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Best CD Rates by Term

​Certificates of Deposit (CDs) provide a secure investment path with varied terms and rates. This guide explores maximizing returns through strategic term selections.

Best CD Rates by Term

Secure and savvy investing starts with understanding the best CD rates available across various terms. This guide illuminates the pathway to maximizing your returns through strategic CD term selections.


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How you can maximize your savings using compound interest.


Overview of Best CD Rates and Terms

Understanding the Best CD Rates across different terms is crucial, as these rates can significantly impact your investment returns.

Current CD Rates by Term (as of October 14, 2023)

Term Length

Average CD Rate

​3 Months

5.10% APY

6 Months

5.35% APY

1 year

5.50% APY

2 Years

5.25% APY

​3 Years

​5.00% APY

​4 Years

​4.75% APY

​5 Years

​4.50% APY

Top Banks and Credit Unions Offering High CD Rates


  • Bread Savings: 5.60% APY for 1-year CD

  • MYSB Direct: 5.41% APY for 1-year CD

  • First Internet Bank: 5.35% APY for 1-year CD

  • CFG Bank: 5.50% APY for 1-year CD

  • First National Bank of America: 5.15% APY for 1-year CD

Credit Unions

  • America First Credit Union: 5.25% APY for 1-year CD

  • Alliant Credit Union: 5.25% APY for 1-year CD

  • State Employees' Credit Union: 5.10% APY for 1-year CD

  • Bethpage Federal Credit Union: 5.00% APY for 1-year CD

  • Suncoast Credit Union: 5.00% APY for 1-year CD

Delving Deeper: CD Strategies

  • CD Ladders: Spread investments across various terms.

  • Pros: Provides a mix of short-term accessibility and long-term returns.

  • Cons: Requires more active management and diversification.

  • Promotional CDs: Temporarily offer above-average rates.

  • Pros: Higher than average rates.

  • Cons: Often come with stricter terms and penalties.

Choosing the Right CD

  • Assess Your Risk Tolerance: If you're risk-averse, opt for shorter terms with guaranteed returns.

  • Determine Your Time Horizon: For long-term goals, consider CDs with longer terms that offer higher rates.

  • Financial Objectives: Align your CD choice with your financial goals, whether it's building an emergency fund or saving for a major purchase.

Risks and Considerations

  • Promotional CDs: While they offer higher rates, they might come with stricter withdrawal penalties.

  • Interest Rate Fluctuations: Rates can change based on economic conditions. Always ensure you're getting a competitive rate.

Short-Term CDs: Quick, Low-Yield Investments

  • 3-6 Months CDs: Suitable for quick returns with minimal commitment.

  • Pros: High liquidity.

  • Cons: Lower rates.

Mid-Term CDs: Moderate Returns

  • 1-3 Years CDs: A balanced option for reasonable returns.

  • Pros: Moderate rates.

  • Cons: Lower yields than long-term CDs.

Long-Term CDs: Highest Yields

  • 3-5 Years CDs: Targeting long-term, higher gains.

  • Pros: Highest rates.

  • Cons: Limited liquidity.

CD Ladders Strategy

Implementing a CD ladder diversifies investments across various terms, blending short-term access and long-term returns.

Influences on CD Rates

  • Economic and Bank Policies: Both impact CD interest rates.

  • Term Length: Generally, longer terms offer higher rates.

FREE High Yield Savings Accounts: A Comprehensive Guide

Best CD Rates by Term


Identifying Top CD Rates

  • Explore: Investigate various banks and credit unions.

  • Online Banks: Typically provide higher rates.

  • Promotional CDs: Offer above-average rates temporarily.

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Final Thoughts:

Strategically navigating CD investments, understanding terms, and employing CD ladders can optimize returns and maintain financial stability. Ensure your chosen CD aligns with your financial objectives, balancing lucrative returns and security.

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