Top 12 based on variable annual percentage yield (APY %):
| APY | Institution | Min to Open | Term | Early Withdrawal Penalty |
|---|---|---|---|---|
| 4.55% | Brilliant Bank → | $1,000 | 9 Month | $0 - ∞ |
| 4.5% | Bread Savings → | $1,500 | 6 Month | $0 - ∞ |
| 4.4% | Charles Schwab → | $1,000 | 2 Year | $0 - ∞ |
| 4.4% | My eBanc → | $5,000 | 6 Month | $0 - ∞ |
| 4.35% | Synchrony Bank → | $0 | 13 Month | $0 - ∞ |
| 4.3% | Limelight Bank → | $1,000 | 6 Month | $0 - ∞ |
| 4.3% | Popular Direct → | $10,000 | 6 Month | $0 - ∞ |
| 4.3% | Live Oak Bank → | $2,500 | 12 Month | $0 - ∞ |
| 4.25% | Banesco → | $1,500 | 3 Month | $0 - ∞ |
| 4.25% | Fidelity → | $0 | 3 Month | $0 - ∞ |
| 4.25% | Marcus by Goldman Sachs → | $500 | 12 Month | $0 - ∞ |
| 4.2% | Merrick Bank → | $25,000 | 6 Month | $0 - ∞ |
What is a CD?
CD or Certificate of Deposit is a deposit account, that has a specific, fixed term and usually, a fixed interest rate higher than a savings account.
CD vs. Savings account
| CD | Savings | |
|---|---|---|
| Interest Rate | Fixed, with exceptions like variable rate CDs | Variable |
| Withdrawals | None, unless a penalty fee is paid for early withdrawal | Unlimited (restriction lifted in 2020 by the Federal Reserve to allow more than six withdrawals or transfers) |
| Minimum Balance | $500+ | Low, or no minimum balance required |