If you own a business, it’s not always easy to find a competitive rate of return, and business certificates of deposit (CD) are a great way to earn a fixed annual percentage rate (APY) on long-term funds.
On this page, we will introduce some of the best revenue streams available for your business.
What is a Business CD?
A business CD is a CD that can only be opened by a business. It’s probably easier to find a competitive rate on a personal CD than on a business CD, because some online banks that are federally insured by the Federal Deposit Insurance Corporation (FDIC) don’t offer business CDs.
Bankrate’s Top 1-Year Business CD
Note: Annual Percentage Yields (APY) shown are based on a balance of $25,000 and August 14thSome products may vary by region. Bankrate’s list includes only Federal Deposit Insurance Corporation (FDIC) banks or National Credit Union Administration (NCUA) credit unions. Relationship CDs are not considered in this list.
A closer look at the top business CDs of the year
First Internet Bank, 5.15 percent APR
overview: First Internet Bank has been around since the late ’90s and offers eight business CDs ranging from three months to five years.
Benefits: First Internet Bank’s business CD accounts offer competitive CD rates.
Points to note: For CDs with a term of two years or more, early withdrawal will incur 360 days of interest.
America First Credit Union, 5.10 percent APR
overview: You only need $500 to open a business CD, and with America First Credit Union, you’re sure to find all the business CD terms you’re looking for.
Benefits: America First Credit Union offers a full line of bump-up CDs and flexible CDs.
Points to note: Each America First Credit Union member can only have a total of $100,000 in all of the credit union’s flexible CDs.
Live Oak Bank, 4.90 percent annual interest rate
overview: Live Oak Bank offers CD terms ranging from three months to five years, and also offers a business savings account with competitive interest rates.
Benefits: Live Oak Bank offers insured cash sweeps up to $10 million in deposits in the bank.
Points to note: To open a Live Oak Bank business CD, you need at least $2,500. Also, Live Oak Bank business CDs have an early withdrawal penalty where you pay 90 days of interest on the principal you withdraw for CDs with a term between three and 18 months, and 180 days of interest on the principal you withdraw for CDs with a term of two years or more.
Suncoast Credit Union, 4.75 percent APR
overview: Suncoast Credit Union was founded as Hillsborough County Teachers Credit Union in 1934. Suncoast Credit Union is the largest credit union in the state of Florida, with over 1 million members as of early 2022.
Benefits: To open a business CD with Suncoast Credit Union, you only need $500.
Points to note: To get the most competitive yields on Suncoast Credit Union CDs, you’ll need at least $100,000.
EverBank (formerly TIAA Bank), 4.65% annual interest rate
overview: TIAA will become EverBank on August 1, 2023.
Benefits: EverBank’s business CDs are available in 10 different terms, ranging from three months to five years.
One thing to keep in mind: Bank business CDs charge an early withdrawal fee of one-quarter of the interest you would have earned on your principal balance during the CD’s term.
First Tech Federal Credit Union: 3.70% APR
overview: First Tech Federal Credit Union offers five standard business CD terms, ranging from a six-month CD to a five-year CD.
Benefits: First Tech Federal Credit Union has a 13-month Bump Up CD.
Points to note: To open a CD with this credit union, you must meet the requirements for membership in First Tech Federal Credit Union. Membership can be obtained by joining the Financial Fitness Association or the Computer History Museum. You can also become a member if you have family or household members who are members. You can also become a member if you live or work in Lane County, Oregon, or if you or a family member works in Oregon or for a company listed on the First Tech website.
What to look for in a business CD
- Fee
- You want to find a competitive rate of return on your money. If you’re a brick-and-mortar business, it’s worth checking with your local bank to see if they have a competitive rate (they may have a competitive rate through relationship rates), but online banks often have the most competitive CD rates.
- Fee
- Early termination fees are the main fee you should be aware of before opening a business CD, as they give you an idea of the worst-case scenario if you have to end the CD’s term early.
- Branch Access
- In many cases, you may not need a CD or several CDs at your local bank, but businesses that accept cash payments typically require the convenience of a brick-and-mortar bank and a checking account.
- When will you need money?
- If you’re not sure how long you need this money for, or you think you’ll need to use it right away, you may want to consider a business savings account rather than a business CD, which will allow you to avoid early withdrawal penalties.
How Bankrate Rates the Best Business CDs
Bankrate’s editorial team does not receive direct compensation from advertisers and content is fact-checked to ensure accuracy. Our editorial and research teams analyze more than 100 financial institutions, consisting of major banks and credit unions, as well as many popular online banks.
Minimum account balances, monthly service charges, and ATM fees are important factors to consider when choosing a savings account. Savings accounts with no fees and minimal balance requirements are easy to find; many online banks offer such accounts and are a good fit for many consumers.
Choosing a federally backed bank or credit union will ensure your funds are safe. Be sure to follow FDIC and NCUA restrictions and guidelines.
The following financial institutions are featured in our interest rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Bank5 Connect, Bank of America, and Bank of the West., Barclays, Basque Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Bank, Bread Financial (formerly Comenity Direct), Brio Direct, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Comerica Bank, Credit One Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Fifth Third Bank, First Citizens Bank, First Internet Bank, First Tech Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Huntington National Bank, KeyBank, Lending Club Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavings Direct, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, Quantic Bank, Randolph Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, Truist Bank, UFB Direct, US Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo, and Zions Bank.
