Certificates of Deposit, or CDs, are a great way to save money at a high interest rate for a specific period of time. One way to utilize CDs is to create a CD ladder, in which you stagger the CD maturity date to give you access to your funds at different intervals. This allows you to gain higher returns on your money and still maintain access to your funds.
Why You Should Open your Next CD at an Online Bank
Almost all banks offer Certificates of Deposit. But not all banks are created equal. Many local brick and mortar banks don’t have the highest interest rates for CDs. This is often because their overhead is higher. They usually offer lower interest rates for savings accounts and Certificates of Deposit.
It’s usually best to open an online high interest savings account where you can stash your cash to earn a better return on your money than you could at your local bank. Check out this list of online bank accounts below. We will keep this list up to date with the current rates and links to reviews of some of the best high yield savings accounts in the nation. The banks that offer the highest interest rates on savings accounts generally offer the highest interest rates on CDs.
Find the Best CD Rates Online
How to use this table: Use this interactive table to find the best CD Interest Rates. Simply enter the appropriate length of the CD you are looking to open, whether you want to search local or national banks, and click Search. You will then have a list of great online and brick and mortar banks to choose from. They are all covered by the FDIC and have no fees unless noted. Many banks have a minimum opening balance requirement for Certificates of Deposit. That information will be listed as well.
Other Banks that Offer Excellent CD Rates
All of these banks offer online savings accounts and Certificates of Deposit for easy access to your money wherever you are. They are all covered by the FDIC and have no fees or minimum balances unless noted. The following products represent both savings accounts and money market accounts, as noted.
CIT Bank. CIT Bank offers best in class interest rates, with a bonus rate for balances over $25,000. In addition to high interest rates, CIT Bank offers a cariety of accounts, including traditional savings accounts, children’s savings accounts, checking, CDs, and more. For more information, visit: www.bankoncit.com or check out our CIT Bank Review.
BBVA Compass Online Savings Account. The account combines one of the highest online savings account interest rates with a great online checking account. BBVA Compass online savings accounts feature Free Online Banking, Mobile Banking, and Bill Pay. Their network of ATMs includes all BBVA ATMs as well as the Allpoint® ATM network, which features over 38,000 free ATMs. The minimum to open an account is only $25. You can learn more at the BBVA Compass website.
EverBank. $5,000 initial-deposit requirement. Everbank always keeps their interest rates in the top 5% of all banks in the US. No-fees for online or mobile banking. Also available: CD’s high interest checking, Money market account, more. For more information visit: www.everbank.com.
FNBO Direct. FNBO Offers free online savings, checking, and CDs. Rated the top online bank in 2008 by Kiplinger’s and has a 4 out of 5 star rating from Bankrate’s Safe and Sound Ratings. FNBO consistently rates among the highest banks in user satisfaction and for highest interest rates for savings accounts and certificates of deposit. For more information, read our FNBO Direct review.
Discover Bank. Discover Bank offers excellent interest rates and a user-friendly interface. The Discover Bank Online Savings Account has no minimum opening deposit requirement, plus no minimum balance. Also available: money market accounts, certificates of deposit (CD) and an IRA CD. For more information, visit our Discover Bank review.
Capital One 360. Formerly known as ING Direct, Capital One 360 features many user-friendly benefits. You can open an online savings account, CDs, a high interest checking account, and the ability to link your account to ShareBuilder, an online brokerage. Users can also create up to 30 sub-accounts, making it easy to create savings goals. Capital One 360 is also known for offering sign up bonuses for new customers. For more information, visit our Capital One 360 Review.
Ally Bank. Ally Bank offers savings accounts, free checking accounts, and CDs, including a no penalty CD. Ally Bank also offers the ability to create sub-accounts for targeted savings, making it easy for you to manage and achieve your savings goals. For more information, see our Ally Bank Review.
American Express National Bank. The American Express Personal Savings Account from American Express National Bank currently offers high interest rates on savings accounts and Certificates of Deposit. For more information, visit our American Express Personal Savings Account Review.
HSBC Advance. Known as the “international bank,” HSBC Advance has over 10,000 branches located worldwide, including an extensive ATM network both here in the States and overseas. There are over 450 brick and mortar branches and 350,000 ATM machines in the US. Over 10,000 branches worldwide. This is a great option for world travelers due to its convenience and low minimum opening balance ($1). For more information, view our HSBC Advance Savings Account Review.
SmartyPig. SmartyPig is a high interest savings account that offers account holders the opportunity to select savings goals and redeem their savings for the cash in their account, or exchange it for discounted gift cards, some with savings up to 14% off face value. It is easy to set up an account with SmartyPig, but the highest interest rates are reserved for balances less than $50,000. If your balance exceeds this limit, the entire account earns a lower interest rate, making this account only good for balances less than $50,000. FDIC insured. No minimum balance, no fees. For more information, please see our Smarty Pig review.
Sallie Mae. Sallie Mae is well known for their student loans and other loan options, but they also run a top notch savings account, with very competitive interest rates and a few bonus features not found elsewhere. One of the more attractive features which sets Sallie Mae apart from the pack is their bonus for Upromise accounts. The consumer banking section is a new addition to the Sallie Mae lineup, but they bring a long history of financial management and are FDIC insured. No minimum balance, no fees, and a 10% annual match on Upromise® earnings make Sallie Mae a winner. For more information, visit our Sallie Mae Review.
Zion’s Bank. Zion’s Bank is a full banking suite with online savings, checking and money market accounts, business savings and checking accounts, credit cards loans and mortgages, and more. You can view our Zions Bank Savings Account Review for more detailed information about Zion’s Bank and their products.
See our top rated online savings accounts for more reviews and ratings.
Choosing a Bank is More than Just High CD Rates
If your only plan is to use your bank to park some cash in a certificate of deposit, then chasing interest rates may be your only consideration. But most bank customers use their bank for more than just one service. We recommend reviewing the bank for other features as well, especially if you plan on using the bank for multiple accounts or services. Here are some helpful tips:
- FDIC Insurance. You should always bank with an institution that is FDIC insured, or NCUA insured if using a credit union.
- Don’t overlook credit unions. Many credit unions offer excellent services, including high interest rates on savings and CDs, low fees, and other great benefits.
- Look for sign up bonuses. Some banks offer a sign up bonus worth several hundred dollars for a new account. This is often worth taking advantage of, even if the interest rate is slightly lower than you can find elsewhere. You can count the bonus as implied interest, often making the effective rate much higher than you can find at your current bank.
- Is this a full service bank, or savings only?. Some online banks that offer high interest rates only offer savings accounts and Certificates of Deposit. This is fine if you only want to park some cash. But some people also want a checking account. Check out this list of free online checking accounts for some great options – most of these accounts are also paired with high interest savings accounts, making those options a great choice for many customers. One of the best current offers is the Chase Bank bonus offer worth several hundred dollars.
- Does the bank offer business accounts? This only applies if you need to open a business banking account, but it is worth noting. I’m a small business owner and I like to look for efficiencies in my money management. So knowing the options is helpful.