Important points
Long-established, large banks often offer low yields on CDs, but many banks offer select, high-profile CDs with higher interest rates.
Some major banks offer better relationship rates on CDs to customers who have a checking or savings account with that bank.
Consumers looking for higher interest rates on a broader range of terms are more likely to find rates from online-only banks and some credit unions.
Savers looking for high yields typically turn to online-only banks, which are known for offering the best interest rates on savings accounts and certificates of deposit (CDs). But those who remain loyal to their large brick-and-mortar banks may be pleased to know that these days, many banks offer CDs at competitive interest rates, if only for select periods. I don’t know.
Often referred to as “featured” or “promotional” CDs, these accounts often have short, irregular durations of 4 to 7 months. That said, if you want to secure a fixed rate of interest with a CD from a major bank, we’ve listed below options that pay a high annual percentage yield (APY).
Advantages of high-yield CDs at major banks
If you’ve had a checking or savings account with a major bank for a long time, you may prefer to stick with that institution when opening a CD. The advantages of opening a high-yield CD with a mega bank are as follows.
- Consumers with a long-standing relationship with a large, established bank may find it more convenient to open a CD there rather than taking the plunge and going to a new bank.
- Similarly, large banks may offer higher interest rates on CDs (called relationship rates) to customers who have checking or savings accounts with that bank.
- Larger banks tend to offer branches, which can make it easier to open a CD for those who prefer in-person banking.
High CD rates from large traditional banks
Various major banks currently offer one or more featured CDs with significantly higher APYs than standard CD offerings. The APY is at least twice the national average for the corresponding (or similar) period length.
bank of america
CDAPY: 4.35%
Period length: 7 months
Minimum deposit requirement: $1,000
Additional details: Bank of America offers featured CDs in five irregular periods ranging from 7 months to 37 months. Of this, the highest APY of 4.35% is offered over a 7-month period. (APY may vary by zip code.) The bank also offers standard CD terms of up to 120 months, but these yields are much lower than some featured CDs.
Read Bankrate’s review of Bank of America
tracking
CDAPY: Relationship rate 3.50%
Period length: 3 months
Minimum deposit requirement: $1,000
Additional details: Chase Bank offers higher yield CDs. If you have a Chase checking account and qualify for the relationship rate, it may be worth considering. These CDs earn higher APYs than the standard CDs offered by Chase, but you can also find higher APYs from various other banks.
Read Bankrate’s Chase review
citibank
CDAPY: 4.25%
Period length: 5 months
Minimum deposit requirement: 500 dollars
Additional details: Citibank’s featured CDs are offered in five-, six-, and seven-month terms, all of which earn significantly higher yields than the bank’s standard CDs.
Read Bankrate’s review of Citibank
pnc bank
CDAPY: 4.30%
Period length: 4 months
Minimum deposit requirement: $1,000
Additional details: PNC Bank’s 4-month and 7-month promotional rate CDs earn higher APYs than other CD offerings. One thing to note is that PNC CDs can only be opened at branches and are not available in all states.
Read Bankrate’s review of PNC
Trustee
CDAPY: 4.00%
Period length: 5 months
Minimum deposit requirement: $1,000
Additional details: Truist offers a variety of CD contract terms from as little as seven days to five years, with five-month and one-year contracts offering the highest yields. You’ll find better rates on the rest of the CD terms. Please note that you will need to go to a branch to open the CD.
Read Bankrate’s review of Truist
us bank
CDAPY: 4.00%
Period length: 5 months
Minimum deposit requirement: $1,000
Additional details: US Bank currently offers three CD special options, of which the nine-month term earns the highest APY. These additional periods are 9 months and 13 months. These CDs earn significantly higher APYs than bank standard CDs, which are well below the national average.
Read Bankrate’s review of US Bank
wells fargo
CDAPY: 4.25%
Period length: 4 months
Minimum deposit requirement: $5,000
Additional details: Wells Fargo offers three special flat rate CDs that earn significantly higher APYs than standard CD offerings. Special flat rate CDs are available for 7 months and 11 months in addition to 4 months. Customers can earn higher relationship APYs on CDs (both Special CDs and Standard CDs) by also having a qualifying Wells Fargo checking account.
Read Bankrate’s Wells Fargo review
Note: Prices are valid as of October 25, 2024. Prices and term lengths may vary by geographic location.
Best CD rates at online-only banks
Compared to large brick-and-mortar banks, online-only banks typically offer higher APYs on savings accounts. They are also more likely to offer accounts with low or no minimum deposit requirements. Below is an example of a high-yield CD from a bank that operates entirely online.
- Ally Bank: 4.40% APY on 6-month CD with no minimum deposit
- Barclays: 4.65% APY on 6-month CD with no minimum deposit
- Capital One Bank: 4.50% APY on 11-month CD with no minimum deposit
- CIBC Bank USA: 4.61% APY on 9-month CD with minimum deposit of $1,000
- Quantic Bank: 4.95% APY on 3-month CD with minimum deposit of $500
- Marcus by Goldman Sachs: 4.20% APY on 1-year CD with minimum deposit of $500
- Sobank: 4.30% APY on 6-month CD with minimum deposit of $500
Note: Prices are valid as of October 25, 2024.
Credit union high CD interest rates
For those who prefer the in-person banking experience offered by many large banks, various credit unions also operate branches, often with the added benefit of higher APYs on savings accounts.
Because credit unions are nonprofit organizations, they are often able to share profits with their members in the form of higher APYs. Examples of competitive CDs offered by credit unions include:
Note: Prices are valid as of October 25, 2024.
Note that many credit unions typically limit membership to specific criteria, such as occupation, organization, or geographic area.
In addition to looking for high yields, you should consider the following factors when purchasing CDs:
- Period length: CD terms typically range from three months to five years (some banks may offer CDs for as little as one month or five years or more). Be sure to choose a time period that aligns with your financial goals. For example, an 18-month CD might be a good choice for money you plan to use as a down payment on a home within a few years.
- Minimum deposit requirement: Look for CDs that don’t require you to deposit more than you’re comfortable with. It’s important to have some money left in a liquid savings account for emergencies.
- Federal Deposit Insurance: Even if your financial institution ceases operations, it’s important to make sure your funds are safe. CDs opened with banks covered by the Federal Deposit Insurance Corporation (FDIC) and credit unions covered by the National Credit Union Association (NCUA) are eligible for up to $250,000 in federal insurance coverage per depositor, insured financial institution, and ownership category. Insurance applies.
conclusion
Large banks may be worth considering as a source of CDs that earn competitive APYs. This is useful for existing customers of such banks who are interested in CDs, especially if more favorable relationship rates are available for customers who have checking or savings accounts with that bank. However, megabanks often only offer one or two CDs that offer high APYs, and the remaining CDs have modest yields.
If the big bank down the street doesn’t offer a high APY on the CD terms you’re interested in, consider finding an online-only bank or credit union that offers better rates on a wider range of terms.
