16 Best CD Rates of September 2023 (Up to 5.51% APY)

In search of the perfect low-risk investment? Dive into the world of CDs.

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In today's fast-paced financial world, smart investors are always on the lookout for stable and rewarding opportunities. Among all the options out there, the CD stands out. It's a reliable choice that offers good returns without the wild ups and downs of the stock market.

In this article, we've done the hard work for you. We've researched and listed the best CD rates available right now. If you value both safety and growth for your money, you won't want to miss what we've found. Let's dive in and explore these top CD options together.

Featured CD Offer
Western Alliance Bank 1 Year CD
5.0
Earn 5.51% APY | $1 minimum deposit | FDIC Insured.

Experience top-tier banking with zero fees, standout rates, and the security of FDIC insurance—all with just a $1 minimum deposit. Access your funds 24/7 online and elevate your savings with a 5.51% APY 12-month CD, which outperforms the national average by 3.1x. Choose the best; it's right at your fingertips.

Start Saving

The Best CD Rates

Many of the best CD rates are offered by credit unions right now. But don't worry — anyone is eligible to join these credit unions and open CDs.

Best CD Rates By Term:

Compare the Best CD Rates

1. Quontic CDs

Quontic 1 Year CD
4.5
APY: 5.30% | Minimum Deposit Amount: $500

Unlock a stellar 5.30% Annual Percentage Yield (APY) with Quontic's Certificate of Deposit. With just a $500 minimum, you're steps away from an opportunity that shines. Dive in and secure your account online in under 3 minutes!

Start Saving

Earn up to 5.30% Annual Percentage Yield (APY) with a Quontic CD. A minimum of $500 is required to open. Withdrawals before the maturity date are subject to penalties. Open your account in 3 minutes or less.

With their highly acclaimed CD accounts, customers can be assured that their hard-earned money is safeguarded and guaranteed a strong return. The rates offered by the company are more than competitive; they're trend-setting.

The accounts are FDIC insured and protected, giving customers peace of mind that their investments are in safe hands. The company is confident that although customers may initially be drawn in by the rates, they'll stay for the top-tier service provided.

Visit Quontic to learn more

2. First Citizens Bank CDs

First Citizens Bank 11-Month CD
4.5

Earn a fixed 5.00% APY without the long-term commitment. Available exclusively online. Amounts available from $5,000 to $250,000. Deposits must come from outside First Citizens Bank. Your deposits are insured up to $250,000 per depositor, for each account ownership category. 

Open Account
Available to residents in NC, SC, TN, AZ, CA, CO, FL, GA, KS, MD, MO, NM, OK, OR, TX, VA, WA, WV, and WI.

First Citizens Bank offers Certificate of Deposit (CD) accounts with fixed interest rates and terms ranging from 6 months to 5 years. 

These CDs provide a great way to save money with even higher rates than traditional savings accounts for longer-term options. 

You can select from a variety of terms with varying rates of return to suit your financial goals. 

With a CD, your funds are locked until the maturity date, ensuring stable earnings. For example, you can earn up to 5.00% APY for an 11-month CD with a minimum opening deposit of $5,000 and a maximum deposit of $250,000. 

Your funds in the CD accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, ensuring the safety of your savings.

Available to residents in NC, SC, TN, AZ, CA, CO, FL, GA, KS, MD, MO, NM, OK, OR, TX, VA, WA, WV, and WI.

Visit First Citizens Bank to learn more

3. Alliant Credit Union CDs

This credit union offers one of the best interest rates on our list. Alliant Credit Union offers you the chance to earn 4.5% APY on your balance, as long as you qualify for membership (typical of credit unions vs. banks).

You’ll get the most bang for your buck if you choose a three-year term, but you’ll need at least $1,000 to get started.

Terms range from 12-month CDs to five years, with tiered withdrawal penalties. You can also take advantage of dividend withdrawals, which allow you to collect interest each month penalty-free instead of letting it compound. 

4. Ally Bank CDs

With a 4.25% APY interest rate and no minimum deposit, it’s not hard to see why Ally Bank made our list. Though you’ll get the best rate if you choose an 18-month term, you can pick between a short three-month CD to a five-year-long CD. This bank is online-only but serves over 8.5 million customers. Ally Bank compounds your interest daily, and there’s a bonus APY if you renew your CD once the term is up. 

In addition, you can pick one of three CDs. The first is the Ally High Yield Certificate of Deposit, which is anywhere from three months in a term to five years. This is the most basic CD, compared to the Raise Your Rate Certificate of Deposit, which is two or four years per term. You can also choose the No Penalty CD. This one holds a term of 11 months and allows you to withdraw at any time after six days of funding it. 

5. American Express National Bank CDs

AmEx is beloved by many, especially since they’ve been operating since 1950. This bank offers a 4.25% APY with no minimum deposit or fees.

The rates will depend on which terms you choose but range from six months to five years. Interest is paid out each month but compounded daily, making a CD from AmEx National Bank a smart short-term investment.

6. Barclays Online CDs

This UK-based bank requires no minimum to fund the CD, which earns a 4.35% APY interest rate. Terms come anywhere from three to 60 months, but you’d be wise to choose a term longer than nine months to maximize your return. You can also use the CD Calculator from Barclays to see what you’d get. 

7. Bread Financial CDs

Since 1986, this Utah-based bank has been offering its customers some of the best banking services. Open a CD online with Bread Financial to earn 4.50% APY, as long as you have a $1,500 minimum deposit.

The terms range from one to five years and interest is compounded daily. There are no monthly fees and your CD renews automatically once it reaches maturity. Within the 10-day grace period between the end of the first term and the beginning of the second, you can withdraw your funds if you’d like. 

8. Capital One CDs

High interest rates continue with Capital One. This bank has been public since 1994 and offers terms from six months to five years. As part of a long-term investment strategy, you can earn up to 4.40% APY with no minimum deposit with Capital One.

There are no partial withdrawals. If you do pull your funds out early, you’ll pay a penalty of at least three months' worth of dividends if your term is shorter than a year. This doubles to six months if your terms are longer. 

Related: Capital One Promotions, Bonuses, and Offers

9. Connexus Credit Union CDs

For one of the higher CD rates in the nation, check out Connexus Credit Union. The longest term CD here is five years but you can also choose as low as a one-year term and still get the 4.51% APY rate.

You’ll need at least $5,000 to fund the CD but you don't have to have a checking account open to fund it. Early withdrawals will incur penalties. Check out Connexus Credit Union for other credit union promotions you can take advantage of. 

10. Discover High Yield CDs

To access the 4.40% APY rate from Discover, you’ll need to fund your new CD with at least $2,500 to start. Discover offers terms starting at three months and extending to 10 years, but there’s no real advantage to going with 10 years over 5 years.

With no fees and the ability to set up a CD ladder, Discover offers comparable rates to other banks and credit unions on our list. 

11. LendingClub Bank CDs

Choose terms from three months to five years when you open a LendingClub Bank CD with at least $2,500 to start.

You’ll have a chance at the 4.10% APY interest rate, which requires you to open an account online. If you’re looking for a way to invest $700 or more for a long-term payoff, check out LendingClub Bank. 

12. Marcus by Goldman Sachs CDs

Did you know Goldman Sachs has been in the business for over 150 years? And with a $500 deposit, you can earn up to 4.40% APY with a CD from Marcus by Goldman Sachs. This CD can run anywhere from six months to six years, but you’ll only get the high APY if you fund your account within the first 10 days.

This CD automatically renews, like many others, with the same 10-day grace period for withdrawal.  

13. Navy Federal Credit Union CDs

As long as you qualify for membership, you can earn up to 3.40% APY with Navy Federal Credit Union (NFCU). This credit union restricts membership to the armed forces, Department of Defense, veterans, and their families, but currently holds over 10 million members.

NFCU offers the Standard, EasyStart, and SaveFirst CDs, which range in terms from three months to seven years. SaveFirst is basic, requiring $5 to open.

You can add money to your CD with EasyStart and SaveFirst CDs, though you’ll need $50 to fund your EasyStart CD and $1,000 to fund the Standard CD. 

14. Sallie Mae Bank CDs

This well-known bank offers CDs that automatically renew as well. You’ll still get that 10-day grace period to withdraw your funds, but with a high APY of 4.4%, why would you?

You can choose terms from six months to five years, but you’ll need at least $2,500 to deposit into the account first. Interest does compound daily for this CD, and is paid out monthly. 

15. Synchrony CDs

To earn a 4.50% APY on your CD, check out Synchrony. This secure online bank does have four physical locations but does most of its business on the web.

Terms range from three months to five years, but there’s no minimum deposit. Funds are FDIC-insured and you can choose from both fixed and variable-rate CDs to fit your goals.

16. U.S. Banks

U.S. Bank provides a variety of CDs offering its most competitive, promotional rates – and great returns:

Terms in monthsCD AmountAPY
7$1,000 – $250,000up to 4.80%
11$1,000 – $250,000up to 4.90%
15$1,000 – $250,000up to 4.95%
19$1,000 – $250,000up to 4.95%
Rates may vary by location. For the purposes of this article, we researched rates using the New York City ZIP Code of 10001. Rates are accurate as of June 7, 2023.

Compared to rates offered by the best digital banks, the bank's CD Special rates are generally competitive.

With their CD Special rates, you can choose the term length that works best for you. The rate is guaranteed for the full length of whatever term you choose.

Their CD Special rates require a minimum deposit of $1,000 and are subject to a maximum deposit of $250,000. As with all U.S. Bank CDs, the CD Special is FDIC-insured.

Rates vary by state and zip code.

Related: U.S. Bank Promotions and Bonuses

4 Best Penalty-Free CD Rates

A no-penalty CD is considered better than a traditional CD because it allows you to access your funds without incurring any early withdrawal penalties.

In a traditional CD, if you withdraw your funds before the maturity date, you may have to pay a penalty, which can be a percentage of the deposit amount or a fixed dollar amount.

With a no-penalty CD, you have more flexibility to access your money if you need it, without having to pay additional fees or charges.

This can be especially useful if you have an unexpected expense or emergency and need to access your savings quickly.

However, it is important to keep in mind that a no-penalty CD may have a lower interest rate compared to a traditional CD, so you need to weigh the trade-off between flexibility and earning potential when deciding which option is best for you.

Here’s a look at some of the best no-penalty CD rates.

1. Ponce Bank 4-month CD – 5.30%

ponce bank

Ponce Bank has recently launched a new 4-month CD that offers a high interest rate and is more attractive than most savings accounts. The CD is also a no-penalty CD, meaning that there are no penalties for early withdrawals.

This makes the account more flexible for customers who may need to access their funds before the end of the 4-month term.

The current annual percentage yield (APY) for this CD is 5.30%, which is a very competitive rate.

Additionally, this CD has no fees and only requires a minimum balance of $1, making it accessible to a wide range of customers.

Whether you're looking for a short-term investment or simply want to grow your savings, this 4-month CD from Ponce Bank is definitely worth considering.

GET STARTED >>

2. Sallie Mae 14-month CD – 4.75%

sallie mae

Sallie Mae offers a 14-month CD account with a competitive interest rate of 4.75% annual percentage yield (APY).

One of the advantages of this account is the absence of early withdrawal penalties, allowing you to access your funds before the maturity date without incurring any additional fees or charges.

Additionally, this account has no additional fees and requires only a $1 minimum balance, making it accessible and convenient for a variety of customers.

GET STARTED >>

3. Sallie Mae 10-month CD – 4.70%

sallie mae

Sallie Mae offers another certificate of deposit option, a 10-month CD account, with a competitive interest rate of 4.70% annual percentage yield (APY).

Like the 14-month CD, this account also does not impose any early withdrawal penalties, giving you the flexibility to access your funds before the maturity date.

Furthermore, it also has no fees and only requires a low $1 minimum balance.

However, with the 14-month CD offering a similar penalty-free feature and slightly higher APY, it just depends on your time frame and liquidity preferences.

GET STARTED >>

4. CIT Bank 11-month CD – 4.90%

citbank

CIT Bank offers a highly attractive 11-month CD that is penalty-free and boasts an impressive 4.90% annual percentage yield (APY).

This short-term investment option is not only free from any penalties but also boasts a competitive APY, making it a great choice for those looking to earn higher returns on their savings.

While there is a minimum balance requirement of $1,000, there are no additional fees associated with this account.

It is also worth noting that CIT Bank consistently ranks highly on lists of the best savings accounts and certificates of deposit, adding to its credibility and reliability as a financial institution.

GET STARTED >>

Related: Best CIT Bank Bonuses and Promotions

What is a Certificate of Deposit (CD)

Featured CD Offer
Western Alliance Bank 1 Year CD
5.0
Earn 5.51% APY | $1 minimum deposit | FDIC Insured.

Experience top-tier banking with zero fees, standout rates, and the security of FDIC insurance—all with just a $1 minimum deposit. Access your funds 24/7 online and elevate your savings with a 5.51% APY 12-month CD, which outperforms the national average by 3.1x. Choose the best; it's right at your fingertips.

Start Saving

Banks offer certificates of deposit as a way for members to earn interest. Most CDs require individuals to lend their funds to the bank for an extended period.

During this time, however, the individual earns interest on their balance. Most CD rates range anywhere from a small percentage to a nearly 5% APY.

In comparison to other types of investments, CDs have a lower return rate, but they can be incredibly steady and reliable as well. The best portfolios incorporate CDs along with high-risk investments to offset any losses.

CDs differ from savings accounts in key ways. For example, banks allow you to withdraw funds from savings accounts without penalty, as long as you only do it so many times per statement period.

CDs, however, typically don’t allow for withdrawals without a penalty unless you go with a no-penalty CD. For most CDs, think of them like a suitcase that holds your savings that’s locked away like a time capsule until a future date when you can access it.

In addition, though savings accounts and CDs are both low risk, they do tend to vary in terms of APY rates.

Savings account rates depend on market fluctuations while many CDs allow you to lock in your interest rate from the very beginning. Smart investors tend to open CDs when interest rates are high (like they are now) as still part of the low-risk investment portion of their portfolio. 

CD Calculator

With traditionally higher rates than a savings account, Certificates of Deposits (CDs) are a great way to reach your savings goals on a set schedule. Use this calculator to find out how much interest you can earn.

Interest Earned Overall:

Average Interest Earned Per Month:

Total Balance:

Total Earnings:

What to Look for in a CD

When shopping for a certificate of deposit, it is important to consider a few key factors to ensure that you find the best option for your savings goals.

At the same time, it’s not all about the rates. You should consider other aspects of the CD to find the best fit for your situation.

Use our checklist below to see what you should look for in a CD account that may or may not offer the best rate in town.

Smart things to look for in a CD include:

1. Interest rates

CD rates can vary significantly from one financial institution to another, so it is important to compare interest rates from multiple sources to find the best deal.

That being said, our current favorite is from Ponce Bank which recently launched a new 4-month CD with 5.30% APY, 5.4x higher than the national average.

2. Term length

CDs are typically available with terms ranging from a few months to several years. Choose a term that aligns with your financial goals and timeframe.

3. Minimum deposit requirements

Some CDs may have minimum deposit requirements that may be higher than you are comfortable with. Consider your available funds and choose a CD with a minimum deposit that works for you.

4. Early withdrawal penalties

If you need to access your money before the CD matures, you may be subject to early withdrawal penalties unless you opt for no-penalty CDs.

5. FDIC insurance

CDs offered by FDIC-insured banks are insured up to $250,000 per depositor, which can provide added security for your investment.

By considering these factors, you can find a CD that meets your financial needs and helps you reach your savings goals.

Featured CD Offer
Western Alliance Bank 1 Year CD
5.0
Earn 5.51% APY | $1 minimum deposit | FDIC Insured.

Experience top-tier banking with zero fees, standout rates, and the security of FDIC insurance—all with just a $1 minimum deposit. Access your funds 24/7 online and elevate your savings with a 5.51% APY 12-month CD, which outperforms the national average by 3.1x. Choose the best; it's right at your fingertips.

Start Saving

FAQs

What types of CD rates are there? 

CDs can be fixed or variable when it comes to interest rates. As the terms imply, fixed rates stay the same throughout the life of the CD, while variable rates respond to and mirror the market. Many investors favor fixed rates to lock in a higher and more profitable rate, while others prefer the volatility of variable rates as a way to potentially earn more for their investments.

Do you get a higher interest rate if you opt for a longer-term CD?

It’s often true that you get a higher interest rate if you obtain a longer-term CD, but this is not always the case. If you’d like to compare the rates between terms, check the fine print. 

Which banks offer the best CD rates? 

The banks on our list offer some of the best CD rates out there. While they’re not spectacular considering the bank or credit union is using your money to invest in other things, it’s certainly better than nothing. These rates may change in response to the economy as well, depending on what happens. 

Cash in On a CD Today

While certificates of deposit certainly aren’t the most interesting type of investment, they can be a great way to earn interest, slowly but surely.

We hope you’ve found this article useful in figuring out which banks and credit unions offer the best CD rates so you can make the most of your money.

The higher the interest rate you can obtain, the more you’ll get paid for the use of your money. That is until you come back to claim it in the future.

Featured CD Offer
Western Alliance Bank 1 Year CD
5.0
Earn 5.51% APY | $1 minimum deposit | FDIC Insured.

Experience top-tier banking with zero fees, standout rates, and the security of FDIC insurance—all with just a $1 minimum deposit. Access your funds 24/7 online and elevate your savings with a 5.51% APY 12-month CD, which outperforms the national average by 3.1x. Choose the best; it's right at your fingertips.

Start Saving

About the author

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you unlock the wealth of freedom. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Business Insider, Yahoo! Finance, NASDAQ, Discover, Fox News, MSN Money and more.

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