Best CD Rates of February 2025 - Up to 5.15% APY (original) (raw)

Key Takeaways

• CDs are a safe investment, especially for savings you may need in the short-to-medium term.
• CDs lock in your interest rate for the duration of the certificate, so if rates drop, your interest rate will stay fixed until your CD matures. That’s unlike high-yield savings accounts, where rates can rapidly rise or drop.
• With rates at near record highs and likely to drop later in the year, now may be the time to lock in interest rates on a longer-term CD, pros tell us.

CDs are time-based deposit accounts from banks, credit unions or other financial institutions. The highest CD rate available today is 5.15% APY from Cumberland Valley National Bank & Trust, while the average rate is 2.39% for a 1-year CD. Rates vary based on what’s happening in the economy, including inflation and the Federal Reserve’s changes to the federal funds rate.

Our Picks for the Best CD Rates:

• Synchrony Bank — 3 months – 5 years, 0.25% – 4.10% APY, no minimum deposit
• Ally Bank — 3 months – 5 years, 2.90% – 4.20% APY, no minimum deposit
• Quontic Bank — 3 months – 5 years, 3.00% – 4.50% APY, $500 minimum deposit
• Marcus by Goldman Sachs — 6 months – 6 years, 3.60% – 4.10% APY, $500 minimum deposit
• USAA Bank — 1 month – 7 years, 0.05% – 3.00% APY, $1,000 minimum deposit
• Discover Bank — 3 months – 10 years, 2.00% – 4.00% APY, $0 minimum deposit
• BMO Alto — 6 months – 5 years, 3.90% – 4.50% APY, no minimum deposit
• Barclays Bank — 3 months – 5 years, 0.10% – 4.25% APY, no minimum deposit
• Alliant Credit Union — 3 months – 5 years, 3.10% – 4.30% APY, $1,000 minimum deposit
• Citizens Access — 11 months – 5 years, 0.05% – 4.25% APY, $5,000 minimum deposit

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Featured CDs

Min. Term Length

1 Month

3 Months

6 Months

1 Year

2 Years

Max. Term Length

1 Month

3 Months

6 Months

1 Year

2 Years

3 Years

5 Years

5+ Years

FEATURED

Discover

4.4

Term 1 Year

APY 4.00%

Min. Deposit Amount $0

FEATURED

Discover

4.4

Term 9 Months

APY 3.80%

Min. Deposit Amount $0

FEATURED

Discover

4.4

Term 6 Months

APY 3.70%

Min. Deposit Amount $0

Alliant

4.0

Term 1 Year

APY 4.25%

Min. Deposit Amount $1,000

Unfortunately, we didn’t find any offers for you.

Learn more about the highest CD rates.

Best CD Rates of February 2025

For our list of the best CD rates, the MarketWatch Guides team evaluated 154 banks and credit unions and selected the highest-scoring financial institutions. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms.

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The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.

Our Top Pick

Synchrony Bank

4.6

We found Synchrony Bank to be a transparent and user-friendly online bank with several savings products such as a high-yield savings account (HYSA), a money market account and a wide range of CD terms – many with APYs between 4% and 5%.

We liked the seamlessness of Synchrony’s online platform, which allows you to transfer interest payments from your CD account to another internal or external account. We also liked that Synchrony CDs have no minimum balance requirements.

Pros

Transparent about CD rates and required balance tiers

Offers some of the highest CD rates available

No minimum deposit requirements on CDs

Has a no-penalty CD and a bump-up CD

Cons

Difficult to reach a customer service agent, according to our experience

No physical branch locations

No checking account option

We opened a nine-month CD with Synchrony Bank in February of 2024 to give you a first-hand look at the application process. Our experience with Synchrony Bank was positive overall, starting with the fact that the provider was transparent about its APYs and related balance tiers during sign-up. Other highlights include:

• Seamless account integrations, such as the ability to set up recurring deposits
• Option to transfer CD interest payments to an external account or a Synchrony money market or high-yield-savings account
• Accessible application process with checkbox for those without phone numbers due to hearing or speech disabilities

However, Synchrony fell short in a couple of areas when we opened our CD. The main thing we noted was difficulty with customer service in these areas:

• Difficulty finding the customer service phone number followed by completing seven voice prompts to reach a live agent
• For chat, must request a live agent
• Unable to connect with Synchrony’s budgeting tool

Most Praised Features

Multiple account options: Some reviewers liked the fact that Synchrony offers a variety of account types.

Most Common Complaints

Customer service: The most common customer service complaints noted long wait times, unhelpful phone reps and frequently getting disconnected.

Unjustified account closures/limit reductions: Synchrony received a lot of complaints that their accounts were closed without warning.

We reached out to Synchrony for comment on its negative customer reviews but did not receive a response.

*To provide these insights, we compiled and analyzed 11,704 reviews from user-review sites such as Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best Online Experience

Ally Bank

4.5

We chose Ally for its history of high APYs and solid customer service. The online bank offers many ways to save, including several high-yield CDs, bump-up CDs and a no-penalty CD that allows you to withdraw your money as soon as seven days after you fund the account. We were also impressed with Ally’s best-rate guarantee that automatically increases the APY on your CD if rates rise within 10 days of opening your account. We found Ally’s customer service and user experience top-notch, even while its security measures slowed down our application process.

Pros

Loyalty APY increase (an additional 0.05%) when you renew an Ally CD

Bump-up CD allows you to increase your rate if rates rise during your term

No-penalty CD offers a competitive 4.00% APY and the ability to withdraw your money during the 11-month term with no charge

Cons

No physical branch locations

Our research team opened a six-month CD and a three-month CD to test Ally’s CD application process. Ally Bank has several helpful features that stand out, including:

• A series of FAQ articles available within the application
• Convenient customer support options, including chat and phone, with estimated wait times posted
• A 0.05% loyalty bonus that’s automatically added to your interest rate when you renew a CD term

We also encountered the following drawbacks when opening an Ally CD:

• Required a picture of our Social Security card during the application process, which none of the other banks we tested did
• Because our tester already had an Ally account, the process to open a CD only took a few minutes. But if you don’t have an existing account, Ally warns it can take up to five to seven days for Ally to review an application.

Most Praised Features

High interest rates: Reviewers like the high interest rates offered by some of Ally’s products, including CDs, savings and money market accounts.

Online banking ease: Some positive reviews praised Ally’s online banking, saying it was user-friendly and highly functional.

Responsive customer service: A few positive reviews mentioned Ally’s helpful customer service.

Most Common Complaints

Poor customer service: While some reviewers thought Ally’s customer service was great, there were more negative comments about it, including rude representatives and unresolved issues.

Loan and account management issues: Account management issues were a common complaint. They cited problems with loan payoffs, billing mistakes and poor account management overall.

Ally had the following comment in response to these negative reviews: “Ally is committed to providing high quality customer service. We consistently have customer retention rates (currently at 96%) that exceed industry averages. We monitor service quality through standard customer satisfaction surveys (CSAT) where our results are consistently above 90%. Ally attempts to act with professionalism and treat every customer fairly and with respect. Customer feedback is taken very seriously, and upon receipt of a concern, our team escalates for educational and/or training measures.”

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Fastest Customer Service

Quontic Bank

4.5

While Quontic is a newer online bank, we like its high APYs for certificates of deposit, two of which top 5.00%. And it was a breeze to set up our Quontic account, once one of our researchers was able to get past the bank’s third-party verification system and have an application approved.

When it comes to CDs, we like Quontic’s simple but thorough offerings. Quontic offers six traditional fixed-rate options with terms ranging from three months to five years. All terms have high APYs that beat national averages and a minimum deposit requirement of only $500.

Quontic is also the only bank on our list that’s a certified Community Development Financial Institution, meaning its mission is to support economically disadvantaged communities through access to financial products such as mortgages.

Pros

Earn interest the day you initiate a money transfer into the account

Easy, fast and secure account setup

Fast U.S.-based customer service with no prompts

Cons

No physical branch locations

Third-party verification may reject your application if you’ve recently moved

Three MarketWatch Guides team members attempted to open CDs with Quontic Bank, and two were rejected via email. When we reached out to a Quontic customer service representative, the rep said that rejections are common because the bank uses a third-party system for verification.

She added that two common causes are the use of virtual private networks (VPNs) and recent address changes. The two Guides team members had moved within the last 14 months, which could have been a factor in the approval process.

We were able to open a six-month CD and fund it with $500. It was easy to set up an account with the bank, which we created in just nine clicks. We particularly liked:

• You start earning interest the day you initiate your transfer, not the day your transfer is received.
• To reach a customer service agent, you input your number into the website and within seconds you’re connected to a U.S.-based agent – no phone prompts or account numbers are required.
• Seamless integration with budgeting apps

The biggest issue our team faced with Quontic was the rejected CD applications. We reached out to Quontic’s corporate team to comment on our experience and received the following response: “Given Quontic is a digital-only bank, we take a strong approach to identifying someone’s digital identity and there is always a possibility that someone triggers false positives for a decline. We use a third-party platform in which we leverage best practices for an approval/denial workflow. There can be many reasons in which an applicant could be declined. Due to fraud prevention reasons, we do not disclose the exact reason for the denial. However, we continue to meet and exceed industry benchmarks for approval rates so we feel comfortable that our workflow is configured as appropriately as possible.”

Most Praised Features

Exceptional customer service: Many reviewers praised Quontic’s staff for their professionalism and patience.

Competitive CD rates: Positive reviews repeatedly mentioned the high CD rates offered by Quontic as compared to other institutions.

Most Common Complaints

Technical issues with online banking: Many of the complaints about Quontic relate to its online platform. Customers state that the account setup, navigation and transaction processes leave a lot to be desired.

Inconsistent information from staff: Some reviewers complained that they received unclear or inconsistent information from Quontic staff.

Account closure without clear explanation: Several reviewers mentioned unexpected account closures with little to no explanation.

Quontic Bank had the following comment in response to these negative reviews:

• Regarding technical issues: “We released [our app] about a year ago, and we’ve gotten really good feedback.”
• Regarding inconsistent information from staff: “This isn’t really about staff or information. It honestly seems to be a user error. There is no ‘open an account’ request. You need to go through the full online application process. We haven’t heard any confusion around this in general.”
• Regarding account closure without clear explanation: “As an online bank, we take the risk of fraud very seriously and do our very best to identify actual fraudulent activity. There is no perfect 100% solution from a technology standpoint for online banks, unfortunately.”

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best for No-Penalty CDs

Marcus by Goldman Sachs

4.5

We found Marcus, an online bank backed by finance giant Goldman Sachs, to be flexible and user-friendly, although we did have to do a separate Google search to find the best rate on its one-year CD. The bank offers three types of CDs — no penalty, traditional fixed-rate and rate-bump — all with competitive rates and terms ranging from six months to six years.

Marcus has a referral offer for its current online HYSA customers: If you refer a new customer who opens a savings or CD account, you’ll receive a 1% boost on your CD or savings account rate for three months. Depending on which CD you own, this could temporarily push your rate to one of the highest available at any bank.

Pros

A competitive APY on three no-penalty CDs terms (7, 11, or 13 months)

Allows depositors to withdraw the accrued interest on CDs each month without penalty

Allows unlimited deposits within the first 30 days of a high-yield or rate-bump CD’s term

Lets you select what to do when your CD matures up to one year before the date

Cons

No physical branch locations

Lack of a checking account means it might not be a good choice for someone looking to keep all their money at one bank

Can take two or three days for an external account to be verified manually

We opened a 14-month CD with $500 to gather insights into the application process and digital platform experience. We liked Marcus by Goldman Sachs for its flexibility and streamlined features, some include:

• Gives you 30 days after account opening to add additional money (except for no-penalty CDs)
• Lets you add a joint account holder up to three business days after you open your account
• Option to open multiple CD and savings accounts at the same time
• Tips and FAQs on screen provide helpful information during the application process
• Guarantees the highest rate it offers for your CD within 10 days of account opening if you make the minimum deposit

Here are the areas we highlighted for improvement:

• Limited visibility of promotional CD options on parts of the website
• Manual process for verifying an external account with small test deposits took two days

Most Praised Features

High-yield savings and CD accounts: Some reviewers appreciated the competitive interest rates.

Customer service: Some reviewers were highly satisfied with the customer service they received with this bank.

Most Common Complaints

Poor customer service: Many reviewers mentioned their dissatisfaction with the customer service they received, citing long wait times, multiple phone transfers and unresolved issues.

Account and transaction issues: A lot of complaints mentioned having accounts closed or frozen or having trouble with transfers and delays.

We reached out to Marcus by Goldman Sachs for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best for Military Families

USAA Bank

4.5

USAA is well-known for its affordable insurance and wide variety of banking products, which are accessible only to members of the military and their families. We loved how USAA educated us on different types of CDs while we were setting up our account. USAA has over a dozen CD terms, though the most notable are the 182-day term at 4.90% APY and its nine-month term at 4.75% APY. If you qualify for membership with USAA, it’s easy to add a CD to an existing checking or savings account.

While USAA offers four adjustable-rate CDs and two variable-rate CDs, the current APY of 0.01% is so low we don’t recommend them. All three types of CDs have early withdrawal penalties.

Pros

Some of the top rates available for select terms

A wider range of CD term lengths than many banks

Doesn’t require a larger deposit amount to get the best rates

Cons

Low APYs on terms under nine months

Minimum opening deposits of $1,000 for fixed- and adjustable-rate CDs

Membership is restricted to current and former military members and USAA members’ spouses and children

We opened a 182-day USAA CD with $1,000 to show you the process from a customer’s point of view. Our experience was fairly seamless, and we found the company to be user-friendly. Highlights include:

• Easy to transfer money from existing USAA accounts
• Detailed guidance on CD types during the application process
• Pre-application checklist displaying the required documentation and information needed
• Lower minimum deposits for variable-rate CDs

It’s also important to note this limitation with USAA Bank:

• Exclusively available to military members, veterans and their spouses and children

Most Praised Features

Ease of access to services: USAA Bank reviewers liked how easy their accounts were to manage and the availability of various services. They also liked how user-friendly the online services were.

Security and fraud protection: Some reviewers praised USAA’s fraud protection services for speed and efficiency.

Most Common Complaints

Decline in customer service quality: Many reviews complained of USAA’s customer service deteriorating, citing issues like long wait times and unhelpful representatives.

Account freezes and restrictions: Several complaints mentioned having accounts frozen or restricted without any clear explanation.

We reached out to USAA Bank for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best Long-Term CDs

Discover Bank

4.4

Terms 3 months – 10 years

We like Discover because its CD terms range from three months to 10 years — the longest range among our picks. While Discover’s CD rates aren’t as high as some other banks, it may be a convenient option for existing Discover customers.

We didn’t love the lengthy application process, but the bank did offer many security features like multiple verification codes and CAPTCHA. We also liked the transparency of Discover’s account dashboard, which clearly displays our CD’s interest rate and maturity – a feature we didn’t find with most other banks.

Pros

Rare seven- and 10-year long-term CDs offered at 3.40% APY, abnormally high for this time frame

APY, interest rate and maturity date are clearly displayed on a user dashboard

Offers live customer service via phone 24/7

Cons

$0 minimum deposit on CDs, which is higher than many competitors’ requirements

Steep early withdrawal penalties, especially on longer-term CDs

We opened a six-month Discover CD with $2,500 to give you a first-hand look into the process. We like Discover for its transparency on its account options, and we took note of the following:

• APY and CD account details are clearly displayed on the brand’s website
• Included a CAPTCHA anti-bot verification step in the application for security

Here are the areas where we think Discover could improve its customer experience:

• Lengthy 19-step application process, including inquiries about paperless statements and using money internationally
• Deposit not available for five days
• No chat option for customer support

Most Praised Features

Digital banking services: A large number of reviewers praised Discover’s mobile app and online banking services. They liked how easy it was to manage their accounts and transfer money.

Customer service: Discover’s customer service was praised frequently with mentions of the U.S.-based service and 24/7 availability.

Most Common Complaints

Customer service inconsistency: Despite Discover getting rave reviews for its customer service, it also had some negative feedback. These complaints included inconsistent service and frustration with getting complex issues resolved.

Account issues: Many complaints were related to accounts getting frozen with unclear explanation, restricting customers’ access to their funds.

We reached out to Discover for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best for Small Investments

BMO Alto

4.3

We liked BMO Alto, an online-only subsidiary of BMO Financial Group, for its competitive CD rates on longer-term CDs with no minimum deposit. And while it doesn’t offer a mobile app, it was easy to set up our account on its website, which is also accessible via mobile. Customer service is available via phone 24/7.

BMO Alto is limited to savings accounts and CDs, though, so if you want a one-stop financial institution, this isn’t it.

Pros

Has one of the highest rates offered for a five-year CD

No minimum opening deposit

Fund your account within 10 days and if rates rise, you’ll get the higher rate

Cons

Only allows CD funding through a BMO Alto bank account or an automated clearing house transfer from an external bank account

Only offers savings accounts and CDs – no checking accounts, credit cards or loans

For a personal look into the BMO account process, we opened a $2,500 CD with a six-month term. Here’s what we liked about becoming a BMO Alto account holder:

• Gives you the higher APY if the offered rate increases between when you open your account and fund your CD
• Convenient option to save the application and finish it later
• Two options for linking an external account to fund your CD
• Lets you cancel online instead of requiring you to call

Since the bank doesn’t offer a mobile app, we tested its online banking platform. There were several technical glitches we had to work through:

• Asked for location during the application process
• Aggressive account timeout mechanisms, leading to unintended logouts
• Error when linking bank accounts forced us to link manually

Most Praised Features

Helpful and knowledgeable staff: Many reviewers agree that BMO Alto’s staff is helpful and well-informed when it comes to helping them resolve issues.

Customer service responsiveness: Some reviewers had even more positive things to say about customer service and how well BMO Alto handles account-related issues.

Most Common Complaints

Difficulty opening accounts: Complaints frequently mentioned issues with opening accounts, especially CDs and savings. They stated they couldn’t get any clear reasons for the rejections.

Poor customer service: While BMO did have some positive reviews based on customer service, it also received its fair share of negative ones. Some customers criticized it for unprofessional, unresponsive and unclear assistance.

Account management issues: Some reviews complained about account-management issues, including unauthorized holds, access to their funds and difficulty transferring money.

We reached out to BMO Alto for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best CD Ladders

Barclays CDs

4.3

It was quick and easy to set up an account with Barclays, requiring just eight clicks to complete the process. Rates for all Barclays online CDs are competitive, and there are no minimum opening deposit requirements. Barclays also gives you a little longer than other banks to fund your CD — up to 14 days.

Pros

5% APYs on shorter-term CDs

No minimum balance requirements for CDs or the savings account

No penalty for withdrawing interest earned on a CD before its maturity date

Cons

Only offers savings and CD accounts

Has just seven CD term lengths

Live customer support only available from 8 a.m. to 8 p.m. EST

We opened a one-year CD and funded it with $500 for a hands-on look at Barclays’ application process. It was efficient:

• Had the fewest number of steps in its application process among the top 10 CDs we reviewed
• Option to set up two-factor authentication for additional security

However, we had some challenges with Barclays:

• One of only two accounts we tested that didn’t provide instant approval, instead making us wait for email confirmation and manual account review
• Prompted us to reset our password during the initial login, which was confusing
• Linked external account didn’t show up as an option for transferring money
• Phone system required us to enter a Social Security number to speak with an agent, unlike other banks

Our review team reached out to Barclays for comment on our experience with opening a CD and received the following response:

“We strive to provide a simple and easy experience for our customers. The majority of our customers are pleased with their online experience and savings rates that are roughly five times the national average.”

Most Praised Features

High-interest savings accounts: Several customers expressed their appreciation for Barclays’ high-yield savings accounts. They mentioned good interest rates, often exceeding expectations.

Easy-to-use online platform for CDs: Some reviewers said they found the CD opening and management process straightforward and reliable.

Customer Support in Account Management: Some users reported efficient customer service when managing certain account changes or issues.

Most Common Complaints

Poor customer service and communication: Many of the negative reviews pointed out long wait times, unresponsiveness and difficulty in understanding representatives.

Issues with fraud handling and dispute resolution: Many users claimed they felt unsupported and ignored when reaching out with fraud claims and disputes.

Frequent unjustified credit limit reductions: Customers reported sudden reductions in their credit limits without warning, affecting their credit scores.

We reached out to Barclays for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Top Credit Union Pick

Alliant Credit Union

4.0

Credit unions typically offer more favorable rates than traditional brick-and-mortar banks, and Alliant is no exception. It calls its CDs certificates, and top certificate rates are above 5%. If you invest in a jumbo certificate for 75,000ormore,you’llearnanextra0.0575,000 or more, you’ll earn an extra 0.05% APY for some term lengths. Otherwise, the minimum deposit to open a regular Alliant CD is 75,000ormore,you’llearnanextra0.051,000.

Alliant also offers an array of tax-exempt certificates, including three types of IRA certificates: Traditional, Roth and Simplified Employee Pension (SEP).

We found Alliant’s customer service to be top-notch. After we called their customer service number, an agent answered our call directly. While Alliant is a credit union and membership is required, they make it easy to join by automatically setting up an account for you after your certificate application is approved.

Pros

Large selection of traditional fixed-rate certificates, plus retirement CD options

24/7 customer service by phone

Cons

$1,000 minimum deposit for non-jumbo CDs

Membership requirements to join the credit union

Interest on CDs compounded monthly rather than daily

We opened a three-month CD with $1,000 to share our personal experience with Alliant. Alliant had several features we liked, including one that made it stand out from the nine other banks we opened CD accounts with:

• Instant funding from an external account, which took days with other CD providers we used
• Security measures such as naming the devices you log in with and automatically logging out after 10 minutes of inactivity
• Exceptional customer service that directly links you with an agent — no prompts

While you do need to join the credit union to be a customer, you can first apply for a CD, and if the application is approved, Alliant will automatically set up the membership for you. To maintain your membership, you must keep a $5 balance in your Alliant savings account. Alliant funds this initial deposit for you.

We thought Alliant could improve in some areas:

• Difficult to find the chat option for customer support
• CDs renew automatically and may renew at a lower rate

Most Praised Features

Effective online and mobile banking: Common praise for Alliant related to its online banking services for a seamless and user-friendly experience.

High savings and CD rates: Several reviews mentioned Alliant’s competitive rates on deposit accounts, especially savings and CDs.

Most Common Complaints

Customer service issues: Many reviewers complained about longer wait times and poor problem resolution.

Account management problems: A common complaint was the difficulty with managing accounts, such as trouble accessing funds or unexpected fees.

Technical glitches: A few reviewers mentioned their frustration with the technical difficulties they had with Alliant’s online banking platform.

We reached out to Alliant Credit Union for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

Best for Large Investments

Citizens Access

4.2

Terms 11 months – 5 years

We like that Citizens Access, an online-only division of Citizens Bank, offers a straightforward application process and ample FAQs if you run into an issue. Since it doesn’t have physical branches to maintain, Citizens Access is able to offer high rates with no monthly fees on its savings products. The one-year CD is a standout at 5.00% APY.

The minimum deposit to open a Citizens Access CD is $5,000, so it’s best for savers who have more to invest.

Pros

Offers a competitive APY for one-year CDs

Allows you to create a CD ladder within one simple online application

Ample customer service hours with live phone support seven days a week

Cons

The $5,000 minimum opening deposit for CDs is higher than the amount required by most online banks

Only allows deposit accounts to be funded via online bank transfer or mailed checks

We opened a Citizens Access one-year CD with a $5,000 deposit in February 2024 to test the overall user experience. Here’s what we liked:

• User-friendly interface, making it easy to see the number of steps in the application process and a timeline
• Helpful FAQs to guide you along the account creation process
• Combines several questions on each screen and provides clear confirmations for each step

Certain aspects of our experience with Citizens Access, however, were not as positive:

• Waited on hold for eight minutes to speak with a representative
• Deposit took five days to reach the account

Most Praised Features

Responsive customer service: Reviewers commonly praised Citizens Access for its superior customer service.

Competitive rates: Reviewers were satisfied with this bank’s competitive rates.

Most Common Complaints

Technical issues with online and mobile banking: Several reviews mentioned issues with the online banking process, stating that it was often down.

Inconsistent or unhelpful customer service: Some reviewers received inconsistent information from representatives.

Account closures without explanation: Several reviews cited unexpected account closures without clear explanation.

We reached out to Citizens Access for comment on its negative customer reviews but did not receive a response.

*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.

CD Rates In the News

### Fed Announces Another Rate Drop

The Federal Reserve announced Nov. 7 that it was cutting rates by another 0.25% in a continued effort to stimulate the economy. This decision marks the second rate cut in recent months as the central bank tries to encourage borrowing and investing. The next Fed meeting is set for Dec. 17-18.

CD rates have continued to decline since the Fed’s last announcement in September, and this latest rate cut could push yields down even further. For instance, in September, the national average rate for a 1-year CD was 1.88%, falling to 1.81% by the end of October. This could mean you need to either lock in rates now with a higher-yield CD or reassess your financial strategy as your current CDs reach maturity.

Top CD Rates Today by Term

Depending on your financial goals, the term length of a CD is an important factor to consider as APYs vary based on the duration of the term. Plus, you typically pay a penalty to withdraw your money before the term is up, so consider whether you can keep your money locked up for the duration of the term you choose. In our latest MarketWatch Guides team CD survey, over 78% of people chose their term based on interest rate, while 28% based their decision on when they’d need their money.

Common CD terms range from three months to five years. The following CDs assume a $10,000 deposit and are accurate as of February 12, 2025. Rate data is sourced by Curinos, a provider of retail banking research that collects deposit pricing data from more than 3,600 financial institutions. These products may have stricter requirements than our picks above – see the institution’s website for more details.

Is Now the Right Time to Buy a CD?

In our survey of Americans who have used a CD within the past five years, over half of the respondents told us they opened a CD in either 2023 or 2024. High interest rates were the main reason why people opened a CD, and 40% of respondents reported earning a rate between 4% and 6%.

The last time CD rates reached 5% was December 2007. From 2008 to early 2023, rates averaged at 0.94% and only briefly surpassed 2%. The chart to the right shows average 3-month CD rates over the past 20 years.

Over the past year, the top CD rates offered by the online banks and credit unions we track have remained steady but have taken a slight dip in recent weeks. Now may be an opportune time to open an account and maximize your savings before rates likely fall later in 2024.

While the Federal Reserve has indicated that interest rate cuts are coming in 2024, no cuts have been made yet. Federal Reserve Chair Jerome Powell told a House Financial Services Committee in early March that the Federal Reserve would likely cut interest rates but is keeping a keen eye on inflation before making any decisions. So far this year, the Reserve has held rates between 5.25% and 5.50%.

We spoke to Preston Caldwell, chief U.S. economist at Morningstar Research Services, on the future outlook for CDs. He expects the federal funds rate to drop from its current range of 5.25% to 5.5% to 3.75% to 4% by the end of the year. When that happens, he expects short-term CDs to see a similar dip of around 1.5%.

How To Choose the Best CD

There are four primary factors to keep in mind when choosing a CD. They are the interest rate, term length, early withdrawal penalty and deposit requirement.

Annual Percentage Yield (APY)

The annual percentage yield (APY) measures the total return on your savings, taking into account both interest rate and compounding frequency. The higher your APY, the more your money will earn over the life of the CD. The APYs offered on CDs vary greatly based on the length of the CD. Right now, short-term CDs offer much higher rates than longer-term CDs (4% to 5.5% for 3-month CDs compared to 4% to 4.5% for 5-year CDs). If you find a CD at or above this range from a reputable bank, you can be fairly certain you’re getting a good deal.

Term Length

CDs are time-based deposit accounts, and most CDs require you to keep your money in the account for a set period of time. Common CD term lengths range from three months to five years. Shorter-term CDs often offer higher APYs, but you run the risk of rates being lower when you need to renew them. Longer-term CDs have lower rates, but offer you a guaranteed return for longer. A CD ladder may be able to give you the best of both worlds, splitting your savings between multiple CDs of different term lengths.

Early Withdrawal Penalty

Most CDs come with early withdrawal penalties if you take money out of the account before your CD term ends. In most cases, this penalty is imposed as a certain number of days’ worth of interest. The best CDs typically charge you 30 days worth of interest, while other banks may charge as much as 180 days or more. Some banks allow you to withdraw the interest you’ve earned on your account without penalty. If you think you might need access to cash during your CD term, make sure to look for this feature.

Minimum Deposit

Most banks require you to start your account at a minimum dollar amount. Others may tier their APYs, offering higher rates to people with larger deposits. The best CDs have low ($500 or less) or no minimum deposit requirement. On the other side of the range, some banks may require $100,000 or more to earn their best rate.

Types of CDs

The first way to maximize your CD’s potential is to consider the type you need. Here’s a quick breakdown of how they differ.

### Traditional CD

Best for: Savers seeking a predictable, guaranteed return on their investment

Traditional CDs have a fixed APY for the entire term and don’t generally allow you to withdraw your principal until they have matured. They typically offer higher APYs than a savings account.

### Bump-Up CD

Best for: Investors who expect CD interest rates to increase

Bump-up CDs allow you to get a higher rate if the available rate rises during your CD’s term. Bump-up CDs provide flexibility in case rates increase before your CD matures.

### No-Penalty CD

Best for: Those who may need to access their funds before the CD matures

No-penalty CDs don’t charge a penalty if you withdraw the principal before your CD matures. This is the only type of CD that allows for early withdrawal with no costs or fees.

YOUR ENDING BALANCE $1,025

Total Interest Earned

$25

Pros and Cons of CDs

Pros

• A fixed interest rate means you lock in your APY for the entire length of the term.
• A fixed interest rate also means you’ll know exactly how much you’ll earn at the end of the term.
• CDs can keep you from spending your savings by limiting access to your money until the CD matures.
• CDs are considered very safe investments for money you need in the short or medium term, and they’re FDIC- or NCUA-insured for up to $250,000.
• CDs are not subject to market fluctuations, making them a stable investment during market instability.

Cons

• CDs limit access to your money during the term of the CD unless you take an early withdrawal penalty.
• You can’t usually add money to a CD after you’ve funded your account.
• If interest rates rise, you’ll miss out — your CD rate will stay the same.
• Withdrawing your money before the maturity date can result in penalties, reducing your overall returns.
• CDs typically offer lower returns than higher-risk investments like stocks.

Alternatives to CDs

While CDs are a reliable way to earn money on cash investments, there are several alternatives. CDs may offer higher interest rates than traditional savings accounts or money market accounts, and can be less risky than bonds, but their downside is less liquidity.

Expert Insights and Tips

We asked five experts to share their insights about CD Rates.

Common Questions About CDs

Online banks have some of the highest-paying CD rates right now, reaching 5.30% APY or more. There are some smaller credit unions offering higher rates, but these typically have membership requirements and geographic restrictions.

The top rates are now just under 6.00%. These are typically offered by a handful of credit unions that may have membership restrictions. However, because CD rates can rise and fall based on economic conditions, CDs paying 6.00% APY could be more common if interest rates increase.

The best CD rates for 100,000areabove5.50100,000 are above 5.50% APY and tend to come from credit unions (though these usually have membership restrictions) or online banks. For larger sums such as 100,000areabove5.50100,000, it may be more lucrative to open a CD that compounds interest daily rather than monthly, even if the APY is slightly lower.

High-risk investors may not find CDs attractive since their guaranteed payouts mean they often have lower rates of return than other types of investments. But variable-rate CDs may satisfy those looking for more risk since their interest rates can change when benchmark rates go up or down.

Bump-up CDs also allow for some risk since they often have lower APYs than some fixed-rate CDs but allow you to request a higher rate at least once during the CD’s term if the bank raises rates for new account holders. Additionally, you might consider a brokered CD that comes with a higher risk and higher APYs.

Our Methodology

For our list of the best CD rates, we at the MarketWatch Guides team evaluated 154 banks and credit unions and selected the highest-scoring financial institutions. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms.

Our comprehensive methodology examines over a dozen customer experience data points, including branch and ATM locations, mobile app ratings, reputation and customer service access. We focus on key categories such as savings accounts, money market accounts, checking accounts, CDs and overall banking experience. We also consider any legal settlements or agreements with regulators.

Our ratings are continuously updated to reflect changes in rates and features to ensure that our recommendations are current and reliable.

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.

*Annual Percentage Yield. Rates accurate as of November 21, 2024.

Customer Review Methodology

To provide in-depth perspective on how customers feel overall about banks that offer certificates of deposit, the MarketWatch Guides team compiled 11,704 reviews from publicly available user-review sites such as Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company.

We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. With this data, we highlighted the most praised features and most common complaints for each bank.

While most of our banks had hundreds or thousands of reviews, BMO Alto only had 40 reviews. This small sample size should be taken into consideration before you choose a financial institution.