Earn More on Your Savings – Compare Today’s Best CD Rates
By: Conor Keenan | Last updated: May 13, 2026
Conor Keenan, AWMA®, is the Co-Founder of CompareAccounts. An Accredited Wealth Management Advisor® professional with over a decade of experience covering consumer banking and investing trends, his work has appeared in The Wall Street Journal, Reuters, Yahoo Finance, and more.
Editorial Independence: Our opinions, reviews, and recommendations are our own. Partner commissions keep our site free, but our content remains independent.
You’re in the right place. Every day, we help thousands earn 10x the sad 0.39% national average APY through vetted, FDIC-insured accounts we trust for our own families & friends. Compare CD rates and high-yield savings accounts to find the best one for your needs.
Short Term CDs:
Bonus Offer
4.05% APY
On EverBank's Secure Site
Powered by Raisin,
Member FDIC
Best For: Short Term Liquidity + Bonus
Term: 6 Months
APY: 4.05%
EverBank offers 4.05% APY exclusively through the Raisin Platform on their 6 month CD.
This APY is substantially higher than what you’ll find at most brick-and-mortar banks and most online banks.
In addition to this top-tier rate, EverBank ensures your money works for you, not the bank. They offer $0 monthly maintenance fees, an incredibly accessible $1.00 minimum opening deposit, and peace of mind knowing your funds are insured by the FDIC for up to $250,000 per depositor. Interest compounds daily and is posted to your account monthly.
EverBank has partned with Raisin to leverage its massive $46 billion asset foundation to extend its high-performance digital banking tools and unwavering financial safety to help savers nationwide earn significantly more.
U.S. based customer service is located in New York, they are available via phone or email.
Founded in 1961, EverBank is a nationwide financial services powerhouse built on a legacy of stability, strong capital, and a commitment to performance-focused growth.
Depositing $10,000 or more? New customers can get between a $70 to $1,500 cash bonus depending on deposit size. Use code FRESHSTART.
See EverBank's Secure Site Powered by Raisin to Get More Details.
4.00% APY
On Synchrony Bank's
Secure Site, Member FDIC
Best For: High APY From a Fortune 500 Bank
Term: 9 Months
APY: 4.00%
Synchrony Bank’s 9-Month CD combines a competitive APY with the security of a fixed term, all with no minimum deposit required to open. Whether you’re saving for a big purchase, a tax bill, or just want your money working harder than in a savings account, this CD delivers a guaranteed return.
Interest is compounded daily and credited monthly, so your balance grows steadily. With terms available from 3 months to 5 years, Synchrony gives you the flexibility to align your savings with your financial goals.
You’ll never pay monthly maintenance fees and accessing your account is simple through Synchrony’s online banking and mobile app, giving you control at your fingertips.
Synchrony is a Member FDIC which means your deposits are federally insured up to $250,000 per depositor.
Founded in 2003, Synchrony is a Fortune 500 company and ranked among the nation’s leading consumer banks, Synchrony has built a reputation for helping customers grow their money with competitive rates and dependable service. Terms Applyⓘ
See Synchrony Bank's Secure Site For More Details.
Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit synchrony.com/banking for current rates, terms and account requirements. Member FDIC.
Longer Term CDs:
Annual Percentage Yield (APY)
3.25% APY
APY as of May 13, 2026
On CIT Bank's Secure Site,
Member FDIC
Best For: High APY Interest Rates + Mobile App
Term: 13 Months
APY: 3.25%
CIT Bank offers 3.25% APY1, as of May 13, 2026, on their 13 Month CD with no monthly fees.
CIT Bank’s mobile app give you 24/7 access to your CD account. The mobile app is available for both IOS & Android devices.
You can open a CIT Bank 13 Month CD with as little as $1,000 and it only takes about 5 minutes to complete the sign-up process.
Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily to maximize your earning potential. Terms Applyⓘ
See CIT Bank's Secure Site For More Details.
13- Month CD Disclosure
1 APY —Annual Percentage Yield is accurate as of January 9, 2026. $1,000 minimum deposit is required to open the account. A penalty may be imposed for early withdrawal of principal, and any early withdrawal (principal or interest) will reduce earnings. Upon maturity, the 13-Month CD will be automatically renewed as a 1-Year Term CD at the then-published APY.
- For complete list of account details and fees, see our Personal Account disclosures. please visit: https://www.cit.com/cit-bank/resources/forms
3.80% APY
On Synchrony Bank's
Secure Site, Member FDIC
Best For: High APY From a Fortune 500 Bank
Term: 13 Months
APY: 3.80%
Synchrony Bank’s 14-Month CD combines a competitive APY with the security of a fixed term, all with no minimum deposit required to open. Whether you’re saving for a big purchase, a tax bill, or just want your money working harder than in a savings account, this CD delivers a guaranteed return.
Interest is compounded daily and credited monthly, so your balance grows steadily. With terms available from 3 months to 5 years, Synchrony gives you the flexibility to align your savings with your financial goals.
You’ll never pay monthly maintenance fees and accessing your account is simple through Synchrony’s online banking and mobile app, giving you control at your fingertips.
Synchrony is a Member FDIC which means your deposits are federally insured up to $250,000 per depositor.
Founded in 2003, Synchrony is a Fortune 500 company and ranked among the nation’s leading consumer banks, Synchrony has built a reputation for helping customers grow their money with competitive rates and dependable service. Terms Applyⓘ
See Synchrony Bank's Secure Site For More Details.
Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit synchrony.com/banking for current rates, terms and account requirements. Member FDIC.
High Yield Savings Accounts:
Annual Percentage Yield (APY)
3.20% APY
APY as of May 13, 2026
On American Express® National Bank's
Secure Site, Member FDIC
Best For: High Yield Savings + Award-Winning Service
Earn a competitive 3.20% Annual Percentage Yield1 (APY) as of May 13, 2026 with the American Express® High Yield Savings Account — a top-tier rate from a brand known for trust, stability, and exceptional service.
Interest compounds daily and is deposited monthly, helping your savings grow effortlessly.
Enjoy no monthly fees, no minimum balance requirements2, and 24/7 U.S.-based customer support.
Your deposits are FDIC insured up to $250,000 per depositor, offering you complete peace of mind. Terms Apply.ⓘ
Manage your savings easily through the American Express® App, where you can check balances, deposit funds, track transactions, and stay in control — anytime, anywhere.
If you're looking for a secure, reliable place to grow your savings — backed by award-winning service — the American Express® High Yield Savings Account is a clear standout.
See American Express National Bank's Secure Site For More Details.
Terms Disclosure:
1. The Annual Percentage Yield (APY) as advertised is accurate as of May 13, 2026. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened. Interest Rate and APY of a Certificate of Deposit account is fixed once the account is funded
2. There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you.
3. iOS and Android only. See app store listings for operating system info.
4. For purposes of transferring funds to or from an external bank, business days are Monday through Friday, excluding federal holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin processing on the next business day. Funds deposited into your account may be subject to holds. See the Funds Availability section of your Consumer Deposit Account Agreement and Savings Schedules for more information.
Annual Percentage Yield (APY)
3.20% APY
APY as of May 13, 2026
On American Express® National Bank's
Secure Site, Member FDIC
Best For: High Yield Savings + Award-Winning Service
Earn a competitive 3.20% Annual Percentage Yield1 (APY) as of May 13, 2026 with the American Express® High Yield Savings Account — a top-tier rate from a brand known for trust, stability, and exceptional service.
Interest compounds daily and is deposited monthly, helping your savings grow effortlessly.
Enjoy no monthly fees, no minimum balance requirements2, and 24/7 U.S.-based customer support.
Your deposits are FDIC insured up to $250,000 per depositor, offering you complete peace of mind. Terms Apply.ⓘ
Manage your savings easily through the American Express® App, where you can check balances, deposit funds, track transactions, and stay in control — anytime, anywhere.
If you're looking for a secure, reliable place to grow your savings — backed by award-winning service — the American Express® High Yield Savings Account is a clear standout.
SeeAmerican Express National Bank's Secure Site For More Details.
Terms Disclosure:
1. The Annual Percentage Yield (APY) as advertised is accurate as of May 13, 2026. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened. Interest Rate and APY of a Certificate of Deposit account is fixed once the account is funded
2. There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you.
3. iOS and Android only. See app store listings for operating system info.
4. For purposes of transferring funds to or from an external bank, business days are Monday through Friday, excluding federal holidays. Transfers can be initiated 24/7 via the website or phone, but any transfers initiated after 7:00 PM Eastern Time or on non-business days will begin processing on the next business day. Funds deposited into your account may be subject to holds. See the Funds Availability section of your Consumer Deposit Account Agreement and Savings Schedules for more information.
Up to $300 Bonus
Annual Percentage Yield (APY)
4.00% APY
with qualifying activities
On SoFi®'s Secure Site,
Member FDIC
Best For: Bonus Seekers + Large Deposits
SoFi redefines banking with a commitment to no fees—no monthly fees, no overdraft fees, and no account minimums.
Bonus: up to $300 with direct deposit.ⓘ
In addition to the bonus, you'll enjoy up to 4.00% annual percentage yield (APY) on savings balances with qualifying activities and 0.50% APY on checking balances, fee-free overdraft coverage up to $50 and access your direct deposit funds up to two days early, giving you greater financial flexibility. Terms applyⓘ.
The current savings APY without direct deposit or $5,000+ in qualifying deposits during the 31-day evaluation period is 1.00%. Although this is still higher than the national average, if you don't plan on setting up direct deposit or depositing $5,000+, you should look at the other offers on this list.
Your deposits are FDIC-insured up to $250,000 per depositor and you can also access up to $3,000,000 of additional FDIC insurance through a network of participating banks. Ensuring your money stays safe and secure. Earn a $50 or $300 bonus with direct deposit, terms apply.
Limited Time Offer: New account holders earn +0.70% boost to 4.00% on their Savings APY for up to 6 months with eligible direct deposit. Terms apply.
1. Up to $300 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $300 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25 There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
2. APY disclosures
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
3. Fee Policy
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
4. Additional FDIC Insurance
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
5. ATM Access
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees
may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
6. Early Access to Direct Deposit Funds
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
7. Overdraft Coverage
Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
8. 0.70% Savings APY Boost
Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.70% APY Boost (added to the 3.30% APY as of 3/31/26) for up to 6 months. Open your first SoFi Checking and Savings
account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member
FDIC.
Bonus Offer
Annual Percentage Yield (APY)
4.10% APY*
for the first 90 days
On EverBank's Secure Site
Powered by Raisin,
Member FDIC
Best For: Exclusive Promo Rate & Welcome Bonus
Founded in 1961, EverBank is a nationwide financial services powerhouse built on a legacy of stability, strong capital, and a commitment to performance-focused growth.
Right now, EverBank is offering an exceptional opportunity for new savers to aggressively maximize their earnings with a 4.10% Promo APY for your first 90 days via their account on the Raisin Platform.
This APY is substantially higher than what you’ll find at most brick-and-mortar banks and most online banks.
After the promotional period, your account seamlessly transitions to a highly competitive 3.95% APY. Clocking in at roughly 10x higher than the national average.
In addition to these top-tier rates, EverBank ensures your money works for you, not the bank. They offer $0 monthly maintenance fees, an incredibly accessible $1.00 minimum opening deposit, and peace of mind knowing your funds are insured by the FDIC for up to $250,000 per depositor.
EverBank has partned with Raisin to leverage its massive $46 billion asset foundation to extend its high-performance digital banking tools and unwavering financial safety to help savers nationwide earn significantly more.
Want to double-dip on your welcome perks? New customers depositing $10,000 or more can get between a $70 to $1,500 cash bonus depending on deposit size.
Use code: FRESHSTART
Significantly boost your effective yield for the first 90 days with this exclusive rate lock and cash offer.
See EverBank's Secure Site Powered by Raisin For More Details.
Don't Miss This High Yield Savings Account
American Express® Savings
3.20% Annual Percentage Yield
as of May 13, 2026
Member FDIC
On American Express National Bank's
Secure Site, Member FDIC
To recap our recommendations.
Best Certificate of Deposits According To CompareAccounts™
EverBank® Certificate of Deposit: 4.05% APY - 6 Month Term - use Promo Code: FRESHSTART
Synchrony Bank Certificate of Deposit Account: 4.00% APY - 9 Month Term
CIT Bank® Certificate of Deposit Account: 3.25% APY - 13 Month Term
Synchrony Bank Certificate of Deposit Account: 3.80% APY - 13 Month Term
To recap our recommendations.
Best Savings Accounts According To CompareAccounts™
EverBank® High-Yield Savings Account: up to 4.10% APY - with Promo Code: FRESHSTART
SoFi® Checking and Savings: 4.00% APY & Earn up to $300 with qualifying activities
American Express® High Yield Savings Account: 3.20% APY as of May 13, 2026
American Express® High Yield Savings Account: 3.20% APY as of May 13, 2026
Customers Also Viewed These Checking Accounts
Up to $300 Bonus
Annual Percentage Yield (APY)
4.00% APY
with qualifying activities
On SoFi®'s Secure Site,
Member FDIC
Best For: Bonus Seekers + Large Deposits
SoFi redefines banking with a commitment to no fees—no monthly fees, no overdraft fees, and no account minimums.
Bonus: up to $300 with direct deposit.ⓘ
In addition to the bonus, you'll enjoy up to 4.00% annual percentage yield (APY) on savings balances with qualifying activities and 0.50% APY on checking balances, fee-free overdraft coverage up to $50 and access your direct deposit funds up to two days early, giving you greater financial flexibility. Terms applyⓘ.
The current savings APY without direct deposit or $5,000+ in qualifying deposits during the 31-day evaluation period is 1.00%. Although this is still higher than the national average, if you don't plan on setting up direct deposit or depositing $5,000+, you should look at the other offers on this list.
Your deposits are FDIC-insured up to $250,000 per depositor and you can also access up to $3,000,000 of additional FDIC insurance through a network of participating banks. Ensuring your money stays safe and secure. Earn a $50 or $300 bonus with direct deposit, terms apply.
Limited Time Offer: New account holders earn +0.70% boost to 4.00% on their Savings APY for up to 6 months with eligible direct deposit. Terms apply.
1. Up to $300 Bonus Tiered Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $300 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25 There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
2. APY disclosures
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
3. Fee Policy
We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
4. Additional FDIC Insurance
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
5. ATM Access
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees
may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.
6. Early Access to Direct Deposit Funds
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
7. Overdraft Coverage
Overdraft Coverage is a feature automatically offered to SoFi Checking and Savings account holders who receive at least $1,000 or more in Eligible Direct Deposits within a rolling 31 calendar day period on a recurring basis. Eligible Direct Deposit is defined on the SoFi Bank Rate Sheet, available at https://www.sofi.com/legal/banking-rate-sheet. Members enrolled in Overdraft Coverage may be covered for up to $50 in negative balances on SoFi Bank debit card purchases only. Overdraft Coverage does not apply to P2P transfers, bill payments, checks, or other non-debit card transactions. Members with a prior history of unpaid negative balances are not eligible for Overdraft Coverage. Eligibility for Overdraft Coverage is determined by SoFi Bank in its sole discretion. Members can check their enrollment status, if eligible, at any time by logging into their account through the SoFi app or on the SoFi website.
8. 0.70% Savings APY Boost
Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.70% APY Boost (added to the 3.30% APY as of 3/31/26) for up to 6 months. Open your first SoFi Checking and Savings
account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member
FDIC.
$500 Bonus
On KeyBank's Secure Site,
Member FDIC
Best For: Mobile Banking + Big Bonus
New Key Select Checking® customers can earn a $500 Cash Bonus when you make the minimum opening deposit of $50 and a total of $5,000 or more in eligible direct deposits within the first 90 days of account opening. To be bonus eligible, you need to open your account online by May 22, 2026. Account must not be closed at time of gift payment.
This account offers an additional $100 cash bonus year after year with qualifying activities, available overdraft protection services & access to Free KeyBank and Allpoint® ATM access nationwide with your KeyBank Debit Mastercard®.
This account also offers relationship benefits like better interest rates on savings and money market accounts, more cash back, loan discounts and more.
Early Pay means you could get paid up to two days early with eligible direct deposits to a KeyBank account.
With secure online & mobile banking you can deposit checks in the mobile app, pay bills, send money, lock/unlock cards and more.
Easy direct deposit set up can have your paychecks or other recurring payments automatically deposited to your KeyBank account quickly and securely.
Accounts are subject to approval. Terms and conditions apply.
Overall, this is an excellent account from a respected bank with over $187 Billion in assets.
See KeyBank's Secure Site For More Details & Other Offers.
What to Look for in a Certificate of Deposit Account
It’s always wise to compare your options when opening a new certificate of deposit account.
Small differences in interest rates and fees can quickly add up over time, especially if you’re keeping a large balance in the account.
Here are the top features to look for and compare:
1. Interest Rate
The interest rate of a certificate of deposit is one of its most important features. However, a very high interest rate can get completely wiped out if you have to pay a penalty fee because you need to withdrawal your funds before the term is complete.
Besides interest rate, term length is the second most important factor. Other important features of your certificate of deposit account include the required initial deposit, and minimum balance required.
2. Term Length
Most banks will charge you what’s called a “penalty fee” for withdrawing your funds before the term length has been completed.
This means, that if you open a 12-month CD, but withdraw your funds within 6 months, then you’ll pay a penalty fee.
Therefore, you need to decide when you’ll need these funds again.
For any term less than a year, we recommend a high-yield savings account.
If this is your first CD account, we recommend starting with a 12 – 15 month term.
If you’ve opened a CD account in the past, then you choose which term is right for you and your unique situation.
3. Required Initial Deposit
Initial deposit is another important factor when deciding to open up a certificate of deposit. Most banks require at least a $500 initial deposit to open a CD account.
While others require much more than $500 to open the account.
Again, because the initial deposit is in the hundreds if not thousands, we recommend you open a high-yield savings account if you need these funds within a year.
*National Savings Rate Average as published by FDIC