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15 Best CD Rates in August

Take advantage of these CD rates as interest rates keep rising.

Advertiser Disclosure: Most products in our articles are from partners who may provide us with compensation. However, opinions expressed here are author's alone, not those of any bank, credit card issuer, airline or hotel chain.

Certificates of deposit (CDs) are a unique banking product. In exchange for locking up your money for a set period, you can also lock in a relatively risk-free interest rate on your deposit. 

CDs can have maturities ranging from as little as 30 days to as much as 10 years, though most banks and credit unions typically offer between one and five years, which means they’re generally best if you have money you don’t need for the life of the account. While you may be tempted to open a CD account with the bank or credit union that you already bank with, you may end up getting a subpar rate in return.

Instead, consider shopping around and reviewing multiple CD rate offers to find the best deal for you. Here are some of the best CD rates currently available.

Best CD Rates

Bread Savings
1-Year APY: 3.00%
3-Year APY:3.55%
5-Year APY: 3.65%
Details


Synchrony
1-Year APY:
2.30%
3-Year APY: 2.80%
5-Year APY: 3.25%
Details

First National Bank of America
1-Year APY:
2.50%
3-Year APY:3.00%
5-Year APY: 3.25%
Details

Marcus by Goldman Sachs
1-Year APY:
2.30%
3-Year APY: 2.70%
5-Year APY: 3.20%
Details


Capital One
1-Year APY:
2.25%
3-Year APY: 2.70%
5-Year APY: 3.20%
Details

Barclays
1-Year APY:
2.30%
3-Year APY: 2.70%
5-Year APY: 3.20%
Details

Discover
1-Year APY: 2.30%
3-Year APY: 2.70%
5-Year APY: 3.20%
Details

Alliant Credit Union
1-Year APY:
2.40%
3-Year APY: 2.80%
5-Year APY: 3.25%
Details


PenFed Credit Union
1-Year APY:
2.30%
3-Year APY: 3.25%
5-Year APY: 3.20%
Details

Sallie Mae
1-Year APY:
2.50%
3-Year APY: 3.05%
5-Year APY: 3.05%
Details

Connexus Credit Union
1-Year APY:
1.76%
3-Year APY: 2.36%
5-Year APY: 2.96%
Details

Lending Club
1-Year APY:
2.01%
3-Year APY: 2.75%
5-Year APY: 2.95%
Details


Ally Bank
1-Year APY:
2.20%
3-Year APY: 2.50%
5-Year APY: 2.90%
Details


Live Oak Bank
1-Year APY:
2.50%
3-Year APY: 2.70%
5-Year APY: 2.70%
Details


BrioDirect
1-Year APY:
1.80%
3-Year APY: 2.45%
5-Year APY: 0.45%
Details

1. Bread Savings

  • CD rates: Up to 3.65% APY.
  • CD terms: 12 to 60 months.
  • Minimum deposit: $1,500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 12 to 36 months, the penalty is 180 days of simple interest; for terms of 48 months and up, the penalty is 365 days of simple interest.

Offered by Comenity Bank, the Bread Savings CD offers incredibly competitive rates, no matter how long of a maturity you choose. Its $1,500 minimum deposit is a bit high compared to most alternatives, but it can be worth it to snag those high annual percentage yields.

2. Synchrony Bank

  • CD rates: Up to 3.25% APY.
  • CD terms: 3 to 60 months.
  • Minimum deposit: None.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 12 or less, the penalty is 90 days of simple interest; for terms of more than 12 months but less than 48 months, the penalty is 180 days of simple interest; for terms of 48 months or more, the penalty is 365 days of simple interest.

Synchrony Bank offers a lot of flexibility with no minimum opening balance, and the online bank also offers a couple of other options. Its no-penalty CD allows you to withdraw your money before maturity without incurring a penalty, and its bump-up CD allows you to request a rate increase once during its 24-month term if market interest rates go up.

3. First National Bank of America

  • CD rates: Up to 3.35% APY.
  • CD terms: 12 to 84 months.
  • Minimum deposit: $1,000.
  • Interest compound period: Quarterly.
  • Early withdrawal penalty: For terms of 1 to 11 months, the penalty is 90 days of interest; for terms of 12 to 23 months, the penalty is 180 days of interest; for terms of 24 to 47 months, the penalty is 360 days of interest; for terms of 48 months or more, the penalty is 540 days of interest.

First National Bank of America offers one of the longest maturities on our list at seven years. While interest compounds only quarterly, that doesn’t affect the bank’s impressive yields.  

4. Marcus by Goldman Sachs

  • CD rates: Up to 3.20% APY.
  • CD terms: 6 to 72 months.
  • Minimum deposit: $500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 12 months or less, the penalty is 90 days of simple interest; for terms of 13 to 60 months, the penalty is 180 days of simple interest; for terms of more than 60 months, the penalty is 270 days of simple interest.

One feature that sets Marcus apart from the competition is its 10-day rate guarantee. As long as you have the minimum opening deposit in the account within 10 days, you’ll receive the highest published rate during that period for your CD’s maturity.

5. Capital One

  • CD rates: Up to 3.20% APY.
  • CD terms: 6 to 60 months.
  • Minimum deposit: None.
  • Interest compound period: Monthly.
  • Early withdrawal penalty: For terms of 12 months or less, the penalty is three months of interest; for terms of more than 12 months, the penalty is six months of interest.

Capital One’s no minimum balance makes its CDs accessible to anyone who wants to set aside some cash for the future. Also, its penalties for early withdrawal aren’t as punitive as some of the other CDs on our list.

6. Barclays

  • CD rates: Up to 3.20% APY.
  • CD terms: 12 to 60 months.
  • Minimum deposit: None.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 24 months or less, the penalty is 90 days of simple interest; for terms of more than 24 months, the penalty is 180 days of simple interest.

Barclays is another one of the few CD options on our list with no minimum balance, making it worth considering for people who have lower savings balances. 

7. Discover

  • CD rates: Up to 3.20% APY.
  • CD terms: 3 to 120 months.
  • Minimum deposit: $2,500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of less than 12 months, the penalty is three months of simple interest; for terms of 12 to 47 months, the penalty is six months of simple interest; for terms of 48 to 59 months, the penalty is nine months of simple interest; for terms of 60 to 83 months, the penalty is 18 months of simple interest; for terms of 84 months or more, the penalty is 24 months of simple interest.

Discover offers the widest range of maturities on our list, with options as short as three months and as long as 10 years. This spread makes it easier to take advantage of CD laddering, which involves spreading your deposits across accounts with varying maturities, so you can enjoy the higher rates with longer terms without locking up all of your money for so long.

That said, the interest rate doesn’t get higher once you reach five years. As a result, it might not make sense to go for a longer maturity if you’re not getting compensated for it, especially because the longest maturities have the most punitive early withdrawal penalties. Finally, Discover has one of the largest minimum balance requirements on our list.

8. Alliant Credit Union

  • CD rates: Up to 3.25% APY.
  • CD terms: 12 to 60 months.
  • Minimum deposit: $1,000.
  • Interest compound period: Monthly.
  • Early withdrawal penalty: For terms of 12 to 17 months, the penalty is up to 90 days of dividends; for terms of 18 to 23 months, the penalty is up to 120 days of dividends; for terms of 24 to 60 months, the penalty is up to 180 days of dividends.

Alliant’s minimum deposit is relatively low, but it can still be too high for some savers. You’ll also need to review the credit union’s membership eligibility requirements before you can join and open an account.

9. PenFed Credit Union

  • CD rates: Up to 3.25% APY.
  • CD terms: 6 to 84 months.
  • Minimum deposit: $1,000.
  • Interest compound period: Simple interest for 6-month CDs, all others compounded daily.
  • Early withdrawal penalty: For 6-month certificates, the penalty is all dividends earned if redeemed within 90 days of the issue date. After that, 90 days of dividends; for terms greater than 6 months, the penalty is all dividends earned if redeemed within the first year. After that, you forfeit 30% of what you would have earned if held to maturity, up to the total amount earned so far.

PenFed’s money market certificates offer flexibility options with some of the shortest and longest maturities, though the rate doesn’t increase from five to seven years. As with the other credit unions on our list, you’ll need to qualify for membership before you can open an account.

10. Sallie Mae Bank

  • CD rates: Up to 3.05% APY.
  • CD terms: 6 to 60 months.
  • Minimum deposit: $2,500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 12 months or less, the penalty is 90 days of simple interest; for terms of 13 months or more, the penalty is 180 days of simple interest. 

Sallie Mae is known for student loans, but it also provides several banking products, including CDs. The bank offers 11 different maturities, giving you plenty of flexibility to choose the term that works best for you. That said, the $2,500 minimum balance requirement may be a bit steep for some consumers. 

While Sallie Mae’s long-term CD rates aren’t the best, its short-term rates are very competitive.

11. Connexus Credit Union

  • CD rates: Up to 2.96% APY.
  • CD terms: 12 to 60 months.
  • Minimum deposit: $5,000.
  • Interest compound period: Quarterly.
  • Early withdrawal penalty: For terms of 12 to 60 months, the penalty is 180 days of dividends.

Connexus Credit Union’s CDs may be best for people who are already a member and want to keep all of their banking under one roof. The interest rates aren’t nearly as high as some of the other financial institutions on our list — quarterly compounding may be partly to blame — and the $5,000 minimum opening deposit is incredibly steep. 

12. LendingClub

  • CD rates: Up to 2.95% APY.
  • CD terms: 12 to 60 months.
  • Minimum deposit: $2,500.
  • Interest compound period: Monthly.
  • Early withdrawal penalty: For all terms, the penalty is the amount of simple interest earned up to the date of the withdrawal.

The online lender has branched out into banking products in recent years. Its CD rates are relatively competitive, but the $2,500 minimum deposit makes them inaccessible for many people who either don’t have that much cash or don’t want to lock up that much for a year or more. Additionally, it doesn’t matter how long you’ve had your money in the account; if you take it out early, you lose all of the interest you’ve earned, which is one of the most punitive policies on our list.

13. Ally Bank

  • CD rates: Up to 2.90% APY.
  • CD terms: 3 to 60 months.
  • Minimum deposit: None.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 24 months or less, the penalty is 60 days of interest; for terms of 25 to 36 months, the penalty is 90 days of interest; for terms of 37 to 48 months, the penalty is 120 days of interest; for terms of 48 months or more, the penalty is 150 days of interest.

Ally Bank’s CD rates are among the lowest on our list, but the online bank also offers a no-penalty CD with a solid APY and flexibility with early withdrawals. It also offers a bump-up CD that allows you to raise your APY to match market rates up to two times, depending on how long your CD maturity is.

Also, like Marcus by Goldman Sachs, Ally Bank has a 10-day rate guarantee. Just make sure you fund your account within 10 days, and you’ll get the best advertised rate during that period.

14. Live Oak Bank

  • CD rates: Up to 2.70% APY.
  • CD terms: 6 to 60 months.
  • Minimum deposit: $2,500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of less than 24 months, the penalty is 90 days of interest; for terms of 24 months or more, the penalty is 180 days of interest.

While Live Oak Bank’s long-term CD rates aren’t very competitive, it offers some excellent short-term rates. That said, the $2,500 minimum balance requirement could make some consumers think twice about opening an account.

15. BrioDirect

  • CD rates: Up to 2.45%.
  • CD terms: 30 days to 60 months.
  • Minimum deposit: $500.
  • Interest compound period: Daily.
  • Early withdrawal penalty: For terms of 30 days, the penalty is one month of interest; for terms of 12 months or less, the penalty is three months of interest; for terms of 18 to 59 months, the penalty is nine months of interest; for terms of 60 months, the penalty is 12 months of interest. All penalties are effective whether or not you’ve earned the interest.

With 11 different CD terms, BrioDirect offers a lot of flexibility. The $500 minimum opening deposit is also the lowest among financial institutions that have one. However, the bank isn’t flexible with its early withdrawal penalty. Even if you haven’t earned the penalty amount, you still have to pay it in full, which means BrioDirect may reduce your principal balance.

What to Look for in a CD

woman walking by bank
Unsplash

Reviewing the best CD rates can help you determine where to stash your money for the long term. But interest rates are just one piece of the puzzle. Additionally, rates can vary depending on the maturity you choose, and they’re not always linear, growing the longer you lock in your funds. 

Here are some other features to look for as you compare the different available options:

  • Term flexibility: If a bank or credit union only offers a few different term options, you’ll have less flexibility to find the one that matches your needs for the cash. 
  • Early withdrawal penalty: The idea behind using a CD is that you won’t need the cash until the account matures. But in the event that you do, it’s important to know how much the penalty will cost you and whether it’ll eat into your principal balance. You may even consider a no-penalty CD, although those tend to be shorter and offer lower rates. Note that you can generally get the early withdrawal penalty waived if the account owner dies or is determined to be mentally incapacitated.
  • Minimum deposit: Just because you have enough money to fund a CD with a specific financial institution, it doesn’t mean that you want to lock up that much cash. This is especially true if you’re using the laddering strategy and want to spread out your funds across multiple CDs. 
  • Fees: None of the CDs we reviewed have monthly fees, but they may have fees for other account activities. As you shop around, make sure you look at some fee schedules to avoid unnecessary costs.
  • Other CD features: If you’re looking for specific features, such as a bump-up CD or a 10-day rate guarantee, you’ll want to narrow down your list of options to banks and credit unions that offer what you’re looking for.

You may also want to check to see what other products and services the financial institution offers, especially if you’re the type of person who likes to have everything under one roof. Depending on what you’re looking for, you may be able to find a bank or credit union that offers everything you need, not just a CD. 

Should You Put Your Money in a CD?

Before you open a certificate of deposit account, it’s important to consider whether a CD is right for you in the first place. Nowadays, there are plenty of high-yield savings accounts that offer rates competitive with short-term CDs rates, and you can freely access your money in those accounts without worrying about being penalized — though you’ll typically be limited to six withdrawals per month.

If you’re thinking about a longer-term CD, think very carefully about your financial situation. It doesn’t make sense to stash money in an account like that if you think you might need the money before the CD matures. Those terms are best for large balances that you want to hold in a relatively risk-free account but really don’t need for everyday or even emergency expenses. Depending on your situation, take some time to consider all of your options before opening a certificate of deposit. Other relatively safe opportunities that don’t require such a long-term commitment include Treasury Bonds, municipal bonds, savings bonds, high-yield savings accounts, interest checking accounts and more.

While we work hard on our research, we do not always provide a complete listing of all available offers from credit-card companies and banks. And because offers can change, we cannot guarantee that our information will always be up to date, so we encourage you to verify all the terms and conditions of any financial product before you apply.

Ben Luthi
Ben Luthi
Ben Luthi is a personal finance and travel writer and credit card expert. He has a degree in finance from Brigham Young University and worked in financial planning, banking and auto finance before writing full-time for NerdWallet and Student Loan Hero. Ben is now a full-time freelance writer and enjoys traveling and spending time with his two kids. His work has appeared in several publications, including U.S. News & World Report, USA Today, Money, Success and Slickdeals.