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Best CD (Certificate of Deposit) Rates
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(Updated 10/9) Here is a list of the nationally available best CD rates, updated regularly. I looked at the best rates available for CDs of less than 18 months and listed the one with the highest rate. Typically the longer the term, the higher the rate, but for many online banks the best rates were for periods of shorter than 18 months. For simplicity’s sake, I put the cutoff at 18 months (some banks offer higher rates for longer terms). If you want shorter term CD rates, I have also compiled a list of highest short-term CD rates (less than 12 month maturities).
Can you beat 2.51% APY on a savings account? Everbank offers that! They also offer a competitive bank CD rates. EverBank is FDIC insured and well worth a look.
Certificates of deposit are great safe investments right now because your principal is protected by FDIC insurance and you are guaranteed a positive rate of return for the term of the CD. Certificates of deposit can be opened at your local bank but the best rates are found at online banks because they have so much lower overhead costs. If you don’t have to pay rent for a branch (or pay employees to staff it, power bills to keep it lit, and everything else), you have more to pass on to customers as interest.
Best CD Rates
| Bank | Effective Date |
CD Rate (APY) |
CD Term (Months) |
Minimum Deposit |
| Ally Bank | ||||
| ING Direct | ||||
| Everbank | ||||
| Bankrate National Avg | ||||
| FNBO Direct | ||||
| HSBC Direct | ||||
| Imperial Capital Bank | ||||
| Discover Bank | ||||
| E-LOAN | ||||
| Virtual Bank | ||||
| Citibank | ||||
| Penfed Credit Union | ||||
| Capital One Direct Banking | ||||
| Wachovia Bank |
FDIC Insurance: Each bank is FDIC insured up to $250,000. You can confirm this by checking the FDIC’s Bank Find tool.
Finally, as a reference, the current Federal Funds target rate range is 0.25% (New York Fed).
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Does it seem weird to anyone else that FNBO and E-Trade offer more on a savings account then a CD?
Yeah, it is kind of weird but if you think we’re in an environment of falling rates, banks wouldn’t want to lock things in. I suppose that’s the logical explanation for this.
Dime Direct looks like a bad phishing site. I’m not saying it is it just looks like one.
Dime Direct has quite a few special conditions for their CD which pretty much make it a terrible deal IMHO, including:
1. Have to have an active checking account with them
2. The rate can change at ANY time and they DO NOT have to tell you about it.
Interestingly when you go to the Dime Savings Bank of Williamsburg (which Dime Direct states it is a part of) they do not list any such CD rate and furthermore do not have any link to “Dime Direct.” Sort of weird.
MPR: Hmmm good point, I think the rate changing doesn’t apply to people who have opened an account though and requiring a checking account isn’t all too uncommon but there are some hoops.
I like the ING CDs because they’ve got no minimum. I have monthly $380 car payments with a 0% interest loan. I’ve got about $6000 set aside in an ING account for paying off the loan, but since the loan has 0% interest and there are no benefits to paying it off early, I’m setting up a CD ladder.
I’ll have a $400 CD maturing every month. Once I reach the 18 month CDs, I’ll be making $27.77 of interest with each CD. And I know exactly where my car payments are coming from.
Good list. Hope you keep it updated. Happy New Year.
I update it ever couple of days whenever I hear about rate changes.