Finding a high CD rate provides a great way to grow your savings quickly and safely. You can expedite your savings with rates significantly higher than the national average from the list of banks and credit unions below.
All the CDs mentioned are FDIC or NCUA insured, have reasonable minimum deposit requirements, and favorable interest compounding schedules.
So don’t settle for average interest rates, open a high-yield CD to supercharge your savings. We did the work for you and found financial institutions with the most competitive rates available.
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CD vs. Savings Accounts: Which should I choose?
CDs generally offer higher rates, but savings accounts give you more flexibility when it comes to withdrawing your money.
If you need money in the near future, I recommend looking at high-yield savings accounts. They offer a far higher rate than the average savings account, give you the ability to withdraw cash at any time, and the yield can be adjusted higher – like they have been since the Federal Reserve began raising interest rates last year.
Certificates of Deposit (CDs) on the other hand offer a fixed interest rate for a certain period of time, whether it’s six months or three years. It’s a good option for those that don’t need their money for some time and want to lock in a higher APY. If you do decide to withdraw prior to the CD maturity date, expect to pay an early withdrawal penalty. This penalty varies by bank and the CD term.
Highest Short-Term CD Rates
1. Alliant Credit Union – Up to 3.90% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 3.75% to 3.90%
CD Maturity Term = 6 to 12 months
Minimum Opening Deposit = $1,000
Enjoy a 3.75% APY when you open a 12-month CD from Alliant Credit Union with a minimum deposit of just $1,000. Qualify for a higher rate of 3.80% APY with their 12-month jumbo certificate when you deposit $75,000 or more.
Alternatively, you can choose to open a short-term 6-month CD and earn a rate of 3.90% APY instead.
Alliant Credit Union is one of the largest not-for-profit financial cooperatives in the nation. A financial cooperative means that the institution is owned and operated by its members. Their members-first philosophy allows Alliant to provide compelling bank products for their 800,000+ members.
2. Ponce Bank – 3.90% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 3.90%
CD Maturity Term = 3 month
Minimum Opening Deposit = $1
2025 Promotion: Get up to $1,000 when you open an account using code GIFT and make qualifying deposits within 14 days of first funding. Earn $60 for depositing a total of $10,000; earn $150 for depositing a total of $25,000; earn $300 for depositing a total of $50,000; earn $600 for depositing $100,000; and earn $1,600 for depositing a total of $250,000.
This CD is currently the most interesting one. Ponce Bank is offering a three-month high-yield CD that’s providing a 3.90% APY.
While this isn’t the highest rate on this list, it’s a very competitive one and the fact that you only have to hold it for three months makes it a clear winner for those who need a short-term solution for their savings.
It will also renew automatically each month until you close it out, allowing you to earn a high rate if you decide to save your money a little bit longer.
Headquartered in New York, Ponce Bank opened in 1960 with the goal of helping the underserved and underbanked community. This bank is a member of the FDIC. Deposits are insured up the limits of the federal law, which is $250,000 per deposit for each deposit account ownership category.
3. Western Alliance Bank – 3.50% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 3.50%
CD Maturity Term = 6 months
Minimum Opening Deposit = $1
2025 Promotion: Get up to $1,000 when you open an account using code EASY and make qualifying deposits within 14 days of first funding. Earn $75 for depositing a total of $10,000; earn $250 for depositing a total of $25,000; earn $500 for depositing a total of $50,000; and earn $1,000 for depositing a total of $100,000.
The 6-month CD offered by Western Alliance Bank is the best rate for this maturity term, earning a staggering 3.50% APY. Features of this account includes:
- low $1 minimum deposit
- automatic renewal at maturity unless you elect to pay-out
- compounded daily and credited on the last calendar day of each month
If you’re looking for a savings option with a competitive APY that won’t tie up your money for a long time, Western Alliance Bank’s six-month CD may be the right option for you. This is an exclusive rate offered via their partnership with Raisin.
4. Discover Bank – Up to 3.90% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 3.60% to 3.90% APY
CD Maturity Term = Varies
Minimum Opening Deposit = None
Earn up to a 3.90% APY with a Certificate of Deposit (CD) from Discover® Bank. The interest rate offered is based on the CD term:
| CD Term | APY Rate |
| 6-Month Term | 3.75% APY |
| 12-Month Term | 3.90% APY |
| 2-Year Term | 3.60% APY |
Interest earned is calculated using simple interest, not compound interest. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
Requirements:
- Open a new Discover® Certificate of Deposit using the link below.
- Select CD term and deposit funds.
- Earn interest based on your CD term.
5. CIT Bank – 3.25% APY
Rating: ⭐ ⭐ ⭐ ⭐ 1/2 (4.5/5.0)
APY = 3.25%
CD Maturity Term = 13 months
Minimum Opening Deposit = $1,000
CIT is a division of First Citizens Bank that currently offers a 13-month CD with a rate of 3.25% APY.
Benefits of the CIT Bank CD include:
- No account opening or maintenance fees
- Daily compounding interest to maximize earning potential
- FDIC insurance up to $250,000
The CD offers daily compounding interest to maximize your earning potential and there are no account opening or maintenance fees.
Frequently Asked Questions (FAQs)
Alliant Credit Union currently offers the best short-term 12-month CD rate of 3.90% APY.
The best CDs are offered by Alliant Credit Union and CIT Bank. Their CDs typically offer one of the higher rates available, with short maturity terms, and require a low minimum opening deposit.
Jumbo CDs are certificate of deposits that require $100,000 to open. I don’t list them on here because interestingly enough, at this time, they don’t offer a higher rate than standard CDs.
While CDs provide a high fixed rate, it requires you to hold it for a specific period of time. Unlike a high-yield savings account, your funds typically can’t be withdrawn during the CD term without paying a penalty.
Consider how long you’re able and willing to hold a CD before committing to a maturity term. Longer maturity dates offer a higher rate, but gives you less flexibility.
The Bottom Line
At this time, I don’t recommend locking in a CD with a maturity term longer than 12 months. The Federal Reserve has been raising interest rates to prevent the economy from overheating and combat inflation, which has had a positive effect on CD rates.
Although there are CDs available that offer higher rates than the one mentioned on this list, their maturity terms are 15+ months. Before making a decision, please consider the quickly changing economic environment and how rates are affected by it.
Given the current situation, my strategy is to purchase short-term CDs and reinvest in new ones with higher rates after they mature.
Before considering CDs, take a look at this list of the best savings accounts. With no withdrawal penalties or limits, you may find an account with a rate comparable to what you would earn with CDs.
I’d be remiss not to mention that I Bonds are paying a competitive 4.03% APY. I Bonds are savings bonds issued by the U.S. Department of the Treasury and fully backed by the full faith and credit of the U.S. government.
Today (1/22/25) I got a mail promotion from Bethpage Federal Credit Union offering 4.5% for a 7 month CD with as little as $50. The only catch is you must open and maintain a $5 Savings Account.
Thanks! I always love getting your updates you find through various sources 🙂
flagstar has a 7month CD rate of 5.5%, is that better when compared with a 12month 5.45% rate? rates are dropping a bit….
Thanks Michelle for letting us know about Flagstar. And I agree, we’ve definitely noticed banks lowering rates a bit in anticipation of rate cuts later this year.
Have you given any thought to discussing short-term treasuries? 3, 6 & 12 month rates are all above 5.4% today (18Sep23), all available in low-expense ETFs like BIL, TBIL, XBIL, OBIL etc. Considering the safety and flexibility they seem like good alternatives to CDs?
Thanks,
CC
Excellent point. I’ve been buying (laddering) short-term treasury bills using Fidelity. It’s especially great because they’re exempt from state and local income taxes. I’ll have an article queued for this. Thanks for your suggestion, Chris!
And why is there no information on the 12-month CD from Merchants Bank of Indiana, where one gets 5.65% interest??? Sincerely, A.
It’s a good rate, but it’s not a guaranteed fixed rate CD. The rate changes based on Prime Rate index.
Marcus
5.05% APY
10 months
$500 minimum
marcus.com/us/en/savings/high-yield-cds/10-mcd-promo
Looks like Bask has a 12 month CD at 4.10% APY now.