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The best CD rates for October 2022Best rates for a 1-year termBest rates for a 2-year termBest rates for a 3-year termBest rates for a 4-year termBest rates for a 5-year termBest rates for a no-penalty CDBest rates for no opening depositCD rates at the largest US banksCDs are an ideal option if you'd like to grow your money but don't want to deal with fluctuations of the stock market. Since you're locking in an interest rate, it's smart to look for the highest one. However, if you don't have a lot of money to deposit or are unsure of how long you'd like to keep your money in one place, you might also want to pay attention to minimum deposit requirements and penalties for early withdrawals. Below you'll find our picks for the best CD rates right now. There's no CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now. Learn more about our top picksMarcus by Goldman Sachs High-Yield CD Annual Percentage Yield (APY) 2.50% to 3.50% APY Minimum Deposit Amount $500 Marcus by Goldman Sachs High-Yield CD Annual Percentage Yield (APY) 2.50% to 3.50% APY Minimum Deposit Amount $500 On Marcus by Goldman Sachs's website Marcus by Goldman Sachs High-Yield CD from Marcus by Goldman SachsOn Marcus by Goldman Sachs's website Deposit DetailsAnnual Percentage Yield (APY) 2.50% to 3.50% APY
Minimum Deposit Amount $500 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. Variety of term lengths Check mark iconA check mark. It indicates a confirmation of your intended interaction. $500 initial deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app Check mark iconA check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. No physical branch locations HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: Marcus by Goldman Sachs offers a variety of CDs, including High-Yield CDs and No-Penalty CDs. The bank pays some of the highest rates in the industry, and its mandatory $500 minimum deposit is lower than most competitors' required deposits. Term options: High-Yield CD terms range from 6 months to 6 years, and No-Penalty CDs come with 7-month, 11-month, and 13-month options. Penalties: Marcus charges standard penalties for early withdrawals of your principal balance, as follows:
Keep an eye out for: Minimum opening deposit. You need at least $500 to open a CD with Marcus. Ally High Yield Certificate of Deposit Annual Percentage Yield (APY) 1.00% to 3.50% APY Minimum Deposit Amount $0 Ally High Yield Certificate of Deposit Annual Percentage Yield (APY) 1.00% to 3.50% APY Minimum Deposit Amount $0 Ally High Yield Certificate of Deposit from AllyDeposit DetailsAnnual Percentage Yield (APY) 1.00% to 3.50% APY Minimum Deposit Amount $0 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. No required opening deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. No terms over 5 years Dash iconA dash. It often indicates an interaction to shrink a section. No physical branch locations HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: Ally has more options for CDs than any other online bank, including an 11-month, no-penalty CD with various interest rates for different balance tiers and a variable-rate CD. Term options: Ally offers a total of 11 different CD term lengths ranging from 3 months to 5 years. Penalties: Ally charges standard penalties for early withdrawals of your principal balance, as follows:
Keep an eye out for: Ally offers three types of CDs: High Yield CDs, Raise Your Rate CDs, and No Penalty CDs. Unlike regular High Yield CDs, Raise Your Rate accounts offer 2-year and 4-year terms. APRs on these accounts start lower than High Yield CDs rates, but you can increase your APR once over 2 years or twice over 4 years. No Penalty CDs do not penalize you for early withdrawal, but the only term available is 11 months. Annual Percentage Yield (APY) 1.75% APY to 3.81% APY Minimum Deposit Amount $0 Annual Percentage Yield (APY) 1.75% APY to 3.81% APY Minimum Deposit Amount $0 Synchrony CD from SynchronyDeposit DetailsAnnual Percentage Yield (APY) 1.75% APY to 3.81% APY Minimum Deposit Amount $0 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. Variety of term lengths Check mark iconA check mark. It indicates a confirmation of your intended interaction. No minimum deposit Dash iconA dash. It often indicates an interaction to shrink a section. No terms over 5 years Dash iconA dash. It often indicates an interaction to shrink a section. Standard-to-high early withdrawal penalties HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: Synchrony pays high rates. It also offers a variety of term length options, including 13-month, 14-month, and 15-month CDs. Term options: Terms range from 3 months to 5 years. Penalties: Synchrony's early withdrawal penalty rules are pretty standard, as follows:
Keep an eye out for: Although Synchrony has a variety of term lengths overall, you can find ones longer than 5 years elsewhere. CIT Bank No-Penalty Certificate of Deposit (CD) Annual Percentage Yield (APY) 3.05% APY Minimum Deposit Amount $1,000 CIT Bank No-Penalty Certificate of Deposit (CD) Annual Percentage Yield (APY) 3.05% APY Minimum Deposit Amount $1,000 CIT Bank No-Penalty Certificate of Deposit (CD) from CIT BankDeposit DetailsAnnual Percentage Yield (APY) 3.05% APY Minimum Deposit Amount $1,000 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. Interest is compounded daily Dash iconA dash. It often indicates an interaction to shrink a section. $1,000 minimum deposit Dash iconA dash. It often indicates an interaction to shrink a section. Only term option is 11 months HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: CIT Bank pays a competitive rate on its no-penalty CD. Term options: 11 months What to look out for: The main downside is that the CIT Bank No-Penalty CD just isn't as competitive as some of our other top picks. You can find a slightly better rate and lower minimum deposits elsewhere. But if you already bank with CIT Bank, it could be worthwhile to use the bank for a no-penalty CD, too. America First Credit Union Flexible Certificate Annual Percentage Yield (APY) 2.45% APY Minimum Deposit Amount $500 America First Credit Union Flexible Certificate Annual Percentage Yield (APY) 2.45% APY Minimum Deposit Amount $500 On America First Credit Union's website America First Credit Union Flexible Certificate from America First Credit UnionOn America First Credit Union's website Deposit DetailsAnnual Percentage Yield (APY) 2.45% APY Minimum Deposit Amount $500 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. $500 minimum deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. If you make an early withdrawal, you don't have to take out all your money at once Check mark iconA check mark. It indicates a confirmation of your intended interaction. Deposit up to $10,000 per month Dash iconA dash. It often indicates an interaction to shrink a section. Compounds interest monthly, not daily Dash iconA dash. It often indicates an interaction to shrink a section. You can only withdraw money once per quarter Dash iconA dash. It often indicates an interaction to shrink a section. Only term length is 12 months HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Why it stands out: America First Credit Union gives you more flexibility with deposits and withdrawals than most banks. Unlike other institutions, America First lets you continue depositing money into your CD after you've opened it, up to $10,000 per month. Many banks make you take out all your funds if you need to make an early withdrawal, but America First lets you make partial withdrawals. Term options: 12 months What to look out for: Like most credit unions, America First compounds your interest monthly rather than daily, which will limit how much you earn over time. Capital One 360 Certificate of Deposit® Annual Percentage Yield (APY) 2.00% to 3.50% APY Minimum Deposit Amount $0 Capital One 360 Certificate of Deposit® Annual Percentage Yield (APY) 2.00% to 3.50% APY Minimum Deposit Amount $0 Capital One 360 Certificate of Deposit® from Capital OneDeposit DetailsAnnual Percentage Yield (APY) 2.00% to 3.50% APY Minimum Deposit Amount $0 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. Competitive APY Check mark iconA check mark. It indicates a confirmation of your intended interaction. No minimum deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. No jumbo or no-penalty CDs HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: Capital One offers competitive rates, and unlike most banks, you don't need any money for an initial deposit. Term options: Capital One offers CD term lengths ranging from 6 months to 5 years. Penalties: The penalties for early withdrawals are as follows:
Keep an eye out for: Capital One is a good choice for people who don't want to place an initial deposit, but you can find slightly higher rates elsewhere. American Express® Certificate of Deposit Annual Percentage Yield (APY) 0.10% to 3.10% APY as of 10/6/22 Minimum Deposit Amount $0 American Express® Certificate of Deposit Annual Percentage Yield (APY) 0.10% to 3.10% APY as of 10/6/22 Minimum Deposit Amount $0 On American Express National Bank (Member FDIC)'s website American Express® Certificate of Deposit from American Express National Bank (Member FDIC)On American Express National Bank (Member FDIC)'s website Deposit DetailsAnnual Percentage Yield (APY) 0.10% to 3.10% APY as of 10/6/22 (for 6 - 60 month terms) Show more Minimum Deposit Amount $0 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. No opening deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. 24/7 phone support Dash iconA dash. It often indicates an interaction to shrink a section. Doesn't offer no-penalty CDs Dash iconA dash. It often indicates an interaction to shrink a section. High early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. No mobile app for banking customers Dash iconA dash. It often indicates an interaction to shrink a section. No live online chat HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: American Express doesn't have a minimum opening deposit requirement. Most banks and credit unions require at least $1,000 for an initial deposit on a CD. Term options: American Express has CD terms ranging from 6 months to 5 years. Penalties: The early withdrawal penalties are as follows:
Keep an eye out for: American Express' fees for withdrawing funds before the CD maturity date are higher than most. If you're worried about early withdrawal penalties, you may want to consider one of the other options from our list. Barclays Online Certificate of Deposit Annual Percentage Yield (APY) 0.10% to 3.65% APY Minimum Deposit Amount $0 Barclays Online Certificate of Deposit Annual Percentage Yield (APY) 0.10% to 3.65% APY Minimum Deposit Amount $0 Barclays Online Certificate of Deposit from BarclaysDeposit DetailsAnnual Percentage Yield (APY) 0.10% to 3.65% APY Minimum Deposit Amount $0 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. No minimum deposit Check mark iconA check mark. It indicates a confirmation of your intended interaction. High interest rate Check mark iconA check mark. It indicates a confirmation of your intended interaction. Low-to-standard early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. Low mobile app ratings in the Apple store HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Additional ReadingChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Why it stands out: Barclays is one of the few banks that doesn't have a required minimum deposit for CDs. Its early withdrawal penalties are also lower than what you'll pay with many institutions. Term options: Term lengths range from 3 months to 5 years. Penalties: Barclays has standard early withdrawal penalty terms, as follows:
Keep an eye out for: The Barclays app has good ratings in the Google Play store, but not in the Apple store. Annual Percentage Yield (APY) 0.50% to 4.20% APY Minimum Deposit Amount $1,000 Annual Percentage Yield (APY) 0.50% to 4.20% APY Minimum Deposit Amount $1,000 On Crescent Bank's website Crescent Bank CD from Crescent BankOn Crescent Bank's website Deposit DetailsAnnual Percentage Yield (APY) 0.50% to 4.20% APY Minimum Deposit Amount $1,000 Pros & ConsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.Check mark iconA check mark. It indicates a confirmation of your intended interaction. High interest rate Check mark iconA check mark. It indicates a confirmation of your intended interaction. Standard CD terms Check mark iconA check mark. It indicates a confirmation of your intended interaction. Standard early withdrawal penalties Dash iconA dash. It often indicates an interaction to shrink a section. $1,000 minimum opening deposit HighlightsChevron iconIt indicates an expandable section or menu, or sometimes previous / next navigation options.
Why it stands out: Crescent Bank offers a competitive interest rate on a variety of terms. Term options: Term lengths range from 3 months to 5 years. Penalties: Crescent Bank has early withdrawal penalty terms, as follows:
Keep an eye out for: Crescent Bank has a $1,000 minimum opening deposit. Some of our other top picks let you open an a CD with less money upfront. Other CDs that didn't make the cut and whyWe looked at the following CDs as well. These CDs ultimately weren't chosen among our top picks because they may have lower rates than our winners, higher minimum opening deposits, or more substantial early withdrawal penalties. You might find some of these options appealing though, depending on your preferences.
Why trust our recommendations?Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to. How did we choose the best CDs?We reviewed CD offerings from around a dozen national banks. All banks included on our list are insured by the FDIC and do not impose monthly maintenance fees on CDs. In the event two banks offered the same APY on a CD product, we considered minimum deposit requirements and penalties for early withdrawals. For this list, we did not consider credit unions — though they tend to offer high interest rates on savings accounts and CDs, many limit membership to people who work in a specific industry or live in a designated area. Frequently asked questionsWhat is a CD?A CD is basically a time-sensitive savings account that holds your money at a fixed interest rate for a specified period of time. You can open one at almost any bank or credit union. If you don't need immediate access to your savings, a CD can guarantee a return on your money since you lock in a fixed annual percentage yield (APY) for the term of the CD. During that period, you typically won't be able to add additional money or access your original balance without paying a penalty. You will, however, earn interest on the amount and have the option to collect those payments monthly or reinvest them into your CD. Most banks offer varying rates for different terms and deposit amounts — typically, the longer the term, the higher the rate. At the CD's maturity date, you'll typically have a 10 to 14-day grace period in which you can withdraw your money and close the account or renew the term. Are CDs safe?CDs are safer than investing your money in the stock market but may be less liquid than a savings account. CDs are a good place to store and grow money that you will need at a predetermined future date. While your money doesn't have the potential to earn as much as it would in the stock market, there is no risk. Like savings accounts, CDs are insured by the FDIC for up to $250,000. Are CDs a good investment?Timing matters. CDs can be a good investment if interest rates are currently high and/or expected to fall. The biggest benefit of a CD is your ability to lock in a fixed interest rate. If interest rates fall during the term of your CD, the APY on your CD will not be affected. Conversely, if rates are expected to rise, then it may not be a good time to put money in a CD. Can you lose money in CDs?You cannot lose money in a CD if you leave it untouched for the full term length. It is like a locked savings account and the only way you can lose money is if you make an early withdrawal for which you are penalized. Are CD rates going up?Interest rates on CDs follow the federal funds rate, which is determined by the Federal Reserve. Thus far, the Federal Reserve has raised interest rates several times. Experts' advice on choosing the best CDTo learn more about what makes a good CD and how to choose the best fit, four experts weighed in:
Here's what they had to say about CDs. (Some text may be lightly edited for clarity.) What makes a CD good or not good?Mykail James, CFEI: "You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it's monthly or quarterly." How should someone choose a CD term length?Roger: Ma, CFP "I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective." Mykail James, CFEI: "I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money." How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?Tania Brown, CFP: "So I guess we'll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account." Laura Grace Tarpley, Personal Finance Insider: "I would use a high-yield savings account or money market account for short-term goals or an emergency fund. You'll probably want to choose whichever has a higher rate, but money market accounts can be good for emergency savings because they often come with a debit card or paper checks, making it easy to access money quickly. Then use CDs for longer-term goals, like buying a home in a few years."
Laura Grace Tarpley, CEPF Personal Finance Reviews Editor Laura Grace Tarpley (she/her) is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, wealth building, and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF). She has written about personal finance for over six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at . Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services » Read more Read less Top Offers From Our PartnersWhich credit union has the highest CD rate?Best Credit Union CDs for October 2022. Best 3-Month CD: Parsons Federal Credit Union.. Best 6-Month CD: NASA Federal Credit Union.. Best 1-Year CD: Parsons Federal Credit Union.. Best 18-Month CD: Mountain America Credit Union.. Best 2-Year CD: USAlliance Financial.. Who has the highest 12 month CD rate?Best 1-year CD rates for October 2022. Connexus Credit Union: 3.51% APY, $5,000 minimum to open.. Bread Savings: 3.60% APY, $1,500 minimum to open.. Bank5 Connect: 3.10% APY, $500 minimum to open.. Popular Direct: 3.70% APY, $10,000 minimum to open.. Live Oak Bank: 3.50% APY, $2,500 minimum to open.. Who pays the highest interest rate on CDs?These banks offer no-penalty CDs:. CIT Bank: 11 months; 3.05% APY, $1,000 minimum deposit.. Synchrony Bank: 11 months: 2.40% APY, $0 minimum deposit.. Marcus by Goldman Sachs: 7-13 months; 0.35%-2.40% APY, $500 minimum deposit (13-month CD is 2.40% APY). Ally Bank: 11 months; 2.20% APY, $0 deposit to earn top APY.. What are the 5 best yearly CDs available now?Best 5-year CD rates for October 2022. Bread Savings: 4.25% APY.. Popular Direct: 3.90% APY.. Capital One: 3.50% APY.. Synchrony Bank: 3.81% APY.. Barclays: 3.65% APY.. Marcus by Goldman Sachs: 3.50% APY.. TAB Bank: 2.84% APY.. Alliant Credit Union: 3.65% APY.. |