Certificates of Deposits offer a safe way to save money. Whether for an emergency fund, to buy a home or liquidity during retirement, term CDs can also offer higher yields than savings accounts (although not always). Here we cover the best CD rates available nationwide.
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November 2020 CD Rate Update
The big question surrounding certificates of deposit is this–why would anybody invest in one? The rates are so low, and one can get rates as high or better with an online savings account. Perhaps the only argument in favor of a CD is that your rate is locked in should rates go lower. While anything’s possible, lower rates seem unlikely.
That being said, Live Oak Bank continues to top our list with the highest 1-year CD Rate (see below). You may be able to find a slightly higher rate at small, local banks and credit unions.
Best 1 Year CD Rates
The 1-year CD terms is one of the most popular for savers. Here are some of the best rates available for 12-month terms.
|Live Oak Bank||0.80%||$2,500|
Best CD Rates Overall
Many have never heard of CFG Bank. Headquartered outside of Baltimore, MD, the bank was founded in 1997 as AmericasBank (FDIC # 34294). CFG is a community bank, meaning it’s locally owned and operated.
CIT Bank is one of our favorites. It tends to offer some of the best rates on deposit accounts, including CDs. In addition to the high-yield CDs below, it also offers Ramp Up CDs, Jumbo CDs, and a no-penalty CD.
BMO Harris Bank
BMO offers competitive yields on CDs. That said, its rates have come down sharply along with other banks over the last month. We’ve also seen a flattening of rates, with terms ranging from 6 to 18 months offering the same rates, and two to four years also offering the same rates.
Ally offers several types of certificates of deposit: high-yield CDs, Raise Your Rate CDs, and a no-penalty CD. There are no monthly maintenance fees and no minimum deposit requirement. However, the amount of your deposit can affect the interest rate you’ll receive (see rates below)
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers some of the highest yields on CDs available today. In addition to high-yield certificates of deposit, the bank offers a no-penalty CD.
Comenity Direct is one bank many have never heard of. A brand of Comenity Capital Bank headquartered in Draper, UT, it was established in 2003 as World Financial Capital Bank. It’s FDIC-insured (Certificate # 57570) and offers some of the best CD yields available in the country.