Best CD rates

Right now, many consumers are flocking to safe-haven investments to not only store their cash — but to make steady returns on it, too.

Certificates of deposit (CDs) are one such investment, largely thanks to rising interest rates. While the recent Federal Reserve rate hikes have hurt the popularity of other products, like mortgages and credit cards, they've helped CDs. In fact, some banks are now offering CDs with 4% to 5% interest rates or higher.

Are you considering investing in CDs? In this article, we will break down where exactly to look for the best CD rates of 2023.

Start exploring your CD options here now to see how much more you could be earning.

Best CD rates

Here are a few of the best banks currently offering CDs, broken down by the annual percentage yield (APY), minimum deposit, fees and additional highlights (CD rates current as of December 26, 2023):

Synchrony Bank

Synchrony Bank is an online banking institution that offers savings accounts, CDs, money market accounts and credit cards. Not only does Synchrony have the best certificate of deposit rates we found, but they also have the widest range of terms. You can get CDs from Synchrony for as little as three months. They also offer a tax-advantaged IRA CD, which no other banks we analyzed did. 

• APY: 2.25% to 5.30%
• Minimum deposit: None
• Fees: Early withdrawal penalties (90 to 365 days of interest) for withdrawing money before the CD's maturity date
• Highlights: 3-month to 5-year terms, IRA CD options, FDIC-insured

Bread Savings

Bread Savings is an online bank that offers high-yield savings accounts and certificates of deposit. You can browse products, open your account, and fund it all online. The bank has no brick-and-mortar locations.

• APY: 4.25% to 5.50%
• Minimum deposit: $1,500
• Fees: $5 per paper statement, $15 per check request, $25 per outgoing wire transfer, early withdrawal penalties (90 to 365 days of interest) for withdrawing money before the CD's maturity date
• Highlights: Interest is accrued and compounded daily, no maintenance fees, FDIC-insured, 1- to 5-year terms

Marcus

Marcus is the online bank from Wall Street bank Goldman Sachs. It offers high-yield certificates of deposit, high-yield savings accounts, investing services, credit cards and personal loans. It currently offers a special promotional 10-month CD with an APY of 5.05%, making it one of the best CD banks we found. 

• APY: 4.00% to 5.50%
• Minimum deposit: $500
• Fees: Some accounts have early withdrawal penalties (90 to 270 days of interest) for withdrawing money before the CD's maturity date
• Highlights: 10-day rate-increase guarantee (if rates go up in the 10 days after opening/funding your account, you automatically get the higher rate), FDIC-insured, 6-month to 6-year terms

Start exploring your CD options here now and earn more money!

Barclays

Barclays is an online bank that offers only savings accounts and CDs. Its savings accounts offer APYs up to 3.80%, while its CD rates are among the highest we found. There are no minimum balances required to open either. 

• APY: 4.15% to 5.30%
• Minimum deposit: None
• Fees: Early withdrawal penalties
• Highlights: Interest compounded daily, FDIC-insured, one- to five-year terms

Capital One

Capital One is a well-known national bank offering credit cards, bank accounts, car loans, business solutions and more. Its CDs allow flexible interest payments; you can opt to receive your interest at the end of the CD's term, monthly or annually.

• APY: 4.10% to 5.25%
• Minimum deposit: None
• Fees: Early withdrawal penalties (90 to 180 days of interest) for withdrawing money before the CD's maturity date
• Highlights: No minimum balance, flexible interest payouts, FDIC-insured, 6-month to 5-year terms

Citizens

Citizens is an online-only bank that offers savings accounts, CDs, mortgages and student loan refinancing. The bank's CDs range from one to five years, and customers have the option to receive monthly payouts from their CD's interest earnings.

• APY: 2.75% to 5.50%
• Minimum deposit: $5,000
• Fees: None
• Highlights: No fees, FDIC-insured, 10-month to 5-year terms; option to take monthly interest payments, interest compounded daily

How to open a CD account

Opening a CD account is as simple as choosing a bank, filling out a short application, and funding your account. You can typically fund your new account with an online transfer from another bank or savings account within minutes.

Keep in mind that your initial deposit is the only deposit you'll make into your CD, so make it count. If you want to invest further into CDs later on down the line, you'll need to open a new CD and fund that separately. Get started online today!