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July 2022: The best CD rates

  • July 2022 Best CD rates
  • CD rates from the biggest US banks
  • Find out more about our top picks
  • Why Not Included in the Final Cut?
  • How did you choose the best CDs?
  • Frequently Asked Questions
  • Experts’ Advice on Choosing the Best CD

Personal Finance Insider provides tips, strategies, and information to help you make informed decisions about your money. Although we may be compensated by American Express for some of our recommendations and reporting, they are always objective and independent. These offers are subject to terms. Please read our editorial standards.

The best CD rates July 2022

Best rates for a 1 year term

CD accountAPYMinimum deposit
Marcus High Yield CD1.90%$500
Ally High Yield CD1.90%$0
Synchrony Bank CD2%$0
Crescent Bank CD2.05%$1,000

Rates for 2-year terms at the best

CD accountAPYMinimum deposit
Marcus High Yield CD2.25%$500
TIAA Basic Deposit Certificate2.20%$1,000
Synchrony Bank CD2.40%$0
Crescent Bank CD2.50%$1,000

Best Rates for a 3-year Term

CD accountAPYMinimum deposit
Synchrony Bank CD2.60%$0
Ally High Yield CD2.50%$0
Marcus High Yield CD2.50%$500
Crescent Bank CD2.90%$1,000

Get the best rates on a 4-year contract

CD accountAPYMinimum deposit
TIAA Basis CD2.55%$1,000
Synchrony Bank CD2.60%$0
Marcus High Yield CD2.50%$500
Crescent Bank CD2.95%$1,000

Best rates for 5-year terms

CD accountAPYMinimum deposit
Synchrony Bank CD3.10%$0
Ally High Yield CD2.90%$0
Marcus High Yield CD2.90%$500
Crescent Bank CD3.00%$1,000

No-penalty CD at the best rates

CD accountAPYMinimum deposit
Ally No Penalty CD1.25%$0
Marcus by Goldman Sachs CD0.3% to 1.25 %$500
CIT Bank No Penalty CD1.85%$1,000
America First Flexible Certificate0.75%$500

No opening deposit required

CD accountAPYMinimum deposit
Ally High Yield Certificate for Deposit0.60% to 2.9%$0
Capital One 360 Certificate Of Deposit (r)1.00% to 2.9%$0
American Express(r), Certificate of Deposit1.00% to 2.9% APY as of 07/15/22$0
Barclays Online CD0.1% to 3.20%$0

The highest CD rates in the US Banks

BankAPYNext steps
Citibank0.05% to 2.3%More
Capital One1.00% to 2.9%More
PNC Bank0.01% to 0.4%More
TD Bank0.05%More
Bank of America0.03%Find out more
Chase Bank0.01% to 0.5%More
US Bank0.05% to 0.2%Learn more
Charles Schwab Bank2.2% to 3.3%Learn more
Wells Fargo0.01% to 0.022% APYMore

CDs are a great option for those who want to grow their money without having to deal with the volatility of the stock markets.

It’s smart to choose the highest interest rate because you are locking in an interest rate. You should also be aware of minimum deposit requirements and penalties for early withdrawals if you don’t have much money.

It should be simple to open a CD that is solid. You shouldn’t be required to pay a minimum balance or monthly fee.

Here are our top picks for the most competitive CD rates. We looked at the offerings of around a dozen banks and popular comparison sites like NerdWallet to determine which CDs are most effective.

Find out more about our top picks

Marcus by Goldman Sachs High Yield CD

Annual Percentage Yield

1.05% to 2.9% APY

Minimum Deposit Amount

$500

Marcus by Goldman Sachs is unique because it offers a wide range of CDs, including high-yield CDs and no-penalty CDs. This bank offers some of the best rates in the business and has a $500 minimum deposit that is lower than many competitors.

Term options: High Yield CD terms are available from 6 months to six years. No-Penalty CDs have 7-month and 11-month options.

Penalties: Marcus charges the following standard penalties for early withdrawals from your principal balance:

  • For CD terms of less than 12 months, there is a 90-day interest penalty
  • A CD term of 12 to 5 years is subject to a 270-day interest penalty
  • A CD term exceeding 5 years is subject to a 365-day interest penalty

Pay attention to: Minimum opening deposit Marcus requires a minimum $500 deposit to open a CD.

Ally High Yield Certificate for Deposit

Annual Percentage Yield

APY: 0.60% to 2.9%

Minimum Deposit Amount

None

Why it is different: Ally offers more CD options than any other online bank. This includes an 11-month, zero-penalty CD with variable interest rates and a variable rate CD.

Ally offers 11 different CD term lengths, ranging from 3 months up to 5 years.

Penalties: Ally charges the following standard penalties for early withdrawals from your principal balance:

  • 60-day interest penalty on CD terms of 24 months or less
  • 90-day interest penalty on CD terms of 25 to 36 months
  • 120-day interest penalty on CD terms of 37 to 48 months
  • 150-day interest penalty on CD terms of 49 months or longer

You should keep an eye out for Ally’s three types of CDs: Raise Your Rate CDs (High Yield CDs), Raise Your Rate CDs (Raise Your Rate CDs) and No Penalty.

Raise Your Rate accounts are available with 2-year or 4-year terms, which is not the case for regular High Yield CDs. These accounts have lower APRs than High Yield CDs, but you can increase your rate once every 2 years or twice every 4 years.

You are not subject to any penalties for withdrawing early, but there is an 11-month maximum term.

Synchrony CD

Annual Percentage Yield

0.80% – 3.10% APY

Minimum Deposit Amount

Synchrony has high rates of return. You can also choose from a range of terms, including CDs for 13-month, 14 month, or 15-month terms.

Term options: Terms can be from 3 months up to 5 years.

Penalties: Synchrony has fairly standard early withdrawal penalty rules, which are as follows:

  • 90-day interest penalty on a term of less than 12 months
  • For a term of more than 12 months, but less than 48 months, there is a 180-day interest penalty
  • For a term of 48 or more, 365-day interest

You should be aware of: Synchrony offers a range of terms, but you may find one that is longer than five years elsewhere.

TIAA Basic Deposit Certificate

Annual Percentage Yield

APY: 0.90% to 2.85%

Minimum Deposit Amount

$1,000

It stands out because TIAA offers CDs at competitive rates and compounded interest every day.

Term options: Terms can be from 3 months up to 5 years.

  • For 3-month terms, 22-day interest
  • 45-day interest on 6-month terms
  • For 9-month terms, 68 days interest
  • For 1-year terms, 91-day interest
  • 1.5-year terms: 136 days interest
  • 182 days interest on 2-year terms
  • 228-day interest on 2.5-year terms
  • 3 Year Terms: 273 Days Interest
  • 4-year terms: 365-day interest
  • For 5-year terms, 456 days interest

Pay attention to: Longer terms can result in severe penalties. Consider getting a CD with no penalty if you are concerned about losing your money before the CD matures.

CIT Bank No Penalty Certificate Of Deposit (CD).

Annual Percentage Yield

1.85% APY

Minimum Deposit Amount

It stands out because CIT Bank offers a competitive rate for its no-penalty CD.

Options for terms: 11 months

You need to be aware of the following: The CIT Bank No-Penalty CCD isn’t as competitive than some of our top picks. There are better rates and smaller minimum deposits available elsewhere. If you have an account with CIT Bank, it might be worth using the bank to get a no-penalty CDO.

America First Credit Union Flexible certificate

Annual Percentage Yield

0.75% APY

Minimum Deposit Amount

America First Credit Union is different because it offers more flexibility than banks with withdrawals and deposits. America First allows you to deposit money into your CD even after it’s opened. This is unlike other institutions. You can do this up to $10,000 per month. America First allows you to withdraw a portion of your funds, unlike many banks that require you to take out all of your funds in order to make an emergency withdrawal.

Options for terms: 12 Months

You should be aware that America First charges interest monthly, rather than daily like most credit unions. This will reduce the amount you can earn over time.

Capital One 360 Certificate Of Deposit (r)

Annual Percentage Yield

1.00% to 2.9% APY

Minimum Deposit Amount

Capital One is unique because it offers competitive rates and, unlike other banks, requires no money to make an initial deposit.

Capital One offers a variety of term options, including CD terms that last from 6 months to five years.

Penalties for early withdrawals: These are the penalties:

  • For CD terms of less than 1 year, 3 months interest penalty
  • For CD terms exceeding 1 year, you will be charged a 6 month interest penalty

Capital One is a great option for those who don’t need to make an initial deposit. However, you can also find slightly higher rates elsewhere.

American Express(r), Certificate of Deposit

Annual Percentage Yield

1.00% to 2.9% APY as of 07/15/22

Minimum Deposit Amount

It stands out because American Express offers attractive rates on 4-year and 5-year terms. There is no minimum deposit requirement.

American Express offers CD terms that range from 6 months to 5 Years.

Penalties: Early withdrawal penalties are as follows

  • For terms under 12 months, 90-day interest penalty
  • For terms between 12 and47 months, a 270-day interest penalty
  • For terms between 48 and 59 Months, 365-day interest penalty
  • For a term of 60 or more months, 540-day interest penalty

Pay attention: American Express charges higher fees to withdraw funds prior to the CD maturity date than other banks. You may be concerned about penalties for early withdrawals. We recommend you look at the options on our list.

Barclays Online Certificate Of Deposit

Annual Percentage Yield

APY: 0.10% to 3.00%

Minimum Deposit Amount

Barclays stands out because it doesn’t require a minimum deposit to buy CDs. The early withdrawal penalties it charges are lower than those you would pay at other institutions.

Terms: The term lengths are from 3 months up to 5 years.

Penalties: Barclays offers the following standard terms for early withdrawal penalties:

  • For a term of less than 24 months, 90-day interest penalty
  • For a term exceeding 24 months, there is a 180-day interest penalty

Pay attention: The Barclays app is rated highly in the Google Play Store, but not in Apple’s store.

Crescent Bank CD

Annual Percentage Yield

0.50% – 3.00% APY

Minimum Deposit Amount

$1,000

Why it is so special: Crescent Bank offers competitive interest rates on a range of terms.

Terms: The term lengths are from 3 months up to 5 years.

Penalties: The following penalty terms apply to Crescent Bank’s early withdrawal penalties:

  • For a 1-year term, you will be charged a 90-day interest penalty
  • For terms between 18 and 5 years, there is a 180-day interest penalty

Crescent Bank requires a minimum $1,000 deposit to open a CD. You can open a CD without spending a lot upfront with some of our top picks.

Why other CDs didn’t make it to the final cut?

We also looked at these CDs. These CDs were not selected as our top choices because they might have lower rates than our winners, larger minimum opening deposits or higher early withdrawal penalties. Depending on your personal preferences, you might find some of these options appealing.

  • HSBC Direct (Member FDIC: HSBC’s CD rates used to be quite high but have recently fallen.
  • PurePoint Financial (Member FDIC). Although PurePoint’s rates are comparable to the best CDs, its minimum $10,000 deposit may be a problem for those with smaller savings.
  • Chase CD (Member FDIC). Chase offers some really great rewards credit card but its CD rates are not comparable to any other banks on our list.
  • USAA Bank Cd (Member FDIC ) – The USAA Bank offers many CD options for military personnel and their families. However, rates are low and an account will require at least $1,000.
  • NBKCCD: NBKC offers good rates. NBKC CDs have variable rates. Rates can change after opening an account.
  • Sallie Mae (Member FDIC: Sallie Mae offers competitive rates for short term loans, but you will need $2,500 to open an account.
  • Charles Schwab Bank Certificate Of Deposit: Charles Schwab brokered CDs. This means Charles Schwab does not actually own the CD. Charles Schwab is a middleman between you and the bank who owns the CD. You may prefer to open a CD directly with your bank depending on the way it works.

How did we pick the best CDs?

We evaluated CD offerings from approximately a dozen banks. All of the banks on our list have been insured through FDIC. They do not charge monthly maintenance fees for CDs.

We considered penalties for early withdrawals and minimum deposit requirements in the event that two banks offered the same APY for a CD product.

We did not include credit unions in this list — although they offer high interest rates for savings accounts and CDs but many restrict membership.

Questions frequently asked

Trust our recommendations.

Personal Finance Insider is dedicated to helping smart people make the right financial decisions. We know that the definition of “best” can be subjective so we highlight the obvious benefits of financial products or accounts, such as high APY. However, we also outline the limitations. So that you don’t have too, we spent hours comparing the features and fine print across various products.

What is a CD?

A CD is essentially a time-sensitive savings account. It holds your money at a fixed rate of interest for a specific time. A CD can be opened at any bank or credit union.

A CD is a great way to guarantee a return on your investment if you don’t have immediate access to your savings. You lock in an annual percentage yield (APY), for the term of your CD. You won’t normally be allowed to access your original balance or add money during that time without incurring a penalty.

However, you will earn interest on the amount. You have the option of collecting those monthly payments or reinvesting them in your CD. Many banks offer different rates for different deposit amounts and terms. Typically, the longer the term is, the higher the rate.

You’ll usually have a 10- to 14-day grace period after the maturity date of the CD. This allows you to withdraw your money, close the account, or renew the term.

Are CDs safe to use?

CDs can be safer than investing in the stock exchange, but they may not be as liquid as a savings account. CDs can be used to grow and store money you may need in the future. Although your money won’t earn as much in the stock market as it does in CDs, there are no risks.

CDs can be insured by FDIC up to $250,000.

Are CDs a good option for investment?

Timing is important. CDs are a good way to invest when interest rates are high or expected to fall. A CD offers the greatest benefit: you can lock in a fixed rate of interest. The APY of your CD will not change if interest rates drop during the term. If rates are expected to rise, it might not be a good idea to invest money in a CD.

Are CDs a good way to lose money?

CDs cannot be lost if they are not used for their full term. You cannot lose your money in a CD. It works like a savings account.

Are CD rates rising?

CD interest rates follow the Federal Funds Rate, which is set by the Federal Reserve. The Fed has reduced interest rates by five times since July 2019.

Experts offer their advice on how to choose the best CD

Four experts weigh in to find out what makes a CD a great CD and how you can choose the right fit.

  • Tania Brown, certified financial advisor at SaverLife
  • Roger Ma, certified financial advisor with Lifelaidout(r),, and author of “Work Your Money, Not Your Life”
  • Mykail James (MBA), certified financial education instructor, BoujieBudgets.com
  • Laura Grace Tarpley is associate editor of banking, Personal Finance Insider

Here are their thoughts on CDs. Some text may have been lightly edited to improve clarity.

What makes a CD great or bad?

Mykail James, CFEI:

You always need to consider how much money is needed to start a business. Then, see if you have the ability to keep adding money. You should also check the interest rate and how often interest is paid, regardless of whether it’s monthly, quarterly, or annual.

How can someone choose the length of a CD term?

Roger Ma, CFP

“I would consider when you will need the money, then compare it with the current CD rates. Then, what makes sense not only from a financial perspective but also from your personal timing perspective.”

Mykail James, CFEI:

I believe in having a plan regardless of the amount of funds. If the money is supposed to go towards a house and you don’t want to wait two more years before you can buy a home, then that’s what to do.

How can someone decide whether to invest their money in high-yield savings accounts, money market accounts, or CDs?

Tania Brown, CFP:

“So, let’s start by deciding how much money and how many transactions you want. You can have transactions if you choose to take out CDs. You’re then stuck between high-yield savings or the money market account.

Laura Grace Tarpley Personal Finance Insider

I would choose a high-yield savings or money market account to meet short-term goals and/or an emergency fund. While you’ll likely want to choose the higher rate, money market accounts are good for emergency savings. They often include a debit card, paper checks, and a debit card, which makes it quick and easy to access your money. You can then use CDs to achieve longer-term goals like purchasing a house in a few decades.

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