The very best-paying CDs in the country are typically offered by small to medium-sized banks and credit unions, with the top nationwide offers reaching to 6.50% right now. But not everyone wants to venture out to unfamiliar institutions to score the highest rate.
If you prefer sticking to big banks, you currently have a good selection of competitively priced certificates of deposit (CDs), including a leading rate of 5.50% from either Synchrony or BMO Alto, or 5.30% from Capital One. Though you won't earn the highest rate possible with the biggest banks, what you give up in interest may be offset by convenience, peace of mind, or both.
Key Takeaways
- The best nationally available CD rates—currently as high as 6.50%—are typically offered by smaller banks and credit unions with unfamiliar names.
- You may find you prefer opening a CD with a big bank if you're already a customer or just feel more comfortable with a big-name institution.
- Some large banks are currently offering reasonably competitive CDs, with the top offers being 5.50% from Synchrony and BMO Alto, and 5.30% from Capital One.
- All FDIC-insured banks and NCUA-insured credit unions—regardless of size—carry identical federal protection on your deposits.
Of the 30 Biggest Banks, These 11 Have the Best Rates
As you can see below, 11 of the 30 largest FDIC banks (ranked by total domestic deposits) currently offer a competitive CD rate in at least one major term. Today's leading rate offers are 5.50% APY, available from Synchrony and BMO Alto, and 5.30% from Capital One. These plus the other options in the table give you some reasonable choices whether you already bank at one of these institutions or just prefer to open your CD at a big bank with a name you know.
| Size Rank | Bank | 6M | 1Y | 2Y | 3Y | 5Y |
|---|---|---|---|---|---|---|
| 2 | Bank of America | 5.00% | 5.00% | |||
| 3 | Wells Fargo | 5.00% | ||||
| 4 | Citi | 5.05% | ||||
| 8 | Capital One | 5.30% | 4.40% | 4.30% | 4.10% | |
| 9 | Marcus by Goldman Sachs | 5.00% | 5.20% | 4.60% | 4.40% | 4.10% |
| 12 | BMO / BMO Alto | 5.20% | 5.50% | 5.00% | 4.75% | 4.75% |
| 20 | Ally | 5.00% | 5.10% | 4.25% | 4.10% | |
| 24 | American Express | 5.00% | 4.75% | |||
| 25 | HSBC | 5.00% | ||||
| 26 | Discover | 5.20% | 4.40% | 4.30% | 4.00% | |
| 30 | Synchrony | 5.50% | 5.30% | 4.40% | 4.30% | 4.00% |
| Top nationwide rate from smaller institutions | 6.50% | 6.00% | 5.60% | 5.37% | 5.00% |
If you're already a customer at a big bank and you're in the market to put some of your cash savings in a CD, your first choice might be to simply open a certificate of deposit (CD) at that bank. Unfortunately, not all big banks offer good CD rates. So while you may appreciate the convenience of having your CD and your checking account both at the same place, you'd be leaving significant money on the table if you went with a CD that pays, say, half the rate you can earn elsewhere. Put simply, it's critical to shop around.
Want to Earn More? Smaller Institutions Pay the Nation-Leading Rates
If instead you want to earn one of the nation's top rates in a certain term, you can do that by loosening your criteria on how big or recognizable the bank is. There are over 200 banks and credit unions that offer CDs to customers nationwide, so the 30 largest banks are just the tip of the iceberg. By being willing to open a CD at a medium-sized or even small bank or credit union you may not have heard of before—after ensuring it is federally insured—you can earn the highest rates available.
We track the CD rates from every nationally available bank and credit union every business day, and always publish a daily ranking of the best CD rates. Right now, three leading CDs pay 6.50% or 6.00%, with another dozen options paying 5.75% or better. You can see below what today's highest rates are in each CD term.
If you feel putting your money in one of these smaller institutions is riskier, rest assured that FDIC insurance applies equally to all member banks. So if the smaller bank you're considering for a CD is an FDIC member, your deposits are just as safe at that bank as at an exceptionally large bank. The same holds true for credit unions—if they are a member of the National Credit Union Administration (NCUA), they too offer the same federal insurance protection on your deposits that FDIC coverage provides.
Why CDs Are So Easy to Hold at Another Bank
Where you do your everyday banking is important, and you may have a long history already with one particular institution. Making a change in where you hold your checking account could involve a significant disruption to your daily financial life.
But CDs are not like this. By definition, they are a place to stash your money and not touch it for months or years. Yes, there are monthly statements and interest payments. But these are not transactions that require your attention or action. If you're like many CD buyers, you'll interact with your CD account twice in its lifetime: once when you open it, and a second and final time when you cash out and close it.
For this reason, CDs are well suited to being held at an institution other than your primary bank. You may still prefer to keep all your funds at the bank you're already used to. But if you decide to shop around so you can score a higher rate, know that a CD's "park it and forget it" nature will make things very easy for you.
Best CD Rates Today, March 7, 2024: Up to 5.75%
Best High-Yield Savings Accounts Today, March 7, 2024—Up to 5.50%
Best Money Market Account Rates for March 2024—Up to 5.35%
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
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