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Today's best CD rates by term

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By Kelly Ernst

/ CBS News

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Long-term CDs tend to have higher rates, but short-term CDs offer you faster access to your funds. Getty Images

If you're looking for a safe place to store your savings and earn a decent return, a certificate of deposit (CD) could be just the thing. A CD is a type of savings account in which you deposit a fixed amount of money for a certain period (or term), usually ranging from a few months to several years. In return, you earn interest on your deposit at a fixed rate for the duration of the term. 

You can open a CD at many banks and credit unions, and different institutions offer different rates and terms. The first step is determining which term to open. Once you've narrowed your choices down to either short- or long-term CDs, it's time to compare rates to hone in on the best CD for you.

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Today's best CD rates by term

Here are the best CD rates for a variety of terms as of August 8, 2023.

Short-term CDS

For savers who want to see fast returns on their savings, a short-term CD is a great option. These CDs have terms of one month up to one year. They may not have interest rates as high as long-term CDs, but they're typically still higher than high-yield savings account rates.

Plus, they don't require you to lock up your money for too long. Many CDs charge early withdrawal penalties if you access your funds before the term is up.

It's worth noting that today's one-month CDs offer a paltry interest rate — the highest is a mere 1.20% APY. So, if you want quick access to your funds, you're better off opening a high-yield savings account.

3 months

  • Popular Direct — 4.75% APY: $10,000 minimum deposit; 89 days' interest early withdrawal penalty
  • America First Federal Credit Union — 4.50% APY: $500 minimum deposit; 60 days' interest early withdrawal penalty
  • First Internet Bank of Indiana — 4.18% APY: $1,000 minimum deposit; 90 days' interest early withdrawal penalty
  • Bank of America — 4.00% APY: $1,000 minimum deposit; seven days' interest early withdrawal penalty
  • TIAA Bank — 4.00% APY: $1,000 minimum deposit; 90 days' interest early withdrawal penalty

6 months

  • Popular Direct — 5.35% APY: $10,000 minimum deposit; 120 days' interest early withdrawal penalty
  • America First Credit Union — 5.30% APY: $500 minimum deposit; 60 days' interest early withdrawal penalty
  • Bank5 Connect — 5.30% APY: $500 minimum deposit; 90 days' interest early withdrawal penalty
  • Bask Bank — 5.25% APY: $1,000 minimum deposit; 90 days' interest early withdrawal penalty
  • First Internet Bank of Indiana — 5.22% APY: $1,000 minimum deposit; 180 days' interest early withdrawal penalty

1 year

  • Santander Bank — 5.50% APY: $500 minimum deposit; three months' interest early withdrawal penalty
  • Sallie Mae Bank — 5.50% APY: $2,500 minimum deposit; 90 days' interest early withdrawal penalty
  • Popular Direct — 5.40% APY: $10,000 minimum deposit; 270 days' interest early withdrawal penalty
  • CIBC Bank USA — 5.36% APY: $1,000 minimum deposit; 30 days' interest early withdrawal penalty
  • Connexus Credit Union — 5.36% APY: $5,000 minimum deposit; 90 days' interest early withdrawal penalty

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Long-term CDs

For savers who are comfortable locking away their funds for many years, long-term CDs typically offer the highest rates. These CDs have terms of three years or more.

3 years

  • First Internet Bank of Indiana — 4.75% APY: $1,000 minimum deposit; 360 days' interest early withdrawal penalty
  • Bread Savings — 4.75% APY: $1,500 minimum deposit; 180 days' interest early withdrawal penalty
  • Popular Direct — 4.75% APY: $10,000 minimum deposit; 365 days' interest early withdrawal penalty
  • BMO Harris — 4.50% APY: no minimum deposit; 180 days' interest early withdrawal penalty
  • Alliant Credit Union — 4.45% APY: $1,000 minimum deposit; early withdrawal penalty of number of days CD is open (up to 180 days)

5 years

  • Popular Direct — 4.60% APY: $10,000 minimum deposit; 730 days' interest early withdrawal penalty
  • First Internet Bank of Indiana — 4.59% APY: $1,000 minimum deposit; 360 days' interest early withdrawal penalty
  • Barclays Bank — 4.50% APY: no minimum deposit; 180 days' interest early withdrawal penalty
  • BMO Harris — 4.50% APY: no minimum deposit; 180 days' interest early withdrawal penalty
  • Alliant Credit Union — 4.35% APY: $1,000 minimum deposit; early withdrawal penalty of number of days CD is open (up to 180 days)

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The bottom line

There are many CDs available for savers with different needs and goals. To choose the right CD for you, consider the term, interest rate, minimum deposit requirement and any other fees or penalties associated with the account. Doing your research and comparing multiple CD options will help you make a more informed decision and get the most from your savings.

Edited by Angelica Leicht

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