Banks with best CD rates

Bankrate’s Best CD Rates in August 2018

The experts at Bankrate have compiled our best available CD rates into an easy-to-read table so you can compare rates and minimum deposits across banks.

6 months TIAA Bank 1.75% $5,000
1 year CIT Bank 2.50% $1,000
18 months Goldman Sachs Bank USA 2.45% $500
2 years Capital One 360 2.50% $0
3 years TIAA Bank 2.70% $5,000
4 years Synchrony Bank 2.65% $2,000
5 years Capital One 360 3.00% $0
6 years Goldman Sachs Bank USA 3.10% $500

Finding the right CD

Choosing the best CD rate can be tricky, but it is certainly not impossible. There are thousands of banks out there, each with multiple CD term options offering different APY rates with varying minimum deposits and fees. Bankrate is here to help you choose the best CD rate for your savings and spending needs. Our experts regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of rates.

All of the CD accounts below are insured by the FDIC at banks or the NCUA at credit unions. Find the best CD rates for you by considering the annual percentage yield (APY), term, minimum deposit required and the penalty charged for early withdrawal. Our goal is to help you make the safest financial decision possible.

What is a CD?

A CD is a Certificate of Deposit, which is a type of savings account, found at banks and credit unions, that pays a set interest rate on money deposited. In exchange, you agree to keep the full deposit in the account for a set term. Common terms include 6, 12, 18, 24, 36, 48 and 60 months.

Generally, the longer the term, the higher the interest rate. CDs with higher APY rates give you a better yield on your deposited money. Just be sure to consider factors like minimum deposit requirements and monthly fees when choosing the best CD rate for your financial goals.

The biggest risk associated with traditional CD accounts is the penalty institutions charge for withdrawing money before the CD’s maturity date. Early withdrawal penalties can often eat up any interest earned and some of the principal investment.

But overall, certificates of deposit are a safe place to stash cash. They are insured up to $250,000 at banks by the Federal Deposit Insurance Corp. and at credit unions by the National Credit Union Administration.

In addition to traditional CDs, some institutions offer specialty CD rate options. These can include jumbo CDs, bump-up CDs, liquid CDs, callable CDs and zero-coupon CDs.

Who should get a CD?

Certificates of deposit are best for those with some financial flexibility seeking a safe investment with a fixed return. If you’re positive you won’t need the cash for a set period of time and you can meet the minimum deposit required, a CD can be great way to save money over time.

CDs can also be a great alternative to stashing money in a savings account, since CDs often pay more than high-interest savings vehicles found at banks or credit unions.

What is the average interest rate on a CD?

The average interest on a CD varies by term. Typically, shorter-term CDs have lower rates than longer-term CDs.

Here are the current average rates for the week of August 1, 2018, according to Bankrate’s weekly survey of institutions:

1-year 0.72%
2-year 0.93%
3-year 0.96%
4-year 1.12%
5-year 1.28%

Note that those are average rates. Savvy savers can almost always find banks and credit unions offering well above those averages.

Research methodology

The “ National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.

Are CD rates locked in?

Traditional CDs come with a fixed interest rate that’s locked in for the entire term. While it’s possible to withdraw money before the CD’s maturity date, most institutions have stiff early withdrawal penalties for doing so. That makes it wise to keep the full deposit in the CD account until the term is completed.

However, some banks and credit unions offer specialty CDs that allow some flexibility. One such CD is a liquid CD account, which provides the option to withdraw money without incurring a penalty. The interest rate paid on liquid CDs, and similar types of CDs, is typically lower than that of a traditional CD.

Choose your CD length wisely

The duration of CD accounts typically determines the rate; the longer the term, the better your CD interest rate will be. Luckily, CD rates come in a wide variety of terms, from a 1-year CD that offers a 2.25% APY with no minimum deposit to a 5-year CD rate that offers a 2.85% APY with a $2,000 minimum amount.

Best CD Rates Comparison

Capital One Bank: 1 year – 5 years, 2.40% APY – 3.00% APY; $0 Minimum Deposit

Overview: Capital One is often associated with credit cards, but it also provides a range of depository and lending products to consumers through Capital One 360, an online banking subsidiary. Capital One 360 offers a wide range of CDs, a savings account, a savings IRA and a checking account. Yields from Capital One 360 tend to be highly competitive. In fact, CD rates from the bank are consistently among the top nationally available options. Along with stellar rates, Capital One’s banking products come with the security of being insured by the Federal Deposit Insurance Corp.

Perks: High yields and low fees make CDs from Capital One 360 top contenders. And it offers a wide range of term options, from six months to 60 months. But Capital One also provides quality banking tools for money management and excellent customer service. In fact, it has a number of Capital One Cafes spread throughout the country, where you can go to bank, get answers to financial questions and connect with other people.

What to watch for: Capital One has limited branch access, other than Capital One Cafes, which are located in 10 states. Deposits and transfers are mainly done through the bank’s mobile app. And while Capital One’s CD rates are very competitive, it’s often possible to find better yields from other banks.

Goldman Sachs Bank: 6 months – 6 years, 0.60% APY – 3.10% APY; $500 Minimum Deposit

Overview: Marcus is the consumer banking arm of investment firm Goldman Sachs. It offers a range of savings products and personal loans. That includes a number of CD options and a high-yield savings account. And like other online banks, its rates are highly competitive. Marcus often is found within the group of banks offering the highest CD rates across all terms. In fact, Marcus guarantees that you’ll receive the highest rate it offers on a CD within 10 days of opening an account, as long as you deposit $500 during that time. So, if you purchase a CD and the bank’s rate goes up within 10 days after you purchase, you’ll receive the higher rate.

Perks: In addition to high yields, Marcus offers a wide range of terms on its CDs — from six months to six years — providing plenty of flexibility. And its 10-day guaranteed rate on CDs means you won’t miss out on a higher return.

What to watch for: Because it’s an online bank, Marcus doesn’t have any branches. It also doesn’t have a mobile app. That means you’ll need to call customer service on weekdays or look at the FAQ section to get answers about your account. Marcus also doesn’t offer a checking account. If you’re looking for a full-service bank, you may be better served elsewhere.

Synchrony Bank: 6 months – 5 years, 1.00% APY – 2.85% APY; $2,000 Minimum Deposit

Overview: Synchrony Bank, formerly known as GE Capital Retail Bank, offers a number of depository products for consumers, including CDs, money market accounts and savings accounts. As an online bank, it has limited branches. It also doesn’t offer a checking account. But it does consistently offer some of the best rates available on CDs, with terms ranging from three months up to 60 months. And Synchrony has a highly rated customer service department available by online chat or by phone seven days per week. Customers of Synchrony get access to loyalty perks, including complimentary identity theft resolution services and travel and leisure discounts. “Diamond customers” get a dedicated customer service number, access to webinars, three free wire transfers per statement cycle and unlimited ATM reimbursements.

Perks: High rates are undeniably one of the biggest perks of CDs at Synchrony. But Synchrony also frequently offers CD specials that come with specialty terms. Those specials often come with high rates and provide an alternative to the typical CD terms. In addition, you’ll find 24/7 online account management access, no monthly service fees and perks for being a customer.

What to watch for: Synchrony Bank isn’t a full-service bank. It doesn’t offer a checking account. That means you won’t have much liquidity. But sometimes that can be a good thing, if you’re looking to keep your hands off your cash while it grows.

Ally Bank: 1 year – 5 years, 2.40% APY- 3.00% APY; $25,000 Minimum Deposit

Overview: Over the past several years, Ally Bank has become well-known for offering high-yield savings products to consumers. It not only offers a suite of high-yield CDs, including a raise-your-rate CD and no-penalty CD, it also provides an online savings account, money market account and a checking account. CDs terms from the bank range from three months to five years, offering some flexibility. In addition to its savings products, it also provides credit cards, auto financing, home loans and investment products. If you’re searching for a full-service online banking experience, Ally is worth consideration.

Perks: Ally consistently offers some of the highest CD rates available. And it has tier levels for its CD terms according to your deposit. The more you deposit, the better your return. It also doesn’t charge any maintenance fees and compounds interest daily.

What to watch for: Notably, Ally doesn’t require a minimum deposit to open a CD. But you’ll earn less. In order to earn the highest rate out of a CD at Ally, you’ll need to put down a steep minimum deposit of $25,000. And while the top rates from Ally Bank are very competitive, you can often earn more with a smaller minimum deposit requirement from other online banks. That said, if you’re looking for a full-service banking experience, you may be able to overlook the slightly lower rates and hefty minimum deposit requirement.

PenFed: 6 months – 5 years, 1.85% APY- 3.00% APY; $1,000 Minimum Deposit

Overview: PenFed, or Pentagon Federal Credit Union, offers a wide range of savings products to its customers, including money market certificates, Coverdell Education certificates, checking, savings and even IRAs. That’s in addition to offering auto financing, credit cards, mortgages and loans. The credit union serves more than 1.6 million members, including members of the U.S. military or uniformed services, employees of the U.S. government and other groups and associations. But membership is also open to those who join Voices for America ($17 per year) or the National Military Family Association ($17 donation). That makes it easy to join this national credit union, which typically offers some of the most competitive rates in the country.

Perks: It’s often tough to beat the rates PenFed pays on its CDs. And it’s a full-service credit union, making it a very attractive place to stash savings while taking care of other banking needs. If you prefer credit unions to banks, PenFed offers the credit union experience with a membership model that’s available nationally.

What to watch for: The $1,000 minimum to open a CD at PenFed is somewhat high. And although its membership is technically available nationwide, PenFed does require that you join via employment, association membership, through volunteerism or by military affiliation. So, you’ll have to jump through some hoops in order to join. But the high rates you’ll receive on CDs may be worth it.

Popular Banks Breakdown

Bankrate has provided a quick-hit comparison of some top banks that offer competitive CD rate options so that you can see rates side-by-side before choosing the best CD for your financial goals.

The Institutions:

  • Capital One Bank
  • Online banking: Capital One 360
  • Goldman Sachs Bank USA
  • Online banking: Marcus by Goldman Sachs
  • Live Oak Bank
  • Online banking: Live Oak Bank

Check out the tables below for a breakdown of Bankrate’s available CD rates for these financial institutions. Be sure to factor in minimum deposit amounts and other fees when applying for a certificate of deposit.

Capital One CD rates

12 months 2.30% $0
18 months 1.75% $0
24 months 2.50% $0
3 years 2.55% $0
4 years 2.60% $0
5 years 2.90% $0

Marcus by Goldman Sachs CD rates

6 months 0.60% $500
9 months 0.70% $500
12 months 2.30% $500
18 months 2.35% $500
24 months 2.45% $500
3 years 2.55% $500
4 years 2.60% $500
5 years 3.00% $500
6 years 3.10% $500

Live Oak Bank CD rates

6 months 2.00% $2,500
12 months 2.50% $2,500
18 months 2.55% $2,500
24 months 2.80% $2,500
3 years 2.85% $2,500
4 years 2.90% $2,500
5 years 3.20% $2,500

CD Rates for August 2018

Vio Bank



As of: Fri Aug 10

5yrs $ 500
Capital One 360



As of: Fri Aug 10

5yrs $ 0
Vio Bank



As of: Fri Aug 10

4yrs $ 500
Goldman Sachs Bank USA 3.00%

As of: Fri Aug 10

5yrs $ 500
Vio Bank



As of: Fri Aug 10

2yrs $ 500
Synchrony Bank



As of: Fri Aug 10

4yrs $ 2,000
Goldman Sachs Bank USA 2.60%

As of: Fri Aug 10

4yrs $ 500
Capital One 360



As of: Fri Aug 10

3yrs $ 0
Goldman Sachs Bank USA 2.55%

As of: Fri Aug 10

3yrs $ 500
Synchrony Bank



As of: Fri Aug 10

3yrs $ 2,000
Capital One 360




As of: Fri Aug 10

2yrs $ 0
Vio Bank 2.50%

As of: Fri Aug 10

1yr $ 500
2yrs $ 500
CIT Bank



As of: Fri Aug 10

1yr $ 1,000
Synchrony Bank



As of: Fri Aug 10

2yrs $ 2,000

Source by:


Leave a Reply

Your email address will not be published. Required fields are marked *