A Sampling of Competitive CD Interest Rates

CDs have better interest rates than savings accounts

If you're considering putting your money into an investment CD (Certificate of Deposit), it's important to know the most competitive interest rates available to get the most bang for your buck. This CD interest rate scorecard highlights some of the leading CD interest rates.

A review of the scorecard will give you some ideas as to where to stash your cash. For even better deals, you may need to do a little more searching and use CD investment strategies, but doing this requires that you know CD investment basics.

Understanding CDs

For newcomers to finance, think of a CD as a high-interest savings account. Also known as share certificates, CDs require you to set aside your funds for a fixed amount of time. It could be six months, a year or 18 months. In fact, the term length of some CDs is five years. During this term, however, you agree not to touch your money. 

That means you can't withdraw it at will like you can with a savings account. If you do, penalties will be assessed. However, if you have strong reason to believe you can do without your money for a certain period of time, a CD can serve you well and earn you significantly more interest than most savings accounts can.

CDs of any term length have typically averaged above 0.50% APY in recent years. The longer the CD term length, however, the higher the interest rate typically. Below are some examples of financial institutions that provide competitive CD interest rates, broken down by different term lengths.

Leading 6-Month CD Interest Rates

Leading 12-Month CD Interest Rates

Leading 18-Month CD Interest Rates

​To be included on the CD interest rate scorecard, banks should be FDIC insured.

CD interest rates quoted should be valid for deposits of at least $1,000. Rates quoted are in APY. If you're unsure about how APY works, read up to better understand this percentage and its connection to how your CD may perform.

Finding Better CD Rates

Note that you might be able to find even better CD interest rates if you look hard enough. Brokered CD interest rates may be better. Likewise, you might check to see what the personal finance bloggers are talking about. They tend to find great deals, and you'll see some CD interest rates that are only valid on larger minimum deposits. ConsumerSearch also ranks bank accounts by compiling reviews from various sources.

If you have more money to place than the FDIC will insure, consider spreading that money among different banks or using a service such as CDARS. Read up to better understand both how FDIC insurance works and the Certificate of Deposit Account Registry Service (CDARS) for CD protection above FDIC limits.

And, remember, this scorecard is designed to inform you of competitive rates in the marketplace. The CD interest rates quoted may change by the time you are able to open an account.