Can help deter spending: Funds committed to a CD cannot be withdrawn early without a penalty, making CDs a good vehicle for keeping, rather than spending, your savings.Are virtually risk-free: By opening a CD at an FDIC-insured bank, you are federally protected on up to $250,000 of your deposits, in the unlikely case that the bank fails.Offer a fixed, guaranteed rate: The annual percentage yield (APY) that you sign up for when opening the CD will be fixed for the full term.Often pay higher APYs than liquid accounts: In exchange for you keeping your money on deposit for a specified period of time, banks generally pay higher annual percentage yields (APYs) on CDs than on savings and money market accounts.

Typically return less than other investments If rates rise, you may regret being locked into your APY For anyone looking to put $100,000 or more into a CD, you may find even better rates in our roundup of the best jumbo CD rates. If you want to explore more options-including credit union CDs-we also publish a complete list of the best nationwide CD rates, as well as stand-alone pages for the best 3-month, 6-month, 1-year, 18-month, 2-year, 3-year, 4-year, 5-year, and 10-year CD rates. Ranked by highest APY, then shortest term, then lowest minimumĭetailed information on the top nationally available bank CD in each term is provided below, including specifics about minimum deposits and early withdrawal penalties.

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