DollarGeek Presents:

Best Certificate of Deposit Rates - November 2020

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Looking to get some appreciation on some parked cash? Certificate of Deposits (CD’s) can be a great investment if you’re not going to need money to pull out of your account. You can find the best CD rates generally at online banks and credit unions. They have some of the highest interest rates available for federally insured bank accounts, and the rate is guaranteed for the duration of the CD term.

DollarGeek has found the best cd rates for you. Browse below and check out some of the highest CD rates on the market. 

Minimum Deposit:

Duration:

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Showing 1-11 of 11 accounts
OVERALL RATING:
(5)
on Marcus' website

Balance for APY

$500

minimum

Deposit Term

1 Year

APY

1.10%

Term

1

Year

APY

1.10%

OVERALL RATING:
(4)
on Quontic Bank's website

Balance for APY

$1K

minimum

Deposit Term

1 Year

APY

1.02%

Term

1

Year

APY

1.02%

OVERALL RATING:
(4)
on Citizens Access's website

Balance for APY

$5K

minimum

Deposit Term

1 Year

APY

0.20%

Term

1

Year

APY

0.20%

OVERALL RATING:
(4.5)
on Synchrony Bank's website

Balance for APY

$2K

minimum

Deposit Term

1 Year

APY

0.60%

Term

1

Year

APY

0.60%

OVERALL RATING:
(4)
on Discover Bank's website

Balance for APY

$2.5K

minimum

Deposit Term

1 Year

APY

0.50%

Term

1

Year

APY

0.50%

OVERALL RATING:
(5)
on Barclays' website

Balance for APY

$1

minimum

Deposit Term

1 Year

APY

0.30%

Term

1

Year

APY

0.30%

OVERALL RATING:
(4.5)
on Ally Bank's website

Balance for APY

$1

minimum

Deposit Term

1 Year

APY

0.65%

Term

1

Year

APY

0.65%

OVERALL RATING:
(5)
on Utah First FCU's website

Balance for APY

$500

minimum

Deposit Term

1 Year

APY

0.25%

Term

1

Year

APY

0.25%

OVERALL RATING:
(4.5)
on Popular Direct's website

Balance for APY

$10K

minimum

Deposit Term

1 Year

APY

0.30%

Term

1

Year

APY

0.30%

OVERALL RATING:
(4.5)
on Consumers CU's website

Balance for APY

$250

minimum

Deposit Term

1 Year

APY

0.50%

Term

1

Year

APY

0.50%

OVERALL RATING:
(4)
on Radius Bank's website

Balance for APY

$500

minimum

Deposit Term

1 Year

APY

0.50%

Term

1

Year

APY

0.50%

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Learn About Certificate of Deposits

Gain some clarity with our geeky insight.

What is a CD?

A CD, or certificate of deposit, is a type of savings account that keeps your money locked up for a set period or term. These terms can generally range anywhere from three months to five years. The longer the CD term, the higher the rate, and more money you should make.

Are CD's a safe investment?

Yes. Most banks and credit unions insure your money in a CD up to $250,000 per person per account type, such as single-owned and joint accounts. Plus, your returns are guaranteed as long as you don’t withdraw early, in which case you may have to pay a penalty.

When should you consider investing in a CD?

You should invest in a CD when you want to lock up some savings dedicated to a short-term goal like buying a car or house in the next few years. Outside of short-term goals, CDs can be a safe place for money you want to get guaranteed returns on without the risk of fluctuation such as investing your money in the stock market. When you think of investing in a CD, think safety and guaranteed money.

Do I have to pay taxes on interest in CDs?

Yes. The interest earned in CDs is taxable as interest income. Your bank or credit union will usually give you a Form 1099-INT that states the interest each year, unless the amount is under $10. The IRS notes that you generally include interest from CDs when you receive it, so a CD with a term longer than a year wouldn’t have its interest taxed until the term ends.

Why do CDs with longer terms earn more money?

The longer term you pick, the more money you will earn. This happens because you are locking up your money for a longer period of time, and therefore you will be rewarded with a higher APY.

What’s better: CDs or high-yield savings accounts?

It depends on what’s more important to you: rates or access to your money. The current CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t like the right fit and you'll need access to your money, check out our best savings accounts here.

APY vs. interest rate: What’s the difference?

Both show the rate of interest you can earn on a CD or savings account, but APY factors in compounding interest and the interest rate doesn’t. If you’re comparing CD rates at a glance, APY is more useful. For example, APY brings a CD with interest compounded daily and another with interest compounded monthly onto the same playing field. For CDs of the same term length, a higher APY means a higher return.

Other helpful resources