Certificates of deposit (CDs) are a useful way to earn interest on a lump sum of cash and boost your bank account. As long as you don’t withdraw the money from the CD before a set amount of time, you’ll earn a predetermined amount of interest on your cash (more than you would with a traditional savings account).
To make the most of today’s higher APYs while ensuring you can still maintain cash flow, you might consider CD laddering. Using this financial strategy, you’ll invest money in a variety of CDs that mature at staggered times. That way, you’ll generate interest on savings without tying up all your money indefinitely.
Whether you’re on the lookout for your first CD or you’re hoping to take advantage of today’s excellent interest rates through CD laddering, keep reading. We cover 16 of the best high-yield CDs for you to consider.
Note that all of the APYs listed in this article came directly from each bank’s website and are accurate as of May 23, 2023. All of the CDs give you a chance to lock in a rate around 5%.
CIBC Bank USA 12-month CD: 5.27% APY
CIBC USA is the U.S.-based subsidiary of the Canadian Imperial Bank of Commerce. Its CDs all have a $1,000 minimum deposit, and certain CDs have different interest rates depending on the amount of money you invest.
Fortunately, the 12-month CDs have the highest APY (5.27%) that applies equally to accounts with more and less than $25,000. The same is true of CIBC USA’s 9-month CD, which has a 5.11% APY. However, the 18-month CDs offer 5.02% APY for accounts with at least $25,000 or 4.97% APY for accounts with less than $25,000.
Limelight Bank 12-month CD: 5.25% APY
Limelight’s CDs require a $1,000 minimum deposit. It has just four CD term options (6 months, 12 months, 18 months, and 36 months), which are far fewer options offered by most other banks and fintech services on our list.
First Internet Bank 12-month CD: 5.22% APY
First Internet Bank’s CD terms start at 3 months and range up to 60 months. Currently, all of its CDs — except for the 3-month CD, which earns up to 3.04% APY — have an APY of 4.49% or higher.
The bank’s 12-month CD has the best APY at 5.22%. A minimum opening deposit of $1,000 is required. Note that, unlike most banks on our list, First Internet Bank doesn’t send out annual or monthly statements for its CDs. The burden is on you to check in on your CD and its interest earnings.
Bread Financial 1-year CD: 5.20% APY
Bread Financial is a fintech company that offers 1-, 2-and 3-year CDs. The company’s best APY (5.20%) comes with its 1-year CD.
Renewing your CD at maturity may up your APY to 5.25%. While the account has no monthly maintenance fee, a minimum deposit of $1,500 is required.
Alliant Credit Union: Up to 5.15% APY
Alliant’s 18-month certificates can have an APY of up to 5.15%. Its 12-month certificates are nearly as good at 5.00% (or 5.05% if you’re able to deposit $75,000 or more). If you want a shorter-term investment, a 6-month CD from Alliant can earn 4.75% APY.
Quontic Bank 1-year CD: 5.15% APY
Quontic Bank has two short-term CDs: A 6-month CD with a 3.75% APY and a 1-year CD with a 5.15% APY.
Its longer-term CDs include 2-, 3-, and 5-year CDs with APYs ranging from 4.30% to 4.40%.
BMO Alto Online 12-month CD: 5.10% APY
BMO offers six different CD terms that range from 6 to 60 months, but its best APY comes with its 12-month CD. BMO doesn’t have a minimum opening deposit amount or required minimum balance.
Marcus by Goldman Sachs 10-month CD: 5.05% APY
With this special promotional CD from Marcus by Goldman Sachs, you can earn up to 5.05% APY (for CDs opened before September 15, 2023).
In order to earn the high APY, you have to make a minimum deposit of $500 and cannot make any withdrawals on the principal amount during the CD’s term.
Vio Bank 6-month CD: 5.05% APY
Vio Bank’s CD terms start at 6 months and range up to 120 months (10 years, the longest term length on our list). The 6-month CD has the best available APY at 5.05%.
The bank’s minimum opening deposit requirement is just $500, half the minimum of most other CD options listed here.
Bethpage Federal Credit Union 12-month CD: 5.00% APY
Bethpage Federal Credit Union is based in New York but is open to anyone in the country, no matter where they live.
Its lowest listed rate is 2.25% APY (for a 3-month CD term) while its highest listed rate is up to 5.00% APY (for a 12-month CD term). Bethpage’s minimum deposit is just $50.
CIT Bank 6-month CD: Up to 5.00% APY
Of all its available CDs, which have terms of up to 5 years, CIT Bank’s short-term CDs generate the best interest.
Its 6-month CD has an APY of up to 5.00% while its 18- and 13-month CDs have an APY of 4.60% to 4.65%. All of CIT Bank CDs, including the 6-month CD, require $1,000 minimum opening deposits.
Ally Bank 18-month CD: 5.00% APY
Ally Bank’s CD terms range from 3 months to 5 years with interest rates starting at 2.50%. As of May 23, 2023, the 18-month CD has the highest APY at 4.80%.
Ally doesn’t charge a monthly maintenance fee, has no minimum deposit requirement, and currently offers a 0.05% reward for customers who choose to renew an Ally CD.
Synchrony Bank 6-month CD: Up to 5.00% APY
Synchrony Bank’s CDs range from 6 to 24 months. Rates for Synchrony’s 6-month CD can be as high as 5.00%, and the bank doesn’t have a required minimum deposit.
The online bank’s 24-month Bump-Up CD currently has a lower APY of 3.70%, but users can request an interest-rate increase once during the CD’s term if the bank’s CD APY increases.
Barclays Online Bank 12-month CD: 4.80% APY
Barclays has six CD term length options, starting at 6 months and ending at 60 months. Its best APY is 4.80% for its 12-month certificate of deposit.
The bank doesn’t have a minimum balance or opening deposit requirement, though you must fund the CD account within 14 days of opening it.
However, as long as you have enough money to generate $0.01 in interest, you can continue to maintain the account.
Discover Bank 12-month CD: 4.75% APY
Most big banks have CDs with very poor terms, but thanks to its 12-month CDs with up to 4.75% APY, Discover Bank is the main exception. However, you should note that its $2,500 opening deposit is $1,000 higher than most minimum deposits required by banks on our list.
Northern Bank Direct 17-month CD: 3.75% APY
Northern Bank Direct is an online-only bank affiliated with Massachusetts-based Northern Bank. It offers 11 different CD terms, starting at 6 months and maxing out at 60 months.
Its 17-month CD has the best APY at 3.75%. The minimum opening balance for Northern Bank Direct’s CDs is $500.
CDs are one crucial aspect of your broader investment strategy that can give you fairly consistent access to liquid capital while growing your money faster than keeping the cash in most savings accounts.
Whether you’re planning for retirement or simply hoping to save some cash for a major expense while earning the maximum amount of interest, one of the CDs on this list could help you meet your savings goals this year and build wealth for your future.
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