These Big Banks Offer High CD APYs
Key takeaways
- While large, established banks often pay low yields on CDs, many also offer a small selection of featured CDs with higher rates.
- Some big banks offer more favorable relationship rates on CDs to customers who also have a checking or savings account with the bank.
- Consumers seeking higher rates on a broader range of terms are more likely to find them from online-only banks and some credit unions.
Savers looking for high yields typically turn to online-only banks, which are known for offering the best rates on savings accounts and certificates of deposit (CDs). However, those who have remained loyal to big brick-and-mortar banks may be happy to learn that many are offering CDs with competitive rates these days — albeit only on select term lengths.
Often referred to as “featured” or “promotional” CDs, these accounts often have short, irregular term lengths between four and seven months. That said, if you’re looking to lock in a fixed rate on a CD with a big bank, we’ve rounded up a list of options below that pay high annual percentage yields (APYs).
Benefits of high-yield CDs at big banks
If you’ve had a checking or savings account with a big bank for a long time, you may prefer sticking with that institution when opening a CD. The benefits of opening a high-yielding CD at a megabank include:
- Consumers who have a long-standing relationship with a large, established bank may find it more convenient to open a CD there instead of venturing out to a new bank.
- Along similar lines, big banks sometimes offer a higher rate on a CD (known as a relationship rate) to customers who also have a checking or savings account with the bank.
- Big banks tend to offer branches, which could make it easier to open a CD for anyone who prefers in-person banking.
High CD rates from big traditional banks
Currently, various big banks are offering one or more featured CDs with APYs significantly higher than their standard CD offerings, and which are at least double the national averages for corresponding (or similar) term lengths.
Bank of America
CD APY: 4.35%
Term length: 7 months
Minimum deposit requirement: $1,000
Additional details: Bank of America offers its Featured CDs in five irregular term lengths ranging from seven months to 37 months. Of these, the highest APY of 4.35 percent is offered on a seven-month term. (APYs may vary based on zip code.) While the bank also offers standard CD terms for any number of months up to 120, these earn rates much lower than some of the Featured CDs.
Read Bankrate’s review of Bank of America
Chase
CD APY: 3.50% relationship rate
Term length: 3 months
Minimum deposit requirement: $1,000
Additional details: Chase Bank offers some higher-yielding CDs that may be worth considering if you also have a Chase checking account and you qualify for the relationship rate. While these CDs earn greater APYs than standard CDs offered from Chase, you’re still likely to find higher APYs from various other banks.
Read Bankrate’s review of Chase
Citibank
CD APY: 4.25%
Term length: 5 months
Minimum deposit requirement: $500
Additional details: Featured CDs from Citibank are offered in terms of five, six and seven months, and all earn yields quite a bit higher than the bank’s standard CDs.
Read Bankrate’s review of Citibank
PNC Bank
CD APY: 4.30%
Term length: 4 months
Minimum deposit requirement: $1,000
Additional details: The four- and seven-month promotional-rate CDs from PNC Bank earn greater APYs than its other CD offerings. One caveat is PNC’s CDs can only be opened at branches, and these aren’t available in every state.
Truist
CD APY: 4.00%
Term length: 5 months
Minimum deposit requirement: $1,000
Additional details: Truist offers a variety of CD terms ranging from as short as seven days to five years, with the five-month and one-year terms earning the highest yields. Better rates can be found elsewhere on the remainder of the CD terms. Keep in mind you’ll need to visit a branch in order to open a CD.
Read Bankrate’s review of Truist
U.S. Bank
CD APY: 4.00%
Term length: 5 months
Minimum deposit requirement: $1,000
Additional details: U.S. Bank currently offers three CD Special options, of which the nine-month term earns the highest APY. Additional term lengths for these are nine months and 13 months. These CDs earn significantly higher APYs than the bank’s standard CDs, which offer rates well below national averages.
Read Bankrate’s review of U.S. Bank
Wells Fargo
CD APY: 4.25%
Term length: 4 months
Minimum deposit requirement: $5,000
Additional details: Wells Fargo offers three Special Fixed Rate CDs that earn APYs significantly higher than its standard CD offerings. In addition to the four-month term, the Special Fixed Rate CD is offered in terms of seven and 11 months. Customers can earn higher relationship APYs on CDs (both special and standard CDs) by also having a qualifying Wells Fargo checking account.
Read Bankrate’s review of Wells Fargo
Note: Rates are effective as of Oct. 25, 2024. Rates and term lengths may vary based on geographic location.
Top CD rates at online-only banks
When compared with large brick-and-mortar banks, online-only banks generally offer higher APYs on deposit accounts. They also may be more likely to offer accounts with low or no minimum deposit requirements. Below are examples of high-yielding CDs from banks that operate entirely online:
- Ally Bank: 4.40% APY on a 6-month CD with no minimum deposit
- Barclays: 4.65% APY on a 6-month CD with no minimum deposit
- Capital One Bank: 4.50% APY on an 11-month CD with no minimum deposit
- CIBC Bank USA: 4.61% APY on a 9-month CD with a $1,000 minimum deposit
- Quontic Bank: 4.95% APY on a 3-month CD with a $500 minimum deposit
- Marcus by Goldman Sachs: 4.20% APY on a 1-year CD with a $500 minimum deposit
- Vio Bank: 4.30% APY on a 6-month CD with a $500 minimum deposit
Note: Rates are effective as of Oct. 25, 2024.
High CD rates at credit unions
For those who prefer the in-person banking experience that many big banks have to offer, various credit unions also operate branches — often with the added benefit of high APYs on deposit accounts.
Credit unions are not-for-profit organizations, so they’re often able to share profits with their members in the form of higher APYs. Examples of competitive CDs offered from credit unions include:
- Alliant Credit Union: 4.45% APY on a 6-month CD with a $1,000 minimum deposit
- America First Credit Union: 4.70% APY on a 3-month CD with a $500 minimum deposit
- Navy Federal Credit Union: 4.30% APY on a 1-year CD with a $1,000 minimum deposit
- Randolph-Brooks Federal Credit Union: 4.05% APY on a 1-year CD with a $1,000 minimum deposit
- SchoolsFirst Credit Union: 4.35% APY on a 5-year CD with a $500 minimum deposit
- Suncoast Credit Union: 4.50% APY on a 1-year CD with a $500 minimum deposit
Note: Rates are effective as of Oct. 25, 2024.
Note that many credit unions typically restrict membership to specific criteria, such as a profession, organization or geographic area.
What else to consider when shopping for a CD
In addition to looking for a high yield, factors to consider when shopping for a CD include:
- Term length: CD terms commonly range from three months to five years (some banks also offer CDs as short as one month or longer than five years). Be sure to go with a term length that’s in line with your financial goals. For instance, an 18-month CD could be a good choice for money you plan to use in a couple of years for a down-payment on a house.
- Minimum deposit requirements: Look for a CD that doesn’t require you to deposit more than you’re comfortable with. It’s important to keep some money in a liquid savings account for emergencies.
- Federal deposit insurance: It’s important to make sure your funds are safe, even if your financial institution ends up closing its doors. CDs opened at banks covered by the Federal Deposit Insurance Corp. (FDIC), and at credit unions covered by the National Credit Union Association (NCUA), are federally insured for up to $250,000 per depositor, per insured financial institution, per ownership category.
Bottom line
Big banks may be worth considering as a source of CDs that earn competitive APYs. This can be convenient for established customers of such a bank who are interested in a CD — particularly if a more favorable relationship rate is available to those who also have a checking or savings account with the bank. However, you’ll often find megabanks only feature one or two CDs that offer high APYs, while the remainder of their CDs earn paltry yields.
If the big bank down the street doesn’t offer a high APY on a CD term you’re interested in, consider finding an online-only bank or credit union with better rates on a wider selection of terms.
