Best CD Rates for 2019 (Certificate of Deposit)

Purchasing a certificate of deposit is one of the best ways to save money long-term. By agreeing to keep your money in the bank for a set period, you get rewarded for this commitment with a higher interest rate than a savings account.

The best thing is that those rates will typically stay the same for the term, meaning that you are in for guaranteed returns. It’s a great place to store cash – if you’re happy to commit to a fixed-term of the CD to get the highest rate.

If you’re thinking about purchasing a certificate of deposit, and want to find out what the best CD rates are, you’ve come to the right place. I’ll tell you what some of the high-interest CD accounts are – as well as provide detailed information about other attractive features they offer.

So now, ready to see some of the best CD rates today? Let’s dig in.best cd rates

11 Best CD Rates in 2019

Discover Bank

Discover Bank offers some of the highest CD rates as well as several term options (from a shorter 3-month term to a longer 10-year term). This provides extra flexibility – not all competitors offer such a wide range of term options.

With Discover Bank, the longer the CD term, the higher the rate. For example, a 3-month CD will give you a rate of 0.35% APY, a 5-year term will get you a 2.40% APY, and a 10-year term – 2.50% APY.

You can access your money early if you need to – but you will be charged a penalty. However, with no monthly fees and easy account management on the Discover app, this is a solid CD option.

  • Best CD Rate: Up to 2.50% APY (10-year term)
  • Minimum Opening Deposit: $2,500
  • Early Withdrawal Penalty: depends on the term (from 3-months simple interest for a CD term of less than a year to 24-months simple interest for a CD term of 7 to 10 years)
  • FDIC Insured: Yes
  • CD Products & Rates:
    • 3-month CD (0.35% APY)
    • 6-month CD (0.65% APY)
    • 9-month CD (0.70% APY)
    • 12-month CD (2.30% APY)
    • 18-month CD (2.30% APY)
    • 24-month CD (2.35% APY)
    • 30-month CD (2.35% APY)
    • 3-year CD (2.35% APY)
    • 4-year CD (2.35% APY)
    • 5-year CD (2.40% APY)
    • 7-year CD (2.45% APY)
    • 10-year CD (2.50% APY)

Ally Bank

Ally Bank is another great place to find high-interest CDs. The online-only bank offers High-Yield CDs, Raise Your Rate CDs, as well as No Penalty CDs, giving you have plenty of options.

Ally Bank’s High-Yield CDs are available in terms from 3 months to 5 years, and you will pay a penalty if you want to access your money early. The No Penalty CDs are a better option if you think you might need to get hold of your money before the maturity date – however, the rates for No Penalty CDs are lower.

Raise Your Rate CDs allow you to take advantage of a higher CD rate offered by Ally Bank (if it comes along during your term). You start with one rate, then have the option of bumping it up during the term of the CD to the current 2-year CD rate, or twice if you choose the 4-year term. The maturity date doesn’t change – but you can make your money go a little further.

  • Best CD Rate: Up to 2.40% APY (5-year term)
  • Minimum Opening Deposit: $0
  • Early Withdrawal Penalty: depends on the CD’s term and CD type
  • FDIC Insured: Yes
  • CD Products & Rates:
    • High-Yield CDs: 3-month (0.75% APY) to 5-year term (2.40% APY)
    • Raise Your Rate CDs: 2-year term (2.25%), 4-year term (2.25% APY)
    • No Penalty CDs (11-month term): less than $5,000 opening deposit (1.65% APY); $5,000 minimum opening deposit (1.90% APY), minimum deposit of $25,000 (2.05% APY)

CIT Bank

Offering competitive rates and flexible terms with no monthly fees, CIT Bank CDs provide a great way to grow your savings, whether it’s short-term or long-term.

Interestingly, with CIT Bank, you could get higher APY on some of the shorter-term products (for example, 18-month term APY is higher than 2-year APY) – so it might be a good option to check out if you don’t want your money locked away for too long.

CIT Bank offers four types of CD products: term CDs, No-Penalty 11-Month CDs, Jumbo and RampUp CDs. Cit Bank’s Term CDs offer some attractive rates for terms from 6-months to 5 years – while CIT’s No-Penalty CDs offer some of the best rates on the market with a minimum opening deposit of $1,000 (2.05% APY) – giving you access to flexibility, as well as lucrative interest.

RampUp CDs are similar to Raise Your Rate CDs offered by Ally Bank. With a RampUp CD, you can raise your rate once during your term if a better rate comes along.

  • Best CD Rate: up to 2.10% APY (18-month term)
  • Minimum Opening Deposit: varies depending on CD type (starts from $1,000 for Term CDs and No-Penalty CDs)
  • Early Withdrawal Penalty: depends on the CD’s term and type
  • FDIC Insured: Yes
  • CD Products & Rates:
    • Term CDs: 6-month (0.72% APY), 1-year (2.00% APY), 13-month (2.05% APY), 18-month (2.10% APY), 2-year (1.40% APY), 3-year (1.30% APY), 4-year (1.50% APY) and 5-year (1.70% APY) terms available
    • No-Penalty 11-Month CDs: 2.05% APY
    • Jumbo CDs: 2-year Jumbo CD (1.45% APY), 3-year Jumbo CD (1.40% APY), 4-year Jumbo CD (1.60% APY), 5-year Jumbo CD (1.75% APY)
    • RampUp CDs | RampUp Plus CDs: 1-year (1.26% APY), 2-year (1.27% APY), 3-year (1.20% APY), 4-year (1.38% APY)

To find out more about CIT Bank, check out my CIT Bank Review.

Barclays

London-based Barclays also offers fantastic online CD products to U.S. customers, which come with very attractive rates. For example, you could earn as much as 2.25% APY for a 12, 18 or 24-month term CD, which is pretty awesome.

Your interest compounds daily, and there are no monthly fees nor minimum balances. You can also ladder your CDs so that you maximize your earnings. CD laddering essentially means dividing the amount of money that you invest in equal amounts in multiple CDs with different maturity dates. This strategy reduces the risk – but it’s a double-edged sword because your interest also goes down.

  • Best CD Rate: up to 2.25 (12, 18 or 24-month term)
  • Minimum Opening Deposit: none
  • Early Withdrawal Penalty: depends on the CD’s term
  • FDIC Insured: Yes
  • CD Products & Rates:
    • 3 Month CD (0.35% APY)
    • 6 Month CD (0.65% APY)
    • 9 Month CD (0.70% APY)
    • 12 Month CD (2.25% APY)
    • 18 Month CD (2.25% APY)
    • 24 Month CD (2.25% APY)
    • 36 Month CD (2.20% APY)
    • 48 Month CD (2.20% APY)
    • 60 Month CD (2.20% APY)

Sallie Mae Bank

Sallie Mae bank offers some excellent student loan options – but it also is one of the best places to get a high-interest certificate of deposit.

Sallie Mae CD rates are high – and it offers several short-term and long-term CD options (from 6 months to 5 years). The bank’s rates are particularly competitive for the shorter-term CDs – like 6-month or 9-month terms – because most banks will actually offer lower rates for such terms. Typically, a bank will offer higher rates the longer the CD term.

That said, you will need a minimum deposit of $2,500 (and to maintain this balance) to earn competitive returns. There are no monthly fees – but you will pay a $5 returned deposit fee.

And – just like with most other CD accounts – you will pay a penalty if you withdraw your money before maturity.

  • Best CD Rate: up to 2.35% APY (12, 30, 36 or 60-month term)
  • Minimum Opening Deposit: $2,500
  • Early Withdrawal Penalty: depends on the CD’s term
  • FDIC Insured: Yes
  • CD Products & Rates:
    • 6 month CD (1.90% APY)
    • 9 month CD (1.95% APY)
    • 11 month CD (2.05% APY)
    • 12 month CD (2.35% APY)
    • 13 month CD (2.30% APY)
    • 15 month CD (2.30% APY)
    • 18 month CD (2.30% APY)
    • 24 month CD (2.30% APY)
    • 30 month CD (2.35% APY)
    • 36 month CD (2.35% APY)
    • 60 month CD (2.35% APY)

Marcus by Goldman Sachs

Marcus by Goldman Sachs also offers some high-yield certificates of deposit for terms that range from 6 months to 6 years – especially if you’re looking to get an attractive rate for shorter-length investments. A 12-month Marcus by Goldman Sachs CD can earn you as much as 2.25% APY, which is quite decent.

There is a $500 to open a CD account with Marcus by Goldman Sachs – but that’s reasonable because other banks may require at least a couple of thousand to get started.

You can also check how much you could earn over time using the CD calculator on the bank’s website – and that’s guaranteed to get you excited about your potential returns.

  • Best CD Rate: up to 2.50% APR (6-year term)
  • Minimum Opening Deposit: $500
  • Early Withdrawal Penalty: depends on the CD’s term
  • FDIC Insured: Yes
  • CD Products & Rates:
    • 6 month CD (0.60% APY)
    • 9 month CD (0.70% APY)
    • 12 month CD (2.25% APY)
    • 18 month CD (2.25% APY)
    • 2 year CD (2.30% APY)
    • 3 year CD (2.35% APY)
    • 4 year CD (2.40% APY)
    • 5 year CD (2.45% APY)
    • 6 year CD (2.50% APY)

BBVA Bank

If you’d rather invest with one of the largest banks in the U.S. than an online-only financial institution, BBVA could be a good option to consider.

BBVA Bank’s CDs offer one of the highest APYs available with no maintenance fees. Plus, you can feel reassured that your money is in safe hands because you’re investing with one of the top U.S. commercial banks.

Another advantage of purchasing a certificate of deposit from a traditional bank is that there are physical branches you van visit, meaning that you can apply for a CD in person – if that’s what you prefer. However, bear in mind that the APY may vary based on whether you buy your CD online, in person, or by phone.

  • Best CD Rate: up to 1.80% APY
  • Minimum Opening Deposit: $500
  • Early Withdrawal Penalty: $25 plus 1% of the amount withdrawn (for CD terms of 365 days or less); $25 plus 3% of the amount withdrawn (for CD terms of greater than 365 days)
  • FDIC Insured: Yes
  • CD Products & Rates (Rates are for CDs Opened Online):
    • 12-month CD (1.80% APY)
    • 15-month CD (1.80% APY)
    • 18-month CD (1.70% APY)
    • 36-month CD (1.70% APY)

Synchrony

Synchrony CDs are available for terms from 3 to 60 months – and they offer some consistently excellent rates. It doesn’t offer many bells and whistles (no jumbo, bump up or any other funny-sounding options!) – just straight-up term certificates of deposit.

Synchrony isn’t a bank – but an online financial institution. This means that there aren’t any physical branches to go into if you have a question – and that may be a deal-breaker for some people. However, if you actually prefer to live chat on your screen than speak to a representative face-to-face, then Synchrony is definitely worth a look.

Like with the other providers on this list, your money is FDIC-insured with Synchrony. You can also easily bank-on-the go with the top-rated Synchrony app, which allows you to control your accounts from your smartphone (be it iOS or Android).

  • Best CD Rate: up to 2.45% APY (60-month CD)
  • Minimum Opening Deposit: $2,000
  • Early Withdrawal Penalty: depends on the CD’s term
  • FDIC Insured: Yes
  • CD Products & Rates:
    • 3-month CD (0.75% APY)
    • 6-month CD (1.00% APY)
    • 9-month CD (1.25% APY)
    • 12-month CD (2.25% APY)
    • 13-month CD (2.30% APY)
    • 14-month CD (2.30% APY)
    • 15-month CD (2.30% APY)
    • 18-month CD (2.25% APY)
    • 24-month CD (2.30% APY)
    • 36-month CD (2.35% APY)
    • 48-month CD (2.40% APY)
    • 60-month CD (2.45% APY)

Fidelity

Fidelity may not be a financial institution you know a lot about – however, this top-rated low-cost online broker can help you find some highly competitive CD rates which are worth a look.

A brokered CD and a bank CD have many similarities, such as the fact that it pays a set interest rate (which is usually higher than a traditional savings account), should be held to maturity and is FDIC insured. The main difference between brokered CDs and bank CDs is how they are bought and sold (brokered CDs are bought and sold by brokerage firms).

Fidelity sells brokered CDs through two venues – new issue offerings, and the secondary market. It’s an excellent place for CD laddering (i.e., setting up your CDs so that they mature at staggered intervals).

You can earn up to 2.05% APY with Fidelity for a new 3-year certificate of deposit. Fidelity charges no maintenance fees and has a highly-rated mobile app, which you can use to manage your CD on-the-go.

  • Best CD Rate: up to 2.05% APY (3-year term)
  • Minimum Opening Deposit: $1,000
  • Early Withdrawal Penalty: depends on the CD’s term
  • FDIC Insured: Yes
  • CD Products & Rates (New offerings):
    • 3 month CD (1.95% APY)
    • 6 month CD (1.85% APY)
    • 9 month CD (1.85% APY)
    • 1 year CD (1.85% APY)
    • 2 year CD (2.00% APY)
    • 3 year CD (2.05% APY)
    • 5 year CD (1.85% APY)

What You Should Know About CD Rates

What is a Certificate of Deposit (and How Does it Work)?

CDs are special savings accounts, where you store your money for a set period of time in return for an attractive interest rate. Most of the time, your money is sort of locked away – and you don’t get to see it until the maturity date. That’s because you agree to let your bank use it for a specific period of time. In exchange for that, the bank offers you a higher annual percentage yield (APY).

CDs provide an attractive savings option for those who are looking to save long-term but may not be for someone who isn’t sure about putting their money away and not being able to access it for a while. That said, some providers offer short-term CDs (e.g., 3 months or 6 months), so you’re not putting your money away for that long.

Also, it’s not like you can’t access your money early. You can – it’s just that you will have to pay an early-withdrawal penalty if you do.

What’s the Difference Between CDs and Traditional Savings Accounts?

Well, the main difference is that CDs offer less flexibility – but that’s a fair price to pay because you’re getting much higher rates. You will also often need to make a more substantial initial deposit to purchase a CD, while many high-yield savings accounts will allow you to get started with as little as $100.

Why Might Anyone Want a CD?

If you’re looking for a place to store your money safely for a few years, purchasing a CD is an excellent option. CD interest rates are some of the best on the market – and the fact that you could be charged a fee for withdrawing your money makes it less likely that you’ll withdraw and spend it prematurely.

However, I would suggest having a different savings account – perhaps a high-yielding online savings account – first. That way, you’d have an emergency fund which you can access penalty-free, as well as a CD, which grows more interest and can provide a great long-term savings solution.

How to Choose the Best CD for Your Financial Needs

Opening a CD account is one of the most lucrative low-risk investment vehicles. Locking your money away for a set period of time means your bank will reward you with a higher interest rate – which is ideal if you’re happy not to see your money for a set period, while you let it grow.

Now that you know who has the best CD rates on the market, you may be wondering how to choose the one that is most suitable for your financial needs. The main things to consider after the rates are the CD’s term, as well as the penalties you would be charged for early withdrawals.

Unexpected things happen – so my advice would be to have another, perhaps a more flexible savings account that gives you penalty-free access to your funds in case of an emergency. If you don’t have one – then choosing the CD with the lowest penalty (or no penalty, as offered by Ally Bank) for early withdrawals might be a smart move.

Grant Sabatier

Creator of Millennial Money and Author of Financial Freedom (Penguin Random House). Dubbed "The Millennial Millionaire" by CNBC, Grant went from $2.26 to over $1 million in 5 years, reaching financial independence at age 30. Grant has been featured in The New York Times, Wall Street Journal, BBC, NPR, Money Magazine and many others. He uses Personal Capital to manage his money in 10 minutes a month.

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