Frequently asked questions

A CD is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year or five years. In exchange for leaving the money untouched, the bank or credit union pays a fixed interest rate that is usually higher than a regular savings account.

APY stands for annual percentage yield. It is the total amount of interest you earn in one year, including the effect of compounding. Comparing APYs is the most accurate way to compare CDs from different lenders.

CDs at FDIC-insured banks are protected up to $250,000 per depositor, per insured bank, for each account ownership category. CDs at federally insured credit unions receive the same coverage from the NCUA. Always confirm a lender's insurance status before you open an account.

Most CDs charge an early withdrawal penalty, usually a set number of months of interest. Each bank page on CDRates lists the penalty for every product we track, so you can compare the cost of flexibility before you commit.

We rank every active CD we track by APY within each term length. The "best rate" is the highest APY available for that term, and the "top 5 average" is the average of the five highest APYs. We do not let affiliate relationships change the ranking order.

Our staff reviews rates regularly and records every change. Each bank page includes a rate history chart so you can see how a lender's rates have moved over time.

Some links on CDRates are affiliate links, which means we may earn a commission if you open an account. This never affects the rates we show or the order in which we rank them.