Best CD Rates in California, CA

You are viewing rates from banks across California

Below are the best one-year CD Rates from banks in California. One-year CDs are usually the most popular term and offer a decent yield without having to lock-up money for an extended period of time. One year CD Rates are generally comparable to or a little higher than their savings and money market counterparts.

CA - December 18, 2024

1 Year CD National Average : 0.55% ^?

Banks	APY	MIN	MILES ^?
Community Commerce Bank	4.54%	$10,000	-	Learn More
Rate History: 5.12% → 4.85% → 4.75% → 4.59% → 4.54%
samcasino \| Mar 5, 2021 The best rate on any CD or savings account is .40% Read More Reviews (2)
Beal Bank USA	4.50%	$1,000	-	Learn More
Rate History: 4.85% → 5.15% → 5.05% → 4.50%
george \| Feb 9, 2021 The wonderful assistants at Beal Bank are wonderful. Rebeca took great care of me and made sure all my concerns were addressed. Read More Reviews (3)
Beal Bank	4.50%	$1,000	-	Learn More Add Review
Rate History: 4.85% → 5.15% → 5.05% → 4.50%
Merrick Bank	4.35%	$25,000	-	Learn More
Warning: Early Withdrawal Penalty is 2% of the account balance. Rate History: 4.95% → 4.35% → 4.05% → 4.20% → 4.35%
Frank M \| Jul 3, 2023 A 2% early withdrawal fee on a 1-year CD is almost equally insane as a 270 day one. Read More Reviews (2)
Bank of Whittier, National Association	4.34%	$1,000	-	Learn More Add Review
Seattle Bank	4.30%	$1,000	-	Learn More
Early Withdrawal Penalty is 180 days interest. Rate History: 5.25% → 5.00% → 5.00% → 4.55% → 4.30%
Rob H. \| Nov 21, 2023 A real pain in the *** process to try and get approved! They were unable to match my drivers license photo with my live image after several times trying! Went to limelight bank instead and got approved in ... Read More Reviews (2)
First Foundation Bank	4.25%	$2,500	-	Learn More
Rate History: 5.40% → 5.25% → 4.85% → 4.60% → 4.25%
james \| Nov 18, 2023 bank delayed 1-2days to credit into your account, pay less interest. Read More Reviews (32)
Citizens	4.25%	$5,000	-	Learn More
Rate History: 4.50% → 4.25%
Dana E. \| Mar 20, 2016 Good solid bank. Read More Reviews (1)
Bask Bank, a division of Texas Capital Bank	4.25%	$1,000	-	Learn More Add Review
Early Withdrawal Penalty is 90 days interest. Rate History: 4.90% → 4.60% → 4.50% → 4.40% → 4.25%
smithy1968 \| Apr 20, 2024 Save your tears for another day. Very frustrating. 1-star. Read More
Banesco USA	4.20%	$1,000	-	Learn More
Early Withdrawal Penalty is 90 days interest. Rate History: 5.00% → 5.15% → 5.15% → 4.50% → 4.20%
Dkplan \| Dec 27, 2022 They gave a hard time with their cashier's check. They returned my deposited check that was emitted by them. Could you believe? Read More Reviews (8)
Bank of Hope	4.20% 0.30%	$250,000 $1,000	-	Learn More
Rate History: 4.60% → 4.70% → 4.65% → 4.50% → 4.20%
NORTY FLATZ \| Dec 3, 2019 Have done business with "Hope's" San Diego branch for a few years. Always courteous and helpful. Looking forward to doing business with them in the future. Read More Reviews (1)
HSBC Bank USA, National Association	4.00%	$1,000	-	Learn More
Rate History: 4.70% → 4.40% → 4.30% → 4.10% → 4.00%
john \| Apr 14, 2020 I call HSBC they told me they don't have 1.85 1 year CD. current CD is 0.8 / year Read More Reviews (3)
Poppy Bank	4.00%	$1,000	-	Learn More
Rate History: 5.00% → 4.00%
denied_soft_credit_pull \| Jan 10, 2024 Applied for the Joint 5.50% Hi Yield Savings special. (Note: some places reference it is guaranteed for 6 months, other parts of website only guarantee rate for 3 months). We applied and surprising denied ... Read More Reviews (1)
Capital One, National Association	4.00%	$0	-	Learn More
Rate History: 5.00% → 4.50% → 4.20% → 4.10% → 4.00%
highstream \| Jan 2, 2024 Like others, I've been with Capital One and its predecessor ING Direct since 2007. I've also been getting cheap bank rates on my savings account and didn't realize that there was something better, although... Read More Reviews (14)
Forbright Bank	4.00%	$1,000	-	Learn More
Rate History: 5.30% → 5.10% → 5.30% → 4.25% → 4.00%
lrcbob \| Jul 26, 2024 Multiple roadblocks trying to set up a savings account with Forbright and my application was ultimately declined, in spite of my multiple CDs among three banks, stock investments, eleven credit cards, and ... Read More Reviews (2)
EverTrust Bank	3.80%	$20,000	-	Learn More
Rate History: 3.05% → 3.30% → 3.80%
Tina \| Aug 16, 2022 good customer service and always give me new information about CD rates. They have 2.3% now. Read More Reviews (3)
TD Bank, National Association	3.75% 0.05%	$10,000 $10,001	-	Learn More
Rate History: 5.00% → 4.00% → 4.50% → 4.00% → 3.75%
Turonemckinney17@gmail.com \| May 19, 2018 Experience Read More Reviews (1)
FirstBank	3.75%	$10,000	-	Learn More
Rate History: 4.86% → 4.00% → 3.75% → 3.40% → 3.75%
Carrandrewb \| Aug 5, 2022 The worst customer service during covid. I lost my wallet they were nit understanding when things were shutting down. I knew covid was going to be bad and did not want to be around people. They did nit eve... Read More Reviews (1)
Blue Foundry Bank	3.75%	$1,000	-	Learn More Add Review
Rate History: 4.00% → 4.50% → 4.00% → 3.75%
Amalgamated Bank	3.70%	$500	-	Learn More Add Review
Rate History: 4.25% → 3.82% → 4.25% → 1.46% → 3.70%
Hingham Institution for Savings	3.54%	$1,000	-	Learn More Add Review
Rate History: 3.85% → 3.64% → 3.54%
Bank of America, National Association	3.51%	$100,000	-	Learn More
Rate History: 0.03% → 3.75% → 4.25% → 3.75% → 3.51%
Treasure \| Jul 24, 2023 BOFA is a den of people thieves camouflaged as bank operatives. There’s a soon to be uncovered carrel of money laundry there. They took all my money and don’t want to release it to me for no particular... Read More Reviews (7)
C3bank, National Association	3.50%	$25,000	-	Learn More Add Review
Rate History: 4.25% → 4.75% → 4.00% → 3.50%
CTBC Bank Corp. (USA)	3.50% 0.40%	$5,000 $4,999	-	Learn More Add Review
State Bank of India (California)	3.29%	$1,000	-	Learn More Add Review
Rate History: 3.44% → 3.29% → 4.00% → 3.29%
JPMorgan Chase Bank, National Association	3.25% 3.00%	$100,000 $10,000	-	Learn More
Rate History: 3.00% → 2.00% → 3.50% → 3.25%
Hayley7788d@outlook.com \| Jan 2, 2023 Terrible customer service by investment side. Fees too high , too full of themselves Read More Reviews (18)
Wells Fargo Bank, National Association	3.25% 2.75%	$100,000 $25,000	-	Learn More
Rate History: 2.00% → 1.50% → 3.25%
Thy King \| Feb 6, 2023 after over 100k in transactions through this bank in the course of a year not only did i suffer from fraud but this bank closed my accounts and i have been lliable for all the losses and to top it off with... Read More Reviews (7)
Zions Bank	3.05%	$1,000	-	Learn More Add Review
Rate History: 4.76% → 3.05%
Habib American Bank	3.00%	$1,500	-	Learn More
Rate History: 1.20% → 3.00%
Ryan \| Feb 13, 2018 Is it legal to bring someone into the branch and shake them down and threaten them when they want to redeem their CD upon maturity (as opposed to allowing it to automatically renew)? If not, these guys an... Read More Reviews (2)
Comerica Bank	3.00% 0.10%	$2,500 $1	-	Learn More
Rate History: 4.25% → 3.00%
Cory,Baldwin \| Oct 18, 2016 IF the Cd's our that high then way i'm i the last to find out what The apys are. Read More Reviews (1)
Citibank, National Association	2.50%	$0	-	Learn More
Rate History: 4.00% → 2.75% → 2.00% → 4.00% → 2.50%
Azoic \| Feb 25, 2022 I joined Citi with a Costco-VISA card. An Accelerate followed, and then a checking account. Costco-VISA is necessary for using a credit card at Costco, otherwise cash is necessary. Accelerate Savings w... Read More Reviews (11)
City National Bank	2.48%	$10,000	-	Learn More Add Review
Rate History: 3.04% → 2.48%
USAA Federal Savings Bank	2.05%	$1,000	-	Learn More
Rate History: 4.85% → 4.40% → 4.25% → 3.00% → 2.05%
RYAN S \| Nov 28, 2022 While USAA was at one point a great option for all your banking needs, the service has deteriorated so much that I'm currently in the process of changing banks after more than 2 decades. The final straw w... Read More Reviews (2)
Fremont Bank	2.00%	$2,500	-	Learn More Add Review
Rate History: 4.00% → 3.00% → 2.00%
Sterling Bank and Trust, FSB	1.90%	$500	-	Learn More
samcasino \| Jan 30, 2021 Sterling hasn't offered a 1% rate for over a year. Best one can do now is .20%. The rates shown on this site are grossly outdated. Read More Reviews (1)
American Plus Bank, N.A.	1.85%	$1,000	-	Learn More Add Review
PCB Bank	1.26%	$1,000	-	Learn More Add Review
First Bank	1.00%	$1,000	-	Learn More Add Review
Rate History: 3.50% → 1.00%
California International Bank, N.A.	0.97%	$10,000	-	Learn More Add Review
Summit State Bank	0.90%	$10,000	-	Learn More Add Review
Nano Banc	0.80%	$100,000	-	Learn More Add Review
Balboa Thrift and Loan Association	0.80%	$10,000	-	Learn More Add Review
Golden Valley Bank	0.75%	$100,000	-	Learn More Add Review
United Pacific Bank	0.75%	$100,000	-	Learn More Add Review
Community Bank of Santa Maria	0.75%	$100,000	-	Learn More Add Review
First Credit Bank	0.75%	$100,000	-	Learn More
maris \| Mar 2, 2019 does require us citizenship? Read More Reviews (1)
Shinhan Bank America	0.70%	$10,000	-	Learn More
Lori Kroko \| Mar 10, 2021 I think that it is absolutely despicable that I have been a customer of the Bank for more than 8 years and I bring in rolled coins with my account number on each wrapper and I am charged 5% fee. Cost me $3... Read More Reviews (1)
American First National Bank	0.65%	$100,000	-	Learn More Add Review
Community Bank of the Bay	0.65%	$100,000	-	Learn More Add Review
US Metro Bank	0.65%	$100,000	-	Learn More Add Review
Partners Bank of California	0.65%	$100,000	-	Learn More Add Review
United Pacific Bank	0.65%	$10,000	-	Learn More Add Review
Wallis Bank	0.65%	$100,000	-	Learn More Add Review
Hanmi Bank	0.65%	$100,000	-	Learn More Add Review
First General Bank	0.65%	$100,000	-	Learn More Add Review
First Western Trust Bank	0.61%	$10,000	-	Learn More Add Review
Mega Bank	0.60%	$100,000	-	Learn More Add Review
Murphy Bank	0.60%	$10,000	-	Learn More
Kewl2 \| Aug 22, 2020 Good for mobile home loans in parks, Read More Reviews (3)
First Federal Savings and Loan Association of San Rafael	0.60%	$10,000	-	Learn More Add Review
BEACON BUSINESS BANK, NATIONAL ASSOCIATION	0.60%	$100,000	-	Learn More Add Review
American First National Bank	0.60%	$10,000	-	Learn More Add Review
Mission National Bank	0.60%	$100,000	-	Learn More Add Review
Manufacturers Bank	0.55%	$10,000	-	Learn More Add Review
Nano Banc	0.55%	$10,000	-	Learn More Add Review
Community Valley Bank	0.55%	$100,000	-	Learn More
laberta ewing \| Mar 17, 2015 I called this bank to start a CD and was told needed $250,000 to get the offered rate??? The page shows $10,000 as a minimum amount. Very False advertising and a waste of time for many. Read More Reviews (1)
COMMONWEALTH BUSINESS BANK	0.55%	$10,000	-	Learn More
RHG \| Jan 29, 2019 The Bank does not have this product. Read More Reviews (1)
Community Bank of the Bay	0.55%	$10,000	-	Learn More Add Review
Wallis Bank	0.55%	$10,000	-	Learn More Add Review
Gateway Bank, F.S.B.	0.50%	$1,000	-	Learn More Add Review
Home Bank of California	0.50%	$10,000	-	Learn More Add Review
First Credit Bank	0.50%	$10,000	-	Learn More
maris \| Mar 2, 2019 does require us citizenship? Read More Reviews (1)
Partners Bank of California	0.50%	$10,000	-	Learn More Add Review
Industrial and Commercial Bank of China USA, National Association	0.50%	$100,000	-	Learn More Add Review
Fresno First Bank	0.50%	$100,000	-	Learn More Add Review
Golden Bank, National Association	0.50%	$100,000	-	Learn More Add Review
US Metro Bank	0.50%	$10,000	-	Learn More Add Review
Golden State Bank	0.50%	$100,000	-	Learn More Add Review
Hanmi Bank	0.50%	$10,000	-	Learn More Add Review
Pacific Premier Bank	0.50%	$10,000	-	Learn More
Harry Reese \| Jul 22, 2015 Fix your automated system so I can find information after you close Read More Reviews (1)
Community Bank of Santa Maria	0.45%	$10,000	-	Learn More Add Review
Golden Bank, National Association	0.45%	$10,000	-	Learn More Add Review
Industrial and Commercial Bank of China USA, National Association	0.45%	$100,000	-	Learn More Add Review
Universal Bank	0.45%	$100,000	-	Learn More Add Review
Fresno First Bank	0.45%	$10,000	-	Learn More Add Review
Western Alliance Bank	0.45%	$100,000	-	Learn More Add Review
Mission Bank	0.42%	$100,000	-	Learn More Add Review
California Business Bank	0.40%	$10,000	-	Learn More Add Review
Mission National Bank	0.40%	$10,000	-	Learn More Add Review
Industrial and Commercial Bank of China USA, National Association	0.40%	$2,500	-	Learn More Add Review
Open Bank	0.40%	$10,000	-	Learn More Add Review
Citizens Business Bank	0.40%	$100,000	-	Learn More Add Review
Monterey County Bank	0.40%	$10,000	-	Learn More Add Review
Tustin Community Bank	0.40%	$10,000	-	Learn More Add Review
Malaga Bank F.S.B.	0.40%	$100,000	-	Learn More Add Review
Avidbank	0.40%	$100,000	-	Learn More Add Review
Golden State Bank	0.40%	$10,000	-	Learn More Add Review
Bank of Stockton	0.40%	$10,000	-	Learn More Add Review
EH National Bank	0.35%	$100,000	-	Learn More Add Review
Neighborhood National Bank	0.35%	$10,000	-	Learn More Add Review
Metropolitan Bank	0.35%	$100,000	-	Learn More Add Review
CalPrivate Bank	0.35%	$100,000	-	Learn More Add Review
Western Alliance Bank	0.35%	$10,000	-	Learn More Add Review
United Business Bank	0.35%	$100,000	-	Learn More
Small Company \| Apr 9, 2020 I would stay away from this bank. It was much better run when it was Valley Community Bank, but went into the toilet when it was bought by Bay Commercial Bank. Their online banking terms and conditions cha... Read More Reviews (1)
United Security Bank	0.35%	$100,000	-	Learn More Add Review
Citizens Business Bank	0.35%	$10,000	-	Learn More Add Review
EH National Bank	0.30%	$10,000	-	Learn More Add Review
Bank of Southern California, N.A.	0.30%	$100,000	-	Learn More Add Review
Universal Bank	0.30%	$10,000	-	Learn More Add Review
Farmers and Merchants Bank of Long Beach	0.30%	$10,000	-	Learn More Add Review
Metropolitan Bank	0.30%	$10,000	-	Learn More Add Review
CalPrivate Bank	0.30%	$10,000	-	Learn More Add Review
Malaga Bank F.S.B.	0.30%	$10,000	-	Learn More Add Review
Beneficial State Bank	0.30%	$10,000	-	Learn More
Michael strubert \| Jun 8, 2021 Someone from Beneficial State Bank tried to cash a fraudulent check on my EECU account for $469.99. On 6/1/21. Read More Reviews (1)
Bank of the Orient	0.30%	$100,000	-	Learn More Add Review
Armed Forces Bank, National Association	0.30%	$10,000	-	Learn More
BENNIE BROOKS \| Mar 25, 2015 OLIVER NORTH AIR LINES GOVERNOR BLANCO Read More Reviews (2)
Endeavor Bank	0.30%	$100,000	-	Learn More Add Review
Commercial Bank of California	0.30%	$100,000	-	Learn More Add Review
BEACON BUSINESS BANK, NATIONAL ASSOCIATION	0.30%	$10,000	-	Learn More Add Review
First General Bank	0.30%	$10,000	-	Learn More Add Review
Cathay Bank	0.30%	$50,000	-	Learn More Add Review
Avidbank	0.27%	$10,000	-	Learn More Add Review
Mission Bank	0.27%	$10,000	-	Learn More Add Review
Asian Pacific National Bank	0.25%	$10,000	-	Learn More Add Review
Bank of Southern California, N.A.	0.25%	$10,000	-	Learn More Add Review
Pinnacle Bank	0.25%	$10,000	-	Learn More Add Review
Santa Cruz County Bank	0.25%	$10,000	-	Learn More Add Review
Bank of San Francisco	0.25%	$100,000	-	Learn More Add Review
El Dorado Savings Bank, F.S.B.	0.25%	$100,000	-	Learn More Add Review
GBC International Bank	0.25%	$10,000	-	Learn More
tomlynn \| Apr 15, 2019 Very friendly and helpful here. We had closed an account last year, and were not asked what we planned to do with the money or if we found a better rate elsewhere. Just thanks for banking with us...so we ... Read More Reviews (1)
Eastern International Bank	0.25%	$10,000	-	Learn More Add Review
Commercial Bank of California	0.25%	$10,000	-	Learn More Add Review
United Security Bank	0.25%	$10,000	-	Learn More Add Review
United Business Bank	0.25%	$10,000	-	Learn More
Small Company \| Apr 9, 2020 I would stay away from this bank. It was much better run when it was Valley Community Bank, but went into the toilet when it was bought by Bay Commercial Bank. Their online banking terms and conditions cha... Read More Reviews (1)
Plumas Bank	0.25%	$100,000	-	Learn More Add Review
Bank of the Sierra	0.22%	$100,000	-	Learn More Add Review
Exchange Bank	0.22%	$100,000	-	Learn More Add Review
El Dorado Savings Bank, F.S.B.	0.20%	$10,000	-	Learn More Add Review
Five Star Bank	0.20%	$10,000	-	Learn More Add Review
The Bank of Hemet	0.20%	$10,000	-	Learn More Add Review
Infinity Bank	0.20%	$10,000	-	Learn More Add Review
Pacific Valley Bank	0.20%	$10,000	-	Learn More Add Review
Heritage Bank of Commerce	0.20%	$100,000	-	Learn More Add Review
Oak Valley Community Bank	0.20%	$10,000	-	Learn More Add Review
Bank of San Francisco	0.20%	$10,000	-	Learn More Add Review
Bank of the Orient	0.20%	$10,000	-	Learn More Add Review
Provident Savings Bank, F.S.B.	0.20%	$100,000	-	Learn More Add Review
Plumas Bank	0.20%	$10,000	-	Learn More Add Review
American Riviera Bank	0.20%	$10,000	-	Learn More Add Review
Exchange Bank	0.20%	$10,000	-	Learn More Add Review
Westamerica Bank	0.19%	$100,000	-	Learn More
scott \| Mar 9, 2021 the worst bank I've ever dealt with in my 72 years Read More Reviews (2)
Bank of the Sierra	0.19%	$10,000	-	Learn More Add Review
Golden Valley Bank	0.18%	$10,000	-	Learn More Add Review
Friendly Hills Bank	0.15%	$10,000	-	Learn More Add Review
Community Valley Bank	0.15%	$10,000	-	Learn More
laberta ewing \| Mar 17, 2015 I called this bank to start a CD and was told needed $250,000 to get the offered rate??? The page shows $10,000 as a minimum amount. Very False advertising and a waste of time for many. Read More Reviews (1)
Northern California National Bank	0.15%	$100,000	-	Learn More Add Review
Montecito Bank & Trust	0.15%	$10,000	-	Learn More Add Review
Provident Savings Bank, F.S.B.	0.15%	$10,000	-	Learn More Add Review
Bank of Marin	0.15%	$100	-	Learn More Add Review
Mechanics Bank	0.15%	$10,000	-	Learn More
kristinalouise \| Dec 6, 2018 I have to say, as a local business owner, I purposefully chose to work with a 'local business bank'. I moved my checking over when I incorporated and assumed that I would go to them when my needs increased... Read More Reviews (1)
Umpqua Bank	0.15% 0.01%	$1 $0	-	Learn More
Austin \| Aug 25, 2021 I have banked with Umpqua in Gig Harbor since 2013 and although there money market rates are not good didn’t have much problem until I moved to Spokane and started using this branch on south hill. They ... Read More Reviews (2)
MidFirst Bank	0.15%	$1,000	-	Learn More
sharzns \| Jun 17, 2022 Midfirst doesn't seem to encourage any accounts other than checking. I have two. I've tried opening others, but they talk me out of it every single time. Read More Reviews (3)
Westamerica Bank	0.15%	$10,000	-	Learn More
scott \| Mar 9, 2021 the worst bank I've ever dealt with in my 72 years Read More Reviews (2)
Heritage Bank of Commerce	0.10%	$10,000	-	Learn More Add Review
Community Valley Bank	0.10%	$10,000	-	Learn More
laberta ewing \| Mar 17, 2015 I called this bank to start a CD and was told needed $250,000 to get the offered rate??? The page shows $10,000 as a minimum amount. Very False advertising and a waste of time for many. Read More Reviews (1)
Sunwest Bank	0.10%	$100	-	Learn More
william \| Apr 10, 2022 these are the absolute worst rates in history--a 5 year old could see that--either wake up or close your doors to legitimate customers! Read More Reviews (1)
Bank of Guam	0.10%	$10,000	-	Learn More Add Review
Northern California National Bank	0.10%	$10,000	-	Learn More Add Review
Mega Bank	0.10%	$10,000	-	Learn More Add Review
East West Bank	0.10%	$10,000	-	Learn More
Bauhinia C \| Mar 15, 2023 Oh Natty natty natty, haha the fact you need to take out (probably a second) loan for $160,000 on a $625,000 sends up all kinds of red flags. The bank was right to run away from YOU dear hahaha. Read More Reviews (2)
1st Capital Bank	0.10%	$100,000	-	Learn More Add Review
1st Capital Bank	0.05%	$10,000	-	Learn More Add Review
California Pacific Bank	0.05%	$10,000	-	Learn More Add Review
KeyBank National Association	0.05%	$2,500	-	Learn More
Seeko \| Mar 28, 2023 On line banking gives a confirmation number when paying bills. But it doesn’t confirm that the bill will be paid only that they have the information. Ridiculous. Read More Reviews (2)
American Business Bank	0.05%	$10,000	-	Learn More Add Review
U.S. Bank National Association	0.05%	$500	-	Learn More
Ugg \| Jun 12, 2023 US Bank reported me to dult Protective Services because my husband is 85 and I am63. He got sick and went into a nursing hime for 3 months. My husband always handled the financial affairs. I had to take ov... Read More Reviews (2)
PNC Bank, National Association	0.03%	$25,000	-	Learn More
GAM \| May 18, 2019 Had checking and savings for years when living in Philly. Went into PNC 2.35 APY high yield savings. They have thus far maintained rate. Easy web site and great customer phone service. Still maintain check... Read More Reviews (1)
First-Citizens Bank & Trust Company	0.01%	$500	-	Learn More
MrBond \| Feb 25, 2023 I have been working for this company more than 5 years. I would not recommend any investment with First Citizens Bank. They are the worst performer on the market based on the customer and employee reviews... Read More Reviews (3)

All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

See rates for Online Banks →

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PRODUCT INFORMATION

Certificates of Deposit - Branch Banks 2024

A certificate of deposit (CD) is a savings product offered by a bank in which a depositor (someone who has money to put into the bank) agrees to commit a certain amount of money for a set period of time, in return for a fixed rate of interest. While it is possible to withdraw the money earlier (breaking the CD) doing so comes with high interest penalties and is generally not advised.

CD Terms

The time period in which money is held in a certificate of deposit is called the term. Terms can run for any period of time but in general, banks use the following terms: 3 months, 6 months, 12 months, 18 months, 24 months, 36 months, 48 months, and 60 months. Terms can either be described in months or years. The term that is right for each individual depends on their goals, the rate they which to earn, and their future plans for the money. In general, if rates are going up, savers should avoid putting the money into a long-term CD. If rates are going down, then the opposite is true, and savers should try and lock into a good rate for an extended period of time. In stable rate environments, CDs that are over 12 months in length can enable depositors to pick up a slight premium over savings accounts.

CD Risk

Almost all banks provide CDs to their consumers and they have been a mainstay of savers and retirement accounts for years. If FDIC insured, the CD represents a safe place to put money that will generate a predictable return.

Inflation is the main risk of a CD. Inflation can often run higher than the inflation adjusted return on a CD, thus eroding the value of the money stored in the CD over time. This is especially true for longer-term CDs opened in low interest rate environments.

How Interest is Paid

The method of distributing the interest earned on a CD varies by bank. Some banks pay interest monthly, other semi-annually, and others at the maturity of the CD. One advantage of a branch-based bank is that a depositor can walk into the bank and receive their interest that day in the form of a check. Online banks tend to use electronic funds transfer or check via mail.

Interest Rate

Since the financial crisis in 2008, CDs have become less popular because the yields they offer have dropped precipitously, making it difficult for retirees and savers to generate sufficient income. But investors looking for a place to stash some cash might still find CDs an attractive place for some of their savings. Online banks generally offer better rates on six month CDs but the accounts must be opened online. View online bank rates.

When interest rates are falling, it is often preferable to lock in high rates for an extended period of time with a longer-term CD. When interest rates are rising, depositors should avoid committing their money for long periods of time. To see interest rate trends, visit the BestCashCow rate analysis page.

ADVANTAGES AND DISADVANTAGES

The advantages of a Certificate of Deposit from a branch bank are:

Funds deposited in FDIC banks and within insurance limits are protected by the full faith and credit of the United States government.
CDs provide a predictable, set rate of return.
Depositors can walk into a local branch and open the CD and fund it that day. Question and inquiries can also be handles in-person.

The disadvantages of branch-based CDs are:

The deposited money is committed for a certain period of time and can only be withdrawn with substantial penalties.
One year CDs from branch banks often pay less interest than from online banks. Please see those rates here.

All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, please visit the FDIC website.

To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.

SAVINGS & CD CALCULATOR

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CD Resources

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65 Questions to Ask before Choosing a CD

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The Insider's Guide
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PRODUCT INFORMATION

Certificates of Deposit - Branch Banks 2024

CD Terms

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Interest Rate

ADVANTAGES AND DISADVANTAGES

The advantages of a Certificate of Deposit from a branch bank are:

The disadvantages of branch-based CDs are:

SAVINGS & CD CALCULATOR

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CD Products by City in California

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