Best CDs
Based on In-Depth Reviews

Best Minimum Balance 

Although Barclays offers better-than-average term lengths on their online fixed-rate CDs (3 months to 5 years), their most significant advantage is their lack of minimum deposit. This is excellent if you’re low on income but still want to open a CD, or if you don’t want to deposit a substantial amount of money.

 Screenshot of Banking.barclaysus.com's CD features. October 7, 2019. 

Barclays also has the highest maturity grace period to withdraw funds (14 days!), which is five days more than the average. That gives you more time to decide if you want to withdraw your funds, so there are lower chances of you suffering an automatic renewal.

Lower Withdrawal Penalties

Among our top choices, Barclay’s has the lowest penalties for withdrawals. This can be very beneficial if you need to withdraw your entire balance in a hurry, or if you’re planning to buy something but have already committed your CD to a longer term. Barclays charges 90 days simple interest for CDs with terms of 24 months or less, and 180 days (6 months) simple interest for accounts older than 24 months.

Drawbacks

Barclays is the only company on this list that compounds interest monthly. That may not seem entirely negative, but since most of the banks we vetted compound interests daily, choosing Barclays means you’d be missing out on additional interest payments you’d be getting as standard with other banks. Also, although Barclays allows you to withdraw interests, you can only do so once a month, which is more restrictive than our other choices.

Best Term Length Flexibility

CD term lengths range from twelve months to five years on average, but there are some banks, like Discover, that have more flexible options. They set themselves apart from other companies our list for offering fixed CDs with term lengths that range from as little as three months to as high as ten years. There are no fees to pay either, so that’s also a plus. 

Having a variety of term lengths can be very useful, especially if you’re considering laddering multiple CDs. However, lower term lengths result in lower APY, and Discover is no exception. Choosing a lower-term option means that you’ll have to invest more in your initial deposit to actually gain anything from your CD.

 Mobile App and 24/7 Support

Discover is one of the only online banks on this list with a downloadable app. The app is free and lets you manage your checking and savings accounts, deposit checks, make payments, check balances, and track account activity. For CDs, you can check the status of your account at any time and watch your balance grow. Additionally, Discover is the only bank on this list that offers 24/7 customer support over the phone, so you can call them any time and expect a live representative to assist when you need it.

 Drawbacks 

Discover’s greatest drawback is its minimum deposit of $2,500, the highest on this list. Although having more money on your CD means higher interests, there might be customers out there who don't have enough money or would prefer to invest less on their CD. 

Discover’s withdrawal penalties are also on the higher side, with the lowest being three months (90 days) of simple interest if you withdraw in less than a year, and 24 months (720 days!) of simple interest for seven years or more. Since CD’s are meant to be kept untouched, it’s understandable that banks adopt rules to keep you from withdrawing your funds, but if there’s an emergency and you need your funds, you’ll end up paying more with higher fees.

Best for Short-Term CDs

Nationwide stands out for offering the best features for short-term CDs. Unlike other banks, their term lengths range from 3 months to five years, so you can pick between three, six, and nine months without having to opt for a one-year CD. Additionally, their current rates are among the best for short-term CDs, ranging from 0.75% for their 3-month CD to 1.54% for their 6 and 9-month option. To top things off, their minimum balance is among the lowest on this list, requiring only $500 to open a CD.

Screenshot of Nationwide.com’s online and mobile features. October 7, 2019.

Business CD Option Available

Nationwide is also the only bank on this list that offers business-oriented CDs. Just as with their traditional, fixed-rate CD, you only need $500 to open a business CD, much lower than the $1,000 average. However, Nationwide’s interest rates aren’t the most generous, starting at a flat 0.15% and going as high as 0.95%. Their business term lengths aren’t the most flexible either, with only 1 to 5-year options available. If you're looking for more than the basics for your business, you might be better off looking elsewhere.

Drawbacks

Nationwide lets you withdraw your CDs accrued interests, but you can only do so monthly and by filling out a form and sending it to them directly through the mail. This form allows Nationwide to send your accrued interests to a bank account. Being able to transfer gained interest to a bank account is useful but restrictive when compared to what other bank CDs on this list offer.

Best CD Versatility

NASB is the only bank on our list that offers both online and branch CD options. Their branch CDs can be traditional or IRA CDs with excellent term lengths (3months to 10 years), while their online CDs are more restricted, offering fixed rate CDs with only 6,12 and 36-month term lengths. All of NASB’s CDs share the same APY rates, so you can opt for any of them without worrying about getting less in interest payments. 

Screenshot of NASB.com’s CD features. October 7, 2019. 

You can also improve your branch CD rates by getting a NASB checking account. The bank considers the account’s aggregate balance to provide better rates, but this APY increase is slight, raising the total by around 0.8 to 0.11%. Finally, their minimum deposit is average, needing $1,000 to open any of their CDs.

Lower Early Withdrawal Fees 

NASB’s withdrawal fees are lower than other providers, charging 3 months’ worth of interest if your CD is less than 6 months old, and 6 months’ worth (180 days) if it’s older than 6 months. This means you’ll lose all accrued interest if your CD is exactly 3 months or 6 months old, but longer term lengths, like a 3-year CD, will retain a profitable interest amount if closed early. 

Drawbacks

Since NASB’s current APY rates peak at 15 months and fluctuate from there, it’s a great option for shorter length CDs but average for anything else. Additionally, NASB has the lowest post-maturity grace period on this list, offering only 5 days before the CD auto-renews. That's 5 days less than the industry’s average, so you really have to be on your toes to prevent your CD from renewing.

Best Credit Union

The Pentagon Credit Union, better known as PenFed, offers a variety of CDs with better-than-average APYs and ample term length options.

PenFed offers three types of CDs:

• Money Market Certificate

• IRA Certificate (Traditional, Roth or SEP)

• Coverdell Education Savings Certificate

Although PenFed calls its CD a “money market certificate,” this option works like a traditional CD because you choose the maturity rate and can’t withdraw funds without a penalty. Money market certificates have term lengths of six months to seven years (84 months), which is more flexible than PenFed’s other two CD options (1-7 years). 

Screenshot of Penfed.org’s CD features. October 7, 2019. 

The interest gained by Coverdell and IRA certificates are tax-deductible, so long as you keep the funds in your account until it matures. PenFed’s money market and IRA certificates require a minimum balance of $1,000 to open, but their Coverdell option can be opened with just $500. Finally, PenFed’s CD’s compound interests daily, and you can open them online or at one of their branches, and their rates won’t change.     

Donating for a Good Cause

Since PenFed is a credit union, you need to become a member before you can open a CD with them. To become a member, you need to be part of the military, an employee of the US government, or an affiliate of a participating association or organization. You can become a member by donating to one of two charities: the National Military Family Association ($20 donation) and the Voices for America’s Troops ($15 donation). This is a great incentive, giving you the chance to help veterans and their families while enjoying membership benefits.

Drawbacks

PenFed’s biggest drawback is that their interest rates and APY aren’t the best when compared to other credit unions. Their 6-month APY stands at 0.45%, which can be disappointing, as credit unions tend to have rates that are equal to or better than those offered by online banks. Nonetheless, their 3-year Money Market Certificate currently has a 3.25% APY.

Also, PenFed only allows you to withdraw interest accumulated each month per statement cycle. However, you can choose to receive a monthly check or to deposit accrued interest on a PenFed checking or savings account. 

Best for IRA CDs

We found Synchrony to have the best features for IRA CDs, offering various short-term length options and competitive APYs. You can choose between 3, 6, and 9-month IRA CDs if you don’t want to commit your funds for a longer period. And if shorter term lengths aren’t on your priority list, you can still opt for longer ones ranging from one to five years. In terms of APY, Synchrony currently offers competitive rates for all term lengths, starting at 0.75% for three months and going as high as 2.45% for their 5-year term.

Screenshot of Synchronybank.com’s CD features. October 7, 2019. 

If you aren’t looking for an IRA CD, Synchrony also offers traditional CDs with the same rates and term lengths as their IRA’s. This is rare for an online bank, as it’s typical for rates and lengths to vary between CD types.

Interest Withdrawals and Mobile App

Synchrony doesn’t limit your access to the interest earned by your CD so that you can withdraw them at any time without penalty. This can be very useful if you need extra funds for daily expenses, although you’ll need a high deposit to receive substantial interest throughout the life of the CD.

Another plus is that the bank has an app that lets you manage all banking activities, such as depositing and transferring money. Since you can keep track of all of your account balances, you can check the balance of your CD at any time.

Drawbacks 

Although Synchrony’s short-term CD lengths are diverse, their longer terms are rather standard, offering a maximum of five years (60 months). Additionally, Synchrony has the second-highest minimum deposit requirement on our list, $2,000 to open an account.

Synchrony also has one of the highest early withdrawal penalties for 4-year CDs, charging one year of simple interest at the current rate of withdrawal. Finally, Synchrony’s IRAs can’t be opened online, so you have to call them personally to open one.