Best CD Rates of August 2023 (up to 7.19% APY)

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

We check rates daily to find the best rates for a variety of CD terms. If you want a no-penalty CD, a unique term length, or if you don’t have much money to deposit, we’ve also included picks for these circumstances, too.

The Best CD Rates

Market Leader

Alpena Alcona Area Credit Union (7-month term) paying 7.19% APY

To open a CD at Alpena Alcona Area Credit Union, you must qualify for membership. Generally, you must live, work, own property, go to school, or worship in any county in Michigan; work at the credit union; or have an immediate family member who is an existing member. The CD also permits a maximum deposit of $7,000. Learn more.

Top CD Rates by Term

Many of the best CD rates are offered by credit unions right now. But don’t worry — anyone is eligible to join these credit unions and open CDs.

Our top picks for CDs are protected by either FDIC or NCUA insurance. Although multiple financial institutions were shut down in 2023, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Compare the Best CD Rates

About the Best CD Issuers

Alpena Alcona Area Credit Union 7-Month CD

Why it stands out: Alpena Alcona Area Credit Union has the highest CD rate available right now. You can earn 7.19% APY on a 7-month CD if you qualify for membership at the credit union.

To become a member, you must 1) live, work, own property, go to school, or worship in any county in Michigan, 2) work at the credit union, or 3) have an immediate family member who is an existing member. 

Term options: Alpena Alcona Area Credit Union also has terms ranging from 90 days to 5 years. 

Penalties: You’ll have to contact your nearest branch to learn more information about early withdrawal penalties. The penalty may depend on the amount withdrawn.

What to look out for: This promotional CD has specific opening requirements: Your deposit cannot exceed $7,000, and there is a limit of one CD special per member.

Dow Credit Union Simple CD Special

Why it stands out: Dow Credit Union is a solid choice if you prioritize banking with a credit union. The credit union has a low $500 minimum opening deposit. The 3-month and 6-month Simple CDs — the credit union’s CD specials — are the most competitive rates available at Dow Credit Union.

Term options: Simple CD terms range from 3 months to 3 years. The bank also offers traditional and bump-up CDs.

Penalties: Down charges standard penalties for early withdrawals of your principal balance, as follows:

• 45 days of interest for a 3-month term
• 90 days of interest for a 6-month term

For information on additional penalties, contact a Dow Credit Union branch.

Keep an eye out for: Credit unions require membership to open an account. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join like if you are part of a Select Employer Group or have a family member who is a current credit union member.

TotalDirectBank CD

Why it stands out: TotalDirectBank, the online-only division of City National Bank of Florida, has the highest 1-year CD rate available nationwide.

Term options: TotalDirectBank has terms ranging from 3 months to 5 years.

Penalties: The following early withdrawal penalties may apply to TotalDirectBank CDs:

• 30 days of interest for terms between 30 days up to 6 months
• 90 days of interest for terms above 6 months and up to one year
• 180 days of interest for terms over 1 year

Keep an eye out for: TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. The online institution also doesn’t operate in Florida, Somoa, Guam, the Northern Mariana Islands, or US Virgin Islands.

Sallie Mae CD

Why it stands out: Sallie Mae offers the most competitive interest rate on an 18-month term right now. The online bank also has a variety of term lengths, including 15-month and 30-month terms. 

Term options: Sallie Mae has terms ranging from 6 months to 5 years. 

Penalties: Sallie Mae charges the following early withdrawal penalties: 

• For terms of 1 year or less, the early withdrawal penalty is 90 days of interest on the amount withdrawn
• For terms above 1 year, the early withdrawal penalty is 180 days of interest on the amount withdrawn

What to look out for: Sallie Mae CDs require a minimum opening deposit of $2,500. If you’d like to open a CD with more lenient opening deposit requirements, consider another financial institution. 

Pelican State Credit Union Share Certificate

Why it stands out: Pelican State Credit Union, a financial institution based in Louisiana, offers a great interest rate for a 2-year term. Its share certificate also has a $500 minimum opening deposit.

Term options: Terms range from 6 months to 5 years.

Penalties: At Pelican State Credit Union the early withdrawal penalty is as follows:

• 180 days of interest for terms of one year or less
• 270 days of interest for terms between 13 months to 36 months
• 365 days of interest for terms between 37 months

Keep an eye out for: You must qualify for membership to open a Pelican State Credit Union share certificate. The easiest way to join is to become a member of ARC Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee).

Quorum Federal Credit Union Term Savings

Why it stands out: Quorum Federal Credit Union has a high interest rate on term accounts (which is another name for a certificate). The 3-year term offers the most competitive interest rates. 

Term options: Terms range from 3 months to 5 years.

Penalties: At Quorum Federal Credit Union the early withdrawal penalty is as follows:

• For terms between 2 months and 11 months, 1% of the amount withdrawn
• For terms between 12 months and 24 months, 2% of the amount withdrawn
• For terms over 25 months, 3% of the amount withdrawn

Keep an eye out for: You must become a member to open a bank account at Quorum. To become a member, you or a family member have to work for a Select Employee Group on this list, or you must join the American Consumer Council or Select Savers Club.

First National Bank of America CD

Why it stands out: First National Bank of America lets you open CDs online from anywhere in the US. The bank offers high CD rates for 4-year and 5-year terms.

Term options: Terms range from 1 year to 7 years.

Penalties: First National Bank of America charges high penalties for early withdrawals of your principal balance, as follows:

• 90 days of interest for terms under 1 year
• 180 days of interest for terms between 1 year and 23 months
• 360 days of interest for terms between 2 years and 47 months
• 540 days of interest for terms of 48 months or more

Keep an eye out for: First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about taking out money before your term ends.

Technology Credit Union 5-Month No Penalty CD

Why it stands out: The highest no-penalty CD rate at Raisin is 5.26% APY on a 5-month Technology Credit Union No Penalty CD. Raisin also may be appealing if you’d like to open a CD with a low minimum opening deposit. You only need $1 to get started.

Term options: Raisin is partnered with over 30 banks and credit unions, so it has multiple terms for both no-penalty and regular CDs.

Penalties: This account doesn’t have any early withdrawal penalties.

Keep an eye out for: Raisin doesn’t have physical locations. It also won’t be the best choice if you want to do all your banking at one institution because you can’t open checking accounts.

Why You Should Trust Us: Experts’ Advice on Choosing the Best CD

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts to use for your money. You can read their insights at the bottom of this post.

Here’s what they had to say about CDs. (Some text may be lightly edited for clarity.)

What makes a CD good or not good?

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

“You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it’s monthly or quarterly.”

How should someone choose a CD term length?

Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”:

“I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective.”

Mykail James, CFEI:

“I believe in having a plan for whatever the funds are. If it’s supposed to be a house fund, and you want to wait for another two years to buy a house, that’s what you should be thinking of when you want to have this money.”

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, certified financial planner at SaverLife:

“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”

Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:

“Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don’t need access to some of your money, since they have a fixed interest rate for a specific term.”

Methodology: How we Chose the Best CDs 

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high Annual Percentage Yield (APY), for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

We reviewed CD offerings from around a dozen national banks using our CD rates methodology. All banks included on our list are insured by the FDIC and do not impose monthly maintenance fees on CDs.

In the event two banks offered the same APY on a CD product, we considered minimum deposit requirements and penalties for early withdrawals.

CD FAQs

Best CD Rates by Term

Below, you’ll find our picks for the best CD rates right now. There’s no CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now.

Best 3-month CD Rates

Best 6-month CD Rates

Best 1-year CD Rates

Best 18-month CD Rates

Best 2-year CD Rates

Best 3-year CD Rates

Best 4-year CD Rates

Best 5-year CD Rates

Best No-penalty CD Rates

Best Rates for No Opening Deposit

Best Rates for Other CD Terms

CD Rates at the Largest US Banks

Alternative CD Options

We looked at the following CDs as well. While these ultimately weren’t selected as our top picks, you might find some of these options appealing depending on your preferences.

• Bread Savings CDs: Bread Savings has great CD rates – some above 5% APY. However, its CD rates are just short of the rates on our list. 
• Delta Community Credit Union CDs: Delta Community Credit Union has a high rate on a 2-year term, but our top picks pay even higher rates right now. 
• America First Credit Union: America First Credit Union pays great interest rates on short-term CDs, but its just top rates are just bit lower than our top picks. 
• CIT Bank: CIT Bank has a great interest rate on a 6-month term, but it’s just short of the top rates we’ve included.
• Alliant Credit Union: Alliant Credit Union has high interest rates, but our top picks offer even more competitive rates.
• Bask Bank: Bask Bank has great interest rates for short-term CDs, but there are banks with even higher rates right now. 
• Bank5 Connect: Bank5 has a 6-month CD with a high interest rate, but our top choices offer higher rates. The bank’s other CD rates also aren’t as competitive as other financial institutions. 
• American Express National Bank: American Express lets you open a CD with $0, but its rates aren’t as high as those from other national brands included in our list. 
• Vio Bank CD: Vio Bank has good CD rates for terms between 6 months and 120 months, but our top picks have even more competitive rates right now.  
• CFG Bank CD: CFG pays good rates on 1-year, 18-month, 3-year, and 5-year terms, but they’re not quite as high as those on our list.
• Consumers Credit Union CD: Consumers pays some solid rates, and it’s a good choice if you’re looking for a 10-month term.
• Salem Five Direct High-Yield CD: Salem Five Direct has competitive interest rates on short-term CDs, but they aren’t quite as high as what you’ll earn with our top picks.
• Chase CD: Chase offers solid interest rates on a 3-month and 12-month term if you qualify for relationship rates by having a Chase checking account. If you don’t qualify for a relationship rate, other financial institutions will likely offer much more competitive CD rates.
• Marcus No-Penalty CD: Marcus pays a high rate on its 13-month no-penalty CD, but our top picks offer higher interest rates.
• TIAA Bank Basic CD: TIAA pays a relatively high 3-month CD rate, but you can earn better rates elsewhere.
• Air Force Federal Credit Union Certificate Account: Air Force Federal Credit Union has a variety of CDs, but its rates have recently dropped and are lower than our top picks.
• Pentagon Federal Credit Union Money Market Certificate: PenFed offers solid interest rates on CDs, but our top picks have even more competitive CD rates right now.
• Pure Point Financial CD: Pure Point’s rates are solid, but its $10,000 minimum deposit could be a major drawback for more modest savers.
• USAA Bank CD: USAA Bank offers a wide range of CD options for military members and families, but rates are mediocre and you’ll need at least $1,000 to open an account.
• NBKC CD: NBKC pays good rates. But unlike most CDs, NBKC CDs pay variable rates, so rates can go up or down after you’ve opened the account.
• Bethpage Federal Credit Union Certificates: Bethpage CDs have a low minimum opening deposit but our top picks offer more competitive interest rates.
• Charles Schwab Bank CD: Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Depending on how you bank, you may prefer open a CD directly with the financial institution.