Finding the best CD rates provide 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 insured, have reasonable minimum deposit requirements, and favorable interest compounding schedules.
So don’t settle for average rates offered with other CDs or savings accounts, get high-yield CDs to build you savings. We did the work for you and found the best banks with the highest interest 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 earlier this 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.
9 Best CD Rates in 2023
The following CDs offer the best rates today. All accounts listed are FDIC insured, so your hard-earned money is safe. If you’re looking for a CD that earns you the absolute highest interest rate possible, these are it.
1. Western Alliance Bank – 5.01% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 5.01%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1
This Certificate of Deposit from Western Alliance Bank is the best rate for a 12-month CD, earning a staggering 5.01% 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
Ranked as the nation’s #1 top-performing bank with assets greater than $50 billion (per American Banker), your deposits are insured up to $250,000 per deposit by the FDIC. This is an exclusive rate offered via Western Alliance Bank’s partnership with SaveBetter.com.
2. Ponce Bank – 4.50% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 4.50%
CD Maturity Term = 1 month
Minimum Opening Deposit = $1
This CD is currently the most interesting one. Ponce Bank is offering a one month high-yield CD that’s providing a 4.50% 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 one month makes it a clear winner. It will also renew automatically each month until you close it out.
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. Bask Bank – 4.45% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 4.45%
CD Maturity Term = 6 months
Minimum Opening Deposit = $1,000
Bask Bank savings accounts consistently ranks near the top of our best high-yield savings account and their recently launched CDs are no different.
You can earn a 4.45% APY when you open a Bask Bank 6-month CD with a minimum balance of $1,000. This is the best rate on this site for a CD maturity date of just six months.
This could be a great match for your short-term cash as it allows you faster access to your money should interest rates continue rising.
Disclosures: The annual percentage yield is effective as of Friday, February 3, 2023. APY is a fixed rate and a $1,000 minimum balance is required. Bask Bank will pay this rate and APY through your CD maturity date. Fees could reduce the earnings on your account, and an early withdrawal penalty may be imposed for early withdrawal. Read the full terms here.
4. American First Credit Union – 4.50% APY
Rating: ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)
APY = 4.50%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1
American First Credit Union is offering an exceptional 4.50% APY on their 12-month CD, which is 7.6x the national average.
This FDIC-insured CD requires only a $1 minimum opening deposit. The interest is compounded daily and is credited on the last calendar day of each month in which the CD is active and on the maturity date of the CD.
The term will automatically renew at maturity for an additional 12 months, but you can elect to pay-out and close your CD by logging into your account before the maturity date. CDs that are renewed at maturity can also be cancelled within 7 days of opening without an early withdrawal penalty.
5. Synchrony Bank – 5.00% APY
Rating: ⭐ ⭐ ⭐ ⭐ (4.0/5.0)
APY = 5.00%
CD Maturity Term = 14 months
Minimum Opening Deposit = $1
Synchrony Bank is an FDIC-insured online bank and part of Synchrony – a Fortune 500 company that helps consumers with their financial goals with products that include banking accounts and private-label credit cards.
Right now, they offer a 5.00% APY CD with a maturity term of 14 months. Their early withdrawal penalty is in line with other CDs, but you can withdraw interest paid during your CD’s current term without a penalty.
6. Bread Savings – 5.00% APY
Rating: ⭐ ⭐ ⭐ ⭐ (4.0/5.0)
APY = 5.00%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1,500
Bread Savings (formerly Comenity Direct) provides a CD that gives you an interest rate of 5.00% APY, which is almost 4x the national average.
Like others on this list, Bread Savings is an online-only account with no brick-and-mortar locations. The lower operational expense is the main reason that these banks and fintech companies can offer the best CD rates.
Interest is accrued and compounded daily and is posted at the end of the month. Opening a CD requires a $1,500 minimum opening deposit.
7. CIT Bank – 4.10% APY
Rating: ⭐ ⭐ ⭐ 1/2 (3.5/5.0)
APY = 4.10%
CD Maturity Term = 11 months
Minimum Opening Deposit = $1,000
CIT is a division of First Citizens Bank that currently offers a no-penalty, 11-month CD with a rate of 4.10% 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
Like the Sallie Mae CD, this one has no penalty to access funds if needed before maturity. You can withdraw your money and any interest earned seven days after the funds have been received.
8. PSECU – 4.50% APY
APY = 4.50%
CD Maturity Term = 12 months
Minimum Opening Deposit = $500
PSECU, short for Pennsylvania State Employees Credit Union, started in 1934 with the goal of pooling their money and working together to improve their financial lives.
This credit union offers a 12-month CD with a rate of 4.50% APY. PSECU CDs feature:
- Flexible terms – choose from terms of 3, 6, 9, 12, 18, 24, 36, 48, and 60 months
- No fees – PSECU never charges monthly maintenance fees on CDs
- Competitive rates – dividend rates are guaranteed and locked in for the term of your certificate
Upon renewal, the term will be the same as the original term. You have a 10-day grace period after your CD matures to withdraw your money without penalty if you don’t want to renew.
9. PenFed Credit Union – 4.70% APY
APY = 4.70%
CD Maturity Term = 18 months
Minimum Opening Deposit = $1,000
PenFed is one of my all-time favorite credit unions. I’ve banked with them for years and use their Platinum Rewards Visa Signature® Card because it offers 5% back at gas stations and EV charging stations.
They offer CDs with nine different maturity terms, with the 18-month term being PenFed’s best CD rate at 4.70% APY.
Note that to become a PenFed member, you need to open a Regular Share account (standard savings account) and deposit a minimum of $5 to the account.
Frequently Asked Questions (FAQs)
Ponce Bank currently offers the best short-term one-month CD rate of 4.50% APY.
The best CDs are offered by Western Alliance Bank and Ponce Bank. Their CDs typically offer one of the highest rates available, short maturity terms, and require just $1 for a 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 an incredible 6.89% 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.
Looks like Bask has a 12 month CD at 4.10% APY now.