CDs: Fixed terms, high interest rates

A certificate of deposit, or a CD, is like a high-yield savings account that you set and forget. Typically, the more money you put in at first and the longer the terms, the higher your interest rate. Because CDs are sold to the US government, you don’t have access to the money until the CD “matures,” or reaches the terms of agreement.

CDs can be opened for as little as three months, or as long as several years. The important factor to be aware of with CDs is that if you need access to your money before the CD matures, you’ll likely get hit with an early withdrawal fee. If your goal is to have a savings account for emergency situations and you plan on making withdrawals, a CD isn’t a good option.

But CDs almost always offer higher interest rates than traditional savings accounts, which means bigger returns on your money. If you have a lump sum of money that you know you won’t touch for a set period of time, a CD can be great way to take advantage of better rates.

Find the best interest rates on CDs

This tool updates daily and can be used to find the highest interest rates on CDs from banks around the country: