Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily​ rankings of the ​top-paying certificates in every​ major term. To qualify for our lists, the institution must be federally‍ insured (FDIC for banks, NCUA for credit ‍unions), the CD’s minimum initial ‍deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

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.

Understanding CD Rate Variations

The difference between the national average CD rate and the top available rates can be staggering. ​While⁤ large, well-known ​banks might offer rates that barely keep pace with inflation, smaller banks and credit​ unions often ⁤compete for your ⁤deposits by​ offering considerably higher Annual Percentage Yields ⁣(APYs). This means that by simply shopping around,you could potentially earn 5,10,or even 15 times more interest⁢ on your savings.

Our Research Methodology

Investopedia’s commitment to providing you with the most accurate and up-to-date details on CD rates is reflected ⁤in our rigorous research process. We meticulously analyze data⁤ from ⁢a broad spectrum ⁤of financial institutions daily. Our criteria‍ ensure that the rates we​ highlight are not only competitive‍ but also come from secure and accessible‌ sources.

Key Qualification Criteria:

Federal Insurance: All featured institutions must be federally insured. This means deposits at banks ‌are protected by the Federal Deposit Insurance‌ Corporation (FDIC), and deposits at credit unions are protected ‌by the National Credit Union Management (NCUA). This ⁤insurance provides a critical ​layer of safety for your money, typically up⁢ to $250,000 per depositor, per insured bank, for each account ownership category.
Deposit‌ limits: To ensure broad accessibility, we ⁤set limits on minimum and maximum⁢ deposit requirements. The⁢ minimum ⁤initial deposit for ‌a​ CD must not exceed $25,000, and any specified maximum deposit cannot be under $5,000. This allows us to include a wide range of CDs suitable for different savings goals.
Geographic Availability: For banks,‍ we require them to‌ be available in at least 40 states.This ‍ensures that a significant portion‌ of the U.S.‍ population has access⁣ to these competitive rates.
Credit Union​ Membership: We understand that credit unions often⁣ offer ​excellent rates. However, we also want to make membership as straightforward as possible.Therefore,‌ we exclude credit unions whose membership