Best CD Rates and Accounts of 2020

Choose from these CDs with low fees and high yields.

By John Csiszar December 3, 2019 Open a CD Account

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.

If you’re looking for specific information about the best CD rates and accounts of 2020, click on one of the following links to jump ahead to your section of interest:

Best CD Rates of 2020
Tips for Choosing the Best CD
CD vs. Savings Accounts
Summary: Best CD Rates 2020
FAQ
Methodology

Best CD Rates and Accounts of 2020
Bank		Minimum Deposit	12-Month CD APY	36-Month CD APY	60-Month CD APY
	Ally Bank	$0	2.00%	1.95% – 2.10%	2.25%
	Barclays Bank Delaware	$0	2.10%	2.10%	2.20%
	Marcus by Goldman Sachs	$500	2.00%	2.05%	2.20%
	Apple Bank for Savings	$1,000	1.90%	2.15%	N/A
	First Internet Bank	$1,000	1.87%	2.12%	2.17%
	Synchrony Bank	$2,000	2.00%	2.10%	2.25%
	TIAA Bank	$5,000	2.10%	2.15%	2.20%
	Sallie Mae Bank	$2,500	2.10%	2.15%	2.20%
	Discover Bank	$2,500	2.00%	2.05%	2.10%
	Citizens Access	$5,000	2.10%	2.15%	2.25%

Best CD Rates of 2019-2020

Since banking is a competitive industry, some banks offer higher rates than others. Oftentimes, the best bank CD rates are found at online banks, due to their low overhead costs. GOBankingRates identified the banks with the Best CD Accounts of 2020, scoring the CD accounts from most to least favorable based on the following factors: (1) minimum deposit to open a CD, (2) annual percentage yield (APY) for a 12-month CD and (3) annual percentage yield for a 60-month CD.

Ally Bank

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

Fees:

$0 to open
Early withdrawal fees:
- 0-24 months: 60 days of interest
- 25-36 months: 90 days of interest
- 37-48 months: 120 days of interest
- 49 months or longer: 150 days of interest

Minimum Deposit: $0

APY:

12-month: 2.00%
36-month: 1.95%-2.10%
60-month: 2.25%

How To Open an Account: Ally has an online application process that takes five minutes or less. You must be 18 years or older to open an account, with a Social Security number, U.S. residential street address, legal name and birth date.

Barclays Bank Delaware

Why We Like It: Barclays offers some of the best CD rates available and has a $0 minimum to open an account, one of only two such banks on this list.

Benefits:

No minimum to open
No hidden fees
High APY CDs

Fees:

$0
Early withdrawal penalties:
- 0-24 months: 90 days interest
- 24 months or longer: 180 days interest

Minimum Deposit: $0

APY:

12-month: 2.10%
36-month: 2.10%
60-month: 2.20%

How To Open an Account: Barclays Bank Delaware CD accounts can be opened online. You’ll need to provide your personal information, Social Security number, external bank name, bank routing number and account number.

Marcus by Goldman Sachs

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

Fees:

$0
Early withdrawal fees:
- Less than one year: 90 days interest
- One year to five years: 270 days interest
- More than five years: 365 days interest

Minimum Deposit: $500

APY:

12-month: 2.00%
36-month: 2.105%
60-month: 2.20%

How To Open an Account: You can open your Marcus by Goldman Sachs CD online in minutes by choosing a product type and providing personal and employment info, along with a funding source.

Apple Bank for Savings

Why We Like It: Apple Bank for Savings not only provides no-fee CDs, it also offers terms from as short as 32 days to as long as 10 years.

Benefits:

Terms from 32 days to 10 years
High APY
No fees

Drawbacks:

$1,000 minimum balance to open and earn interest
You have to open an account in person at an Apple Bank branch

Fees:

$0
Early withdrawal penalties:
- Less than one year: $50 plus 1% of the amount withdrawn
- One year or more: $50 plus 3% of the amount withdrawn

Minimum Deposit: $1,000

APY:

12-month: 1.90%
36-month: 2.15%
60-month: N/A

How To Open an Account: You can only open an Apple Bank for Savings CD account at a local branch. Begin the process online by providing your name, email address and ZIP code. After that, you’ll have to finish the process at a branch.

First Internet Bank

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

Fees:

$0
Early withdrawal fees:
- Three months: 90 days interest
- Six to 18 months: 180 days interest
- 24 months or more: 360 days interest

Minimum Deposit: $1,000

APY:

12-month: 1.87%
36-month: 2.12%
60-month: 2.17%

How To Open an Account: You can open a First Internet Bank account on the bank’s website if you’re a legal U.S. resident who is at least 18 years old with a Social Security number and a government-issued ID.

Synchrony Bank

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

Fees:

Early withdrawal fees:
- 12 months or less: 90 days interest
- More than 12 months but less than 48 months: 180 days interest
- 48 months or more: 365 days interest

Minimum Deposit: $2,000

APY:

12-month: 2.00%
36-month: 2.10%
60-month: 2.25%

How To Open an Account: Your name, physical address, Social Security number and date of birth are enough to get you started with opening an account online at Synchrony Bank. You’ll also need a state ID, such as a driver’s license. To fund your account, you’ll need an external bank account number and routing number.

TIAA Bank

Why We Like It: A higher-than-average $5,000 minimum investment guarantees a high rate with TIAA’s Yield Pledge CD, which guarantees rates to be in the top 5% of competitive accounts.

Benefits:

Three CD options: basic ($1,000 minimum), bump-up ($1,500 minimum) and Yield Pledge ($5,000 minimum)
Online and mobile banking
IRA-eligible
20-day maturity alert
Automatic rollover

Drawbacks:

Very high $5,000 minimum

Fees:

$0
Early withdrawal penalties apply

Minimum Deposit: $5,000

APY:

12-month: 2.10%
36-month: 2.15%
60-month: 2.20%

How To Open an Account: TIAA Bank CDs can be opened through an online application. Applicants are required to provide typical personal and financial information.

Sallie Mae Bank

Why We Like It: A combination of high yields and no fees are enough to put Sallie Mae Bank’s CDs on the top 10 list.

Benefits:

High APY
No fees
Automatic renewal

Drawbacks:

High minimum required deposit

Fees: $0

Minimum Deposit: $2,500

APY:

12-month: 2.10%
36-month: 2.15%
60-month: 2.20%

How To Open an Account: You can open a Sallie Mae Bank account online by providing personal information, choosing the type of account you want and providing funding information.

Discover Bank

Why We Like It: Respectable CD yields place Discover Bank on the list of Best CD Accounts of 2020, but it does require one of the higher minimum investments at $2,500.

Benefits:

Maturities from three months to 10 years
No fees
High APY
U.S.-based banking specialists

Drawbacks:

High minimum balance requirement

Fees:

$0
Early withdrawal penalties:
- Less than one year: 3 months interest
- One year to less than four years: 6 months interest
- Four years to less than five years: 9 months interest
- Five years to less than seven years: 18 months interest
- Seven years to 10 years: 24 months

Minimum Deposit: $2,500

APY:

12-month: 2.00%
36-month: 2.05%
60-month: 2.10%

How To Open an Account: You can open a Discover account online with your physical address, phone number, email address and Social Security number. You’ll be mailed a welcome kit after you open your account.

Citizens Access

Why We Like It: Citizens Access has a high minimum to invest but offers high rates and no fees.

Benefits:

High APY
Flexible interest payment options
All rates are standard, no teaser or promotional rates

Drawbacks:

Very high minimum to invest

Fees:

$0
Early withdrawal fees:
- 12 months or less: 90 days interest
- More than 12 months: 180 days interest

Minimum Deposit: $5,000

APY:

12-month: 2.10%
36-month: 2.15%
60-month: 2.25%

How To Open an Account: You can open a Citizens Access CD account online in five steps that take about five minutes, providing the usual personal and financial information along the way.

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 vs. Savings Account

CDs and savings accounts are two common ways that investors set aside money for shorter-term needs. However, these two types of 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

Best CD Rates 2020

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 2019 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.

Learn More: Investing in Certificates of Deposit: The Ultimate Guide

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?

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.

Related: 9 Tips for Choosing a CD Account

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?

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.

More From GOBankingRates

Methodology: GOBankingRates identified the banks with the Best CD Accounts of 2020 by analyzing the institutions’ 12-month and 60-month CDs. We scored the CD accounts from most to least favorable based on the following factors: (1) minimum deposit to open a CD, (2) annual percentage yield for a 12-month CD and (3) annual percentage yield for a 60-month CD. GOBankingRates’ rankings for the Best Banks of 2020 were based on rates and other information compiled from individual institutions’ websites and/or conversations with representatives from the financial institutions throughout September 2019 and October 2019. Rates are subject to change. All other information on accounts is accurate as of Dec. 3rd, 2019. All costs, terms and conditions are subject to change at the discretion of each financial institution. For more information, see the complete methodology for the rankings.

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.