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Best Short Term Certificate of Deposit Accounts
By: Conor Keenan Last updated on December 1, 2023
Conor Keenan is compareaccounts.com's co-founder. His work in personal finance has been featured by MSN, CNN, AOL, Fox News, Yahoo News & many more.
Editorial Freedom: The opinions, reviews, or recommendations expressed in any article by our editorial team are not endorsed by any financial institution or partner. Our editorial team's content is not provided or commissioned by any financial institution or our partners herein.
Compare CD terms with ease, find the right one for you, and open your account in minutes.
Open your new short term CD with confidence. Each of our recommendations is federally insured up to $250,000 per depositor.
Fund your new short term CD as soon as possible & take advantage of the power of compound interest today!
APY
5.40%
3 Month Term
- High Yield CD
- Term: 3 Month
- 5.40% APY
- Min. initial deposit: $1
- FDIC Insured up to $250,000
- No Monthly Fees
- 24 /7 Access to Funds
- Certified Community Development Financial Institution
- Interest Compounded Daily
- See Site for Details
On Raisin's Secure Site for
Ponce Bank, FDIC Insured
APY
5.70%
6 Month Term
- High Yield CD
- Min. initial deposit: $1
- Term: 6 Months
- 5.70% APY
- FDIC Insured up to $250,000
- No Monthly Fees
- Interest Compounded Daily
- Ranked #1 Top-Performing Bank with Assets Greater Than $50 Billion in 2021
- Exclusive Offer Powered by The Raisin Platform
- 13.9x the National Avg. APY
- See Site for Details
On Raisin's Secure Site for Western Alliance Bank,
FDIC Insured
APY
4.20%
7 Month Term
- High Yield CD
- Term: 7 Months
- APY up to 4.20%
- Min. initial deposit: $1,000
- No Maintenance Fees
- Interest Compounded Daily
- FDIC Insured up to $250,000
- Rates Vary by State & Zip Code
- See Site for Details
On U.S. Bank National Association's Secure Site, Member FDIC
Compare With
APY
0.05%
6 Month Term
Chase Bank Details
- Certificate of Deposit
- Term: 6 Months
- Minimum Opening Deposit: $10,000 for APY
- 0.05% APY
- Offers lower minimum deposit of $1,000 for 0.02% APY
- Must have a linked Chase personal checking account to receive these rates. Otherwise, you'll receive 0.01% APY
Not Recommended.
Shown For Comparison Purposes Only.
APY
5.20%
12 Month CD
- High Yield CD
- Term: 12 Months
- Min. Initial Deposit: $2,500
- 5.20% APY
- No Monthly Fees
- Lock in Your CD Rate & Earn Guaranteed Interest
- 100% U.S.-based Customer Service Available 24/7
- Interest Compounded Daily
- FDIC Insured up to $250,000
- See Site For Details
On Discover Bank's Secure Site, Member FDIC
High APY Rate
APY
5.51%
12 Month Term
- High Yield CD
- Min. initial deposit: $1
- Term: 12 Months
- 5.51% APY
- FDIC Insured up to $250,000
- No Monthly Fees
- Interest Compounded Daily
- Ranked #1 Top-Performing Bank with Assets Greater Than $50 Billion in 2021
- Exclusive Offer Powered by The Raisin Platform
- 14.8x the National Avg. APY
- See Site for Details
On Raisin's Secure Site for Western Alliance Bank,
FDIC Insured
Compare With
APY
0.03%
12 Month Term
Bank of America® Details
- Certificate of Deposit
- Term: 12 Months
- Minimum Opening Deposit: $10,000
- 0.03% APY
Not Recommended.
Shown For Comparison Purposes Only.
APY
4.65%
13 Month Term
CIT Bank® CD Details
- High Yield CD
- Term: 13 Months
- 4.65% APY
- Min. initial deposit: $1,000
- No Maintenance Fees
- Interest Compounded Daily
- FDIC Insured up to $250,000
- Sign up in under 5 Minutes
- See Site for Details
On CIT Bank's Secure Site, Member FDIC
APY
4.80%
13 Month Term
- High Yield CD
- Term: 13 Months
- APY up to 4.80%
- Min. initial deposit: $1,000
- No Maintenance Fees
- Interest Compounded Daily
- FDIC Insured up to $250,000
- Rates Vary by State & Zip Code
- See Site for Details
On U.S. Bank National Association's Secure Site, Member FDIC
Compare With
APY
1.50%
12 Month Term
Wells Fargo Details
- Certificate of Deposit
- Term: 12 Months
- Minimum Opening Deposit: $2,500
- 1.50% APY
- Interest Rates Vary from State to State
- For Terms of 12 Months+, Interest May Be Paid Monthly, Quarterly, Semi-Annually, or Annually.
Not Recommended.
Shown For Comparison Purposes Only.
APY
4.40%
24 Month CD
- High Yield CD
- Term: 24 Months
- Min. Initial Deposit: $2,500
- 4.40% APY
- No Monthly Fees
- Lock in Your CD Rate & Earn Guaranteed Interest
- 100% U.S.-based Customer Service Available 24/7
- Interest Compounded Daily
- FDIC Insured up to $250,000
- See Site For Details
On Discover Bank's Secure Site, Member FDIC
To recap our recommendations.
Best Certificate of Deposits According To CompareAccounts™
Ponce Bank® Certificate of Deposit Account: 5.40% APY - 3 Month Term
Western Alliance Bank® High Yield CD: 5.70% APY - 6 Month Term
U.S. Bank® Certificate of Deposit Account: up to 4.20% APY - 7 Month Term
Discover® Bank Certificate of Deposit Account: 5.20% APY - 12 Month Term
Western Alliance Bank® High Yield CD: 5.51% APY - 12 Month Term
CIT Bank® Certificate of Deposit Account: 4.65% APY - 13 Month Term
U.S. Bank® Certificate of Deposit Account: up to 4.80% APY - 13 Month Term
Discover® Bank Certificate of Deposit Account:4.40% APY - 24 Month Term
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 withdrawl 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.
What is a Short Term CD?
Short-term CDs have a maturity date that is typically within a year or less, while long-term CDs have a maturity date that is more than a year in the future.
There are a few reasons why someone might want to consider a short-term CD:
1. Higher interest rates: Short-term CDs often offer higher interest rates than traditional savings accounts, which can help the depositor earn more money on their savings.
2. Low risk: CDs are considered to be a low-risk investment because they are FDIC-insured, which means that the depositor’s money is backed by the government up to $250,000.
3. Flexibility: Short-term CDs have a shorter term than long-term CDs, which means that the depositor can access their money sooner. This can be beneficial for someone who might need to access their savings in the near future.
4. Liquidity: CDs are considered to be a relatively liquid investment, as the depositor can typically cash in their CD before the maturity date, although there may be a penalty for doing so.
*National Savings Rate Average as published by FDIC
Before You Go, Don't Miss This High Yield CD
12 Month Term
APY
5.20%
On Discover Bank's Secure Site, Member FDIC