Investing (US)

What are the typical interest rates for certificates of deposit?

Check out the best CD rates from a wide range of banks and credit unions. Find out more about these terms below and compare offers!

Learn everything about certificates of deposit rates

Learn more about certificates of deposit rates. Source: Unsplash.
Learn more about certificates of deposit rates. Source: Unsplash.

Certificates of deposit, also called CDs, are a type of savings account that usually has a higher interest rate than a standard savings account. Some banks offer different rates for different lengths, but the average is currently around 1%.

In other words, this means that if you put $500 in your CD for one year and earn 1% interest per year on it, you would have an extra 50 cents at the end of the year. For those people who do not want to spend time managing their investments every day, this is not worth it unless they have over $25000 to invest. 

Are you looking into investing in CDs? If this is the case, then make sure you do some research about how much return you can expect from them and which is the amount of risk involved before making any decisions!

But of course, in order to help you out, our team from Mister Finance has already done some of the research for you. Continue reading to learn more.

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What is a certificate of deposit (CD)?

Do you know what are certificates of deposit rates? Source: Unsplash.
Do you know what are certificates of deposit rates? Source: Unsplash.

A certificate of deposit, or a CD, is an interest-bearing product offered by banks and credit unions. Depending on each bank, the terms offered and the rate amounts will differ, especially in comparison to the bank’s savings and money market products.

Typically, there are two different rates for certificates of deposit: the CD rate and the APY rate. The CD Rate is based on how long you commit to leaving your money in the account, while the APY stands for Annual Percentage Yield and varies depending on what it’s invested in.

They are also generally insured by the Federal Deposit Insurance Corporation (FDIC). Interest rates for CDs vary depending on whether they are held at banks or credit unions. The average interest rate for a CD in 2017 was 0.79%.

Want to know whether this is the right product for you? If you are certain that you will not need to access your money for several months or even years, according to your financial objectives, this might be the choice.

Which banks have the best Certificates of Deposit rates?

Discover what are the best certificates of deposit rates. Source: Unsplash.
Discover what are the best certificates of deposit rates. Source: Unsplash.

Ally Bank High Yield Certificate of Deposit

You can earn more with Ally Bank’s competitive rates, receive a 0.05 percent loyalty reward when you renew your CD to any CD with them and manage your CD online. You will also have access to digital banking tools and FDIC insurance up to the maximum allowable by law.

Annual Percentage YieldFrom 0.15% to 0.80%
Minimum Deposit RequirementNone
TermsFrom three months to five years
1-year APY0.55%
3-year APY0.65%
5-year APY0.80%

Quontic Bank Certificate of Deposit

Quontic Bank’s CDs accounts can be opened aimed at a variety of objectives, ranging from six months to five years. A $500 minimum deposit will be required to open a CD account, but the amount is quite competitive.

Annual Percentage YieldFrom 0.45% to 1.11%
Minimum Deposit Requirement$500
TermsFrom six months to five years
1-year APY0.50%
3-year APY1.00%
5-year APY1.11%

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Marcus by Goldman Sachs High-Yield CD

Depending on how long you want to commit your money, Marcus by Goldman Sachs not only offers high-yield CDs but no-penalty CDs as well.

Annual Percentage YieldFrom 0.15% to 0.80%
Minimum Deposit Requirement$500
TermsFrom six months to six years
1-year APY0.55%
3-year APY0.65%
5-year APY0.80%

CW Certificate Account

CommunityWide has some of the best CD rates on the market. Terms range from six months to five years, with a $1,000 minimum deposit required. After your CD matures, you can renew it for another term or transfer the funds to another account.

Annual Percentage YieldFrom 0.70% to 0.95%
Minimum Deposit Requirement$1,000
TermsFrom six months to five years
1-year APY0.75%
3-year APY0.85%
5-year APY0.95%

TAB Bank Certificate of Deposit

TAB Bank’s highlights include a user-friendly digital bank, a high APY on CDs and savings, no monthly fees, truck driver-specific checking accounts, and a money market account with paper checks.

Annual Percentage YieldFrom 0.40% to 0.75%
Minimum Deposit Requirement$1,000
TermsFrom six months to five years
1-year APY0.50%
3-year APY0.65%
5-year APY0.75%

First National Bank of America Certificate of Deposit

Open your First National Bank account in less than ten minutes! Start anywhere as long as you have internet access, and get great rates with terms ranging from one to seven years.

Annual Percentage YieldFrom 0.65% to 1.30%
Minimum Deposit Requirement$1,000
TermsFrom one year to seven years
1-year APY0.55%
3-year APY0.75%
5-year APY1.00%

Live Oak Bank CD

Live Oak Bank provides competitive interest rates, no monthly maintenance fees, and a quick and secure connection to your other bank accounts.

Annual Percentage YieldFrom 0.25% to 0.70%
Minimum Deposit Requirement$2,500
TermsFrom six months to five years
1-year APY0.75%
3-year APY0.70%
5-year APY0.70%

Sallie Mae Bank CD

Before choosing your bank, be aware that Sallie Mae has been named one of the top online banks by GOBankingRates, citing its competitive interest rates and lack of monthly fees.

Annual Percentage YieldFrom 0.30% to 0.70%
Minimum Deposit Requirement$2,500
TermsFrom six months to five years
1-year APY0.60%
3-year APY0.70%
5-year APY0.45%

Limelight Bank CD

Limelight Bank is a one-of-a-kind CD institution that offers competitive rates, as well as a strong environmental commitment. You can choose terms from six to twelve months in order to get the best returns. To summarize, it provides some extremely competitive rates on deposit accounts.

Annual Percentage YieldFrom 0.45% to 0.70%
Minimum Deposit Requirement$1,000
TermsFrom six months to three years
1-year APY0.60%
3-year APY0.75%
5-year APYN/A

Synchrony Bank CD

By signing up into Synchrony Bank, you will be offered a fifteen-day best rate guarantee, award-winning products, as well as an FDIC insured account.

Annual Percentage YieldFrom 0.15% to 0.85%
Minimum Deposit RequirementNone
TermsFrom three months to five years
1-year APY0.55%
3-year APY0.75%
5-year APY0.85%

TIAA Bank Basic CD

With TIAA Bank, you will be able to plan ahead of time with complete confidence, with a streamlined application process, competitive rates, and a variety of terms. Their terms range from three months to five years, there is no monthly account fee, and there is an alert for 20-day advanced maturity and auto-renewal upon maturity.

Annual Percentage YieldFrom 0.35% to 0.85%
Minimum Deposit Requirement$1,000
TermsFrom three months to five years
1-year APY0.55%
3-year APY0.70%
5-year APY0.85%

Connexus Credit Union CD

In addition to offering a $5,000 minimum deposit, a one-minute sign-up process, requiring no checking account, and being safe and secure, Connexus Credit Union also offers share certificates, which are the equivalent to a Certificate of Deposit (CD). It is a savings account into which you deposit money for a set period of time. During that time, the money earns dividends. It is a low-risk way to earn a high rate of return on your investment.

Annual Percentage YieldFrom 0.61% to 1.06%
Minimum Deposit Requirement$5,000
TermsFrom one year to five years
1-year APY0.61%
3-year APY0.81%
5-year APY1.06%

Comenity Direct CD

Looking for higher-than-average savings rates? Then you are looking for Comenity Direct. The required minimum opening balance is low and the FDIC insures your savings account. Although well-known for its branded retail credit cards, it also offers competitive savings rates.

Annual Percentage YieldFrom 0.65% to 0.85%
Minimum Deposit Requirement$1,500
TermsFrom one year to five years
1-year APY0.65%
3-year APY0.80%
5-year APY0.85%

Which CD institution did you like best? If you enjoy learning more about types of investments, click the link below and keep following us!

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Commodities are basic goods for commerce, such as oil and grains. If want to know more about commodities as investment, check out our post!

About the author  /  Thais Daou

Thais Daou holds an undergraduate degree in Languages — Translating and Interpreting from the São Judas Tadeu University. She has been translating, proofreading, and transcribing financial documents, as well as documents from other fields, for five years. And now she begins a new chapter in her career, writing about financial solutions in a simplified way, with a desire to spread this knowledge, which is so important.

Reviewed by  /  Aline Barbosa

Senior Editor

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