Best CD Rates of September 2023

The best certificate of deposit (CD) rates help your money grow in a stable, FDIC-insured, environment; like that plant that just loves hanging in your bathroom day in and day out. And don't tell your savings account, but CD rates are often competitive with the best savings account rates. If that sounds good to you, you're not alone -- we think CDs are cool, too.

However, there is a trade-off: To get these great CD interest rates, you have to agree not to withdraw your money for a certain amount of time. Still sound good? Keep reading to compare the best CD rates, get answers to your questions, like "What is a CD, anyway?", and find out which top CDs are our favorites.

How to compare the best CD rates

Ready to get started, but not sure how to compare CD rates? Here are some of the things to keep an eye out for:

• A high APY: This is how much you'll earn in interest.
• Daily compounding interest: Want more money in interest? Look for a high yield CD account with daily compounding.
• Low early withdrawal penalties: You'll pay a penalty to withdraw your funds ahead of schedule. The amount of this penalty should be outlined in a CD's fee schedule.
• Low or no fees: Fees with high yield CDs aren't common (except for early withdrawal penalties), but it's always good to check.

How we decide which CDs to list on this page
You're probably thinking, "Wait a darn minute. How'd The Ascent decide which CDs to recommend?"

We'll tell you: The crew here only lists the CDs we'd recommend to family and friends. That means we just post the good stuff – big banks can't pay their way onto this page! Our litmus test: Would we recommend these CD rates to Grandma at her rock-your-socks-off birthday bonanza? You can bet on it.

Follow these tips, and finding the best CD rates today should be a piece of cake.

And now you may be hungry for more, so check out what industry experts think about CDs!

Top CD questions

How do CDs work?

A CD is like a savings account, except you're not allowed to withdraw any money for a specific amount of time (anything from a few months to a few years).

Are CDs safe?

Yes, CDs are one of the safest investments you can make. These accounts are backed by FDIC insurance, so you won't lose money even if your bank goes under. (Note: If you withdraw your money early, you may pay a small fee.)

Will CD rates go up in 2023?

CD rates will likely continue to go up in 2023, but it's not guaranteed. If there are increases, expect them to be smaller than last year.

LendingClub CDs

Best for: Savers who want to maximize their APY and have over $2,500 to deposit.

LendingClub offers CDs in standard term lengths ranging from six months to five years, and has some of the best APYs in the industry, especially on its 1-year CD. LendingClub gives CD owners the ability to withdraw their earned interest at any point without penalty, which could be a big perk for those who want to rely on their CDs for income.

One potential negative is LendingClub's $2,500 minimum initial deposit requirement. This can make LendingClub not the best option for beginners or people who want to create a CD ladder with their savings, but it can be an excellent choice for savers with relatively high balances who want to maximize their returns.

Upon maturity, LendingClub CDs automatically renew. The bank sends a notice at least 30 days before the maturity date, and once the CD matures, account holders have a 10-day window to decide whether to add or remove money from the CD, or to let it renew for another term.

LendingClub is best known for its personal and business loans, but you might be surprised to learn that it owns a banking subsidiary known as LendingClub Bank, which is a fully FDIC-insured financial institution. In addition to its CDs, LendingClub offers high-yield savings and rewards checking accounts. It has a user-friendly mobile banking app, and not only does LendingClub have an A+ rating with the Better Business Bureau, but it has an average customer review of 4.56 out of 5 stars on the platform, one of the highest of any institution in our coverage universe.

Western Alliance CDs

Best for: Savers who want a shorter-term CD with maximum yield.

Western Alliance Bank has several subsidiary banks that have a physical presence in their respective region, but it also offers high-yield CDs through the Raisin financial platform.

There is a lot to like about Western Alliance's high-yield CDs. For one thing, the bank offers some of the most competitive APYs we've seen, especially on shorter-term CDs. In fact, the bank's APYs on 9-month and 1-year CDs are among the best in the industry. Plus, the minimum deposit is just $1, so this can be a very beginner-friendly way to get started in CDs.

However, Western Alliance Bank's term lengths are also one of the biggest potential negatives. It only offers four term lengths on Raisin, and its 1-year CD is the longest. You can open a 3-month, 6-month, 9-month, or 1-year CD with an excellent yield through Western Alliance Bank, but if you're looking to lock in a high APY for several years, you'll need to look elsewhere.

Another potential negative is that Western Alliance Bank doesn't allow CD owners to withdraw their interest as it is paid. For example, many retired individuals will open a CD and withdraw the monthly interest payments to create an income stream, but this is not allowed with Western Alliance -- money must be left in the account until the maturity date or face a penalty.

Quontic CDs

Best for: Savers who want high APYs and unique banking perks

Quontic Bank offers CDs with standard terms ranging from six months to five years. It has some of the best CD interest rates in the business, including a 5.30% APY on a 1-year CD, among the highest offered by any of the banks we follow. The bank's CDs have a $500 minimum opening deposit, so be sure to keep that in mind before opening an account.

Quontic is an online-focused bank, with just a few branches for its mortgage business, but it is a safe and trustworthy financial institution. It is an FDIC-member bank, so you're covered up to $250,000 per depositor, and the bank has an A+ rating from the Better Business Bureau after almost 15 years in business.

While the $500 minimum deposit might put it out of reach for some beginners, especially those who want to create CD ladders, it is generally a beginner-friendly institution. Quontic offers a beginner-friendly mobile banking app, and live support available by either phone or chat from 9 a.m. to 6 p.m. ET.

Finally, Quontic is a great choice for customers who want to keep all of their bank accounts in one place. In addition to its high-yield CDs, Quontic offers a great high-yield savings account, one of our top-rated money market accounts, plus two different online checking accounts.

Discover High Yield CD

Best for: Creating a CD ladder

You probably know Discover for primarily being a credit card company, but it is actually an FDIC-member bank that offers several financial products, including high-yield CDs, money market accounts, private student loans, and more. It typically doesn't have the highest CD rates in the market, its rates are certainly competitive and it scores high marks in some categories, particularly customer service.

Discover offers a wide range of CD term lengths, ranging from six months all the way to 10 years, which is a rarity in the industry. It offers competitive APYs, especially on longer-term CDs. On the downside, Discover has a relatively high $500 minimum deposit to open a new CD, so be sure to keep this in mind when you're shopping around.

Discover also offers CDs in IRA (individual retirement account) form, allowing savers to put away money in a tax-advantaged manner. When your Discover CD expires, it will renew automatically, unless you choose to withdraw your funds.

As an FDIC-insured bank, Discover's CDs are protected for as much as $250,000 per person in the unlikely event of a bank failure. However, Discover has an A+ rating from the Better Business Bureau and has been in business for over six decades, so it is a very well-established and trusted bank. And although the relatively high minimum deposit might make it less accessible for some savers (not just beginners), Discover has excellent customer service and is available by phone 24 hours a day, seven days a week.

Barclays Online CD

Best for: Customers who want to get started saving without a large deposit

Barclays offers online CDs with terms ranging from six months to five years, with choices in all common increments in between. Most of Barclays' term lengths offer highly competitive APYs, with its 6-month CD the notable exception. Its longer-term CDs in particular have some of the best APYs on our best CDs list.

Barclays primarily made our best CD list because it is one of the most beginner-friendly places to open a CD. Unlike most of its online competitors, Barclays has no minimum deposit requirement, so you can literally open a CD with just a few dollars. This also makes Barclay's one of the few places where you can create a CD ladder with a relatively small amount of money.

Interest is paid monthly, and CD owners can choose to have their monthly interest deposited into a Barclays savings account or an account at another institution, or leave it in the account to compound. CDs will renew automatically at the end of the term, which has become the industry's standard practice, and customers have a 14-day grace period to decide to withdraw funds or change the maturity term of the CD.

Barclays is one of the oldest continuously operating financial institutions in the world, with roots that trace back to 1690 in London, where the bank's headquarters are still located. It is a stable and trustworthy bank, and although it doesn't have physical branches in the United States, it's important to point out that Barclays is a massive institution in the U.K., and has a size that's on-par with some of the largest U.S. banks.

Synchrony Online CD

Best for: No-penalty CDs and CDs that allow for interest rate adjustments

Synchrony Bank offers some of the most competitive APYs on CDs, especially those with maturity terms of 18 months or less. The bank offers CDs in a wide range of terms from three months to five years and offers two unique products. Synchrony's 11-month no-penalty CD allows account holders to withdraw their money at any time without a penalty, and the 24-month Bump-Up CD allows for a one-time interest rate increase if the bank's APYs rise during the CD's term.

There are no minimum deposit requirements, making Synchrony an ideal choice for beginners or for people who want to build a CD ladder without a ton of money. Its no-penalty CD can be a great choice for savers who think they won't need their money soon, but want to maintain flexibility. And the Bump-Up CD is a great choice for people who are worried that interest rates might continue to rise and don't want to miss out on extra income.

Synchrony could also be a great choice for people who plan to rely on their CDs for income. Many banks don't allow any withdrawals from CDs (even interest payments), but Synchrony gives CD owners the option to withdraw the interest they receive, penalty-free, at any time during the CD term.

Finally, Synchrony bank isn't exactly a household name, but you might have used some of its products without knowing it. The bank's primary business consists of cobranded store credit cards, and it partners with some of the largest retail brands to offer credit card products. In addition to its CDs, Synchrony offers high-yield savings and money market accounts, and all of its accounts are FDIC insured to $250,000 per person.

CIT Bank CD

Best for: Shorter-term CDs with high APY

CIT Bank offers online CDs with terms ranging from six months to five years, but only offers competitive APYs on CDs with terms of 18 months or less. It offers a few non-standard term lengths, such as 11-month and 13-month CDs, which could be a good fit for certain customers. CIT's CDs have a $1,000 minimum deposit requirement, so keep that in mind before opening one. However, the bank offers some unique CD products, such as a 11-month CD with no penalty for early withdrawals.

Because of its minimum deposit requirement, CIT might not be the best choice for beginners, especially those who want to put money in several different term lengths to create a CD ladder. It offers highly rated customer service by phone from 9 a.m. to 9 p.m ET on weekdays and 10 a.m. to 6 p.m. on Saturdays. There are also high-yield savings accounts, money market accounts, and checking accounts available, which makes CIT a smart choice for customers who want to keep all of their bank accounts in one place.

You may not be familiar with CIT Bank, but it is a division of First Citizens Bank, which has more than 500 branches in 23 U.S. states. CIT has been in business for 115 years and its banking products are all FDIC insured. And it was named the number one bank in the nation for "humanizing the customer service experience" by American Banker out of more than 50 major financial institutions.

Marcus by Goldman Sachs High Yield CD

Best for: Savers who want the choice of many CD term lengths

Marcus by Goldman Sachs offers CDs in term lengths ranging from six months to six years, with highly competitive APYs across the board. Marcus also offers penalty-free CDs for savers who don't want their money tied up.

The bank's CDs require a $500 minimum deposit, which is on the lower end for banks with such a requirement, but could be an obstacle for beginners, especially those who wish to create a CD ladder. One unique feature is the ability to add more money to a Marcus high-yield CD for as long as 30 days after opening the account. Plus, account holders get a 10-day CD rate guarantee, which offers a nice layer of protection if you open an account and interest rates rise shortly after.

Another big reason Marcus earned a spot on our best CDs list is that account holders have the option to withdraw any interest earned penalty-free at any time. This isn't offered by many banks, and can be a valuable feature for savers who might want to rely on their CDs for income to cover living expenses.

As the name implies, Marcus is the consumer banking division of Goldman Sachs, which is one of the largest investment banks in the world and has been in business for more than 150 years. Marcus has an A+ rating from the Better Business Bureau, and live customer service is available by phone 24 hours a day, seven days a week.

Bread Savings CD

Best for: Customers with over $1,500 to start a CD and who want an excellent APY

Bread Financial CDs are available in terms ranging from one year to five years, in one-year increments. Bread's CDs (formally known as the Bread Savings CDs) earn a spot on our list because they offer some of the most competitive APYs of any institution on our radar -- especially for one and two year term lengths -- but there are some potential drawbacks.

Bread Savings CDs have a $1,500 minimum deposit, which may be a bit steep for some customers just getting started in the world of CDs, especially for those who want to use multiple maturity term lengths to form a CD ladder. Plus, there are no terms shorter than one year, which can be a dealbreaker for savers who are going to need their money within the next 12 months.

Bread Financial might not be a familiar name, but that's because the name hasn't existed for very long. The business has been around since the early 1980s and was formerly known as Comenity Bank, which has been a leading issuer of private-label credit cards for some time. Bread Financial CDs are FDIC insured to a maximum of $250,000 per person, so you're protected in the unlikely event of bank failure.

Like most banks. Bread Savings CDs automatically renew upon maturity unless you decide to withdraw your money or change the term. But unlike most other banks, Bread offers slightly higher renewal rates than it offers to new customers (think of it as a customer loyalty bonus).

Ally High Yield CD

Best for: Customers who plan to renew their CDs upon maturity

Ally Bank offers CDs ranging from three months to five years, and there are a few reasons why it earns a spot on our best CDs list. For one thing, the bank offers highly competitive APYs, especially on its 9-month, 1-year, and 18-month CDs. Customers who choose to renew their CDs upon maturity get a 0.05% loyalty bonus added to the APY offered at the time of renewal. Plus, Ally CDs have no minimum deposit requirement, making them an excellent choice for beginners or savers who want to create a CD ladder with multiple term lengths.

Ally also offers a couple of unique CD products, including its Raise Your Rate CD that comes in 2- and 4-year terms, and allows the customer to adjust their rate upward once (2-year) or twice (4-year) if Ally's rates increase. There's also a 11-month no-penalty CD that allows for withdrawals anytime after the first six days after account funding.

Another reason Ally earns a spot on the list is for its highly rated mobile app that lets you open, view, and manage your CDs, as well as any other accounts you may have with Ally. Not all CDs offer mobile access (after all, the logic is that you shouldn't need to manage your account too often by nature).

Ally Financial is an FDIC-member bank. It has existed in its current form since 2010, but was previously the financial subsidiary of General Motors, known as GMAC Financial at the time. Because of this, it shouldn't come as a surprise that Ally's primary business is auto lending, but in recent years it has been building its consumer deposit platform, including with its high-yield CDs. However, Ally also offers a full range of banking products and services, such as high-yield savings accounts, online checking accounts, investment accounts, and a variety of lending products. It can be a great choice for someone who wants to maximize the yield from their savings and wants to do all of their banking with the same institution.

Alliant CD

Best for: Savers who want a high APY and any maturity length from 12 to 60 months

Alliant Credit Union offers CDs (officially known as "share certificates" in the credit union world) with terms ranging from three months to 60 months, with all popular lengths in between. Alliant earned a spot on our list for its high APYs and top-notch customer ratings. You can also open share certificates with any term length from three to 48 months, in monthly increments, For example, if you want a 23-month CD, you can open one, and this flexibility is a big differentiator.

Let's start with Alliant's CD APYs. The credit union's CDs have highly competitive APYs, and its 12-month and 18-month CD rates in particular are some of the highest among the banks we follow. Alliant's CDs also have a $1,000 minimum deposit requirement, which isn't the highest we know of but could be an obstacle for beginners or those trying to construct a CD ladder.. There are also Jumbo CDs available -- these have higher rates for certain terms with balances of $75,000 or higher.

Unlike the other financial institutions on our best CDs list, Alliant is a member-owned credit union. It has been in business since 1935 and has over 600,000 customers in the United States. Credit unions are not covered by the FDIC, but are insured by the NCUA up to the same limit of $250,000 per person.

In order to open an Alliant CD, you need to be (or become) a member of the credit union, which is generally a quick and easy process. Customer service representatives are available 24 hours a day, seven days a week by phone, and Alliant has an A+ rating from the Better Business Bureau.

Capital One CDs

Best for: Customers who want a national bank that offers CD yields comparable to online banks.

Capital One 360 CDs are one of the few on our best CDs list that are offered by banks with physical branches. It is an excellent combination of the yields savers typically expect from an online bank, and the convenience of branch-based banking.

As mentioned, Capital One offers competitive CD yields, especially for a brick-and-mortar financial institution. It has terms ranging from six months to five years, and has a few non-standard lengths, such as 30-month CDs, in addition to all of the typical lengths. Capital One's 18-month CDs are especially competitive.

Capital One CDs have no minimum balance requirements, and can be an excellent choice for beginners or for anyone who wants to create a CD ladder. Accounts are FDIC insured, and unlike some of the CDs on our list, you can choose to have interest paid to you as it is received or leave it in the account to compound.

It's worth noting that if your primary goal is to maximize yield, you'll probably find higher APYs through some of the exclusively-online banks on the list. However, you might be surprised how comparable Capital One's yields are, and the convenience factor might make it worth giving up a bit of yield.

Capital One is a bank best-known for its credit card business, but it is a full-service financial institution that has 750 branches in several states, including 30 "cafe" locations. So, not only could it be great for customers who might occasionally need to deposit cash or get in-person assistance, but Capital One CDs can also be a great choice for existing Capital One customers or those who are looking for an all-in-one banking relationship, as Capital One offers a full range of banking products and services.

Prime Alliance CDs

Best for: Savers who want a high APY on medium-term CDs.

Prime Alliance Bank offers CDs in terms ranging from six months to five years in all of the standard term lengths. Its APYs are generally competitive, but its most competitive yields are paid on terms of 36 months or less. If you're looking for a 4- or 5-year CD, you're likely to find a better rate elsewhere. However, the bank's APYs on shorter terms are highly competitive, especially for 24-month CDs, which are among the best on our radar.

Prime Alliance CDs have $500 minimum deposits, which is in the middle of the pack. It can be prohibitive for people new to CDs or those who want to create a CD ladder of several different maturities. However, Prime Alliance could be a good option for people who want to use their CDs for income, as interest is paid quarterly and can be withdrawn as it is paid.

Prime Alliance is a relatively small bank, but it offers some excellent products. In addition to its CDs, Prime Alliance has high-yield savings accounts, two different online checking accounts (including an interest-bearing option), as well as deposit products for business customers. It has one branch in Utah, but is mostly an online-focused bank.

What are alternatives to CDs?

CDs are appealing if you're trying to earn a high rate on your savings, but the fact that you cannot touch your money for a set amount of time can be too constraining for some people. If you don't think a high yield CD is a great fit for you, perhaps one of these accounts would work better.

Savings accounts vs. CDs

High-yield savings accounts accounts offer interest rates that are comparable to the highest CD rates. Plus, savings accounts have fewer restrictions on what you can do with your money. You're able to put money in, transfer it to a checking account, or withdraw it almost whenever you want (though withdrawals are often limited to six a month, per regulation D).

Below are some examples of high-yield savings accounts. For our top picks right now, along with their APYs, head over to our Best Savings Accounts page.

Money market accounts vs. CDs

Money market accounts are a hybrid of checking and savings accounts. They offer interest rates similar to high-yield savings accounts and certificate of deposit rates. In addition, money market accounts give you a debit card and check-writing capabilities. That means, with a money market account, you can directly withdraw funds from your account at your convenience.

This might be a better option than a high-yield savings account or a CD if you anticipate needing to take money directly out of your account.

Below, we've listed some examples of money market accounts. You can find our top picks on our Best Money Market Accounts page.

How to compare CD rates

When you're looking for the best CD rates today, don't forget to consider these things:

CD term
The CD's term is the length of time you agree to not touch your money. It can range from one month on the short end to six years or more on the long end. Most range from six months to five years. You'll usually find the longer the CD term, the higher the interest rate.

Minimum deposit
While some of the highest CD rates have no minimum deposit, others may require a few hundred to a few thousand dollars. Some jumbo CDs may have five-figure minimum deposit requirements.

How interest is paid to you
Most CDs add the interest you earn to your account balance, but some give you the option to have your interest paid directly to you. If you go this route, you can reap some of the benefits of your high yield CD immediately. But bear in mind that if you leave the money in your account instead, you can earn interest on your interest, which leads to more money overall.

FDIC or NCUA insurance
CD accounts offered by banks should carry FDIC insurance so your money is protected up to $250,000 per person per account. NCUA does the same thing for share certificates offered by credit unions. Most high yield CDs will have the appropriate insurance, but it pays to be sure.

How often rates are raised
Step-up and bump-up CDs occasionally raise your rates. If you're interested in one of these, pay attention to how often you or the bank can increase the rate when you compare CD rates.

Whether it's callable
Some CDs are callable, which means the bank can call it back from you at some point and reissue you a new CD, possibly at a lower rate.

Which banks have the best CD rates?

Online banks overwhelmingly offer the best CD interest rates when compared to larger brick-and-mortar traditional banks. In fact, some of our favorite online banks' current CD rates are multiples higher than what you'd find with a national bank.

We've rarely seen a reason to invest in CDs with a brick-and-mortar national bank, especially when online banks offer the same FDIC insurance protection. CD interest rates at online banks tend to be higher.

If looking to compare CD rates, we suggest reviewing some of the current rates on CDs at the following financial institutions:

• Discover CD rates
• Capital One 360 CD rates
• Ally CD rates
• Marcus by Goldman Sachs CD rates

When is a CD a good idea?

Fixed-rate CDs are the most popular offerings, and bump-up CDs are worth considering as well. If you're considering opening a CD, here's a scenario-based analysis of when it may be the right time to open one of these CD accounts:

You'll notice it's especially important to keep an eye on current rates on cds in order to know when the right time is to open a CD account.

RELATED: What Is CD Laddering? CD laddering can help you optimize your interest earnings. Head to our guide to see if this is the right strategy for your portfolio.

When is a CD a bad idea?

It's best to wait to take action on opening a fixed-rate CD when interest rates are increasing. Waiting allows you to snag the best CD rates and helps you avoid locking in a low rate.

Bump-up CDs have more flexibility, but they can still be the wrong choice if rates are rising rapidly because you can usually only request a rate increase once per term and might miss out on better rates later.

What is a CD?

A certificate of deposit (CD) is a type of FDIC-insured deposit account offered by many banks and credit unions that usually has a fixed interest rate over a certain number of months or years. CD interest rates are often higher than what you find with most savings accounts, but they carry the stipulation that you must not touch the money until the CD term is over. If you withdraw the funds early, you pay a penalty, though some banks allow a CD loan (a loan secured by the money you already have in your CD).

How does a CD work?

You deposit a certain amount of money into a high-yield CD and agree not to touch it for the length of the CD term in exchange for a high rate of interest that's usually locked in for the full term. Your bank pays that interest monthly or quarterly, and when the CD term is up, you may withdraw the funds and spend them, place them in a savings account, or put them in another high-interest CD. 

Withdrawing your funds before the CD term ends results in a penalty -- usually several months' worth of interest. The earlier you withdraw the funds, the larger your penalty will be.

Other CD term lengths to consider

CDs are a flexible savings option in that the terms range from months up to 10 years, making them valuable for depositors with an array of short- and long-term needs. Here are the most common CD terms: