Best CD rates of January 2023

We evaluated more than 140 certificates of deposit (CDs) offered by more than 80 financial institutions, both big and small and in between, to determine the best savings options for you. Our picks don’t just have some of the highest rates available, but also offer good customer service, easy-to-navigate sites and a relatively low minimum balance requirement. 

With interest rates at their highest point since the Great Recession, CDs have become a useful place to grow your rainy day fund. Here are the options you should consider.

Compliance text for methodological hover: These ratings are primarily based on CD interest rates, as well as other factors germane to savers. Our choices were solely based on editorial judgment.

Why it’s the best

Sallie Mae has among the highest interest rates and customer satisfaction scores we found. Its current top rate is a robust 4.40% APY on a 12-month CD term, which is part of 11 CD term options that are five years and shorter. With no account fees, savers can plunge a pile of cash into this CD term to help them meet their goals. The $2,500 minimum deposit isn’t ideal, but not particularly onerous. 

Pros 

• Zero monthly fees.

• Great rates across terms.

• High customer satisfaction.

Cons

• $2,500 minimum deposit.

• No physical branches.

• No checking accounts and limited banking tools.

More details

• 3.50% to 4.55% APY.

• Minimum deposit of $2,500.

• Terms of 6 to 60 months.

• 4.8 Star Rating.

Why it’s the best

My eBanc has an impressive top APY of 4.71% on 12 and 18-month CDs, with daily compounded interest and no maintenance fees. The APY on its other CD term options (six, 24 and 36 months) are competitive as well, if that fits your savings horizon. The minimum opening deposit is rather high at $5,000, but transferring the funds can be convenient as My eBanc allows you to easily tie your CDs to the free checking and savings accounts it offers. The lack of CD terms shorter than six months means only those who won’t need their money soon should sign up.

Pros 

• High maximum rate of 4.71% APY.

• No monthly fees.

• Easily ties into other My eBanc accounts.

Cons

• Large opening deposit requirement of $5,000.

• Only 5 term options.

• Highest rates don’t apply to the longest terms.

More details

• 4.08 to 4.71% APY.

• Minimum deposit of $5,000.

• Terms of 6 to 36 months.

• 4.7 Star Rating.

Why it’s the best

Bread Savings is a great option for individuals looking to earn more than a few crumbs with their cash. It has a solid 4.50% APY on all five of its one-to-five-year CDs, which have a decently low minimum deposit of $1,500 and high maximum balance limits—$1 million per account and $10 million limit per customer. Interest is compounded daily and credited monthly, and there are no maintenance fees. Those looking for a broader array of CD options, or even a short-term term, should consider another option.

Pros 

• Interest is credited monthly.

• No monthly fees.

• Low, $1,500 minimum deposit.

Cons

• Fewer available terms than competitors.

• Must transfer money to another bank account.

• Fees for statement and check requests, as well as wire transfers.

More details

• 4.5% to 4.75% APY.

• $1,500 deposit.

• Terms of one to five years.

• 4.6 Star Rating.

Why it’s the best

First National Bank of America should be strongly considered by those interested in a long-term CD. Its 72-month and 84-month CDs offer higher yields than most competitors and there are no monthly fees to cut into your interest, which is compounded quarterly and added to the CD. Shorter term CDs ranging from 12 to 60 months are available as well.  

Pros 

• High rates offered on a range of CD terms. 

• Easily connects to existing First National Bank of America checking account.

• 10-day grace period after opening to add funds.

Cons

• No CD terms shorter than a year.

• Branch locations are all in Michigan.

• Does not offer monthly statements.

More details

• 4.28% to 4.43% APY.

• Minimum deposit of $1,000.

• Terms of 12 to 84 months.

• 4.6 Star Rating.

Why it’s the best

Members have access to a wide variety of high-yielding CDs with accessible minimum deposits. Short-term savers reap a 3% APY on a three-month CD, while a five-year term pays 4.50%.  The minimum deposit is typically $500, which is attainable for most folks interested in CDs, and even as low as $50 for certain CDs. Membership requirements for MSUFCU are not onerous; for instance, you can become one by donating $10 to the Desk Drawer Fund.

Pros 

• Tons of CD term options, from 3 months to 7 years.

• Low minimum requirements.

• High yields.

Cons

• Rates decrease after 18-month terms.

• It does take time to become a member.

• Early withdrawal penalties apply.

More details

• 3.00% to 4.50% APY. 

• Generally $500.

• Up to 7-year CDs.

• 4.6 Star Rating.

Why it’s the best

Synchrony Bank offers CDs that have no minimum balance requirements and come in a variety of options, including terms between three and 60 months. The yields on these terms are among the highest in the market, including a robust 4.60% on a 14-month CD. For those nervous about early withdrawal penalties, there’s an 11-month no-penalty option, which pays out 3.50%, though the other CDs charge penalties to access your money early.

Pros 

• No minimum balance.

• Wide range of terms.

• High interest rates. 

Cons

• Early withdrawal penalties.

• Relatively low APY on shortest CD terms.

• Limited terms for no-penalty and bump-up CDs.

More details

• 2.25% to 4.60% APY.

• No minimum balance or deposit requirement.

• Terms of three to 60 months.

• 4.6 Star Rating.

Why it’s the best

PenFed offers nine money market certificates with term options ranging from six months to seven years. Its highest APY of 4.35% applies to terms of 18 and 24 months. The minimum requirement is a relatively affordable $1,000 and the credit union as a whole scores well on customer service. It’s easy to join—create a savings account and deposit $5. Still, some of PenFed’s terms, while competitive, aren’t top of market, and short-term savers will only find one term shorter than a year. 

Pros 

• Nine term options.

• Low, $1,000 minimum deposit requirement.

• Strong online customer reviews. 

Cons

• Early withdrawal penalties.

• Higher APYs can be found with other institutions.

• Not many short-term term options.

More details

• 2.00% to 4.35% APY.

• Minimum deposit of $1,000.

• Six-month to seven-year terms.

• 4.6 Star Rating.

Why it’s the best

Whether you’re opening CDs from your desktop or your phone, Discover offers a user-friendly experience and 24/7 customer support, which is why the financial institution has scored highly on app store ratings and customer satisfaction surveys. Its CD options aren’t bad, either. Discover features 12 CD terms, from three months to 10 years, and its current highest APY of 4.40%, applies to its long-term CDs—five-, seven- and 10-year options—though savers can earn a robust 4.15% on a 12-month term, as well.

Pros 

• No maintenance fees.

• High yields across term lengths.

• Strong online customer reviews.

Cons

• A $2,500 minimum deposit.

• No brick-and-mortar branches.

• Early withdrawal penalties.

More details

• 1.50% to 4.40% APY.

• $2,500 minimum deposit requirement.

• Three-month to 10-year terms.

• 4.5 Star Rating.

Why it’s the best

Marcus’ highest APY of 4.40% applies to its 18-month CD but all Marcus CDs come with a 10-day rate guarantee—if rates go up within 10 days of you opening the CD, you get the higher rate automatically. You can choose between nine CD terms, ranging from six months to six years, and you can withdraw any earned interest penalty free. All CDs have a low minimum balance requirement of $500 and you have up to 30 days to fully fund it. 

Pros

• Low, $500 minimum balance.

• 24/7 customer service.

• 10-day rate guarantee; 30-day funding window.

Cons

• More limited terms than some competitors.

• No partial withdrawals are permitted.

• No physical branches.

More details

• 3.7% to 4.40% APY.

• $500 minimum deposit.

• Six-month to six-year terms.

• 4.4 Star Rating.

Why it’s the best

Capital One 360 CDs stand out among the best CDs as they’re great for customization. Not only is there no minimum required balance—you can choose how much money you want to use to open any length of CD account—but you also get to choose whether your interest is paid monthly, annually, or at the end of term. Capital One 360 CD terms range from six to 60 months. Short-term savers reap a frothy 3.30% APY on six and nine-month terms, while those with a longer perspective earn at least 4.25% on any term greater than 18 months. Still, those in the market for a no-penalty option or a CD with a longer term than five years, should look elsewhere.

Pros 

• No minimum balance requirement.

• Choose when you are paid interest.

• Strong rates for each term.

Cons

• No terms greater than five years.

• No penalty-free CD.

• Cannot add additional funds to CDs.

More details

• 3.30% to 4.40% APY.

• No minimum requirements to open.

• Six-months to five-year terms.

• 4.4 Star Rating.

Why it’s the best

HSBC CD offerings are limited, but rewarding. There are just three terms (six, 12 and 24 months), but each pays a higher yield than average. That’s especially true for the six-month CD; its 3.50% APY is about two points higher than the typical six-month term in our data. You need just $1,000 to start saving and the CDs come with daily compounding interest. Those interested, though, should become a Premier checking account holder to avoid costly maintenance fees. 

Pros 

• Interest compounds daily.

• Customers are covered by HSBC’s $0 Liability Online Guarantee.

• $1,000 minimum balance to open. 

Cons

• Severely limited term options.

• A $50 monthly fee for non-Premier customers.

• Higher APY yields can be found with competitors.

More details

• 3.5% to 4.3% APY.

• Minimum deposit of $1,000.

• Six-month to two-year terms.

• 4.4 Star Rating.

Why it’s the best

Barclays offerings allow users to lock in high interest rates for CD terms in the range of 12 months to five years. There are six such CDs, all of which offer an APY between 4.25% and 4.35%. Combined with no minimum balance requirement and a 14-day grace period, which is four days longer than most, you’ll have more time to see what the market is doing and to decide whether to reinvest your funds into a new CD or to cash out. Those looking for extremely short or long-term CDs will need to consider other options. 

Pros 

• No minimum balance requirement.

• A 14-day grace period upon maturity.

• High rates on six different terms.

Cons

• Maximum term length of five years.

• No short-term offerings.

• No brick and mortar locations.

More details

• 4.25% to 4.35%.

• CDs can be opened with any amount.

• Terms of one to five years.

• 4.4 Star Rating.

For easy comparison, here are all the best CDs all in one place.

Here are the national deposit rates as of Jan. 17, 2022, according to the Federal Deposit Insurance Corporation (FDIC).

Long-suffering savers got something of a break in 2022: higher CD yields.

After more than a decade of low interest rates following the Great Recession, the Federal Reserve dramatically raised rates by 4.25 percentage points in an effort to snuff out decades-high inflation. 

This resulted in the interest rates on one-year CDs, for instance, to jump by almost one percentage point to 1.07% by the end of 2022. 

While prices are returning to more normal inflation levels in recent months, it appears that Federal Reserve Chair Jerome Powell will still push the central bank to increase rates, albeit at something of a slower pace.

“Powell continues to stress that the Fed is committed to getting inflation down and the market expects roughly another 60 bps of hikes in the first part of the year, followed by cuts towards the end of the year,” said Nancy Davis, founder of Quadratic Capital Management.

CD rates rise and fall with the federal funds rate, which is set by the Federal Reserve. The Fed makes rate changes in an effort to grow or suppress the economy, depending on what’s going on with inflation. Increasing the federal funds rate makes borrowing more expensive, and thereby limiting economic activity. 

Because money is more expensive, you can get a higher interest rate on your deposits. The money you’re effectively lending to financial institutions commands a better APY. Exactly when CD rates will plateau and how high the rates will reach before they drop, is unknown.

But expect CD rates to continue to look good, especially compared to where they were just a few years ago.

A CD ladder allows you to earn higher rates offered by longer terms without locking up your cash forever. 

For example, assume you have $9,000 to invest and you make a ladder of three CDs. You put $3,000 each into one, two and three-year CDs. When the one-year CD matures, you convert it to the higher-rate, 36-month CD, then do the same with the 24-month CD. This way you end up with three 36-month CDs with high APYs, with one maturing each year. 

Here are the steps to build a CD ladder of your own:

1. Divide the amount of money you want to invest by however many CD terms you want. 

2. Research the best CDs to find the best providers and the best rates for different lengths.

3. Open and set up the CD accounts you want.

4. As the CDs mature, reinvest the cash into longer term CDs. 

The second step, however, is crucial. Just because the Fed has raised interest rates doesn’t mean that you’ll get the same, or even similar rates, from different financial institutions on the same CD term.

“Even though rates are rising, not all banks will raise your savings interest rate accordingly,” said Tony Molina, a CPA at Wealthfront. “Make sure you move your money to an account that passes on the increased rates to you - otherwise you’re missing out on basically free money.”

A CD ladder gives you the freedom to cash out a hunk of money if you need it or reinvest your money without sweating about locking away your funds—because your next CD is maturing next year. 

In most cases, Uncle Sam counts the money you make from your deposits as taxable income. If you earn $10 or more, a financial institution should send you (and the IRS) an annual 1099-INT form that reports your interest earnings. If you don’t receive a form, you’re still responsible for reporting the income.

If you make at least $1,500, you’ll also need to itemize your sources of interest income on Schedule B of the 1040. The good news is that there are some exceptions, but they mostly apply to investment vehicles issued by the government. 

The amount you pay depends on your specific marginal tax bracket. 

Income interest from treasury bills, notes and bonds, like I Bonds, are exempt from state and local income taxes.

CDs used to play an important, albeit complimentary, role in the finances of everyday Americans. Roughly a fifth of households owned a CD in 1989, according to the Fed. They were still in vogue nearly two decades later, as more than 16% used them in 2007. 

In 2019, however, only 7.7% of households had a CD.

The reason? CDs used to be a much better deal. At the beginning of 1989, for instance, a one-year CD offered an 8.30% APY. By 2007, it was just 3.7%. 

By 2019, a one-year CD paid just 0.92%. 

The story behind drooping CD rates is complicated, and it involves: falling inflation (until recently), an aging population, technological innovations and the Federal Reserve lowering interest rates. The aftermath of the Great Recession, in which the Fed kept interest rates near zero for almost a decade as inflation continually ran under its desired level, is just the most recent trend.

That’s what has made the current moment so interesting. CD yields jumped in 2022 after the Fed raised rates by 4.25 percentage points in nine months.

The upshot, though, is the same: Americans are more likely to consider CDs if they pay more in interest, especially compared to inflation. After all, a one-year CD that pays less than 1% is hardly worth it when prices are rising at twice as high a rate.

We took this historical lesson to heart when crafting our ratings, as you can see below:

• APY: 70%

• Customer Experience: 10%

• Minimum Deposit: 5%

• Compound Interest Schedule: 5%

• Digital Experience: 5%

• Available Terms: 3%

• Availability: 2%

We looked at the terms of 144 CDs offered by 84 banks and credit unions to reach our rankings. In each category we looked at a variety of factors.

For instance, to determine APY, we documented the interest rate offered on 17 different terms. To rank customer service, we documented how the financial institutions were ranked by the Better Business Bureau and JD Power.

Additionally, we valued accounts with lower minimum deposits, daily compound interest schedules (rather than monthly) and those that are available to everyone, regardless of where they live.

While non-APY factors are important, we believe that your potential earnings should reign supreme.

Stare at our rankings for a while and something obvious becomes apparent: a dearth of big banks.

No Chase Bank, no Bank of America, no Citibank and no Wells Fargo. The four largest financial institutions in the nation, which together own nearly $10 trillion in assets, don’t offer a competitive CD. 

How come?

Well, they don’t have to. 

The big banks enjoy the benefits of generations of customers and high name identification. When the typical person thinks about opening a bank account, their mind tends to drift towards at least one of the big four. 

If a bank wants to make a splash, then, they need to offer higher rates. 

The story is similar for the next three biggest banks: U.S. Bank, PNC Bank and Truist, regional powers all. Their offerings are either not high enough, or aren’t robust enough, to warrant inclusion. 

The only top 10 banks to make the cut prove the point. Capital One and Goldman’s Marcus by Goldman Sachs each offer high rates in an effort to win business from more established banking institutions. After all, Capital One is basically a Gen Zer (it was conceived in the mid-1990s), while Goldman Sachs only recently made the move into consumer banking.

We make our selections without favor and completely independent of business considerations. Meanwhile, our process is rigorous. Our data team and editors collect and interpret the data, assign weightings and research contending banks. The piece is written by an experienced journalist and edited multiple times before publication. 

Taylor Tepper, the lead banking editor, has more than a decade of personal finance experience, including writing award-winning pieces at Money Magazine, and being published in the New York Times, Time, Fortune, Bloomberg and NPR, among others. He also recently completed the educational requirement to sit for the CFP exam. Jenn Jones, the deputy banking editor, has a wide range of financial experience and a deep interest in sharing knowledge to empower others. She brings years of writing and analytical skills to bear, as she worked in consumer finance prior to her editorial career.