5 Little-Known Banks That Have the Highest-Paying CDs Right Now

Across the board, certificates of deposit (CDs) still have the highest savings rates among deposit accounts. But when it comes to ranking the top-paying CDs on the market, you might notice a trend: Nearly all of them come from lesser-known financial institutions, like regional banks or new fintech companies.

Of course, this shouldn't raise any red flags. As long as the CD provider has FDIC insurance, your deposits are safe up to the coverage limits, usually $250,000 per depositor. Plus, most big national banks, like Chase and Wells Fargo, don't need eye-popping CD rates to attract customers. They might offer special CDs with APYs that are several times above the national average, but don't expect them to be on the leadership board of CD rates.

If you're not loyal to a national bank, or you're just looking for the top-paying CD for your savings, here are five lesser-known financial institutions whose CDs are worth considering.

The CD rates mentioned below are current as of Feb. 19, 2024.

1. Salem Five Bank

Salem Five Bank currently has one of the best CD offers on the market: a 12-month CD with a 2.95% APY.

You can open a CD account online, but you'll need a minimum deposit Varies to get started. Also, keep in mind that this Salem Five Bank CD also has a pretty ruthless early withdrawal penalty. You'll pay 4% of your principal if you withdraw before maturity. You'd essentially have to keep your CD intact for at least nine months if you wanted to protect your principal. That doesn't mean you shouldn't get this CD, but it's certainly something to keep in mind.

2. NBKC Bank

Based in Kansas City, NBKC Bank has two lucrative special CD offers, both with a 5.50% APY: a 7-month CD and an 11-month CD. You don't need to live in Kansas City to open an account, but you'll need to deposit at least $1,000 to get started.

3. NexBank

NexBank is currently offering a 6-month promotional CD with a 5.30% APY and a 12-month promotional CD with a 5.50% APY. The catch: You need to deposit at least $25,000 to open an account. If you don't have $25,000 -- but you have $10,000 -- you could also get a 6-month CD with a 5.25% APY or a 12-month CD with a 5.35% APY.

4. Bread Financial

Bread Financial has a pretty unique CD offer. Depending on your time horizon, it might be the best one on this list.

Currently, its best CD (its Bread Savings CD) is a 12-month term with a 4.10% APY and a $1,500 minimum deposit. That's not the highest APY I've ever seen, but here's where things get interesting. If you choose to renew your CD term, Bread will offer you a 5.40% APY for the second year. That means you can earn above 5% for two years. Given that CD rates will likely be lower one year from now, this could be a sweet deal to lock into a high rate for at least 24 months.

5. TotalDirectBank

TotalDirectBank has three high-yield CDs: a 3-month CD with a 5.51% APY, a 6-month CD with a 5.50%, and a 12-month CD with a 5.50%. As you might have guessed, the bank requires a minimum deposit, fairly high at $25,000. Still, if you have the savings, these short-term CD rates are worth considering.

All in all, these five banks can offer you a great deal on a short-term CD. But I wouldn't hesitate to get one, as CD rates could decline later this year. If you know a CD is the right savings product for you, take a look at one of the banks above and start earning more interest before it's too late.