A certificate of deposit, or CD, is anÂ interest-bearing investmentÂ that is FDIC-insured and returns your original invested principal at maturity. CDs are considered among the safest of investments and usually pay a premium over regular savings accounts.

What CD Term Length Should I Select

You should generally match your CD maturities with your financial needs. For example, if you're putting a down payment on a house in 18 months, you'd want a CD maturity of 18 months or less. If you're constructing a ladder, you might want to spread your money out over CDs that mature in consecutive years, say every year for one to 10 years. As each CD matures, you'll buy a new 10-year CD to keep your ladder intact.

Can You Lose Money in CDs

Generally speaking, you can't lose money in CDs. Bank-issued CDs maintain their value until they mature. You can, however, lose money in broker-sold CDs, which fluctuate in value on a daily basis in response to moves in interest rates, just like bonds. If interest rates rise after you buy a broker-sold CD, the price of your investment will likely go down. If you hold your CD until maturity, you will be paid off at par value. Remember that the FDIC insurance nearly all CDs carry only insures holders against the default.

Are CDs a Good Investment

CDs are a good investment if they match your investment objectives and risk tolerance. For some investors, they may be too conservative, as they rarely pay rates that match the returns available from other investments. However, for short-term, conservative investors, CDs can often fit the bill perfectly, as they're insured and often pay higher rates than savings accounts.

Many CDs do pay monthly, but longer-term CDs often pay at maturity or semiannually.

Banking / Cd Rates

The 20 Best CD Accounts of 2022

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A bank-issued certificate of deposit, or CD, allows you to earn guaranteed interest on the money you put in, making it a safe investment. Typically, the interest rates will be higher when you deposit a greater amount in the account and when you keep your funds there for a longer period of time. But some CDs do offer relatively low minimum deposits and high interest rates, even over a shorter timeframe.

To determine the institutions with the Best CD Accounts of 2022, GOBankingRates analyzed the following factors:

Total assets
Number of branch locations
Minimum deposit to open an account
12-month CD APY
60-month CD APY
Average mobile app rating

See which banking institution’s CD accounts are the best for growing your money this year.

Our Best CD Account

Quontic Bank

Why it stands out: The Quontic Bank CD Account offers a great annual percentage yield and a lower minimum opening deposit than many online banks require. Choose from terms ranging from six months to five years.

Pros:

2.86% 60-month APY
2.01% 12-month APY
$500 minimum opening deposit

Cons:

Online-only bank

What to look for: This account comes with a $500 minimum opening deposit and really shines when it comes to APYs. The 60-month APY is 2.86% and the 12-month APY is 2.01%. Plus, with an optimized online experience, you can open your account in three minutes or less. READ OUR FULL REVIEW

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More of the Best CD Accounts 2022

First Internet Bank

Why it stands out: The First Internet Bank CD Account offers high-yield certificates and no fees. Terms from three months to 60 months are available and rates are the same no matter what your balance.

Pros:

3.09% 60-month APY
1.92% 12-month APY

Cons:

$1,000 minimum balance
Online-only bank

What to look for: You'll have a $1,000 minimum deposit with this account, but no fees. The 60-month APY is 3.09% and the 12-month APY is 1.92%. You'll also have a highly-rated app to work with if you enjoy mobile banking.

READ OUR FULL REVIEW

Bread Savings

Why it stands out: The Bread Savings CD accounts have competitive rates and no hidden fees.

Pros:

2.85% 60-month APY
2.00% 12-month APY

Cons:

$1,500 minimum balance
Online-only bank

What to look for: This account has a $1,500 minimum to open but comes with strong APY rates. A 60-month CD has an APY of 2.85%, while a 12-month CD has an APY of 2.00%, with interest compounded daily.

READ OUR FULL REVIEW

Synchrony Bank

Why it stands out: In addition to competitive rates on its standard CDs, Synchrony Bank offers CD specials to help your money grow even faster. The bank also offers Bump Up CDs that allow for a one-time increase in APY if the regular rate goes up during your CD term. Pros:

No minimum balance
1.90% 12-month APY
15-day Best Rate Guarantee

Cons:

Low APYs on short-term CDs
Online-only bank

What to look for: There's no minimum opening balance for a CD account. The 60-month APY is 2.90% and the 12-month APY is 1.90%. Synchrony also offers a highly-rated app that you can use for mobile banking. READ OUR FULL REVIEW

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Ally Bank

Why it stands out: Ally Bank has several CDs to chose from, including high-yield, Raise Your Rate and a no-penalty certificate.

Pros:

1.75% 12-month APY
Options for rate increase and no early withdrawal penalties
High Yield CD and Raise Your Rate CD available as an IRA

Cons:

Some rates not as good as leaders in the category
Online-only bank
Must withdraw within 10 days after maturity to avoid autorenewal

What to look for: The 60-month APY is 2.75% and the 12-month APY is 1.75%. There are also options for no-penalty and rate-bump CDs. READ OUR FULL REVIEW

TIAA Bank

Why it stands out: TIAA Bank CDs offer terms ranging from three months to five years, all at competitive rates. CDs automatically renew. Bump Rate CDs are also available. Pros:

Good rates on short-term CDs
2.55% 60-month APY
1.30% 12-month APY

Cons:

$1,000 minimum opening deposit
Online-only bank

What to look for: This account has a $1,000 minimum deposit to open. Rate are competitive across the board, especially for three-month CDs at 0.35% APY and 60-month CDs at 2.55% APY. There's also a Rate Bump CD that lets you take advantage of increasing rates. CDs autorenew, but you get 20 days notice to withdraw your finds. READ OUR FULL REVIEW

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Marcus by Goldman Sachs

Why it stands out: The Marcus by Goldman Sachs CD account has low opening balance requirements and lets you set maturity instructions online so you're not caught off-guard when renewal time rolls around. Pros:

10-day best rate guarantee
1.90% 12-month APY
Lower minimum opening deposit than many CDs require

Cons:

Online-only bank

What to look for: You'll have a $500 minimum deposit with this account. The 60-month APY is 2.90% and the 12-month APY is 1.90%. There's also a 10-day CD Rate Guarantee if rates improve after you fund. A No-Penalty CD is also available. READ OUR FULL REVIEW

Discover Bank

Why it stands out: Discover Bank offers high-yield CDs with no account fees. Terms range from three months to 10 years, giving you maximum flexibility in how you save. Pros:

2.85% APY on terms of 60-month or more
1.75% 12-month APY

Cons:

$2,500 minimum balance
Online-only bank

What to look for: This account has a $2,500 minimum deposit, but no fees. The 60-month APY is 2.85% and the 12-month APY is 1.75%. For your mobile banking needs, Discover has an app with strong reviews. READ OUR FULL REVIEW

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TAB Bank

Why it stands out: TAB Bank CDs offer terms of six to 60 months and a lower minimum opening deposit than some banks require. Rates on short-term CDs are especially strong.

Pros:

2.75% 60-month APY
1.85% 12-month APY

Cons:

$1,000 minimum balance
Online-only bank

What to look for: You'll have a $1,000 minimum deposit with this account, but no fees. The 60-month APY is 2.75% and the 12-month APY is 1.85%.

READ OUR FULL REVIEW

Sallie Mae Bank

Why it stands out: The Sallie Mae Bank CD accounts offer highly competitive rates and a good choice of terms, including less common ones like 13 and 15 months.

Pros:

2.00% 12-month APY
Good choice of terms

Cons:

$2,500 minimum deposit
Online-only bank

What to look for: This CD account requires a $2,500 minimum deposit and comes with a 60-month APY of 2.80% and a 12-month APY of 2.00%, which is one of the highest around. An automatic renewal option is available.

READ OUR FULL REVIEW

Capital One

Why it stands out: Capital One has among the highest rates on CDs and no minimum required to open one.

Pros:

2.90% 60-month APY
1.75% 12-month APY
Physical bank locations

Cons:

Not as many locations as some other banks on this list

What to look for: The 60-month APY is 2.90% and the 12-month APY is 1.75%, and you can open an account with $0. With Capital One, you'll also get access to an app with great reviews if you enjoy mobile banking.

READ OUR FULL REVIEW

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IncredibleBank

Why it stands out: IncredibleBank offers a basic CD account with a choice of four different terms ranging from 12 to 60 months.

Pros:

Option to open CD in trust or IRA

Cons:

Low rates

What to look for: This account has a $1,000 minimum deposit. The 60-month APY is 0.75% and the 12-month APY is just 0.15%, which is quite low compared to other bank CDs. IncredibleBank also has a highly-rated app that you can use with mobile banking, a big perk if that's your preferred banking method and you have other accounts with the bank.

READ OUR FULL REVIEW

CIT Bank

Why it stands out: CIT Bank CDs offer APYs up to 0.50% with daily compounding interest.

Pros:

0.50% 60-month APY
Interest compounds daily

Cons:

$1,000 minimum balance

What to look for: You'll have a $1,000 minimum deposit with this account. The 60-month APY is 0.50% and the 12-month APY is 0.30%, which is lower than many competing CDs.

READ OUR FULL REVIEW

JPMorgan Chase Bank

Why it stands out: If you're an existing Chase customer, you can open a Chase CD online. Terms as long as 10 years are available, and checking customers get relationship rates. With JPMorgan Chase, you'll have access to thousands of branch locations for your financial needs. Pros:

Physical bank locations
Extra convenience if you're a Chase customer and want all of your accounts in one place
Relationship rates for checking customers

Cons:

$1,000 minimum balance
Very low rates
Can't open a CD online unless you're already a customer

What to look for: You'll have a $1,000 minimum deposit with this account. For customers with relationship rates, the 60-month APY is 0.05% for balances over $10,000 and the 12-month APY is also 0.05% for balances over $10,000, with lower rates for balances under $10,000 for both terms. For customers without a Chase checking account, the standard APY is 0.01% for all terms. READ OUR FULL REVIEW

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American Express

Why it stands out: The American Express CD account offers APYs of up to 2.60%. Interest compounds daily.

Pros:

2.60% 60-month APY
No deposit required to open

Cons:

Low rates
Online-only bank

What to look for: You can open this account without a deposit. The 60-month APY is 2.60% and the 12-month APY is 1.50%.

READ OUR FULL REVIEW

Amboy Direct

Why it stands out: The Amboy Direct CD has low opening deposit requirements and lets you add funds to your account during the first six months. However, it's only available to residents of New Jersey.

Pros:

0.50% 12-month APY on balances $10,000 and over
Can add funds for the first six months
Low $100 minimum deposit to open

Cons:

Only term is 12 months
Online-only bank

What to look for: You'll have a $100 minimum deposit with this account. The 12-month APY is 0.50% for balances $10,000 and over. You can continue to add funds to your CD account for the first six months.

READ OUR FULL REVIEW

iGObanking.com

Why it stands out: The iGObanking CD offers high yields with terms of 15 to 36 months.

Pros:

1.80% 15-month APY

Cons:

No 12- or 60-month CD option
$1,000 minimum opening deposit

What to look for: This account has a $1,000 minimum deposit to open. The 15-month APY is 1.80% and CD accounts are available for up to 36-month terms.

READ OUR FULL REVIEW

Bank of America

Why it stands out: Bank of America offers standard and featured CD accounts with terms as short as 28 days. Yields are low compared to other banks, but one of these CDs could be a good option if you keep other accounts with Bank of America.

Pros:

Physical bank locations
Extra convenience if you're a Bank of America customer and want all of your accounts in one place
28-day term available with standard CD

Cons:

$1,000 minimum balance
Low APYs

What to look for: You'll have a $1,000 minimum deposit to open a standard CD and $10,000 to open a featured CD. The average APY across standard CDs is 0.03%.

READ OUR FULL REVIEW

Investors Bank

Why it stands out: The Investors Bank CD account has a relatively low opening deposit requirement. Standard and retirement CDs are available.

Pros:

0.50% 60-month APY
Physical bank locations
$500 minimum deposit to open

Cons:

Low APYs

What to look for: You'll have a $500 minimum deposit with this account. The 60-month APY is 0.50% and the 12-month APY is 0.20%, putting Investors Bank at the lower end compared to other banks on this list.

READ OUR FULL REVIEW

Texas Capital Bank

Why it stands out: Texas Capital Bank CDs offer daily compounded interest and no service fees.

Pros:

1.06% 12-month APY
Physical bank locations

Cons:

$1,000 minimum opening deposit
Lower rates than some other banks listed
No 60-month term

What to look for: You'll have a $1,000 minimum deposit with this account, but no fees. The 2-year APY is 1.51% and the 12-month APY is 1.06%.

READ OUR FULL REVIEW

How To Choose a CD

When selecting a CD, you should take into account your timeline for needing the money, the rate you receive and the fees you pay. In today’s competitive financial environment, you should be able to find CDs that charge no fees. However, you’ll also want to match up the maturity of your CD with the time when you need the money. If you pull your money out early and trigger an early redemption penalty, you’re likely to lose a significant amount of your earned interest.

FAQs About CDs

CDs are commonly used but often not fully understood. Here are the answers to some of the most frequently asked questions regarding CDs.

What Is a CD?
- A certificate of deposit, or CD, is an interest-bearing investment that is FDIC-insured and returns your original invested principal at maturity. CDs are considered among the safest of investments and usually pay a premium over regular savings accounts.
What CD Term Length Should I Select?
- You should generally match your CD maturities with your financial needs. For example, if you're putting a down payment on a house in 18 months, you'd want a CD maturity of 18 months or less. If you're constructing a ladder, you might want to spread your money out over CDs that mature in consecutive years, say every year for one to 10 years. As each CD matures, you'll buy a new 10-year CD to keep your ladder intact.
Can You Lose Money in CDs?
- Generally speaking, you can't lose money in CDs. Bank-issued CDs maintain their value until they mature. You can, however, lose money in broker-sold CDs, which fluctuate in value on a daily basis in response to moves in interest rates, just like bonds. If interest rates rise after you buy a broker-sold CD, the price of your investment will likely go down. If you hold your CD until maturity, you will be paid off at par value. Remember that the FDIC insurance nearly all CDs carry only insures holders against the default.
Are CDs a Good Investment?
- CDs are a good investment if they match your investment objectives and risk tolerance. For some investors, they may be too conservative, as they rarely pay rates that match the returns available from other investments. However, for short-term, conservative investors, CDs can often fit the bill perfectly, as they're insured and often pay higher rates than savings accounts.
Do CDs Pay Monthly?
- Many CDs do pay monthly, but longer-term CDs often pay at maturity or semiannually.

Daria Uhlig, Dawn Allcot and John Csiszar contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of June 7, 2022.

Methodology: To determine rankings, GOBankingRates looked at the following factors: (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY rate; (5) 60-month CD APY rate; and (5) the average mobile app rating between the Android and Apple stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 1.5 times, factor (2) was weighted 2 times, and factors (4) and (5) were weighted 4 times. All data is up to date as of Feb. 28, 2022. Rates and fees are subject to change.

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved, or otherwise endorsed by American Express.

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.

About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and People.com. Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert.