With the fluctuating nature of the economy, finding the best certificates of deposit (CD) rates can seem challenging but it’s not impossible. Fortunately, you can find the best CD rates with a search online right now.
CDs are popular for their fixed-term, fixed-interest-rate nature, making them a reliable choice for those looking to grow their savings with minimal risk. They are offered by a variety of financial institutions, each with unique terms and rates.
What Is a Certificate Deposit (CD) and Why You Need It
A certificate of deposit (CD) is a savings tool offered by banks and credit unions, where you agree to lock your money for a predetermined period. In return, you earn interest at a higher rate than a regular savings account.
CDs are ideal for risk-averse investors seeking a stable return. They offer a guaranteed return, federal insurance protection up to $250,000, and are less influenced by market fluctuations. Opting for a CD can be a strategic part of your savings plan, especially if you have funds that you won’t need immediate access to.
LendingClub Bank, an online-only institution, offers CDs with solid rates and a range of terms from six months to five years. The minimum opening balance is set at $2,500, slightly higher than some competitors. LendingClub doesn’t charge monthly or opening fees, and the early withdrawal penalties are standard.
Additionally, it provides various banking products like high-yield savings and rewards checking accounts. The CD rates are attractive, offering a 1-year CD at 5.55% APY, a 3-year CD at 4.30% APY, and a 5-year CD at 4.00% APY.
Barclays Online CD
Barclays, an online-only U.S. branch of the London-based financial giant, stands out in the CD market with its no minimum deposit requirement. This makes it highly accessible for various savers. With terms ranging from one to five years, Barclays ensures flexibility.
Its fee structure is also favorable, with no monthly or opening fees, and reasonable early withdrawal penalties. Besides CDs, Barclays also provides a high-yield savings account. The rates offered are competitive, with a 1-year CD at 5.50% APY, a 3-year CD at 4.50% APY, and a 5-year CD also at 4.50% APY.
BMO Alto Certificate of Deposit
BMO Alto, the U.S. online-only division of the Canada-based BMO Financial Group, offers online CDs with no minimum opening deposit. The terms range from six months to five years.
You’ll enjoy BMO Alto’s fee structure with no monthly or opening fees and standard early withdrawal penalties. The CD rates are among the highest, with a 1-year CD at 5.65% APY, a 3-year CD at 5.10% APY, and a 5-year CD at 5.25% APY.
TAB Bank CD
TAB Bank, an online bank with roots in the trucking industry, offers CDs with competitive yields and terms ranging from six months to five years. The opening minimum is a reasonable $1,000.
TAB Bank’s fee structure is customer-friendly, with no opening or monthly fees and standard early withdrawal penalties. In addition to CDs, TAB Bank provides a full suite of financial products. The CD rates are attractive, with a 1-year CD at 5.27% APY, a 3-year CD at 4.25% APY, and a 5-year CD at 4.00% APY.
Bread Savings™️ CD
Bread Savings, formerly Comenity Direct, is an online-only banking division offering CDs with terms from one to five years. The minimum balance requirement is $1,500.
Despite its somewhat higher early withdrawal penalties, Bread Savings remains competitive. It also offers a high-yield savings account. The CD rates are compelling, with a 1-year CD at 5.60% APY, a 3-year CD at 4.95% APY, and a 5-year CD at 4.75% APY.
Quontic Bank CD
Quontic Bank, initially a community development financial institution in New York, now operates as a digital bank offering high-yield CDs. Its minimum opening requirement is a low $500, with terms from six months to five years.
Quontic’s early withdrawal fees are steep, especially for shorter-term CDs. It also offers a range of other products, including high-yield savings and rewards checking accounts. The CD rates are competitive, with a 1-year CD at 5.30% APY, a 3-year CD at 4.40% APY, and a 5-year CD at 4.30% APY.
Alliant Credit Union Certificate
Alliant Credit Union, established in 1935, is a large, online-focused credit union known for its competitive certificate rates. It requires a low minimum deposit of $1,000 and offers terms from three months to five years. Membership is easy, with an option to support a nonprofit partner.
Alliant has lenient early withdrawal penalties and offers additional products like IRA and jumbo certificates, as well as high-yield checking and savings accounts. The rates are noteworthy, with a 1-year certificate at 5.25% APY, a 3-year at 4.45% APY, and a 5-year at 4.35% APY.
Start Your Search Today
When choosing a CD, consider factors like the deposit amount, term length, and APY. Your financial goals and timeline are crucial in determining the best fit. With the variety of options available, a thorough online search can help you secure a CD that aligns with your savings strategy. Start your search today to find the best CD rates tailored to your financial needs.