Best CD Rates and Accounts 2021: Low Fees & High Yields
A certificate of deposit, or CD, is a savings investment insured by the Federal Deposit Insurance Corp., making it a safe way to earn interest at a typically higher rate than you can earn with a savings or checking account. CDs are a good option for savers looking to conservatively generate income.
Here’s a quick look at GOBankingRates’ list of the Best CD Rates of 2021:
Best CD Accounts of 2021
| CD Account | Next Steps |
|---|---|
 Marcus by Goldman Sachs |
Learn More |
 Ally Bank |
|
 Synchrony Bank |
|
 Discover Bank |
|
 Capital One |
|
 CIT Bank |
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 TD Bank |
|
 Comenity Bank |
|
 TIAA Bank |
|
 NBKC Bank |
|
 Sallie Mae Bank |
|
 Axiom Bank |
|
 Columbia Bank |
|
 EmigrantDirect |
|
 Radius Bank |
|
 People’s United Bank |
|
 Incredible Bank |
|
 First Internet Bank |
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 iGObanking.Com |
|
 Webster Bank |
Learn More About Each CD Account
Marcus by Goldman Sachs: Best CD Account
Why we like it: This upstart, user-friendly division of a venerable Wall Street institution offers some of the best available CD rates along with seven-, 11-, and 13-month no-penalty CDs plus a 10-day guarantee you’ll receive the best available rate at the firm.Benefits
- No fees
- High APY
- Variety of products available
- 10-day CD rate guarantee
- US-based contact center available seven days a week
- Maturities from three months to six years
Drawbacks
- $500 minimum to open
Minimum Deposit$500 |
12-Month CD APY0.55% |
60-Month CD APY1.00% |
Ally Bank: Top CD Account
Why we like it: Ally Bank is one of only two banks on the list that has no CD minimum deposit.Benefits
- Maturities from three months to five years
- No fees
- High yields with larger deposits for some maturities
- Offers Raise-Your-Rate and No-Penalty CDs as well
- 24/7 customer service with a live agent
Drawbacks
- Early withdrawal penalties may apply on some products
Minimum Deposit$0.01 |
12-Month CD APY0.75% |
60-Month CD APY1.00% |
Synchrony Bank: Top CD Account
Why we like it: Synchrony Bank offers great CD rates and numerous maturity options.Benefits
- Terms from three to 60 months
- 24/7 digital banking
- High APY
- No fees
Drawbacks
- High $2,000 minimum balance
Minimum Deposit$2,000 |
12-Month CD APY0.60% |
60-Month CD APY0.90% |
Discover Bank: Top CD Account
Why we like it: Relatively high yields and terms from 3 months to 10 years make Discover CDs flexible and well-suited for a variety of consumers.Benefits
- Maturities from three months to 10 years
- No fees
- High APY
Drawbacks
- High minimum balance requirement
- Early withdrawal fees
Minimum Deposit$2,500 |
12-Month CD APY0.60% |
60-Month CD APY0.80% |
Capital One: Top CD Account
Why we like it: Open a CD account with a one cent balance required, online or at a Capital One branch nationwide.Benefits
- One cent minimum deposit required
- Choose when you receive interest payments: end-of-term, monthly, or annually
- Maturities from 6 to 60 months
- No fees
Drawbacks
- Early withdrawal penalties apply
Minimum Deposit$0.01 |
12-Month CD APY0.20% |
60-Month CD APY1.00% |
CIT Bank: Top CD Account
Why we like it: This award-winning online bank offers high-yield CDs with no fees and terms from 6 months to five years.Benefits
- Terms from 6 months to 5 years
- $1,000 minimum opening balance
- APY up to 0.50%
Drawbacks
- Online-only bank
Minimum Deposit$1,000 |
12-Month CD APY0.35% |
60-Month CD APY0.50% |
TD Bank: Top CD Account
Why we like it: A variety of CD options, including choices that let you increase your balance to earn more interest, or enjoy one no-penalty withdrawal per term put TD Bank on our list of best CDs for 2021.Benefits
- Flexible terms from 3 months to five years
- No fees
- Low $250 minimum deposit
- Options for no early withdrawal penalties
Drawbacks
- Relatively low APY of up to 0.10%
Minimum Deposit$250 |
12-Month CD APY0.20% |
60-Month CD APY0.64% |
Comenity Bank: Top CD Account
Why we like it: Comenity bank has excellent rates and no fees.Benefits
- High APY
- 24/7 digital banking
- No fees
- Free online statements
- Terms up to 5 years
Drawbacks
- High $1,500 minimum balance
- Terms start at 1 year
Minimum Deposit$1,500 |
12-Month CD APY0.60% |
60-Month CD APY0.90% |
TIAA Bank: Top CD Account
Why we like it: TIAA Bank offers a variety of CD terms, ranging from 3 months to 5 year, with a minimum deposit of $1,000 dollars.Benefits
- Two CD options: basic ($1,000 minimum), bump-up ($1,500 minimum)
- Online and mobile banking
- IRA-eligible
- 20-day maturity alert
- Automatic rollover
Drawbacks
- Early withdrawal penalties apply
Minimum Deposit$1,000 |
12-Month CD APY0.50% |
60-Month CD APY0.90% |
Nbkc Bank: Top CD Account
Why we like it: Terms from three months to five years, and add-on CDs with higher yields make NBKC bank a winner, and a new addition to our list this year.Benefits
- Maturities from three months to 5 years
- No fees
- Low minimum deposit, even on five-year CDs
- Relatively good APY for most terms
Drawbacks
- Early withdrawal fees
- Low APY on three- to six-month CDs
Minimum Deposit$1,000 |
12-Month CD APY0.65% |
60-Month CD APY0.75% |
Sallie Mae Bank: Top CD Account
Why we like it: Sallie Mae’s CD make the list once again thanks to a combination of high yields and no fees.Benefits
- High APY
- No fees
- Automatic renewal
Drawbacks
- High minimum required deposit
Minimum Deposit$2,500 |
12-Month CD APY0.60% |
60-Month CD APY0.60% |
Axiom Bank: Top CD Account
Why we like it: Axiom Bank offers competitive APYs on terms from six months to five years, plus Jumbo CD options available for deposits of $100,000+.Benefits
- Maturities from six months to five years
- Free online banking
- $500 minimum deposit
- Bilingual website (English and Spanish)
Drawbacks
- Early withdrawal fees
Minimum Deposit$500.00 |
12-Month CD APY0.55% |
60-Month CD APY0.90% |
Columbia Bank: Top CD Account
Why we like it: Maturities from 91 days up to 72 months, all with a low $500 minimum deposit, offer Columbia State Bank customers plenty of flexibility.Benefits
- Maturities from 31 days up to 72 months
- $500 minimum
- Relatively high APYs, especially for shorter term investments
- 24/7 online banking
Drawbacks
- Early withdrawal fees
- Must visit a branch to open some products
Minimum Deposit$500.00 |
12-Month CD APY0.40% |
60-Month CD APY0.80% |
EmigrantDirect: Top CD Account
Why we like it: EmigrantDirect debuts on our 2021 list of Best CDs thanks to its high yields and terms from 6 to 120 months.Benefits
- High APY
- Maturity dates from 6 months to 120 months
- Automatic notification prior to maturity
- Low minimum deposit of $1,000
Drawbacks
- Only available for EmigrantDirect checking or savings account holders
Minimum Deposit$500.00 |
12-Month CD APY0.40% |
60-Month CD APY0.80% |
Radius Bank: Top CD Account
Why we like it: With maturities starting at 3 months up to 5 years and minimum deposits between $500 and $1,000 Radius Bank debuts on our list this year.Benefits
- Moderately high APY
- Maturity dates from 3 months to five years
- Low minimum deposits of $500 or $1,000, depending on terms
Drawbacks
- Some products are not available online
Minimum Deposit$500.00 |
12-Month CD APY0.50% |
60-Month CD APY0.50% |
People's United Bank: Top CD Account
Why we like it: Why We Like It: Choose your terms from 91 days to one year, in one-month increments, with the Plus CD program.Benefits
- High APY on 5-year Plus CD
- Maturity dates that fit your needs
- No minimum deposit required
Drawbacks
- Consumer checking account required
Minimum Deposit$500.00 |
12-Month CD APY0.15% |
60-Month CD APY0.95% |
Incredible Bank: Top CD Account
Why we like it: High-yield CDs ranging from 12 to 60 months and a low minimum deposit make this offer… incredible.Benefits
- High APY
- Low minimum deposit of $1,000
- Maturities from 12 to 60 months
- No fees
Drawbacks
- Early withdrawal penalties apply
Minimum Deposit$1,000 |
12-Month CD APY0.30% |
60-Month CD APY0.80% |
First Internet Bank: Top CD Account
Why we like it: High rates make First Internet Bank a top contender among the Best CD Accounts of 2020.Benefits
- Automatic renewal
- No maintenance fees
- Maturities from three months to five years
Drawbacks
- $1,000 minimum investment
Minimum Deposit$1,000.00 |
12-Month CD APY0.65% |
60-Month CD APY1.01% |
iGObanking.Com: Top CD Account
Why we like it: Find extremely high yields, short terms, and a low minimum deposit at this online bank.Benefits
- APY up to 0.70%
- No fees
- Terms from 6 to 18 months
- $1,000 minimum opening balance
Drawbacks
- Online and mobile banking only
Minimum Deposit$1,000 |
12-Month CD APY0.85% |
60-Month CD APYDoes not offer a 60-month CD |
Webster: Top CD Account
Why we like it: Find extremely high yields, short terms, and a low minimum deposit at this online bank.Benefits
- Terms as short as one month
- Bump-up CD options allow you to raise your APY if a better offer comes along
- $1,000 minimum opening balance
- Opt to receive interest payments monthly
Drawbacks
- Checking account required to earn the best rates
Minimum Deposit$1,000.00 |
12-Month CD APYDoes not offer a 12-month CD |
60-Month CD APY1.00% |
Tips for Choosing the Best CD
There is no such thing as “the best” CD for every investor. You’ll have to take into account your timeline for needing the money you invest in a CD, 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, like those listed above. 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.
CD Account vs. Savings Account
CDs and savings accounts are two common ways that investors set aside money for shorter-term needs. However, these accounts differ in many significant ways. Here’s a look at a few of those.
Advantages of a CD
- Typically, higher rates than a savings account
- Money can usually be automatically renewed upon maturity
- Come in different maturities so investors can set up various strategies, such as laddering
Disadvantages of a CD
- Early redemption penalties for monies withdrawn before the maturity date
- Generally have higher minimum deposit amounts than savings accounts
Summary
Some of the banks on this list have higher minimum balance requirements than others, but they all share two things in common: no fees and high yields. If you’re looking to juice up your CD returns, any of the banks on this list — many of whom also made the Best CD Rates 2020 list — can help your portfolio. Shop around and find which bank best matches your needs in terms of account minimums, maturity dates and yields — just be aware that once you commit to a CD, you’re generally locked in unless you’re willing to pay an early withdrawal penalty.
FAQ
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?
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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.
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- 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 of the underlying financial institution; it doesn’t protect you from market losses.
- Are CDs a Good Investment?
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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.
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- Do CDs Pay Monthly?
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Many CDs do pay monthly, but longer-term CDs often pay at maturity or semiannually.
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More From GOBankingRates
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To discover the Best Certificate of Deposit (CD) accounts, GOBankingRates looked at the top institutions in terms of total assets size that had available published data. 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 11/04/2020, rates and fees subject to change.
John Csiszar contributed to the reporting for this article.
Marcus by Goldman Sachs CD rates were updated on Nov. 19, 2021 to reflect current rates.
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.
