7 of the highest-paying CDs on the market today
Opening a certificate of deposit (CD) is one of the best ways to increase your savings balance in the current high interest rate environment. In exchange for locking your money in the account for a set term length, you can earn upwards of 5% APY with some top CDs available today.
But even among high-interest CDs, there are a few options that stand out from the rest. Start exploring today's top CD rates here to see how much you could earn.
7 of the highest-paying CDs on the market today
All of the CDs below have no monthly fees and are protected by federal deposit insurance up to $25,000 (per account, per institution). Historically, longer-term CDs (three, five or even 10 years) were the highest earners. But today, the very top CD rates are commonly found among shorter-term CDs. We've found many of the highest-paying CDs carry terms of around six months to one year.
Popular Direct: 5.38% APY (1 year)
If you have a large amount to save, Popular Direct's one-year CD may be for you. The minimum deposit is $10,000 and the early withdrawal penalty is a sizable 270 days' interest. That said, if you have big savings goals and want to avoid the temptation to use your funds for other purposes, this CD could inspire the discipline you need.
Connexus Credit Union: 5.36% APY (1 year)
Because Connexus is a credit union, they call their account a "share certificate" instead of a certificate of deposit — but it's otherwise the same thing. Connexus' one-year share certificate offers a competitive APY of 5.36%. It has a relatively high minimum deposit of $5,000 but its early withdrawal penalty is one of the lowest on the list, at 90 days' interest.
First Internet Bank of Indiana: 5.35% APY (1 year)
First Internet Bank of Indiana's one-year CD offers another competitive rate, at 5.35% APY. It requires a minimum deposit of $1,000, which is on the lower end of the spectrum. If you withdraw funds before the term expires, however, you'll incur a penalty of 180 days' interest.
CIBC Bank USA: 5.36% APY (1 year)
If you prefer a bank over a credit union, CIBC's one-year CD also offers a 5.36% APY. And it beats Connexus' in two ways: its minimum deposit is only $1,000, and its early withdrawal penalty is a mere 30 days' interest.
Popular Direct: 5.35% APY (6 months)
Big savers with a short savings timeline might be interested in Popular Direct's six-month CD, which offers 5.25% APY but requires a $10,000 minimum deposit. Like the bank's one-year CD, it has an early-withdrawal-discouraging penalty, this time at 120 days' interest.
Bank5 Connect: 5.30% APY (6 months)
For a short-term CD with a low minimum deposit requirement, consider Bank5 Connect's six-month CD. You'll only need to deposit $500 when you open the account. If you withdraw funds early, you'll incur three months' (90 days') interest.
Bask Bank: 5.25% APY (6 months)
You can earn a still-competitive rate of 5.25% APY with Bask Bank's six-month CD. It requires a minimum deposit of $1,000 and has a 90 day interest early withdrawal penalty.
Learn more about your CD options by viewing today's top offers here.
The bottom line
When it comes to saving your money, CDs are a great option for those who want guaranteed returns with little risk. Investing your savings in a CD with an industry-leading interest rate can help you grow your wealth faster over time.
While the CDs above are a great place to start, don't neglect to do your research and compare different options to find the best account for your budget, investing timeline and other needs. The account that's best for you is out there!
