These are the Top CD Rates for October 2022

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The October 2022 best CD rates

Best rates on a 1-year term

Rates for 2-year terms at the best

Best Rates for a 3-year Term

Best rates for a 4-year-term

Best rates on a 5-year term

No-penalty CD at the best rates

No opening deposit required

CD rates at the US’s largest banks

CDs are a great option for those who want to grow their money without having to deal with the volatility of the stock markets.

It’s smart to choose the highest interest rate because you are locking in an interest rate. If you don’t have the funds to deposit, or you aren’t sure how long you want your money to stay in one place for, you may also want to be mindful of minimum deposit requirements as well as penalties for early withdrawals.

An easy way to open a strong CD is essential. It shouldn’t have a minimum balance, or monthly fees.

Below are our recommendations for the best CD rates currently available. We looked at the offerings of around a dozen banks and popular comparison sites like NerdWallet to determine which CDs are most effective.

Learn more about our top picks

It stands out because: Marcus by Goldman Sachs offers many CDs, including high-yield CDs as well as no-penalty CDs. This bank offers some of the best rates in the industry and has a $500 minimum deposit that is lower than many competitors.

There are many term options High-Yield CD terms are available from 6 months to six years. No-Penalty CDs have 7-month and 11-month options.

Penalties: Marcus may charge standard penalties for early withdrawals from your principal balance.

• For CD terms of less than 12 months, there is a 90-day interest penalty
• For a CD term between 12 months and 5 years, there is a 270 day interest penalty
• A CD term exceeding 5 years is subject to a 365-day interest penalty

Keep an eye on: Minimum opening deposit. Marcus requires a minimum $500 deposit to open a CD.

It stands out because:Ally offers more CD options that any other online bank. There is an 11-month no-penalty, no-penalty, CD with variable interest rates and different balance tiers.

There are many term optionsAlly offers 11 different CD terms ranging in length from 3 months up to 5 years.

Penalties:For early withdrawals of principal balance, Ally will charge the following standard penalties:

• 60 day interest penalty for CDs with a term of 24 or less
• 90 day interest penalty for CD terms between 25 and 36 months
• 120 day interest penalty for CD terms between 37 and 48 months
• 150 day interest penalty on CDs with a term of at least 49 months

Keep an eye on: Ally offers three types: High Yield CDs; Raise Your Ratio CDs; and No Penalty.

Raise Your Rate accounts are available with 2-year or 4-year terms, which is not the case for regular High Yield CDs. These accounts have lower APRs than High Yield CDs, but you can increase your rate once every 2 years or twice every 4 years.

You are not subject to any penalties for withdrawing early, but there is an 11-month maximum term.

It stands out because:Synchrony has high rates of return. There are a number of term length options available, including 13-month, 15-month and 14-month CDs.

There are many term optionsTerms are available from 3 months to 5 Years

Penalties:The early withdrawal penalty rules for Synchrony are fairly standard.

• 90-day interest penalty on a term of less than 12 months
• For a term of more than 12 months, but less than 48 months, there is a 180-day interest penalty
• For a term of 48 or more, 365-day interest

Keep an eye on:Synchrony offers a range of terms, but you will still find some that last longer than five years elsewhere. 

It stands out because:CIT Bank offers a competitive rate for its no-penalty CD.

There are many term options11 Months

You need to be aware of these things:The biggest problem is that CIT Bank No Penalty CDOur top picks aren’t as competitive. You will find a lower rate and fewer minimum deposits elsewhere. If you have an account with CIT Bank, it might be worth using the bank to get a no-penalty CDO.

It stands out because:America First Credit Union allows you to withdraw and deposit more freely than many banks. America First lets customers deposit money to their CDs up to $10,000 each month, unlike other institutions. America First allows partial withdrawals. While many banks require that you withdraw all of your funds in order to make an emergency withdrawal, they allow you to keep some.

There are many term options12 Months

You need to be aware of these things:America First’s interest is compounded monthly, rather than daily like many credit unions. This will limit the amount of money you can earn over the long-term.

It stands out because:Capital One offers competitive rates. Unlike most banks, Capital One doesn’t require any money to start a deposit.

There are many term optionsCapital One offers CD term lengths from 6 months to five years.

Penalties:These are the penalties for early withdrawals: 

• For CD terms of less than 1 year, 3 months interest penalty
• A CD term longer than one year will incur a six-month interest penalty

Keep an eye on:Capital One is a great choice for those who don’t need to make an initial deposit. However, you can also find slightly higher rates elsewhere.

It stands out because:American Express does not require a minimum deposit to open a CD. For a CD deposit to be made, most banks and credit unions will require a minimum of $1,000.

There are many term optionsAmerican Express offers CD terms that range from 6 months to 5 Years.

Penalties:These are the early withdrawal penalties:

• 90 day interest penalty on terms less than 12 months
• Interest penalty of 270 days for terms between 12 – 47 months
• For terms between 48 and 59 Months, a 365-day interest penalty
• A 60-month term or more will result in a 540 day interest penalty

Keep an eye on:American Express’ withdrawal fees are more expensive than others for funds that have been withdrawn before the CD maturity dates. One of our other options may be a better option if you are worried about penalties for early withdrawals.

It stands out because:Barclays, unlike most banks, doesn’t require minimum deposits for CDs. Barclays’ early withdrawal penalties are lower than those you would pay at other institutions.

There are many term optionsThe term lengths can be from 3 months up to 5 years.

Penalties:Barclays has the following standard early withdrawal penalties terms:

• For a term of less than 24 months, 90-day interest penalty
• For a term exceeding 24 months, there is a 180-day interest penalty

Keep an eye on:The Barclays app is rated well in the Google Play Store, but not in Apple’s store.

It stands out because: Crescent Bank offers competitive rates of interest on a variety terms. 

There are many term optionsThe term lengths can be from 3 months up to 5 years.

Penalties:Crescent Bank has the following early withdrawal penalties terms:

• For a 1-year term, you will be charged a 90-day interest penalty
• For terms between 18 and 5 years, there is a 180-day interest penalty

Keep an eye on:Crescent Bank requires a minimum $1,000 deposit to open a new account. You can open a CD without spending a lot upfront with some of our top picks.

Why other CDs didn’t make it to the final cut?

We also looked at these CDs. These CDs weren’t selected among our top picks as they could have lower rates or require higher minimum opening deposits. They may also have steeper early withdrawal penalties. Depending on your personal preferences, you might find some of these options appealing.

• TIAA Basic Certificate Of DepositTIAA has solid CD rates. However, our top picks have even better rates.
• HSBC Direct Credit(Member FDIC). HSBC’s CD rate was relatively high but has recently fallen.
• PurePoint FinancialPurePoint (Member FDIC). PurePoint’s rates are comparable to the best CDs, but a $10,000 minimum deposit may be a problem for those with smaller savings.
• Chase CD(Member FDIC: Chase has some really outstanding products Reward credit cardsThe rates for its CDs are not comparable to any other banks on our list.
• USAA Bank CD(Member FDIC : USAA Bank offers many CD options for military personnel and their families. However, rates are low and you will need to have at least $1,000 to open an Account.
• NBKC CD(Member FDIC). NBKC offers good rates. NBKC CDs have variable rates. Rates can change after opening the account, unlike other CDs.
• Sallie Mae CD(Member FDIC). Sallie Mae offers competitive rates for short term loans, but you will need $2,500 to open a CD.
• Charles Schwab Bank Certificate for Deposit: Charles Schwab has broker CDs. Charles Schwab doesn’t own the CD. Charles Schwab serves as a broker between you and your bank to open the CD. Depending on how your bank handles CDs, it may be preferable to open them directly with the financial institution.

Trust our recommendations.

Personal Finance Insider is dedicated to helping smart people make the right financial decisions. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. So that you don’t have too, we spent hours comparing the features and fine print across various products.

How did we pick the best CDs?

We reviewed CD offerings of around a dozen banks across the country. All of the banks that were included in our list are FDIC insurance and do not impose monthly maintenance fees on CDs.

We considered penalties for early withdrawals and minimum deposit requirements in the event that two banks offered the same APY for a CD product.

For this list, we did not consider credit unions — though they tend to offer high interest rates on savings accounts and CDs, many limit membership to people who work in a specific industry or live in a designated area. 

Frequently Asked Questions

What is a CD?

A CD is essentially an interest-rate-sensitive savings account. It holds money at a fixed, set rate for a certain time. A CD can be opened at any bank or credit union.

A CD can be a good option if you don’t need immediate access. It locks in an annual percentage return (APY) for the life of the CD. The CD will lock in an annual percentage yield (APY) that you can’t change or add to your account during this period. You also won’t be permitted to access your original amount without paying a penalty.

However, you will earn interest on the amount. You have the option of collecting those monthly payments or reinvesting them in your CD. Most banks offer varying rates for different terms and deposit amounts — typically, the longer the term, the higher the rate.

You’ll usually have a 10- to 14-day grace period after the maturity date of the CD. This allows you to withdraw your money, close the account, or renew the term.

Are CDs safe?

CDs can be safer than investing in the stock exchange, but they may not be as liquid as a savings account. CDs can be used as a place to save and grow money you might need in the near future. Your money is not as likely to earn as much as it would on the stock exchange, but there’s no risk.

CDs can be insured by FDIC up to $250,000.

CDs are a good investment.

Timing is important. CDs can be a wise investmentYou can lock in a fixed interest rate if the rates are rising or falling. You can lock in an interest rate fixed, which is the biggest advantage of a CD. Your CD’s APY will not be affected if interest rates rise during its term. If rates are expected to rise, it might not be a good idea to invest money in a CD.

What happens if you lose money on CDs?

CDs are safe and you won’t lose any money if it isn’t used. You cannot lose your money in a CD. It works like a savings account.

Are CD rates rising?

CD interest rates are determined by the Federal Reserve. The Federal Reserve has raised interest rates a number of times thus far.

Expert advice for choosing the best CD

Four experts shared their knowledge about the qualities of a CD and how they can be chosen to best suit your needs.

Here are their thoughts on CDs. (Some text may be slightly edited for clarity.

What makes a CD good?

Mykail James, CFEI:

You always need to consider how much money is needed to start a business. Then, see if you have the ability to keep adding money. You should also check the interest rate and how often interest is paid, regardless of whether it’s monthly, quarterly, or annual.

How can someone choose the length of a CD term?

Roger: Ma, CFP

“I would first think about when you are going to need the money. Next, compare that with the current CD rates. This will help you determine what is most sensible from a financial perspective as well as from your personal timing perspective.

Mykail James, CFEI:

“I believe it is important to have a plan for any funds. If the money is supposed to go towards a house and you don’t want to wait two more years before you can buy a home, then that’s what to do.

How can someone decide whether to invest their money in high-yield savings accounts, money market accounts, or CDs?

Tania Brown, CFP:

“So, let’s start by deciding how much money and how many transactions you want. This automatically makes it possible to take out CDs if you have any transactions. This will leave you with no choice but to choose between high-yield savings accounts or money market accounts.

Laura Grace Tarpley Personal Finance Insider:

I would choose a high-yield savings or money market account to meet short-term goals and/or an emergency fund. Although you will probably choose the highest rate, money market accounts can also be useful for emergency savings. Money market accounts often come with a paper check or a debitcard, which allows quick access to money. For longer-term goals such as buying a home within a few years, you can use CDs.

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