16 Best Banks With the Highest-Interest CD Rates in 2020


No investment or savings vehicle is entirely without risk, but certificates of deposit (CDs) offer more security and predictability than most. With fixed or upwardly adjustable interest rates, terms ranging from as short as one month to as long as 10 years, and FDIC insurance up to $250,000 per account, CDs are useful tools for saving funds you don’t need right away – and earning a yield in the meantime. Though prevailing rates vary widely by bank, CDs tend to have higher yields than checking, savings, or money market accounts.

The biggest drawback of CDs is that many are inflexible, with most banks charging a significant penalty if you withdraw part or all of your funds before the term ends. But some banks now offer special CDs that allow you to make midterm interest – and, in some cases, interest and principal – withdrawals without paying a penalty.

If you’re on the hunt for above-average CD rates, take a look at these banks.

Best Banks for High-Yield CDs

These are the best banks for high-yield CDs. Check back often, as rates and products are subject to change.

1. Marcus by Goldman Sachs (Goldman Sachs Bank USA)

Marcus by Goldman Sachs, a subsidiary of Goldman Sachs Bank USA, is an online-only outfit best known for issuing personal loans for debt consolidation and home improvement. Though it’s relatively new to the deposit account game, it’s making up for lost time with competitive CD yields. The high-yield savings account option is nothing to sneeze at, either. To maximize your interest earnings, check out Marcus’s CD laddering options.

  • Regular CDs and Rates: Marcus offers nine CD options: 6-month, 9-month, 12-month, 18-month, 2-year, 3-year, 4-year, 5-year, and 6-year. Yields range from 0.60% APY on the 6-month to 1.90% APY on the 6-year, with the heavily promoted 12-month product yielding 1.85% APY.
  • Minimum Deposit: $500 for all CDs.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw a portion of your earned interest at any time without penalty, but Marcus charges for principal withdrawals made any time before maturity. The penalty is 90 days’ interest on CDs with terms under 12 months, 270 days’ interest on CDs with terms between 12 months and 5 years, and 365 days’ interest on the 6-year CD. These policies are subject to change at any time.
  • Other Features and Considerations: You have 30 days to fully fund your CD, with the option to make multiple deposits during that time. There’s a 10-day grace period during which you can roll over your CD into a new term or withdraw principal without penalty. You’re guaranteed the best available rate during these 10 days.

See our Marcus by Goldman Sachs review for more information.

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2. Barclays

Barclays issues a host of credit cards, but its deposit arm, Barclays Bank, is comparatively low-key.

Don’t let that fool you, though. Barclays CDs, with terms longer than 12 months, can go head to head with CDs from virtually any competing deposit institution. If you need a more flexible option, the high-yield savings account is fantastic too. And Barclays has a nice CD laddering option for customers looking to spread their savings across multiple accounts and maximize their interest earnings.

  • Regular CDs and Rates: Barclays has nine CD options: 3-month, 6-month, 9-month, 12-month, 18-month, 24-month, 36-month, 48-month, and 60-month. Yields range from 0.35% APY on the 3-month CD to 1.85% APY on the 12-month, 18-month, and 24-month products.
  • Minimum Deposit: None, but your deposit must be sufficient to earn interest at computed rates.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw interest at any time without penalty. Barclays charges 90 days’ interest for early principal withdrawals on CDs with terms under 24 months and 180 days’ interest on CDs with longer terms. These penalties are subject to change at any time.
  • Other Features and Considerations: There is a 14-day grace period during which you can withdraw principal and interest without penalty or roll your CD over into a new term. Barclays has a 30-day maturity alert window, meaning you have up to 44 days to decide what to do with each maturing CD.

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3. CIT Bank

CIT Bank is an online savings bank that pays excellent yields on longer-term CDs and offers special rates on CDs with higher balances. You can also open savings accounts here, though a lack of checking and money market accounts make CIT Bank less than ideal for day-to-day banking needs.

  • Regular CDs and Rates: CIT Bank offers eight regular CDs: 6-month, 1-year, 13-month, 18-month, 2-year, 3-year, 4-year, and 5-year. Yields apply on all balances above $1,000 and range from 0.72% APY on the 6-month CD to 1.86% APY on the 1-year.
  • Minimum Deposit: $1,000 minimum deposit.
  • Special CDs and Rates: CIT Bank has two notable special CD types. First, the No Penalty CD has an 11-month term, during which you can withdraw principal at any time without penalty. Its minimum deposit is $1,000. Second, the Jumbo CD requires a minimum opening deposit of $100,000 and comes in four terms ranging from 2 to 5 years, all of which have yields competitive with CIT’s mainline CDs.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: For principal withdrawals on all but the No Penalty CDs, CIT Bank charges an early withdrawal penalty of 3 months’ interest on terms under 12 months, 6 months’ interest on terms between 12 and 36 months, and 12 months’ interest on terms above 36 months. You can withdraw interest at any time.
  • Other Features and Considerations: All CDs come with a grace period of 10 days, during which you can roll over into a new term or withdraw principal without penalty.

See our CIT Bank review for more information.

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4. BBVA

BBVA is a full-service bank with solid CD yields and several additional high-yield deposit account types, including savings and money market accounts.

  • Regular CDs and Rates: BBVA offers four CD options: 12-month, 15-month, 18-month, and 36-month. Yields are 0.50% APY on all products and apply on all balances above the $500 minimum deposit.
  • Minimum Deposit: $500 to open.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: BBVA offers Roth and traditional IRA accounts. Check out its IRA page for more details.
  • Early Withdrawal Penalties: The early withdrawal penalty for CDs with terms under 365 days is $25 plus 1% of the withdrawn amount. The early withdrawal penalty for CDs with terms over 365 days is $25 plus 3% of the withdrawn amount.
  • Other Features and Considerations: IRA CDs may allow multiple deposits per term. See account disclosures for details.

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5. American Express Bank (American Express Personal Savings)

American Express is far better known for its extensive lineup of credit cards, but don’t sleep on its personal savings arm. American Express Bank (also known as American Express Personal Savings) is among the country’s most attractive issuers of longer-term CDs, with yields consistently in the top quartile. Maximize your interest income with easy-to-build CD ladders.

  • Regular CDs and Rates: American Express Bank has seven different CD options: 6-month, 12-month, 18-month, 24-month, 36-month, 48-month, and 60-month. Yields range from 0.40% APY on the 6-month CD to 2.00% on the 60-month product.
  • Minimum Deposit: No minimum deposit or balance requirement.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw interest at any time, but there’s an early withdrawal penalty associated with any withdrawal of principal before maturity. On CDs with terms under 12 months, the early withdrawal penalty is 90 days’ interest. It rises to 270 days’ interest on CDs with terms between 12 and 48 months, 365 days’ interest on CDs with terms between 48 and 60 months, and 540 days’ interest on CDs with terms longer than 60 months. These penalties are subject to change at any time.
  • Other Features and Considerations: There’s a 10-day grace period during which you can roll over your CD into a new term, deposit additional principal, or withdraw principal and interest without penalty. After opening your CD, you have up to 30 days to deposit the necessary funds.

See our American Express Personal Savings review for more information.

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6. First Internet Bank

First Internet Bank, known simply as First IB, is an Indianapolis-based online bank with solid long-term CD yields and several other deposit account types, including high-yield checking, money market, and savings accounts. First IB’s short-term yields are among the best in the business, so this is a great place to park your money for a year or less.

  • Regular CDs and Rates: First IB has eight different CDs: 3-month, 6-month, 12-month, 18-month, 24-month, 36-month, 48-month, and 60-month. Rates range from 0.85% APY on the 3-month CD to 1.51% APY on the 60-month CD and apply on all balances above the minimum of $1,000.
  • Minimum Deposit: $1,000 minimum to open.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: You can structure any CD with a term of 12 months or above as a traditional or Roth IRA. Yields are identical to corresponding non-IRA CDs. Money market IRAs are also available.
  • Early Withdrawal Penalties: First IB’s early withdrawal penalties apply to withdrawals of principal only. Depending on the CD term, they can be steep: 90 days’ interest for the 3-month CD (in other words, all the interest you would have earned on the CD), 180 days’ interest for terms of 6 to 18 months, and 360 days’ interest for terms of 24 to 60 months. You can withdraw accumulated interest at any time without penalty.
  • Other Features and Considerations: All First IB CDs come with a 10-day grace period after maturity.

See our First Internet Bank review for more information.

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7. TIAA Bank

TIAA Bank is the banking arm of TIAA. TIAA got its start offering insurance and other financial products for nonprofit and government employees. But its deposit accounts – including the CDs featured here, as well as checking, savings, and money market accounts – are available to members of the general public. As at First IB, TIAA Bank’s short-term yields are off the charts.

  • Regular CDs and Rates: TIAA Bank offers 10 Yield Pledge CDs: 3-month, 6-month, 9-month, 1-year, 1.5-year, 2-year, 2.5-year, 3-year, 4-year, and 5-year. Yields range from 0.80% APY on the 3-month to 1.90% APY on the 5-year.
  • Minimum Deposit: Minimum of $5,000 for all Yield Pledge CD accounts.
  • Special CDs and Rates: TIAA offers two noteworthy special CD account types. The first, known as CDARS, is an account type that provides FDIC insurance on balances above $250,000. Yields are generally a bit lower than on standard CDs of equal term length. The second, the Bump Rate CD, is a 3.5-year CD that allows you to raise your yield once during the term should prevailing rates rise. The starting yield is 2.25% APY.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: For all CDs and CDARS, TIAA Bank charges an early withdrawal penalty equivalent to 25% of the total interest you’d earn over the term, regardless of when you ask for your money back. That means you could lose principal if you withdraw early in the CD’s term.
  • Other Features and Considerations: There’s a 20-day maturity alert period, during which you can withdraw funds from your CD without penalty. For all CDs (and all other deposit accounts), TIAA Bank pledges its yields will always be in the top 5% of U.S. banks, as measured by the weekly Bankrate Monitor Index.

See our TIAA Bank review for more information.

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8. Synchrony Bank

Synchrony Bank is an online-only bank that offers competitive CD yields, especially on longer-term and higher-balance accounts. You can also hook up savings and money market accounts here, but there are no checking account options.

  • Regular CDs and Rates: Synchrony Bank offers 12 CDs: 3-month, 6-month, 9-month, 12-month, 13-month, 14-month, 15-month, 18-month, 24-month, 36-month, 48-month, and 60-month. Yields range from 0.25% APY on the 3-month to 1.65% APY on the 60-month.
  • Minimum Deposit: $2,000 minimum for all CD accounts.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: You can structure any Synchrony Bank CD as a traditional or Roth IRA. Yields may vary.
  • Early Withdrawal Penalties: For both principal and interest withdrawals, Synchrony Bank levies an early withdrawal penalty of 90 days’ interest for CDs with terms of less than 12 months, and 180 days’ interest for terms of more than 12 months.
  • Other Features and Considerations: There’s a 10-day grace period at maturity.

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9. Citizens Access

Citizens Access is the online banking arm of Citizens Bank, a popular Boston-based deposit institution. Citizens Access is all about savings, and its industry-leading CD yields show clear devotion to the cause, all the way down to the eye-popping yield on the 6-month product. Meanwhile, the savings account has one of the country’s best yields for that account type. If you’re flush, build a multi-account CD ladder. Just watch for the rather high minimum deposit.

  • Regular CDs and Rates: Citizens Access has six CD options: 6-month, 18-month, 2-year, 3-year, 4-year, and 5-year. Yields range from 1.50% APY on the 6-month to 1.65% APY on the 5-year.
  • Minimum Deposit: Minimum of $5,000 for all CD accounts.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: You can withdraw interest at any time, but Citizens Access imposes early withdrawal penalties for all pre-maturity principal withdrawals. On CDs with terms of 12 months or less, the penalty is 90 days’ interest. On CDs with terms higher than 12 months, the penalty is 180 days’ interest.
  • Other Features and Considerations: For customers planning to use earned interest for income, Citizens Access permits automated interest deposits into a linked account. CDs automatically renew at the prior term unless you instruct differently during the 10-day grace period.

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10. Bank5 Connect

Bank5 Connect is an online-only bank that offers shorter-term CDs with low minimum balances. Its special Investment CD is a good deal if you want to be able to make multiple CD deposits without opening a new account. You can also find checking and savings accounts here, but retirement options are lacking. The 12-month CD’s industry-leading yield is particularly attractive for short-term savers.

  • Regular CDs and Rates: Bank5 Connect offers five regular CDs, known as Connect CDs: 6-month, 12-month, 18-month, 21-month, and 36-month. There are no interest rate tiers here – these rates apply to all balances above the minimum deposit. Yields range from 0.75% APY on the 6-month CD to 1.40% APY on the 36-month.
  • Minimum Deposit: $500 minimum.
  • Special CDs and Rates: Bank5 Connect offers a special Investment CD with a 24-month term and a 1.25% yield. Unlike a regular CD, you can make as many deposits as you wish during this CD’s term. Each new deposit begins earning interest as soon as you make it.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: For all withdrawals (interest and principal), Bank5 Connect charges an early withdrawal penalty of 3 months’ interest on terms under 12 months and 6 months’ interest on terms over 12 months.
  • Other Features and Considerations: If your CD has a balance of over $250,000, it’s covered by the Depositors’ Insurance Fund, a privately funded insurance scheme that protects all deposits at Massachusetts-chartered banks above the FDIC deposit insurance limit.

See our Bank5 Connect review for more information.

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11. Ally Bank

Ally Bank is a popular online-only bank that offers solid regular CD yields and special CDs with flexible features. It also has a full range of deposit accounts, including high-yield checking, savings, and money market accounts, plus an auto lending arm and 24/7 customer service.

  • Regular CDs and Rates: Ally Bank offers seven regular CDs: 3-month, 6-month, 9-month, 12-month, 18-month, 3-year, and 5-year. Yields range from 0.50% APY on the 3-month to 1.50% APY on the 5-year.
  • Minimum Deposit: No minimums or maximums on any CDs, including special CDs, but some CDs incentivize higher opening deposits with high yields for the term.
  • Special CDs and Rates: Ally offers two special CD types. The No Penalty CD comes with an 11-month term and yields marginally less than regular CDs with equal terms, subject to rate tiers (yields increase in proportion to the balance). You can withdraw principal and interest at any time from this CD without penalty. The Raise Your Rate CD comes with a term of 2 or 4 years. If Ally increases its posted interest rates on new CDs with the corresponding term length during your term, you have the option to raise your own CD’s rate to the new rate either once (for the 2-year CD) or twice (for the 4-year CD). Raise Your Rate products have yields competitive with regular Ally CDs.
  • Tax-Advantaged Retirement Account Options: You can structure any regular Ally Bank CD as a traditional, Roth, or SEP IRA.
  • Early Withdrawal Penalties: Regular and Raise Your Rate CDs come with early withdrawal penalties ranging from 60 days’ interest to 150 days’ interest, but you can withdraw interest at any time.
  • Other Features and Considerations: There’s a 10-day grace period upon maturity. Ally Bank also offers a 10-day rate guarantee on all CDs, including special ones. If rates on new CDs with a particular term rise within 10 days after you open a CD with that term, you’ll lock in the higher rate until maturity.

See our Ally Bank review for more information.

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12. Sallie Mae Bank

Sallie Mae is famous for its lineup of undergraduate and graduate student loans, but it also has a banking arm that offers excellent yields on medium- and longer-term CDs. You can also open money market and savings accounts with competitive yields here, plus the goal-oriented SmartyPig account, which incentivizes regular savings. Sallie Mae Bank’s short-term yields are noteworthy.

  • Regular CDs and Rates: Sallie Mae Bank offers 11 CD options: 6-month, 9-month, 11-month, 12-month, 13-month, 15-month, 18-month, 24-month, 30-month, 36-month, and 60-month. Yields apply on all balances above the minimum deposit of $2,500 and range from 1.30% APY on the 6-month CD to 1.50% APY on the 12- through 24-month CDs.
  • Minimum Deposit: $2,500 to open.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: For CDs with terms of 12 months or less, Sallie Mae levies an early withdrawal penalty equal to 90 days’ interest. For CDs with longer terms, the penalty is 180 days’ interest. These penalties apply to principal withdrawals only. You can withdraw interest at any time.
  • Other Features and Considerations: All CDs come with a 10-day grace period at maturity.

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13. My eBanc

My eBanc is the online arm of BAC Florida Bank, a Miami-based company that caters to international depositors in Latin America and the Caribbean. All of its accounts – including CDs, checking, savings, and money market accounts – are available to U.S. customers too, with exceptional short-term yields. BAC Florida Bank refers to its CDs as “Time Deposits.”

  • Regular CDs and Rates: My eBanc offers five regular Time Deposits: 6-month, 12-month, 18-month, 24-month, and 36-month. Yields apply on all balances above the $5,000 minimum and range from 1.00% APY on the 6-month product to 1.40% APY on the 12-month CD.
  • Minimum Deposit: For regular Time Deposits, the minimum opening deposit is $5,000. Higher minimum deposits apply to Jumbo and Flex products (described below).
  • Special CDs and Rates: My eBanc has two specialty products: Jumbo Time Deposits and Flex Time Deposits. Jumbo Time Deposits require a minimum opening deposit of $100,000 but otherwise mirror regular Time Deposits’ yields and terms. The single Flex Time Deposit option is a 12-month product with a mediocre yield. You’re allowed two withdrawals during this term, up to the cumulative principal and interest earned to date. The Flex Time Deposit requires a minimum opening deposit of $10,000.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: BAC Florida Bank charges 3 months’ interest for early withdrawals (principal and interest) on Time Deposits with terms of 12 months or less, and 6 months’ interest on withdrawals from Time Deposits with terms above 12 months. When your Time Deposit matures, you can receive the accrued interest even if you choose to roll it over into a new term.
  • Other Features and Considerations: All Time Deposits come with a 20-day grace period at maturity.

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14. Discover Bank

Owned by Discover Financial Services, which also oversees the Discover family of credit cards, Discover Bank features a wide range of CD terms with attractive yields. It also offers savings and money market accounts, plus 24/7 customer service and access to about 60,000 fee-free ATMs nationwide. If your credit qualifies, check out Discover’s lineup of cash back and travel rewards credit cards, like the Discover it Cash Back Card and the Discover it Miles Credit Card.

  • Regular CDs and Rates: Discover Bank offers 12 different CDs: 3-month, 6-month, 9-month, 12-month, 18-month, 24-month, 30-month, 3-year, 4-year, 5-year, 7-year, and 10-year. Yields range from 0.35% APY on the 3-month CD to 1.80% APY on the longer-term products.
  • Minimum Deposit: Minimum of $2,500.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: You can structure any CD as a traditional or Roth IRA.
  • Early Withdrawal Penalties: Discover Bank allows you to withdraw accumulated interest at any time without penalty. However, if you want to withdraw any of your CD’s principal, you must pay an interest penalty. Penalties are 3 months’ interest on terms under 12 months, 6 months’ interest on terms between 12 and 36 months, 9 months’ interest on the 4-year CD, 18 months’ interest on the 5-year CD, and 24 months’ interest on the 7- and 10-year CDs.
  • Other Features and Considerations: For non-IRA CDs, Discover Bank offers a 10-day rate guarantee. However, this option isn’t available with IRA CDs. At maturity, there’s a 9-day grace period where you can decide whether to roll over the CD into an identical term, change its term, or withdraw your funds entirely.

See our Discover Bank review for more information.

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15. ableBanking

ableBanking is the Maine-based online arm of Northeast Bank, which has physical branches in New England. ableBanking is unusual for its focus on supporting charitable and religious organizations; it’s the only known bank that pays each customer’s account opening bonus to the charity of their choosing, for instance. In addition to CDs with competitive yields, you can also find money market accounts here.

  • Regular CDs and Rates: ableBanking has five CDs: 6-month, 1-year, 2-year, 3-year, and 4-year. Yields apply on all balances above $500 and range from 1.20% APY on the 6-month product to 1.30% APY on the 3- and 4-year products.
  • Minimum Deposit: $1,000 to open. Of note: ableBanking has a low $240,000 maximum deposit on CDs.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: None.
  • Early Withdrawal Penalties: ableBanking charges an early withdrawal penalty of 90 days’ interest for CDs with terms under 36 months and 180 days’ interest for CDs with terms of 36 and 48 months. You can withdraw accrued interest at any time.
  • Other Features and Considerations: All new ableBanking deposit accounts, including CDs, come with a $25 bonus that ableBanking donates to the nonprofit organization of your choosing. If you wish, ableBanking can also make charitable gifts using your accrued interest. All CDs come with a 30-day grace period at maturity.

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16. Axos Bank

Axos Bank is a full-service, online-only bank that provides decent CD yields and offers a range of deposit accounts for your one-stop banking needs.

  • Regular CDs and Rates: Axos Bank offers seven CD options: 3-month, 6-month, 12-month, 24-month, 36-month, 48-month, and 60-month. Yields apply on all balances above the $1,000 minimum deposit and range from 0.25% APY on the 3-month CD to 0.40% APY on the 60-month CD.
  • Minimum Deposit: $1,000 to open.
  • Special CDs and Rates: None.
  • Tax-Advantaged Retirement Account Options: Axos Bank offers Roth and traditional IRA options on three CD accounts: 12-month, 24-month, and 36-month. Yields are lower than non-IRA analogs, ranging from 0.60% APY on the 12-month to 0.75% APY on the 36-month.
  • Early Withdrawal Penalties: Axos Bank’s penalties for early principal withdrawal are as follows: 45 days’ interest for the 3-month, 3 months’ interest for the 6-month, 6 months’ interest for the 12-month, 12 months’ interest for the 24-month, 18 months’ interest for the 36-month, and 24 months’ interest for the 48-month. You can withdraw interest at any time.
  • Other Features and Considerations: All CDs come with a 10-day grace period followed by automatic renewal.

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Final Word

CDs offer the opportunity to earn a predictable yield for a fixed period, but most require commitment. Before you put your money in any of the above CDs, or any other CDs that appear attractive, you should confirm that you can afford to tie up those funds for the entire CD term – or that the issuer allows early withdrawals without penalty (as is the case with Ally Bank, for instance).

If you’re forced to withdraw your money from an inflexible CD before the maturity date, especially if it’s still early in the CD’s term, interest penalties may eliminate some or all of your yield – and could even cut into your principal.

If you haven’t already, determine how much you can comfortably save by creating a household budget that accounts for all your income and expenses, as well as potential uncertainties that could affect your finances in the future.

What’s the highest CD rate you’ve found recently?



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