Best CD Rates of November 2023

Figuring out where to stash your cash to earn the most interest can be challenging. One potentially lucrative option is a certificate of deposit (CD) account. Depending on the bank or credit union you choose, CDs could offer a higher annual percentage yield (APY) than high-yield savings accounts or money market accounts.

Finding the best CD account can feel overwhelming, though. To help narrow down your options, we’ve pulled together a list of the best CD accounts. We’ll also discuss what to look for as you’re shopping around for a CD to make the process easier.

Best CD rates

CD name	APY	Minimum deposit	Top feature
Navy Federal Credit Union Special EasyStart Certificate	Up to 5.30% (as of Sep. 18, 2023)	$50	Competitive APY
Blue Federal 15-month CD	5.25%1	$1	Low minimum deposit
Ally Bank 18-month CD	5.15% (as of Sep. 18, 2023)	None	No minimum deposit
Marcus by Goldman Sachs 12-month CD	5.20% (as of Oct. 13, 2023)	$500	10-day CD rate guarantee
CIT Bank 6-month CD	5.00%	$1,000	Daily compounding interest
Discover 12-month CD	5.20% (as of Nov. 16, 2023)	$2,500	Long terms available

Summary of the best CD accounts

• Navy Federal Credit Union: Best for military members
• Blue Federal Credit Union: Best for flexible terms
• Ally: Best for small deposits
• Marcus by Goldman Sachs: Best for flexible rates and withdrawals
• CIT Bank: Best for large deposits
• Discover: Best for long-term lengths

Navy Federal Credit Union: best for military members

Navy Federal Credit Union is a great option for military, Department of Defense civilians, and their family members. It offers CD accounts with competitive rates and terms for as long as seven years. Minimum deposits for its CD products range from $50 to $1,000.

With its generous APY, Navy Federal’s Special EasyStart Certificate really stands out. It allows members to earn an eye-popping 5.30% (as of Sep. 18, 2023) APY for a 12-month term on up to a $3,000 maximum balance. Members must have a checking account and set up direct deposit to qualify and can only have one of these CDs per primary bank account holder.³

Learn more about CD accounts from Navy Federal Credit Union.
Read our Navy Federal Credit Union review.

Blue Federal Credit Union: best for flexible terms

Blue Federal Credit Union offers a 15-month share certificate with an impressive APY of 5.25%. They also offer a 9-month no-penalty certificate, which allows flexibility to withdraw your full balance 30 days after opening an account without worrying about fees.

In addition to its high-yield CDs, Blue Federal Credit Union offers a variety of financial products, including savings and checking accounts, credit cards, and loans. You'll have 24/7 online access to their funds, making it easy to manage your account.

Keep in mind that since Blue Federal is a credit union, you must be a member to take advantage of the financial products on offer. To become a member, you can either have a family or employment relationship or donate $10 to the Blue Foundation, which is a more accessible requirement than some credit unions offer.

Learn more about CD accounts from Blue Federal.

Ally: best for small deposits

Many banks have minimum opening deposit requirements for CD accounts. Thankfully, none of Ally Bank’s CDs requires a minimum balance. So no matter how small your deposit amount, you can start working towards your savings goals with an Ally Bank CD.

If you want added flexibility, Ally has an 11-month no-penalty CD, which allows you to withdraw your full balance after six days of account funding without incurring any fees. This could be a good option if you’re unsure when you’ll need access to your money.

In addition to its CDs, Ally also offers other banking products, including checking, savings, investing, retirement, mortgage, auto, and personal loan products.

Learn more about CD accounts from Ally.
Read our Ally review.

Marcus by Goldman Sachs: best for flexible rates and withdrawals

Imagine opening a CD and then watching CD rates increase just a day or two later. You’re stuck with a long-term rate lock at a lower rate which means earning less interest.

Fortunately, online bank Marcus by Goldman Sachs offers a solution to this problem. As long as you make a $500 minimum deposit within 10 days of opening your account, you’ll receive the highest published interest rate and APY for the High-Yield CD you opened. The current APY for a 1-year CD is 5.20% (as of Oct. 13, 2023).

And if you’re not sure when you’ll need access to your funds, Marcus also offers no-penalty CDs with APYs from 0.35%-4.60% (as of Oct. 13, 2023), also depending on the term you choose. This CD allows you to withdraw your entire balance anytime, beginning seven days after you fund the account.

Learn more about CD accounts from Marcus.
Read our Marcus by Goldman Sachs review.

CIT Bank: best for large deposits

CIT Bank offers a 6-month CD with a solid APY of 5.00%. Your interest compounds daily and is backed by FDIC insurance, making it a secure and efficient way to grow your savings in a short period of time. 

In addition to their 6-month CD, CIT Bank also offers a range of other financial products, including a money market account, checking account, and various types of CDs such as term CDs, jumbo CDs, and no-penalty CDs that offer the flexibility of no early withdrawal penalties.

If you’re looking for an online savings account and a checking account too, CIT Bank could be a good option.

Learn more about CIT Bank’s CD accounts and 11-month no-penalty CD.
Read our CIT Bank review.

Discover: best for long-term deposits

While Discover might be well known for its credit cards, it also offers both short-term CDs and longer-term CDs in addition to other financial products. For example, it offers a 12-month CD with an APY of 5.20% (as of Nov. 16, 2023), but it also offers a 10-year CD with a competitive APY of 3.80% (as of Nov. 16, 2023). 

A long-term CD could be a good option if you’re looking for stable growth and you’re concerned interest rates will decrease in the future. Keep in mind, though, that longer-term CDs with Discover have higher interest penalties for early withdrawals. To open a CD with Discover, you’ll also need a minimum balance of $2,500.

Learn more about CD accounts from Discover.
Read our Discover review.

What is a CD account?

CDs are deposit accounts with a fixed interest rate that typically require you to deposit funds for a set period of time. For instance, you could encounter an 18-month CD with a fixed rate of 0.40% or a 3-year CD with a 0.50% rate.

You might choose to put your money into a CD account for a few reasons. Often, CDs offer a higher interest rate for savers than traditional checking or savings accounts, which can be useful if your goal is to grow your money over time. CDs are also a popular option for funding short-term goals, as they offer stable, predictable growth.

While some banks offer no-penalty CDs, once you deposit money in a CD account, it’s typically inaccessible for its full term unless you pay a penalty to withdraw the money early. The penalty is often equal to a certain number of days of interest you would have earned, such as 60 days. Penalties might vary by the term of the CD, with longer CD terms charging higher early withdrawal penalties, though this depends on the account and financial institution.

CD accounts often pay higher APYs than savings or money market accounts. Banks and credit unions often offer these higher rates to incentivize you to keep your money with them for an extended period. In general, the longer the CD term, the higher the interest rate you’re likely to receive. Unfortunately, some come with minimum deposit requirements, though this isn’t the case with every CD.

Types of CDs available

Institutions might offer a variety of CDs with different rates and terms to attract customers. Here are some general types of CDs commonly offered.

• Traditional CDs: These are basic CDs with a set term and interest rate. They may have early withdrawal penalties, depending on the account and bank.
• No-penalty CDs: These CDs might allow you to withdraw money before the term expires without paying a penalty.
• Jumbo CDs: These CDs generally have large minimum balance requirements and may offer higher interest rates due to these requirements.
• Potential rate increase CDs: These CDs, sometimes called “bump-up CDS”, might allow you to increase your interest rate if CD rates increase during a certain period.
• High-yield CDs: These CDs focus on offering the best interest rates available for a particular term.

CDs vs. savings accounts

The main difference between savings accounts and CDs is liquidity. You can withdraw your money from a savings account at any time with few (if any) restrictions, but CDs require a commitment that lasts anywhere from a few months to several years.

Savings accounts used to have a legal limit of six withdrawals per month, but the Federal Reserve discontinued that rule in 2020. Since you now have unlimited withdrawals from your savings account (unless your banking institution says otherwise), your cash is as accessible to you there as it would be in a checking account.

CDs are much more restrictive in comparison. If you take your money out of a CD before the end of your time commitment, you have to pay a penalty. There’s one exception to this: no-penalty CDs. You might opt for a no-penalty CD if you want to lock in your APY for a set period of time — even if you have to withdraw your money before that time is up.

How does compound interest work?

If you’re thinking about opening a CD, you may be wondering how compound interest works and how it relates to CD accounts. Compound interest is a concept that allows you to grow your money faster. Essentially, it allows the interest your money earns to earn more interest itself. A quick example best explains this.

Let’s say you have a balance of $10,000 in a 12-month CD that earns and is paid 0.01% interest per day. On day one, you’d make $1 in interest. This increases your balance to $10,001. The next day, you’ll actually earn slightly over $1 in interest because your balance is now $1 larger.

Over time, this compounding effect adds up. After a year, you’d have $10,371.72. If your interest didn’t get paid daily throughout the year and you were only paid interest on the initial $10,000 balance at the end of the year without compounding, you would only have a balance of $10,365. Compounding resulted in an extra $6.72.

Interest isn’t paid daily in practice, though. Instead, banks and credit unions specify how often they compound or calculate your interest. Many banks compound interest daily but pay it monthly. This generally results in the same benefit, but computers calculate the numbers behind the scenes and deposit your interest once per month.

The higher your interest rate and initial deposit are, the more significant the effect of compound interest. Typically, a CD rate that’s above the national average is a solid choice. Longer CDs and CDs with higher minimum balances may offer higher APYs, which could allow you to take advantage of compounding interest even more.

How to pick the right CD account for you

Choosing the correct CD for you comes down to many factors. Here are several things you may want to consider to find the best account for you.

• NCUA- or FDIC-insured: Since certificates of deposit generally qualify for NCUA or FDIC insurance, which protects your money against the risk of loss. It’s essential to pick a CD from a member FDIC or NCUA institution.
• Online vs. brick and mortar bank: People often have strong preferences about whether they want to bank online or in person. Take these feelings into account before choosing a CD. And keep in mind, online institutions could offer higher interest rates.
• Minimum deposit: Some banks and credit unions have minimum deposit requirements to open a CD account. These limits might be high in some cases, so double-check the minimums before choosing a CD.
• CD term: Choose a CD term you’re comfortable with unless you’re opting for a no-penalty CD. Otherwise, you might have to pay penalties to access part or all of the funds in the CD before its maturity date.
• CD type: Banks offer several different CD options, including no-penalty CDs, CDs with a potential rate adjustment, and traditional CDs. Consider your needs to find the one that fits best for your goals.
• Interest rate: The interest rate determines how much money you’ll earn from your CD. While shopping for the best rate is a good idea, you must make sure all other aspects of the CD fit your investing goals before looking at interest rates.

Our methodology

In determining our list of the best CD accounts, we looked at six popular financial institutions and evaluated them according to a set of criteria we consider critical to the consumer. We did not evaluate all banks or credit unions in the category. We used editorial judgment to determine what use or user each savings account would be best for.

FinanceBuzz evaluation criteria include:

• Interest rate: We considered interest rates as they determine how much interest you earn and are among the most critical factors in choosing a CD.
• CD term: In addition to the interest rate, the terms offered allow for flexibility in choosing the right CD. We looked for institutions with a variety of CD term lengths.
• FDIC- or NCUA-insured: All banks or credit unions on our list are FDIC or NCUA members, which means your deposits are insured.
• Minimum deposit: The minimum deposit required to open a CD account varies by institution, but all banks and credit unions on our list allow you to open a CD with $2,500 or less.

FAQs

Bottom line

The best CD accounts may be a good fit for your needs if you’re looking for stable account growth or you have a short-term time horizon for your financial goals.

Regardless of why you choose to open a CD account, it’s a good idea to make an educated decision on where to park your money. Compare the best banks and credit unions to find the ones that offer the best CD rates, terms, fees, and minimum deposits to suit your needs.