CD Rates for January 2020
MoneyRates.com can help you quickly narrow your search for the best CD rates available.
|1-Year CD -||2-Year CD -||5-Year CD -||Savings -||MMA -||Checking -|
Finding the highest yield on a certificate of deposit (CD) is critical to your saving and investment strategy. And because rates can vary greatly from bank to bank – even among CDs of the same length – MoneyRates.com uses a careful methodology to track more than 500 CD products every week. That way you can find the best CD rate available any time you need it.
Compare featured CD accounts: Picks of January 2020
>> Need to learn how to shop for CDs? Skip ahead to 7 steps to finding the best CD.
Compare CD Rates : Who has the best CD rates now?
A large number of banks offer CDs, and many compete to have the best CD rates. Use the MoneyRates CD rate-finder tool below to sort through the massive list and find a CD that suits your financial situation and goals.
Select the type of account, deposit amount, and desired CD length. The results show the top rates from our featured banks, but each listing can be expanded to reveal more rates.
A second table below shows more CD products that meet your specifications. (Rates in this table may be higher or lower than the featured-bank rates.)
Live Oak Bank
Marcus by Goldman Sachs
Colorado Federal Savings Bank
Sallie Mae Bank
Transportation Alliance Bank
Connexus Credit Union
Navy Federal Credit Union
Amerant Bank, N.A.
Peoples Bank (thefriendlybank.com)
State Bank of India
Alliant Credit Union
First Internet Bank
Americas Credit Union
Rhinebeck Savings Bank
Metz Banking Company
Union Bank and Trust Company
Cambridge Savings Bank
Neighbors Credit Union
Middlesex Savings Bank
Dollar Savings Direct
Alaska USA Federal Credit Union
First Southern State Bank
Beal Bank, USA
Saginaw Medical Federal Credit Union
State Farm Bank (Rate in NY)
Superior Credit Union
Ridgewood Savings Bank
Gulf Winds Federal Credit Union
Wildfire Credit Union
Cobalt Credit Union
CD Rate History - Average APY (%) Rate Trend over Time
Disclosure: MoneyRates.com collects rates on a weekly basis and averages the last rate collected every month for each bank’s products to produce this dataset.
What is a certificate of deposit (CD)?
Certificates of deposit (CDs) are low-risk investment vehicles where financial institutions pledge to pay a certain interest rate in exchange for depositing money into an account for a given period of time.
Compared to savings and money market accounts, CDs usually require that your money is deposited for a longer, defined period in order to receive a favorable interest rate. CD accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC), depending on whether or not the institution is an FDIC member, making them low-risk investments for savers.
7 steps to finding the best CD
1. Determine how much you can invest
As the chart below shows, the annual percentage yield (APY) is likely to vary depending on how much you deposit, so it is best to determine how much you can afford to invest in a CD first.
|Opening Deposit |
|Less than $5,000||1.85%|
|$25,000 or more||2.85%|
Banks tend to offer higher CD rates for jumbo CD accounts too.
To capture the highest APY, consider pooling funds you know won’t be needed to meet expenses in the near term. Typical sources are:
- Tax refund
- A higher-than-necessary savings account balance
- Emergency funds*
*You may want to reassess the amount you hold in your emergency fund to see if any excess could be optimized for return. Factor in near-term bills – property taxes, insurance, tuition, for example – and consider whether a short-term CD, a CD ladder, or multiple money market accounts would be a reasonable solution as opposed to holding a large balance in your savings account.
>> Need a different option for your emergency funds? See why opening multiple money market accounts is a smart move.
2. Consider the term of your CD
|Short-Term CD ||Long-Term CD |
|1 – 6 months||3 years|
|1 year||4 years|
A CD’s term is the period of time investors must leave their funds on deposit. Long-term CD rates tend to be higher than short-term CD rates. However, depositors must decide how long they can comfortably go without withdrawing their money to avoid early withdrawal fees. When investors deposit funds into several CDs with different maturities, or term lengths, they build a CD ladder explained below. (Skip ahead to Try CD laddering.)
3. Compare CD interest rates
|APY||Maturity value for 5 years|
Annual percentage yield (APY) makes a big difference in how much money you can earn from a CD account. While average CD interest rates may be low at 0.72%, the highest available rates can help optimize growth.
Use our Compound Interest Calculator to consider two 5-year CDs, each with $50,000 deposited in it. One has an APY of 2.35 percent, while the other has an APY of 1.80 percent.
When compounded annually, here’s how much each CD should be worth at the end of five years:
There may be other differences to consider, such as, fees and early withdrawal penalties; but evaluating interest rates only, the higher-yielding CD in this case would be worth nearly $1,500 more over five years.
>> Know your CD’s inflation-adjusted value – try our CD calculator
4. Explore different product types
Traditional certificates of deposit are by far the most popular CD type, but some banks offer their own twist on the usual product:
- Unconventional CDs -
A raise-your-rate CD is a special type of certificate that allows you to bump up your interest rate one or more times during the term (assuming rates have in fact risen).
Indexed CDs forgo a fixed interest rate in favor of a variable rate that moves in accordance with a benchmark indicator.
- Foreign CD investments -
Even more exotic, CDs that are denominated in foreign currencies allow investors to effectively gamble on the relative values of a nation’s currency. However, these vehicles may come with more risk than a typical CD, as they may allow a loss in principal if the chosen currency loses value over the course of the term.
>> Curious about other CD types? Review our article on 8 types of CD accounts.
5. Confirm the CD you’re considering is insured
Safety and stability are paramount to CD investors, so a conventional CD may be your best choice – as long as the bank you choose is insured by the FDIC. This insurance coverage is designed to protect funds up to $250,000 per depositor, per institution in the event of a bank failure, and it has never failed to cover insured deposits since the FDIC’s inception in 1933.
FDIC-insured banks must display the FDIC emblem in their branches or, in the case of online-based banks, on their website. Credit unions have deposit insurance through the NCUA and are considered just as safe as traditional banks.
6. Factor in withdrawal fees
Generally speaking, the longer the CD term, the higher the yield. But rates can change – and inflation may also cause your CD to lose value. If you commit to a CD and interest rates stay the same or fall during the term, it’s no problem. If rates climb in the months or years after, you may wonder what your options are for taking advantage of higher rates.
For example: Imagine you open a 2-year CD with a 2% APY and an early withdrawal penalty of six months’ interest. Assume that after one year, CD interest rates climb to 5%.
If you withdraw the balance in your CD to open a new one with a higher rate, it would cost you half your interest to that point, effectively reducing your APY for the first year to about 1%. But, if you’re able to secure that 5% interest rate during the second year, your average APY for the two-year term would equal about 3%, or 1% more annually than you would have earned if you stuck with the original CD.
To make sure that an early withdrawal is viable to improve your earnings, review the potential penalties before you open a new CD. If you find two CDs that are identical in most ways, compare their early withdrawal penalties. The one with the smaller penalty may offer more flexibility if you want or need to exit the account sometime during the term.
>> Check if your CD is losing value to inflation. Use our CD inflation calculator.
7. Try CD laddering
A CD ladder consists of multiple CDs with staggered maturity dates, which gives regular, penalty-free access to a portion of your savings while still earning higher interest rates overall.
This is a great option if you intend to use or reinvest some portion of your savings on a regular basis but don’t anticipate needing the whole of it at any given time.
When done correctly, you can end up with a stable of long-term CDs in which at least one account reaches maturity every few months, leaving you the option to access it or simply push it ahead to reach maturity at a chosen point in the future. After reviewing your options, narrow down your list for the best long-term CD rates.
CDs vs. other savings accounts
“Savings accounts, money market accounts, and certificates of deposit are different savings vehicles that can help you manage the liquid funds in your portfolio.
“It's important to choose the right kind of account for your financial needs and lifestyle, though. Picking the wrong account can lead to lackluster dividends, inconvenient access restrictions and hefty fees.
“It's not hard to decide which is right for you. All you need to know is what types of accounts are available, how they help you and how they differ.”
>> Read more: Compare savings accounts, money market accounts and CDs.
Certificates of deposit usually require that the funds on deposit remain untouched for a defined period of time; however, many CDs allow the funds to be withdrawn before maturity if you pay a penalty. Need to learn more? Read: When does it make sense to pay an early withdrawal penalty?
Interest rates in general – and CD rates in particular – are rising at a rapid pace at this time. But, of course, that may change. An easy way to stay on top of changing interest rates is to bookmark the America’s Best Rates Survey, which is done every quarter here on MoneyRates.com.
At this time, the best 5-year CD rate on a minimum balance of $10,000 is 3.50%.
Whether you are a low-risk investor or someone who can accept investment risk, some portion of your assets should be in safe investment options. Certificates of deposit make good low-risk investments because they are usually FDIC-insured. Learn more: 5 reasons why CDs are perfect for low-risk investors
Best CD rates found by users like you
Have you been able to find even better CD rates than the ones displayed above? If yes, please share them with us and other MoneyRates users! Please include the details: the name of the bank, APY, term of the CD, when you opened the account, and whether the account can be opened online or only in the branch (if the latter, please include the location of the branch). Thank you!