.43%
02/06/2024	2.75%	1.42%
01/02/2024	2.75%	1.43%
12/26/2023	2.75%	1.40%

Term	APY	Min. deposit
6 months	4.30% APY	$500
1 year	4.00% APY	$500
18 months	3.95% APY	$500
2 years	3.75% APY	$500
3 years	3.50% APY	$500
4 years	2.75% APY	$500
5 years	2.75% APY	$500

Read review

Synchrony Bank

4.9 Bankrate CD score

Bankrate CD rating = 4.9/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

0.25% – 4.25%
Min. deposit to open

$0
Term

3 months - 5 years

Why Synchrony Bank?

Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs.

Pros

Synchrony Bank offers many terms of CDs. It offers a competitive yield, and it doesn’t require a minimum opening deposit.
Cons

Partial withdrawals on the no-penalty CD are not allowed.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Synchrony Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Synchrony Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	4.00%	1.41%
10/01/2024	4.00%	1.42%
09/03/2024	4.00%	1.43%
08/02/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
04/02/2024	4.00%	1.42%
03/12/2024	4.00%	1.43%
02/06/2024	4.00%	1.42%
01/02/2024	4.00%	1.43%
12/26/2023	4.00%	1.40%

Term	APY	Min. deposit
3 months	0.25% APY	$0
6 months	3.70% APY	$0
9 months	4.00% APY	$0
1 year	4.00% APY	$0
13 months	4.25% APY	$0
14 months	2.35% APY	$2,000
18 months	3.80% APY	$0
2 years	3.50% APY	$0
3 years	3.75% APY	$0
4 years	3.50% APY	$0
5 years	4.00% APY	$0

Read review

Marcus by Goldman Sachs

4.5 Bankrate CD score

Bankrate CD rating = 4.5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.65% – 4.25%
Min. deposit to open

$500
Term

6 months - 5 years

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs offers a competitive yield on its CDs. It offers a variety of CD terms and CD types. Its regular CD terms range from a six-month CD to a six-year CD. In addition to its nine terms of regular CDs, it also offers three no-penalty CDs and a rate-bump CD. All of these CDs have a $500 minimum deposit requirement.

Pros

Ever since rates have been increasing, Marcus by Goldman Sachs has been one of the banks consistently increasing its yields to be competitive.
Cons

Some banks don’t require a minimum deposit. So if you don’t have at least $500 available to deposit into a Marcus CD, you’ll have to look elsewhere.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Marcus by Goldman Sachs

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Marcus by Goldman Sachs APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/13/2024	3.65%	1.41%
12/03/2024	3.60%	1.41%
11/08/2024	3.60%	1.42%
10/03/2024	3.80%	1.42%
10/01/2024	4.00%	1.42%
09/03/2024	4.00%	1.43%
08/06/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
04/02/2024	4.00%	1.42%
03/08/2024	4.00%	1.43%
02/27/2024	4.00%	1.42%
02/06/2024	4.10%	1.42%
01/02/2024	4.10%	1.43%
12/26/2023	4.10%	1.40%

Term	APY	Min. deposit
6 months	4.10% APY	$500
9 months	4.15% APY	$500
1 year	4.25% APY	$500
18 months	3.90% APY	$500
2 years	3.70% APY	$500
3 years	3.65% APY	$500
4 years	3.65% APY	$500
5 years	3.65% APY	$500

Read review

Barclays Bank

4.8 Bankrate CD score

Bankrate CD rating = 4.8/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.00% – 4.15%
Min. deposit to open

$0
Term

6 months - 5 years

Why Barclays Bank?

Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. Barclays offers seven terms of CDs ranging from six months to five years.

Pros

Barclays offers competitive yields on most of its CD terms. Also, the bank doesn’t require a minimum opening deposit.
Cons

Barclays, like many other online-based banks, isn't a full-service banking institution. It doesn't have a checking account, ATM network or U.S. branch locations.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Barclays Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Barclays Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	3.25%	1.41%
10/01/2024	3.25%	1.42%
09/03/2024	3.25%	1.43%
08/05/2024	3.25%	1.44%
07/02/2024	3.75%	1.42%
06/04/2024	3.75%	1.43%
04/02/2024	3.75%	1.42%
03/12/2024	3.75%	1.43%
02/13/2024	3.75%	1.42%
02/06/2024	4.15%	1.42%
01/02/2024	4.15%	1.43%
12/26/2023	4.15%	1.40%

Term	APY	Min. deposit
6 months	4.00% APY	$0
9 months	4.00% APY	$0
1 year	4.15% APY	$0
18 months	3.25% APY	$0
2 years	3.00% APY	$0
3 years	3.00% APY	$0
4 years	3.00% APY	$0
5 years	3.25% APY	$0

Read review

Sallie Mae Bank

3.9 Bankrate CD score

Bankrate CD rating = 3.9/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.40% – 4.10%
Min. deposit to open

$2,500
Term

6 months - 5 years

Why Sallie Mae Bank?

Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account and private student loans. It offers a competitive yield on its deposit products. Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Pros

Sallie Mae offers a variety of terms. The bank’s yields are competitive and much higher than average.

Cons

Lower minimum deposit requirements can be found at other banks. Specialty CDs, like CDs that allow for rate bumps, aren’t offered.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Sallie Mae Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Sallie Mae Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/24/2024	3.55%	1.41%
12/03/2024	3.75%	1.41%
10/08/2024	3.75%	1.42%
10/01/2024	3.85%	1.42%
09/03/2024	3.85%	1.43%
08/06/2024	4.00%	1.44%
07/02/2024	4.00%	1.42%
06/04/2024	4.00%	1.43%
04/02/2024	4.00%	1.42%
03/12/2024	4.00%	1.43%
02/06/2024	4.00%	1.42%
01/02/2024	4.00%	1.43%
12/26/2023	4.00%	1.40%

Term	APY	Min. deposit
6 months	3.95% APY	$2,500
9 months	4.00% APY	$2,500
1 year	4.10% APY	$2,500
13 months	4.05% APY	$2,500
18 months	3.80% APY	$2,500
2 years	3.75% APY	$2,500
30 months	3.70% APY	$2,500
3 years	3.60% APY	$2,500
5 years	3.75% APY	$2,500

Read review

Capital One

4.5 Bankrate CD score

Bankrate CD rating = 4.5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

3.50% – 4.00%
Min. deposit to open

$0
Term

6 months - 5 years

Why Capital One?

Capital One offers CDs with terms as short as six months or as long as five years. These CDs have no minimum opening deposit and the bank offers competitive yields.

Pros

With no minimum opening deposit, Capital One’s CDs are a good choice for pretty much anyone looking for a fixed yield. Capital One also offers a variety of terms suitable for a CD ladder or other long-term saving strategy.
Cons

Capital One doesn’t offer a no-penalty CD or a rate bump CD.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Capital One

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term	APY	Min. deposit
3 months	4.65% APY	$10,000
6 months	4.61% APY	$10,000
1 year	4.50% APY	$10,000
18 months	4.30% APY	$10,000
2 years	4.25% APY	$10,000
3 years	4.25% APY	$10,000
4 years	4.20% APY	$10,000
5 years	4.25% APY	$10,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Capital One APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/03/2024	3.50%	1.41%
10/01/2024	3.50%	1.42%
09/17/2024	3.50%	1.43%
09/10/2024	3.60%	1.43%
09/03/2024	3.75%	1.43%
08/07/2024	3.75%	1.44%
08/06/2024	3.90%	1.44%
07/02/2024	3.90%	1.42%
06/04/2024	3.90%	1.43%
04/16/2024	3.90%	1.42%
04/02/2024	4.00%	1.42%
03/12/2024	4.00%	1.43%
02/06/2024	4.00%	1.42%
01/23/2024	4.00%	1.43%
01/02/2024	4.10%	1.43%
12/26/2023	4.10%	1.40%

Term	APY	Min. deposit
6 months	3.80% APY	$0
9 months	3.80% APY	$0
1 year	4.00% APY	$0
18 months	3.70% APY	$0
2 years	3.50% APY	$0
30 months	3.50% APY	$0
3 years	3.50% APY	$0
4 years	3.50% APY	$0
5 years	3.50% APY	$0

Read review

Citizens Access

3.7 Bankrate CD score

Bankrate CD rating = 3.7/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.

Annual percentage yield

2.75% – 4.00%
Min. deposit to open

$5,000
Term

1 year - 5 years

Why Citizens Access?

Citizens Access offers six terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one-year to five-years.

Pros

Citizens offers competitive yields on its six terms of CDs.
Cons

Citizens Access requires at least $5,000 to open a CD. The bank also no longer offers a no-penalty CD.

See how rates for this account have changed over time. Select the CD term length from the dropdown and interact with the trend lines to view APY by date.

Citizens Access

APY

APY last updated between 12/19 and 12/25.

National average APY

Term length

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Term APY Min. deposit

1 year 4.25% APY $5,000

2 years 3.75% APY $5,000

3 years 3.10% APY $5,000

4 years 3.00% APY $5,000

5 years 3.00% APY $5,000

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Citizens Access APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/24/2024	2.75%	1.41%
12/03/2024	3.00%	1.41%
10/01/2024	3.00%	1.42%
09/03/2024	3.45%	1.43%
08/06/2024	3.45%	1.44%
07/02/2024	3.45%	1.42%
06/04/2024	3.45%	1.43%
04/02/2024	3.45%	1.42%
03/12/2024	3.45%	1.43%
02/06/2024	3.45%	1.42%
01/02/2024	3.45%	1.43%
12/26/2023	3.45%	1.40%

Term	APY	Min. deposit
1 year	4.25% APY	$5,000
2 years	3.75% APY	$5,000
3 years	3.10% APY	$5,000
4 years	3.00% APY	$5,000
5 years	3.00% APY	$5,000

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on CD rates

Officials cut interest rates by a quarter-percentage point, or 25 basis points, at the Federal Reserve’s rate-setting meeting on Dec. 18, lowering the target range for the Fed’s key benchmark interest rate to 4.25-4.5 percent. This marks the third consecutive Fed meeting during which a rate cut took place, with rates now a full percentage point lower than they were leading up to the September rate-setting meeting.

These three rate cuts have come after the Fed hiked its key benchmark rate 11 times in 2022 and 2023 to combat high inflation. For over a year, the federal funds rate remained at a level not seen since 2001. CD rates decreased gradually throughout 2024, as banks anticipated Fed rate cuts amidst cooling inflation and signs of a weakening job market.

Even when factoring in recent rate decreases, competitive CD rates are still up to three times greater than the national average CD rates. What’s more, high-yielding CD rates continue to outpace the rate of inflation.

When looking for a CD, seek a competitive interest rate, a term length that works for you and FDIC or NCUA insurance coverage. Also familiarize yourself with early withdrawal penalties to avoid potentially losing money.

National average interest rates for CDs

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates as of Dec. 26, according to Bankrate's most recent survey of institutions:

CD term	CD national average APY
1 year	1.76%
2 year	1.51%
3 year	1.43%
4 year	1.46%
5 year	1.43%

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.

What our industry experts are saying

Taylor Kovar

CFP, founder and CEO of 11 Financial

Looking into 2025, if the Fed keeps rates where they are or lowers them even more, CD rates could stay flat or decline slightly. That said, competition between banks could still create opportunities for slightly higher rates. If you’re considering locking in a CD, it might be a good idea to do it sooner rather than later, as rates could soften in the coming months.

Current promotional CD rates

Some banks have promotional CD rates, even some of the largest banks. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Bank name	CD product	APY
NBKC Bank	7-month CD	4.50% APY
Wells Fargo	4-month CD	4.00% APY
U.S. Bank	5-month CD	4.00% APY
Bank of America	7-month CD	3.80% APY
Wells Fargo	7-month CD	3.75% APY
PenFed Credit Union	15-month CD	3.65% APY

*It’s possible for these offers to end sooner.

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of Dec. 23.

Compare top CD rates today by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term.

Institution	APY	Min. deposit
Popular Direct	4.65% APY	$10,000
America First Credit Union	4.55% APY	$500
Quontic Bank	4.50% APY	$500

Institution	APY	Min. deposit
Popular Direct	4.61% APY	$10,000
Limelight Bank	4.55% APY	$1,000
America First Credit Union	4.50% APY	$500

Institution	APY	Min. deposit
TAB Bank	4.52% APY	$1,000
Limelight Bank	4.50% APY	$1,000
Popular Direct	4.50% APY	$10,000

Institution	APY	Min. deposit
Popular Direct	4.25% APY	$10,000
America First Credit Union	4.15% APY	$500
SchoolsFirst Federal Credit Union	4.15% APY	$500

Institution	APY	Min. deposit
SchoolsFirst Federal Credit Union	4.25% APY	$500
America First Credit Union	4.25% APY	$500
Popular Direct	4.25% APY	$10,000

Note: Annual percentage yields (APYs) shown were updated between Dec. 19 and Dec. 25. Bankrate's editorial team validates this information regularly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

How to choose the best CD for you

The top three things to look for when choosing a CD are:

You can find CDs that are outpacing current inflation in this rate environment. A competitive yield helps your balance grow over time through interest earned compounding.
You’ll want to assess when you’ll need this money so that you try and avoid paying an early withdrawal penalty.
You want to know the worst-case scenario if you have to make an early withdrawal.

Learn more: What is a CD?

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.

If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up.

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money, and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty.

A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

Who should get a CD?

A CD is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before the CD matures.

A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening a CD when you know you have a specific timeframe in mind when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance premium that’s due in eight months.

Learn more: How to build a CD ladder

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

Pros

Some CDs earn a higher APY than money market accounts or savings accounts.
CDs are a good place to store funds that you don’t want to be able to dip into too easily.
CDs can help you separate money for financial goals or future expenses.
Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.
A CD can diversify your savings plan with a guaranteed rate.
Your principal remains intact if you keep your money in a CD for the full term.

Cons

CDs tie up your money for a potentially long period of time.
Many CDs have early withdrawal penalties.
Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.
You could potentially earn better rates of return in the stock market or by investing in other securities.

Alternatives to CDs

Traditional savings account

This account typically earns a low yield that’s usually at or below the national average.

High-yield savings account

This account tends to earn a yield currently of about seven times higher than the national average. At online-only banks, these accounts often won’t have monthly service fees or minimum balance requirements.

Money market account

This is an interest-bearing account available at both banks and credit unions which is similar to a savings account but also offers some checking account features.

Short-term bond funds

These funds, be they exchange-traded funds (ETFs) or mutual funds, typically invest in government and corporate bonds. Short-term bond funds typically have durations of one to three and a half years, according to Fidelity.

CD FAQs

Generally, you’ll receive a Form 1099-INT each year if you earn more than $10 interest, if there is withholding or if there is a penalty. This will generally be taxed as ordinary income, according to the IRS.

For instance, a CD customer with a multi-year CD should receive a 1099-INT from their bank after each year interest is earned if at least $10 of interest was earned during a calendar year.
Your CD is safe at either an FDIC-insured bank or an NCUSIF-insured credit union, as long as the amount of money in the account is within the established limits and guidelines. Federally insured deposit accounts are safe whether they’re at online banks, brick-and-mortar banks or credit unions since they’re backed by the full faith and credit of the U.S. government. Just make sure you’re not exceeding the insurance limits.

For federally-insured banks and credit unions, the standard insurance limit is $250,000 per depositor or share owner, per insured bank or credit union, for each account ownership category.
CDs generally have an early withdrawal penalty for taking your money out before the CD matures. No-penalty CDs are the exception, though they may also impose a penalty if the funds are withdrawn during the first six or seven days after the account is opened.
A good CD rate depends on a few factors, but the true answer depends on your personal financial situation. If you need to access your money in a year, for example, your best CD options will be those with a one-year term or less. If you’re able to lock up your money for longer, you may be able to achieve a higher yield with a longer-term CD. In general, longer terms may pay better yields.

Knowing for sure that you won’t need your cash for a specific amount of time also typically allows you to earn a higher rate. The bank is willing to pay you more for the certainty that your money will remain in its hands for the designated length of time.

Compare CD rates to the national average to make sure you’re getting a competitive return. For example, the national average APY for 1-year CDs is 1.76 percent as of December 26, 2024, while some top-yielding banks are currently offering one-year CDs with APYs of up to 4.52 percent.
Online banks tend to offer higher APYs than brick-and-mortar banks. These online-only institutions typically have lower overhead costs and are able to pass the savings along to their customers in the form of higher rates. In addition, unlike your bank located on the corner of Main Street, online banks may need a higher APY to get your attention and earn your business.
You can keep your money in a CD and let it renew over and over. CDs generally automatically renew. However, unclaimed CDs can be escheated — or transferred from an estate to the government — subject to each state’s laws. To avoid your CD being escheated due to being considered abandoned property, be sure to keep in touch with your bank and keep a valid mailing address on file.
Banks give account holders with CDs the opportunity to name a beneficiary, which is a person who will inherit your savings in the event that you die. While naming a beneficiary for your CD may be the last thing on your mind, experts say it’s an important step to take.

If you don’t have a beneficiary designated to receive the funds in your CD, your savings will go through probate, which is the court process for deciding what happens to the property of an individual after their death.
As long as your CD is at an FDIC-insured bank or an NCUA credit union and it’s within insurance limits and guidelines, you won’t lose money with a CD. You may lose some of your interest — and potentially some of your principal — by making an early withdrawal, however.

Research methodology

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.

Banks are sorted based on the highest APYs with a $50,000 balance. Minimum balance requirements and then alphabetical order help break ties between banks and credit unions.
Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays Bank, Bask Bank, Bethpage Federal Credit Union, BMO Alto, BMO Bank, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Comerica Bank, Connexus Credit Union, Credit One Bank, Customers Bank, Delta Community Credit Union, Discover Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, FNBO Direct, Forbright Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, Openbank, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TAB Bank, UFB Direct, US Bank, USAA Bank, Varo Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank

Best CD rates of January 2025 (Up to 5.25%)

Best CD rates from top banks for January 2025

Popular Direct

Annual percentage yield

Min. deposit to open

Term

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's CD accounts

Current Popular Direct CD Rates

America First Credit Union

Annual percentage yield

Min. deposit to open

Term

Why America First Credit Union?

Pros and cons

Rate history for America First Credit Union's CD accounts

Current America First Credit Union CD Rates

Quontic Bank

Annual percentage yield

Min. deposit to open

Term

Why Quontic Bank?

Pros and cons

Rate history for Quontic Bank's CD accounts

Current Quontic Bank CD Rates

Vio Bank

Annual percentage yield

Min. deposit to open

Term

Why Vio Bank?

Pros and cons

Rate history for Vio Bank's CD accounts

Current Vio Bank CD Rates

Synchrony Bank

Annual percentage yield

Min. deposit to open

Term

Why Synchrony Bank?

Pros and cons

Rate history for Synchrony Bank's CD accounts

Current Synchrony Bank CD Rates

Marcus by Goldman Sachs

Annual percentage yield

Min. deposit to open

Term

Why Marcus by Goldman Sachs?

Pros and cons

Rate history for Marcus by Goldman Sachs's CD accounts

Current Marcus by Goldman Sachs CD Rates

Barclays Bank

Annual percentage yield

Min. deposit to open

Term

Why Barclays Bank?

Pros and cons

Rate history for Barclays Bank's CD accounts

Current Barclays Bank CD Rates

Sallie Mae Bank

Annual percentage yield

Min. deposit to open

Term

Why Sallie Mae Bank?

Pros and cons

Rate history for Sallie Mae Bank's CD accounts

Current Sallie Mae Bank CD Rates

Capital One

Annual percentage yield

Min. deposit to open

Term

Why Capital One?

Pros and cons

Rate history for Capital One's CD accounts

Current Capital One CD Rates

Citizens Access

Annual percentage yield

Min. deposit to open

Term

Why Citizens Access?

Pros and cons