10 Best CD Rates (Banks With the Highest-Interest) for 2023


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No investment or savings vehicle is entirely without risk, but certificates of deposit (CDs) offer more security and predictability than most.

With fixed or upwardly adjustable interest rates, terms ranging from as short as one month to as long as 10 years, and FDIC insurance up to $250,000 per account, CDs are useful tools for saving funds you don’t need right away — and earning a yield in the meantime.

Although prevailing rates vary widely by bank, CDs tend to have higher yields (better rates) than other types of bank accounts, including checking, savings, or money market accounts. That makes them great savings tools for people who don’t need to access their funds right away.

Best Banks for High-Yield CDs (Highest CD Rates)

These are the best banks for certificate-of-deposit customers. 

All offer above-average CD yields and each does at least one additional thing really well, whether it’s allowing customers to take advantage of rising rates during the CD term or providing greater-than-usual flexibility around withdrawals. The best overall offers the best all-around value in our estimation.

Unless otherwise noted, each bank listed has federal deposit insurance, meaning they’re insured by the FDIC (Federal Deposit Insurance Corporation) or its credit union equivalent, the National Credit Union Administration. All have fixed interest rates on CDs and reasonable minimum deposit requirements. And most charge no monthly fees, as is sometimes the case for online savings accounts that allow unlimited withdrawals.

Barclays Bank

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Barclays Bank CDs yield up to 4.90% APY. Even better, they require no minimum opening deposit or balance, which is rare in the CD world.

Withdrawal Penalty

Up to 180 days’ interest

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Barclays Bank is an online savings bank that offers a legitimate rarity for savers: no minimum balance on CDs. Whereas many banks require opening deposits of $1,000 or more, you can open a Barclays CD and earn interest on it with very little money down.

Needless to say, that makes Barclays Bank a frugal choice for CD customers without much to save right now. Plus, Barclays Bank CDs have no hidden monthly fees and compound interest daily, which slightly increases your return over the term.

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U.S. Bank

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Earn more with a U.S. Bank Certificate of Deposit Account featuring exclusive promotional rates up to 4.70%.*

Withdrawal Penalty

Greater of 50% full-term interest or 3% of CD value

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Grow your money with a Certificate of Deposit Account at U.S. Bank. You can earn more by locking in an exclusive rate.

This CD offers their most competitive, promotional rates — up to 4.70%.*

Choose the term length that works best for you. The rate is guaranteed for the full length of whatever term you choose.

As with all U.S. Bank CDs, these CD specials are FDIC-insured.

*Rates vary by state and zip code. Please click “Open an Account with U.S. Bank” above to see your rate before applying.

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CIT Bank

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CIT Bank’s six-month, 13-month, and 18-month CDs have outstanding yields (up to 5.00% APY), and the 11-month No Penalty CD offers fee-free early withdrawals.

Withdrawal Penalty

Up to 12 months’ interest

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CIT Bank has a handful of short-to-medium-term CDs with extremely good yields. They go high as 5.00% APY on the six-month CD, an unheard-of rate for such a short term.

Another standout is the No Penalty CD, which charges no fees for early principal withdrawals at any point during its 11-month term. The 11-month No Penalty CD also has a category-leading yield, currently 4.80% APY.

One thing to watch out for: CIT Bank has a lot of not-so-good CDs. Any regular CD with a term divisible by one year (up to five years) is a bad deal, as is any Jumbo CD.

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Quontic Bank

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Quontic Bank has some of the best rates available on short- to medium-term CDs, topping out at 4.75% APY on the one-year product.

Withdrawal Penalty

Up to two years’ interest

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Quontic Bank has some of the best rates available on CDs with terms under two years. The standout is the one-year CD, which goes toe-to-toe with CIT Bank’s six-month CD on yield.

Quontic also shines thanks to an all-digital application that takes just a few minutes to complete and a relatively low minimum opening deposit, which makes its products accessible to savers without a lot of cash in the bank. Mind the stiff early withdrawal penalties, though.

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Discover Bank

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Discover Bank offers a variety of CD terms with appealing yields, making it especially attractive for those seeking longer-term CDs — all the way up to 10-year terms.

Withdrawal Penalty

Up to 24 months’ interest

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Discover Bank features a wide range of CD terms with attractive yields. It’s particularly appealing if you’re seeking longer-term CDs, thanks to a roster that includes five-year, seven-year, and 10-year CDs.

Discover’s best yields come on its medium-term products, specifically the 12-month and 18-month CDs.

The biggest drawbacks are the relatively high minimum opening deposit ($2,500) and the potentially stiff early withdrawal penalties (up to 24 months’ interest on longer-dated CDs).

Rates are effective as of Feb. 24, 2022.

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Sallie Mae Bank

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Sallie Mae Bank offers two medium-term traditional CDs at 23 and 27 months, and two shorter-term no-penalty CDs at 10 and 14 months.

Withdrawal Penalty

Up to 180 days’ interest

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Sallie Mae Bank has two standard CDs right in the medium-term sweet spot: 23 months and 27 months.

That’s short enough not to worry about tying up your money forever, and both have yields at or above 5.00% APY to boot. These are among the best yields in the business for term lengths between 10 and 30 months.

If you’re not sure what the future holds, consider a no-penalty CD from Sallie Mae Bank instead. You can choose from two shortish terms: 10 or 14 months.

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Synchrony Bank


Synchrony Bank has more than a dozen CDs with competitive yields. The 14-month CD is the real standout, currently yielding 5.15% APY.

Withdrawal Penalty

Up to 180 days’ interest

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Synchrony Bank has more CDs than the typical online bank: over a dozen in all, with terms ranging from three months to five years.

The short- to medium-term products are particularly impressive, with several CDs at or above 5.00% APY. We listed our favorite CD terms and rates, but you’ll find a few more on Synchrony’s website.

Also of note: Synchrony has no minimum deposit requirement for CDs, making it a strong choice for younger and lower-asset savers. The early withdrawal penalties are manageable as well, topping out at 180 days’ interest for longer-term products.

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TIAA Bank offers excellent but not spectacular CD yields — highlights include 4.65% APY on the 12-month CD and 3.85% APY on the five-year (60-month) CD.

TIAA Bank stands out for another reason too: its above-standard deposit insurance on a special type of CD known as a CDARS (Certificate of Deposit Account Registry Service). 

While CDARS rates are typically a bit lower than corresponding CDs’, you can get deposit insurance many times higher than the standard FDIC limit of $250,000 per account, per institution (over $10 million, in some cases). If you have a lot of cash to store with TIAA, that’s a valuable perk.

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Ally Bank


Ally Bank pays very good yields on short- to medium-term CDs, topping out at 4.80% APY for the 18-month CD.

Withdrawal Penalty

Up to 150 days’ interest

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Ally Bank offers very good yields on short- to medium-term regular CDs, particularly the 12-month (currently yielding 4.50% APY) and the 18-month (currently 4.80% APY) CDs. It also offers special CDs with flexible features and top rates for their respective categories.

Ally also offers a no-penalty CD with a solid but not quite category-leading yield. Thanks to Ally’s customer-friendly early withdrawal penalties — no more than 150 days’ interest — and high yields on shorter-term products, the no-penalty CD’s value isn’t super-compelling.

But Ally’s no-minimum-deposit policy for regular and no-penalty CDs is compelling. It’s pretty rare in the CD world.

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First Internet Bank


First Internet Bank has excellent shorter-term CD yields — 4.52% APY on the six-month and 5.06% APY on the 12-month — making it ideal for parking money for a year or less.

Withdrawal Penalty

Up to 360 days’ interest

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First Internet Bank, known simply as First IB, has some of the best shorter-term CD yields in the business. That makes it a great place to park your money for a year or less.

Rates on shortish CDs range from 3.06% APY on the three-month CD to 5.06% APY on the 12-month CD.

First IB has a lot of medium- to longer-term CDs as well, with competitive yields on all. The minimum deposit isn’t too bad at $1,000, and the early withdrawal penalty is middle-of-the-pack at up to 360 days’ interest.

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Methodology: How We Select the Best High-Yield CDs

We use several key factors to evaluate banks offering high-yield CDs and select the best products for our users. Each relates in some way to the cost or accessibility of these CDs.

Yield (Interest Rate)

Every certificate of deposit pays interest. Prospective account holders just need ask themselves whether the rate of return worth tying up their money.

We believe it should be. That’s why we give preference to banks that pay above-average interest rates on their CD balances. But no matter how good a bank’s CD rates are, shorter-term CDs tend to have lower interest rates than longer-term CDs.

Term Options

A CD’s term is the length of time between the account opening date and the maturity date. That is, the period between the account holder’s initial deposit and the day the bank must repay that deposit with interest.

CD term lengths can be as short as one month and as long as 10 years. All else being equal, we prefer banks that offer as wide a range of CD terms as possible, the better to appeal to investors seeking short-, medium- and long-term places to park their funds.

Early Withdrawal Penalties

Most CDs charge early withdrawal penalties. These penalties apply if you withdraw part or all of your principal amount before the CD’s maturity date. Usually, you can withdraw interest without penalty.

Early withdrawal penalties are expressed as a percentage of interest accrued on the CD. On shorter-term CDs, they’re often equal to three months’ interest. On longer-term CDs, they can exceed six months’ interest. If you make a withdrawal before you’ve accrued enough interest to cover the penalty, you may lose principal.

While recognizing that few banks waive early withdrawal penalties entirely, we prefer institutions that offer special no-penalty products for customers seeking greater flexibility.

Minimum Deposit Requirements

Most CDs require a minimum opening deposit. In some cases, this deposit is manageable for the average saver — say, $100 to $500. But some deposits can be stiff — upward of $2,500, straining lower-income savers’ ability to pony up.

All else being equal, we’re fans of banks with modest minimum deposit requirements. 

Account Types (Taxable or Tax-Advantaged)

The default tax treatment for CDs is the same as for other interest-bearing accounts. Accrued interest is taxed as regular income, subject to IRS and state regulations.

Some banks offer special CD products that offer favorable tax treatment. Usually, these are individual retirement account CDs — most often Roth or traditional — that allow account holders to reduce or avoid taxation on eligible balances. We’re fans of banks that offer this option but encourage would-be account holders to consult their tax advisor for guidance.

Deposit Insurance

All of the CDs on this list come with the standard level of deposit insurance coverage: $250,000 per account type per institution.

That’s plenty for most account holders. However, higher-asset customers might need more — and some banks are happy to give it to them. We’re fans of institutions that use sometimes-creative methods to boost deposit insurance coverage and protect clients’ hard-earned funds. 

Midterm Rate Increases

Traditionally, CD rates remained fixed for the entire term. Your interest rate on Day 1 was the same as your interest rate on Day 364. 

Today, that’s no longer the case. Most CDs still have fixed rates, but more and more are more flexible. Known as raise-your-rate or bump-rate CDs, they allow you to take advantage of rising interest rates by raising your rate at least once during the term.

Of course, they can’t help if rates fall during the CD term. But it’s nice that they give you the option, and we therefore give preference to banks that offer them.

Certificate of Deposit FAQs

For people who tend to think “music” when they hear the term CD, all this talk of rates and terms can be confusing. Peruse this list of frequently asked questions if you need to know more.

How Is Interest Calculated on CDs?

Depending on the issuing bank’s policy, banks may calculate CD interest on a daily, weekly, monthly, quarterly, or annual basis. 

Usually, the default option is for accrued interest to roll over into the CD balance, allowing it to compound. However, banks generally give you the option to have interest paid into another account — generating income before the CD matures.

How Much Is a CD Early Withdrawal Penalty?

The biggest drawback of CDs is that most banks charge a significant penalty if you withdraw part or all of your funds before the term ends. These penalties typically range from three to 12 months’ interest, depending on the length of the CD term and the policies of the issuing bank.

But some banks now offer special CDs that allow you to make midterm interest — and in some cases interest and principal — withdrawals without paying a penalty. These CDs are marketed as no-penalty or flexible CDs. If you want the option to access your funds before the end of the term, these are useful.

Can You Have More Than One CD With the Same Bank?

Yes. While every bank is different, you should expect to be allowed to open multiple CDs with the same institution. 

That allows you to take advantage of the relationship between CD term length and yield. You can open a short-term CD to park funds you might need soon-ish while committing a portion of your wealth to longer-term CDs that earn more interest.

What Are Some Common Certificate of Deposit Fees?

Other than the early withdrawal penalty, which only kicks in if you make a withdrawal before the CD matures, you shouldn’t expect your CD to cost much. Few CDs charge annual fees or monthly maintenance fees, for example.

Final Word

To narrow your CD options, consider factors like:

  • How long you expect to (or can afford to) keep your money tied up
  • Whether you want to sacrifice flexibility (in terms of ability to withdraw funds during the CD term) in exchange for a higher return on investment
  • How much you can afford to commit to your CD
  • Whether you expect rates to rise or fall during the CD term

For example, if you’re looking for a place to park your funds for a few months and don’t care about maximizing your return, you might choose a six-month CD with a low APY. If you’re building a CD ladder you expect to endure for the better part of a decade, load up on five-, seven-, and maybe even 10-year CDs.



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