Best Short Term Certificate of Deposit Accounts

Compare CD terms with ease, find the right one for you, and open your account in minutes.

To recap our recommendations.

Best Certificate of Deposits According To CompareAccounts™

Western Alliance Bank^® High-Yield CD: 4.30% APY - 3 Month Term

U.S. Bank^® 5 Month CD Special: 4.00% APY - 5 Month Term

Discover^® Bank Certificate of Deposit Account: 3.80% APY - 9 Month Term

Western Alliance Bank^® High-Yield CD: 4.30% APY - 6 Month Term - Earn $250 with Promo Code: GET250

Sallie Mae^® Bank Certificate of Deposit: 4.25% APY - 14 Month Term - Earn $250 with Promo Code: GET250

Discover^® Bank Certificate of Deposit Account: 4.00% APY - 12 Month Term

Western Alliance Bank^® High-Yield CD: 3.95% APY - 12 Month Term

CIT Bank^® Certificate of Deposit Account: 3.00% APY - 18 Month Term

Discover^® Bank Certificate of Deposit Account:3.80% APY - 24 Month Term

Customers Also Viewed: High-Yield Savings Accounts

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