12 Best CD Rates 2020

A certificate of deposit (CD) is a bank account that offers a premium interest rate provided the entire deposit amount remains untouched for a fixed, predetermined period. If the CD account is withdrawn before maturity, it will be penalized. The best CD rates include annual percentage yield (APY) rates up to 2.60%, depending on the CD term.

Best CD Rates of 2020

Pen Air Federal Credit Union: 6 Months to 5 Years; 1.40% APY to 2.60% APY; $500 Minimum Deposit

Pen Air Federal Credit Union is the largest and oldest local credit union in Pensacola, Florida, with $1.5 billion in assets. Pen Air currently has 15 locations in Northwest Florida and Southeast Alabama. It offers a variety of financial products like loans, credit cards, and savings and checking accounts. Pen Air is among those that offer the best CD rates ranging from 1.40% to 2.60%.

Pen Air Federal Credit Union CD Rates & Deposit Requirements

Pen Air Federal Credit Union Fees

• Early withdrawal fee: 90 days to 180 days of dividends depending on CD term
• Incoming wire transfer fee: $15
• Paper statement fee: None

The amount of the early withdrawal penalty is based on the term of the CD. CD terms of less than 12 months will experience a penalty of 90 days’ dividends while CD terms of 12 months or longer will have a penalty of 180 days’ dividends.

Pen Air Federal Credit Union Eligibility Restrictions

• Membership: Joining the Friends of the Navy-Marine Corps Relief Society, Inc. for a one-time $3 donation qualifies for membership in Pen Air.
• Select employer group (SEG): Employees and members of more than 1,200 businesses, associations, churches, and local governments in northwest Florida and southeast Alabama are eligible to join.
• Military: Active duty or retired members of the military, including the Coast Guard, and civil service employees qualify for membership.
• Family: Immediate family members and household members of current Pen Air members are welcome to apply.

Interior Federal Credit Union: 6 Months to 5 Years; 1.71% APY to 2.52% APY; $500 Minimum Deposit

Interior Federal Credit Union is considered a stable credit union but only serves employees and contractors of the United States Department of the Interior along with their families. Credit union customers have access to a full line of banking services and more than 5,600 branches nationwide as well as free use of more than 55,000 ATMs nationwide.

Interior Federal Credit Union CD Rates & Deposit Requirements

Interior Federal Credit Union Fees

• Early withdrawal fee: One to 12 months of interest, based on CD term
• Incoming wire transfer fee: None
• Paper statement fee: $5

For CDs that last less than 12 months, the early withdrawal penalty is 30 days of interest. For CDs with a term of 12 to 24 months, the penalty is 90 days of interest. CDs with 24- to 48-month terms have an early withdrawal penalty equal to 180 days of interest. CDs with terms longer than four years have an early withdrawal penalty equal to one year of interest.

Interior Federal Credit Union Eligibility Restrictions

• Employees: Current or retired employees of the Department of the Interior and its bureaus
• Contractors: Independent contractors who work for the Department of the Interior
• Family: Immediate family members or roommates of qualified employees or contractors

Premier America Credit Union: 6 Months to 5 Years; 1.30% APY to 2.59% APY; $1,000 Minimum Deposit

Premier America is one of the nation’s largest credit unions, with more than 100,000 members and more than $2.5 billion in assets. Premier America Credit Union offers a variety of financial products like loans, credit cards, savings, checking, money market, CDs, and investment accounts. It offers competitive CD rates, including 2.50% APY for a five-year CD term, which is one of the best CD rates available.

Premier America Credit Union CD Rates & Deposit Requirements

Premier America Credit Union Fees

• Early withdrawal fee: 90 to 180 days of interest depending on CD term
• Incoming wire transfer fee: None
• Paper statement fee: $2

Premier America Credit Union imposes early withdrawal fees if the CD account is withdrawn before its maturity. For CDs with a term of below 12 months, Premier America Credit Union charges a penalty of 90 days’ worth of interest. For CDs with term 12 months or longer, it charges a penalty of 180 days’ worth of interest.

Premier America Credit Union Eligibility Restrictions

• Existing or joining member: Thousand Oaks Alliance for the Arts (anyone can join)
• Home, business, school, or worship area: Must be within a 10-mile radius of the credit union’s Westchase branch in Houston, Texas, or Ventura or Los Angeles counties in California
• Family: Family members of existing credit union members

USALLIANCE Financial: 6 Months to 5 Years; 1.55% APY to 2.35% APY; $500 Minimum Deposit

USALLIANCE Financial is a multifaceted $1.6 billion cooperative that serves more than 110,000 members worldwide, including the employees of American Express, PepsiCo, and IBM. USALLIANCE Financial offers a variety of loans, savings, checking, investments, and money market accounts. It offers competitive CD rates, including 2.35% APY for a five-year CD term.

USALLIANCE Financial CD Rates & Deposit Requirements

USALLIANCE Financial Fees

• Early withdrawal fee: 180 to 360 days of dividends on the amount withdrawn depending on the CD term
• Incoming wire transfer fee: $10 per transfer from FED member
• Paper statement fee: $3 per statement period

If your CD has an original maturity date of fewer than 18 months, the early withdrawal penalty is equal to 180 days dividends on the amount withdrawn. For CDs with an original maturity date of 18 months or longer, the penalty will be equal to 360 days of dividends on the amount withdrawn.

USALLIANCE Financial Eligibility Restrictions

• Live or work in the following Massachusetts counties: Barnstable, Essex, Middlesex, Norfolk, Plymouth, Suffolk, and Worcester
• Residents, employees, volunteers, worshipers, or students: West Haven, Connecticut, or in the underserved area of New York, New York
• Employees or retirees: Eligible New York/Massachusetts company or a state or local government agency in one of the following New York counties: Columbia, Dutchess, Greene, Orange, Putnam, Rockland, Sullivan, Ulster, or Westchester.
• Family: Immediate family or household members of an existing USALLIANCE member
• Members: Council of Community Services, WARC, Rye Arts Center, AOPA, SullivanArc, Tread Lightly, ASCAP, and New-York Historical Society

Marcus by Goldman Sachs: 6 Months to 5 Years; 0.60% APY to 2.25% APY; $500 Minimum Deposit

Marcus is a retail banking arm of Goldman Sachs, one of the largest investment banks in the world and the fifth-largest bank in the US by assets. Marcus offers competitive CD rates, including 2.25% APY for five-year CDs, which is one of the best CD rates available. It also provides personal loans and other products to help people save.

Marcus CD Rates & Deposit Requirements

Marcus Fees

• Early withdrawal fee: 90 to 365 days of interest depending on CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Marcus charges penalties for withdrawing money from CDs before maturity. If the CD has less than a 12-month term, the penalty equals 90 days of interest on the principal at the CD rate. If the term is between 12 months to five years, the early withdrawal penalty is 270 days of interest. If the term is longer than five years, the penalty is one year of interest.

Marcus Eligibility Restrictions

Marcus is a bank and has no eligibility restrictions.

Communitywide Federal Credit Union: 6 Months to 5 Years; 2.05% APY to 2.20%APY; $1,000 Minimum Deposit

Communitywide Federal Credit Union is a credit union that pays 2.20% APY on five-year CDs. Based in South Bend, Indiana, Communitywide has is a small credit union that only has about a dozen branches across Northern Indiana but is generally considered a stable institution.

Communitywide Federal Credit Union CD Rates & Deposit Requirements

Communitywide Federal Credit Union Fees

• Early withdrawal fee: Twice the unearned interest on the amount withdrawn
• Incoming wire transfer fee: $10 each
• Paper statement fee: $1 per page

Communitywide CD holders are prohibited from withdrawing money from their CDs before the end of the CD term. If money is withdrawn early, a penalty will be assessed equal to twice the CD interest rate for the amount of time remaining on the withdrawn amount.

Communitywide Federal Credit Union Eligibility Restrictions

• Members: Michiana Goodwill Boosters or members of the Marine Corps. League of St. Joseph Valley
• Employees: Current or former employees of more than two dozen Indiana businesses
• Family: Immediate family of anyone who’s qualified for membership

Comenity Direct: 1 to 5 Years; 2.10% APY to 2.20% APY; $2,500 Minimum Deposit

Comenity Direct is a branch of Comenity Capital Bank, which provides all deposit products. Comenity Direct offers savings and CD accounts with competitive rates. Comenity Direct’s CD rates range between 2.10% to 2.20% APY, depending on CD terms.

Comenity Direct CD Rates & Deposit Requirements

Comenity Direct Fees

• Early withdrawal fee: 180 to 365 days’ worth of interest
• Incoming wire transfer fee: None
• Paper statement fee: $5

Comenity Direct charges early withdrawal penalties if the money from a CD account is withdrawn before its maturity. For CDs with terms of 36 months or lower, it charges a penalty of 180 days’ worth of interest. Comenity Direct charges a penalty of 365 days’ worth of interest for CDs with terms greater than 36 months.

Comenity Direct Eligibility Requirements

Comenity Direct is a bank and has no eligibility requirements.

Sallie Mae Bank: 6 Months to 5 Years; 1.75% APY to 2.20% APY; $2,500 Minimum Deposit

Sallie Mae is a bank that supports every learning experience through its products like private student loans, credit cards, and savings accounts. Sallie Mae offers competitive CD rates ranging from 1.75% to 2.20%, depending on the CD term.

Sallie Mae Bank CD Rates & Deposit Requirements

Sallie Mae Bank Fees

• Early withdrawal fee: 90 to 180 days of simple interest depending on the CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Sallie Mae Bank charges penalties if the money from a CD account is withdrawn before its maturity. If the CD has a term of 12 months or less, the penalty will be equal to 90 days of simple interest. If the CD has a maturity term of more than 12 months, the penalty will be equal to 180 days of simple interest.

Sallie Mae Bank Eligibility Restrictions

Sallie Mae is a bank and has no eligibility restrictions.

Synchrony Bank: 6 Months to 5 Years; 1.00% APY to 2.15% APY; $2,000 Minimum Deposit

Synchrony Bank is the personal depository banking component of Synchrony Financial. Synchrony Bank is one of the most prominent online banks in the market and offers a variety of financial products like savings, CDs, money market accounts, and IRAs. Synchrony Bank’s CD rates are competitive, including 2.15% for a five-year CD term.

Synchrony Bank CD Rates & Deposit Requirements

Synchrony Bank Fees

• Early withdrawal fee: 90 to 365 days’ worth of interest depending on CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Synchrony Bank charges early withdrawal fees if the CD account is withdrawn before its maturity. If the CD term is 12 months or less, the penalty is equal to 90 days’ worth of interest. If the CD term is between 18 to 36 months, the penalty is equal to 180 days’ worth of interest. Synchrony Bank charges a penalty of 365 days’ worth of interest for CD terms between 48 to 60 months.

Synchrony Bank Eligibility Requirements

Synchrony Bank is a bank and has no eligibility requirements.

Citizens Access: 1 to 5 Years; 2.00% APY to 2.15%APY; $5,000 Minimum Deposit

Citizens Access is built as an alternative to traditional banks. Citizens Access offers access to secure digital experience. Plus, financial transactions for savings and CDs are done online. It offers competitive CD rates ranging from 2.00% APY to 2.15% APY.

Citizens Access CD Rates & Deposit Requirements

Citizens Access Fees

• Early withdrawal fee: 90 to 180 days of interest depending on CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Citizens Access charges an early withdrawal penalty if money from the CD account is withdrawn before its maturity. For CDs with a 12-month term, the bank will charge 90 days’ worth of interest. Citizens Access will charge a penalty worth 180 days of interest for CDs with terms greater than 12 months.

Citizens Access Eligibility Restrictions

Citizens Access is an online bank and has no eligibility restrictions.

Ally Bank: 6 Months to 5 Years; 1.00% APY to 2.15% APY; $5,000 Minimum Deposit

Ally Bank offers a wide range of financial services and insurance products to automotive dealerships and consumers. Ally Bank is an online bank that offers home loans, along with a full suite of banking products, including savings, money market, checking, CDs, and IRAs. It is one of the banks that offer the best CD rates ranging from 1.00% to 2.15%.

Ally Bank CD Rates & Deposit Requirements

Ally Bank Fees

• Early withdrawal fee: 60 to 150 days’ worth of interest depending on the CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Ally Bank charges early withdrawal penalties if the money from a CD account is withdrawn before its maturity. Ally Bank will charge a penalty of 60 days’ worth of interest if the CD term is 24 months or shorter. If the term is 36 months, the early withdrawal penalty will be 90 days’ worth of interest. There will be a penalty of 150 days’ worth of interest for CDs with a five-year term.

Ally Bank Eligibility Requirements

Ally Bank is a bank and has no eligibility requirements.

Live Oak Bank: 6 Months to 5 Years; 1.90% APY to 2.15% APY; $2,500 Minimum Deposit

Live Oak Bank is one of the nation’s top originators of industry-focused small business loans that employed a team of industry experts to provide better customer support. Live Oak Bank offers competitive savings and CD rates, ranging from 1.90% APY to 2.10% APY.

Live Oak Bank CD Rates & Deposit Requirements

Live Oak Bank Fees

• Early withdrawal fee: 90 to 180 days of simple interest depending on CD term
• Incoming wire transfer fee: None
• Paper statement fee: None

Live Oak Bank charges penalties for withdrawing money from CD before maturity. If the CD has less than a 24-month term, the penalty equals 90 days of simple interest. If the term is 24 months or higher, the early withdrawal penalty is 180 days of simple interest.

Live Oak Bank Eligibility Restrictions

Live Oak Bank is a bank and has no eligibility restrictions.

What Is a CD?

A certificate of deposit account offers a fixed interest rate, which is usually higher than a regular savings, in exchange for locking in the entire deposit amount for an agreed term. Once your CD term is up, you can withdraw your funds with no penalty. Banks and credit unions typically require a minimum amount of deposit to open a CD account.

CD terms range between six months to 60 months, although some financial institutions offer shorter terms, such as three months or less, or longer terms like 10 years or more. To maximize earnings, the money from a CD account should not be withdrawn before the term ends. If the money is withdrawn before the CD’s maturity, banks will impose early withdrawal penalties depending on the CD term.

What Are CD Rates?

Certificate of deposit rates are rates of interest that consumers earn on investments that they buy from a bank or credit union. Financial institutions change CD interest rates frequently, but they’re typically higher than traditional saving or money market interest rates because investors don’t have access to their money for the term of the CD. CD rates are based primarily on the duration of the CD—the term—and prevailing interest rates in the market.

How Do CD Accounts Work?

CDs are time deposits. They usually require a higher minimum deposit amount compared to a regular savings account. When you open a certificate of deposit account, you agree to keep your money in that account for a specified term. In exchange for locking in your money in the account, the bank or credit union offers a higher interest rate.

With a CD, you cannot add money after your initial deposit. If you want to increase the amount of your deposit, you have to wait for your CD term to end before you can add money to your account. Likewise, you cannot withdraw money from your CD account before its maturity. If you need to withdraw, the bank will charge an early withdrawal fee equivalent to a certain number of days’ worth of interest, depending on your CD term.

CDs are ideal for consumers who want to start earning higher interest on their savings and are willing to lock up their money for a preset period of time. You should typically have at least a few hundred to a few thousand dollars before investing in CDs and want to earn interest without the volatility of riskier investments.

How We Evaluated the Best CD Rates

Many financial institutions offer Federal Deposit Insurance Corporation (FDIC)-insured CDs, but terms and interest rates vary widely. Longer-term CD rates are usually higher than short-term CDs or other types of business savings accounts because investors lock up funds for longer. See the methodology in detail.

Bottom Line

Certificates of deposit are an essential tool for savers and investors. CD rates are lower than many other types of investments, but the top CD rates help investors grow their savings with deposits that last between one month and 10 years. To start building your savings, consider one of the institutions offering the best CD rates.