Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Originally Published: Feb 16, 2023
Originally Published: Feb 16, 2023 Last Updated: May 19, 2023 2 min read
Capital One Bank Branch in New York City

Looking for a low-risk way to grow the funds you save? Opening a certificate of deposit, or CD, is one way to make your money earn money for you.

CDs are financial products that hold your deposits for a set period of time, generally ranging from one month to five years. In exchange, the bank you choose to open your account with pays you a fixed amount of interest. Typically, this means your savings will earn more than if they were just sitting in a basic savings account.

The national average annual percentage yield (APY) rate for CD accounts is 1.21%, according to the Federal Deposit Insurance Corporation. But the best CDs usually offer much higher than that, and rates right now are trending up thanks to a ripple effect from the recent rate hikes by the Federal Reserve.

In fact, there are a few banks offering CDs with APY rates hovering around 5%. That outpaces the APYs on high-yield savings accounts from places like Ally (3.4%) and Marcus (3.75%).

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Save and grow your money without incurring risk - open a CD Account.
If you want your money to work a little harder but aren't sure about investing in stocks or bonds, look into a Certificate of Deposit (CD). Click on your state to open a CD account today!
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
See Offer

Banks with high CD rates

Capital One, 5% APY

  • Duration: 11 months
  • Minimum deposit: none

BMO Harris, 5% APY

  • Duration: 12 months
  • Minimum deposit: $1,000

Popular Direct, 4.8% APY

  • Duration: 12 months
  • Minimum deposit: $10,000

Synchrony Bank, 4.6% APY

  • Duration: 14 months
  • Minimum deposit: none

Barclays, 4.35% APY

  • Duration: 24 months
  • Minimum deposit: none

*Rates and APYs are subject to change. All information provided here is accurate as of May 19, 2023.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Opening a Certificate of Deposit (CD) account can be a safe way to grow your savings
A CD account is a great financial tool to build your savings for a short-term goal. Click below to open a CD account.
See Offer

More from Money:

The Older You Get, the Less Likely You'll Be Approved for a Mortgage: Study

Housing Affordability Just Hit a Record Low — but That Should Change Soon

The Typical Amount Lost in an Investing Scam Surged to $18,700 Last Year