America's #1 CD Rate Comparison Tool

A Certificate of Deposit (CD) is a savings account offered by banks and credit unions that holds a fixed amount of money for a fixed period of time, such as 6 months, 1 year, or 5 years. In exchange for locking in your money, the financial institution pays you a guaranteed interest rate (APY) that is typically higher than regular savings accounts. When the CD matures at the end of the term, you receive your original deposit plus the interest earned. CDs are FDIC-insured up to $250,000, making them one of the safest investment options available to American savers.

cdratesearch.com aggregates and compares CD rates from over 50 FDIC-insured banks and credit unions across America. Simply tell us your investment amount, preferred term length, and when you plan to invest. We'll show you personalized rate options from our partner institutions. Our service is completely free for users - we earn referral fees from banks when you open an account, but this never affects the rates you receive. You'll always get the same rate whether you go through us or directly to the bank.

Yes! All CDs featured on our platform are from FDIC-insured banks or NCUA-insured credit unions. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank, per ownership category. This means your money is backed by the full faith and credit of the United States government. Even if the bank fails, your principal and earned interest (up to the insured limit) are guaranteed. This is why CDs are considered one of the safest investment vehicles available to American families.

Most CDs charge an early withdrawal penalty if you take money out before the maturity date. The penalty varies by bank and CD term but typically equals 3-6 months of interest for shorter-term CDs and up to 12 months of interest for longer-term CDs. Some banks offer "no-penalty CDs" that allow one penalty-free withdrawal, though these usually have slightly lower rates. It's important to only invest money you won't need during the CD term. Always review the early withdrawal penalty terms before opening a CD.

CD interest is taxed as ordinary income in the year it's earned, even if you don't withdraw it. The bank will send you a 1099-INT form showing the interest earned if it exceeds $10. This interest is added to your taxable income and taxed at your regular income tax rate. For high earners, this could be significant. However, you can defer taxes by opening a CD within an IRA (Individual Retirement Account). IRA CDs follow IRA tax rules - traditional IRA CDs are tax-deferred, while Roth IRA CDs grow tax-free if you follow the rules.

Minimum deposits vary significantly by bank and CD type. Some online banks offer CDs with minimums as low as $500 or even $0, making them accessible to most Americans. Traditional brick-and-mortar banks typically require $1,000 to $10,000 minimums. Jumbo CDs, which often offer higher rates, usually require $100,000 or more. When comparing rates on our platform, you can filter by minimum deposit to find CDs that match your investment amount. Remember that higher minimums don't always mean better rates - many online banks offer competitive rates with low minimums.

Traditional CDs do not allow additional deposits after opening. You make one initial deposit, and that amount remains locked for the entire term. However, some banks offer "add-on CDs" or "bump-up CDs" that allow you to make additional deposits or increase your rate under specific conditions. These specialized CDs typically offer slightly lower initial rates in exchange for the flexibility. If you want to regularly invest more money, consider opening multiple CDs with staggered maturity dates (a strategy called CD laddering) rather than trying to add to a single CD.

CD laddering is a strategy where you divide your money across multiple CDs with different maturity dates instead of putting it all in one CD. For example, instead of investing $50,000 in a single 5-year CD, you might split it into five $10,000 CDs maturing at 1, 2, 3, 4, and 5 years. This provides regular access to portions of your money while still earning competitive rates. When each CD matures, you can reinvest it in a new 5-year CD to maintain the ladder. This strategy balances higher long-term rates with liquidity and protects against rate changes. It's particularly useful for retirees needing regular income or anyone wanting flexibility without sacrificing returns.

Currently, CDs offer some of the highest guaranteed returns available. Top 1-year CDs are offering 5.00-5.75% APY, significantly higher than traditional savings accounts (0.01-0.50%) and even high-yield savings accounts (4.00-4.75%). Compared to money market accounts (4.50-5.00%), CDs offer similar or better rates with guaranteed returns. Unlike stocks or bonds, CDs have no market risk - your rate is locked in. The trade-off is liquidity: savings accounts offer instant access, while CDs lock your money for the term. For conservative savers prioritizing safety and guaranteed returns, today's CD rates represent exceptional value, especially given the Federal Reserve's signals about future rate cuts.

Yes, cdratesearch.com is 100% free for consumers. You'll never pay any fees to compare rates or get matched with banks. We earn commission from financial institutions when users open accounts through our platform, similar to how insurance comparison sites work. Importantly, this does not affect the rates you receive - banks offer you the exact same APY whether you go through us or directly to them. We're motivated to show you the best rates because we only succeed when you find a CD that meets your needs. There are no hidden charges, subscription fees, or obligations to use our service.