8 Best CD Rates for January 2022

Certificates of Deposit (also known as CDs) can be a great way to save and grow your money with very little risk.

You can usually open a CD account with a one-time deposit of as little as $500 — however, some banks don’t have a minimum deposit requirement at all. The amount you deposit is then locked in for a predetermined term, and at a fixed annual percentage yield (APY) that’s often higher than what you would get from a high-yield savings account.

Before choosing a CD, it’s important to consider how soon you’ll need the deposited money, along with the terms and rates offered by different financial institutions.

We looked for and found the best CD rates for January 2022 to help you choose the right account for your savings needs.

Our Top Picks for Best CD Rates for January 2022

Best CD Rates Reviews

Interest rates quoted are valid as of January 10, 2022, and are subject to change. Make sure to check current rates before making any investment decision.


  • Some of the highest rates for 1-year CDs
  • IRA Certificate available
  • Certificates don’t renew automatically


  • Physical branches are located in Indiana only
  • Must become a member


Minimum Deposit
0.70% – 0.95%
6 mo., 1, 2, 3 & 5yr.
Grace Period

Why we chose this bank: CommunityWide offers one of the highest rates for 1-year certificates.

CommunityWide Federal Credit Union offers some of the highest yields for six-month and 1-year certificates with 0.70% and 0.75% APY, respectively. Members can invest a minimum of $1,000 for anywhere up to five years. CommunityWide APY rates range from 0.70% to 0.95%.

Unlike most banks and credit unions, CommunityWide doesn’t automatically renew certificates. Upon maturity, members can decide whether to renew for another term or deposit the principal and compound interest into another account.

Although CommunityWide branches are located in Indiana only, anyone outside the state can open an account through its application portal online. However, you do need to become a member. To do so, CommunityWide requires a one time $5 donation to Goodwill, Habitat for Humanity or Marine Corps and a Regular Savings account with at least $5 in it at all times.

CommunityWide FCU Best CD Rates:
0.70% — 6 months
0.75% — 1 year
0.80% — 2 years


  • Competitive rates ranging from 0.55% to 1.20%
  • Low minimum deposit — $500
  • Account can be open online within minutes


  • Only offers five CD terms


Minimum Deposit
0.55% – 1.20%
6 mo., 1, 2, 3 & 5 yrs.
Grace Period
10 days

Why we chose this bank: Quontic provides CDs with low minimum deposits and competitive high yields for 3-year CD terms.

Online bank Quontic lets you choose from five different CD options ranging from six months up to five years. As is typically the case with online banks, Quontic offers higher yields than many brick-and-mortar banks. Its APY rates range from 0.55% for 6-month CDs to 1.20% for 5-Year CDs. Its 3-year CD terms, however, offer comparatively higher yields than most competitors at a 1.10% rate.

To open a CD account, Quontic requires an initial deposit of $500. CDs can be funded by transferring from an existing Quontic account, an external account via ACH or using Plaid — a service platform that allows users to securely connect their financial accounts to others.

Quontic CDs compound interest daily and credit it to your account monthly. In addition, the bank offers a 10-day grace period after maturity date.

Quontic Best CD Rates:
0.60% — 1 year
1.10% — 3 years
1.20% — 5 years



  • Highest APYs (0.65% for a 1-year CD)
  • Terms from 12 to 60 months
  • CD laddering available


  • $1,500 minimum deposit
  • Fees for paper statement requests, wire transfers and checks


Minimum Deposit
0.65% – 1.10%
1, 2, 3, 4 & 5 yr.
Grace Period
10 days

Why we chose this bank: Comenity Direct provides high yields on its CDs, including a competitive 1.05% APY rate for 4-year CDs.

Comenity Direct offers a wide range of CDs with higher APY than other banks and credit unions. Comenity also features an app for mobile check deposit and transfer funds.

Comenity Direct APY rates start at 0.65% for a 1-year term and go up to 1.10% for 5-year CDs. Interest is compounded daily and credited on a monthly basis.

Like most banks in our list, Comenity offers a 10-day grace period after the maturity date. During this period you can cash out your CD, renew it and/or change your CD term.

Aside from the typical early withdrawal fee, Comenity charges $25 for outgoing wire transfers, $15 for official check requests and $5 for paper statements. (Online statements, however, are free.) Additionally, there’s a minimum opening balance of $1,500 and a maximum of $10 million per account owner.

Comenity Direct Best CD Rates:
0.65% — 1 year
1.00% — 3 years
1.05% — 4 years


  • High APY rates for 5- and 7-Year terms
  • IRA Certificates and Education Savings Certificates also available


  • 6-month CDs don’t use compound interest
  • Must become a PenFed member


Minimum Deposit
0.45% – 1.50%
6, 12, 15 & 18 mo. 2, 3, 4, 5 & 7 yr.
Grace Period

Why we chose this bank:

offers some of the highest APY rates for 5- and 7-year CDs.

PenFed Credit Union has three different types of certificates: Money Market Certificates, IRA Certificates and Education Savings Certificates.

Its Money Market Certificates — otherwise known as CD in most banks — require a $1,000 minimum deposit and are available in nine different term options, ranging from six months up to seven years.

PenFed yield rates are highly competitive, with 0.65% for CD terms of 12 and 15 months, and 1.30% and 1.50% for 5- and 7-year certificates, respectively. This is higher than what most banks and credit unions pay for terms of five and seven years.

Education Savings Certificates have a $500 minimum opening deposit and have terms of one to seven years with rates ranging from 0.60% to 1.45%. IRA certificates have the same terms and APY rates, but a $1,000 minimum balance.

With the exception of 6-month certificates (which don’t accrue compounded interest), dividends are compounded daily and credited monthly. During the application, you can decide if periodic dividend payments should be added to the certificate itself, a PenFed account or sent to you in a check. You can also decide beforehand whether you want to automatically renew your certificate at maturity or to transfer the principal and its dividend to a specific PenFed account.

As is the case with most credit unions, PenFed requires you to become a member in order to apply for any of its products or services. To join you need to open a member savings account with at least $5.

As of this writing, PenFed is offering a special holiday rate of 1.00% and 0.85% for 15-Months and 1-Year CDs, respectively.

PenFed Credit Union Best CD Rates
0.85% — 2 years
1.30% — 5 years
1.50% — 7 years


  • Offers high-yield and no-penalty CDs
  • Competitive APY rates, up to 01.00%
  • No withdrawal fee for no-penalty CDs
  • 30-day period to fully fund your CD after opening an account


  • No physical branches
  • No IRA CDs


Minimum Deposit
0.15% – 1.00%
6, 7, 9, 12 & 18 mo. / 2, 3, 4, 5 & 6 yr.
Grace Period
10 days

Why we chose this bank: Marcus by Goldman Sachs provides No-Penalty CDs for a seven-month term at 0.45% APY.

Marcus by Goldman Sachs is one of the few online banks that offers two types of CDs: high-yield and no-penalty. Both types of certificates require only a $500 deposit to open and have a 10-day CD-rate guarantee, so you can claim any published rate if it changes within 10 days of opening your account.

Unlike most CDs, no-penalty CDs let you withdraw your full balance at any time without paying penalties.

Marcus offers fairly high returns across all CD terms. High-yield CDs start at 0.15% APY for a 6-month CD; its 5-year CD rates, on the other hand, are currently at 1.00%. No-penalty CDs also boast a pretty competitive APY of 0.45% for a seven-month period.

We like that Marcus offers the option of transferring the interest you earn from your CD principal to any Marcus Online Savings Account or an external bank account before the maturity date without penalties.

In addition, CD accounts have a 10-day grace period after their maturity date. During this period you can make changes to your plan and/or renew with different terms using their CD Maturity Center online.

Marcus by Goldman Sachs Best CD Rates
0.45% — 7 months (No-Penalty CD)
0.55% — 9 & 12 months


  • No minimum deposit required
  • 0.05% loyalty reward when you renew your CD
  • High-yield CDs have a 10-day best rate guarantee
  • Also available as an IRA


  • No penalty-CD is only available with an 11-month term


Minimum Deposit
0.15% – 0.80%
3, 6, 9, 12, & 18 mo. / 3 yr. & 5 yr.
Grace Period
10 days

Ally Bank offers three different types of CDs: High-Yield CD, Raise Your Rate CD, and No-Penalty CD. These CDs don’t require a minimum deposit, and offer competitive APY rates and access to online banking.

Ally high-yield products have a rate of 0.15% for a 3-month CD, 0.55% for a one-year term, 0.60% for an 18-month CD, and 0.80% on a 5-year CD. No-penalty accounts are only available with a 11-month term and 0.50% APY.

The Ally Bank Raise Your Rate CD, on the other hand, gives you the option to bump up your CD’s interest rate if the APY were to increase during the term. This means you can increase your rate once or twice (depending on the term) without having to wait for their maturity dates to make changes. However, you can only choose between a 2-year CD and a 4-year CD at 0.55% APY for this type.

Other perks include a 10-day best rate guarantee that lets you claim the highest CD rate offered for your term and deposit amount if it goes up during that time, and a 10-day grace period after your maturity date. You can also get a 0.05% increase in your rate as a loyalty reward if you renew your CD with Ally Bank.

Ally Bank Best CD Rates
0.50% — 11 months (No-Penalty CD)
0.55% — 1 year
0.60% — 18 months


  • No minimum deposit required
  • Terms from three to 60 months
  • Offers IRA CDs


  • No checking account available


Minimum Deposit
0.15% – 1.00%
3 – 24 mo. / 3, 4 & 5 yr.
Grace Period
10 days

Why we chose this bank: Synchrony Bank offers a 15-day Rate Guarantee, one of the longest in the market.

This online-only bank has terms ranging from three up to 60 months and competitive APY rates that start at 0.15% for a three-month term, 0.55% for a 12-month term and 1.00% for a 60-month term.

You also have the option of withdrawing the interest earned during the term of your CD before the maturity date without penalty. In addition, you get a 15-day rate guarantee period during which you can claim the highest available interest rate if the published rate increases.

A drawback is that Synchrony doesn’t offer a checking account, which means you have to fund your CD via an electronic transfer from an external bank, a Synchrony Bank High-Yield Savings account or a Money Market Account. This applies to transfers of interests earned as well.

Synchrony Bank Best CD Rates
0.55% — 1 year
0.70% — 18 months
1.00% — 5 years


  • Terms from 3 months up to 7 years
  • 21-day grace period
  • Offers Jumbo CDs


  • Standard CDs require a $1,000 minimum deposit
  • Membership is only available for veterans and their family members


Minimum Deposit
0.40% – 0.90%
3, 6, 12, & 24 mo. / 3, 5 & 7yr.
Grace Period
21 days

Why we chose this bank: Navy Federal Credit Union offers one of the best 3-month CD rates — along with flexible terms and options — for veterans and their family members.

Navy Federal Credit Union stands out from other credit unions because of its competitive rates, low minimum deposit requirements and educational online tools. It offers multiple CD term length and share certificate accounts options, which tend to have lower minimum deposits and more flexible terms.

Navy Federal standard CD rates vary depending on the amount deposited and their terms. A $1,000 CD for a three-month term earns an APY of 0.40%, while a $100K CD for the same term can earn 0.45%. The minimum deposit for standard accounts is $1,000 and can earn up to 0.90% APY for a seven-year term.

Both share certificate accounts (EasyStart Certificate and Special EasyStart Certificate) require a minimum deposit of only $50 and let you add funds after opening the certificate. EasyStart is available for six to 24-month terms with a maximum APY 0.50%; Special EasyStart, on the other hand, is only available for a 12-month term with an APY as high as 3.00%.

Do note that you need to be a member of Navy Federal to open these accounts, and membership is only available for members of the military (active duty, veterans, retirees, and annuitants) and their families.

Navy Federal Credit Union Best CD Rates
0.40% — 3 months
0.55% — 1 year


  • Terms from three months to 10 years
  • IRA CD available


  • $2,500 minimum deposit
  • Doesn’t offer no-penalty CD


Minimum Deposit
0.20% – 1.0%
3, 6, 12, 18, 24 & 30 mo. / 3, 4, 5, 7 & 10 yr.
Grace Period
9 days

Why we chose this bank: Discover offers a wide-range of CD terms, giving customers multiple options for CD laddering.

Discover Bank is about more than just credit cards — it offers great CDs too, compared to other major banks. While most banks offer only three or four different increments, Discover offers 12 different terms ranging from three months up to 10 years.

Discover’s wide-range of CD terms are a good option if you’re interested in setting up a CD ladder, which consists of opening multiple CDs with varying maturity dates or terms (usually in monthly increments). This way you can earn interest and have more frequent access to your money, while your high-yield CDs mature.

You can choose rates of between 0.55% and 0.65% APY on terms of 12 to 24 months, between 0.70% and 0.80% APY on CDs of 30 to 48 months and 1.00% APY on a 5-year term or higher. However, you need a minimum deposit of $2,500, which may be a drawback for some.

Discover Bank Best CD Rates
0.55% — 1 year
0.60% — 18 months

Other banks we considered

We looked at an array of financial institutions in order to find the best CD rates. The following list includes some of the companies we reviewed that, while they didn’t make the final cut, we still consider noteworthy.

Connexus Credit Union


  • Highly competitive APY rates, from 0.61 up to 1.21%
  • No checking account required
  • Insured by the National Credit Union Administration (NCUA)


  • $5,000 minimum deposit
  • Dividends are credited quarterly
  • Must become a Connexus member

Barclays Bank


  • No minimum deposit requirement
  • Interest compounds daily


  • Lower APY rates for long-term CDs than competitors

Capital One


  • No minimum balance requirement
  • Can be opened online or at a branch office


  • Low APY for shorter term CDs



  • Minimum opening deposit is $500
  • Offers no-penalty CD (although with low APY)


  • Low APY rates (0.10% for a 1-year CD)
  • Online-only savings accounts offer higher APYs than most of its CDs

American Express National Bank


  • No fees or minimum balance requirements
  • Useful website calculator lets you know how much you’ll earn


  • Low APY for short-term CDs (0.20% for 1-Year CD)
  • Limited selection of offers

Bank of America


  • Wide range of terms: from 28 days to 10 years
  • Nationwide presence
  • Responsive customer service
  • CD laddering available


  • Low rates compared to competition (0.03 to 0.05% APY)
  • Only two types of CDs to choose from
  • Doesn’t offer no-penalty CDs

CIT Bank


  • Offers Jumbo, No-Penalty and rising rate CDs
  • No fees for account opening or maintenance


  • Rates are below the competition’s (0.30% APY for a 1-year CD)

Best CD Rates Guide

A Certificate of Deposit or CD is essentially a type of savings account where you deposit a lump sum for anywhere from three months to six years at a fixed annual percentage yield (APY). In most cases, you can’t withdraw your money during that period unless you pay a penalty fee, which varies from bank to bank.

In return, you receive higher returns than what you usually find in checking accounts or even in online saving accounts. (Online savings accounts are often thought to yield higher returns than traditional savings accounts.)

In most cases, you can only withdraw money, change the CD term or claim any higher rates the bank may be offering once the CD reaches its maturity date. Some banks, however, may offer more flexibility.

How CDs work

Higher Minimum Deposits. CDs tend to have higher minimum deposit requirements than most savings accounts, usually $500 or more. However, some banks don’t have an established minimum requirement at all.

Fixed Term Lengths. Common CD term lengths at most banks range from six months up to 60 months.

Penalties for Early Withdrawals. You’ll usually be charged a penalty if you choose to withdraw money before the CD reaches its maturity date; however, some banks do feature no-penalty CDs.

Higher APYs for Longer Terms. Bank CD rates depend on the term and the amount deposited. Generally, longer-term CDs have higher APY rates, giving you more substantial returns on your principal investment.

How APY works

The Annual Percentage Yield (or APY) represents how much money you would earn in one year, taking into account compounding interest.

CD accounts offer pre-established or fixed APYs, currently ranging from as little as 0.05% up to 1.50%. This means that the money you deposit into the account will earn that amount of interest monthly for the entire term of the CD.

Naturally, the higher the APY, the higher the return you’ll have when your CD matures.

Difference between compound interest and simple interest

Most certificate of deposit accounts accrue interest in one of two ways: simple interest or compound interest. The difference between these two types of interest is how your yield is calculated.

Simple interest generates interest on the principal amount only. This type of interest is more commonly found on amortized loans, such as mortgages and car loans. Some banks may also offer simple interest on short-term CDs.

To calculate returns using simple interest, just multiply the interest rate with the principal amount. For example, a 1-year CD with an initial deposit of $10,000 at an 0.65% APY rate would earn $65 at maturity. For CDs of more than one year, multiply the interest rate by the time period involved and then by the principal amount.

Compound interest, on the other hand, is calculated based on both the principal and the accumulated interest from previous periods.

Compound interest is typically used in longer-term investment products, such as CDs, mutual funds and high-yield savings accounts. Depending on the financial institution, the compounding frequency can be daily, monthly, quarterly or yearly.

Following the previous example, a 1-year CD with an initial deposit of $10,000 at an 0.65% APY rate would earn $66 using compounding interest.

CDs with longer terms would yield higher returns. Remember, compounding interest offers exponential growth, so the longer the term, the higher your return at maturity.

How to know if a CD is right for you

Certificates of deposit are a reliable investment, ideal for those looking to earn some return with very little risk. Since most banks offer higher interest rates for CDs than for even high-yield savings accounts, opening a CD might be a good option if you have money that you don’t need to use right away.

Here are a few factors to consider when deciding whether a CD is right for you:

The pros of using CDs:

Great for long-term savings
CD accounts are useful saving tools for money you won’t need until a later date. Because CD accounts have an early withdrawal penalty, it can help savers stay on track with their goals by discouraging withdrawals.

Higher interest rates than most savings accounts
CDs provide higher interest rates than most high-yield savings accounts, which can make a big difference when committing larger amounts to long-term CDs. This is especially so in the case of jumbo CDs, which have high minimum deposit requirements of $100,000 or more.

Low-risk investment
Because it’s not subject to the ups and downs of the stock market, a CD account can help you grow your money safely, as long as your bank or credit union is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

The cons of using CDs

Early withdrawal penalty
Depending on the terms you choose, you could be locking away your money for years at a time, which makes CD accounts a less than ideal place to keep an emergency fund. You’ll have to pay a penalty if you want to withdraw the money early, and the amount of this fee varies from bank to bank.

Fixed rates
If you sign up for a 5-year CD now, there’s a good chance that rates will rise at some point over the next few years and you could end up missing out on higher APYs. Of course, the opposite could also be true and we might see lower rates in a few months.

However, do note that, as of January 2022, we’re in a low-interest-rate environment and CDs aren’t paying out as much compared with historical rates.

Higher APYs elsewhere
You may be able to find high-yield savings accounts and money market accounts offering similar or higher APYs.

No debit card access
CD accounts usually don’t offer debit cards or ATM access. If they do, it usually involves additional fees. However, this can also work in your favor, as it reduces the temptation to tap into your savings.

What is a CD ladder?

A CD ladder is a savings strategy that consists of spreading your money across multiple certificates of deposit (CDs) with different maturity dates — typically with a 1-year interval between each CD. The goal is to space out your maturity dates evenly so you can have access to your money more frequently and benefit from any higher interest rates available at the end of each term.

How CD ladders work

Long-term CDs pay higher rates than short-term CDs; however, losing access to that money for five years or more can be a big risk. This is where a CD laddering strategy might come in handy: you can earn money at relatively high rates while still having periodic access to your savings.

Let’s say you have $5,000 to open a new CD. Using a CD laddering strategy, you can open five certificates, each for $1,000 and each with a different maturity term.

You’d place $1,000 each in a 1-year, 2-year, 3-year, 4-year, and 5-year CDs respectively. Then, each time a CD matures, you can either withdraw the money if you need it or roll it over, with the compound interest, into a new 5-year CD. After five years, all of your money will be locked away in 5-year CDs. However, because of the staggered maturity dates, you’ll still be able to withdraw a portion of the deposited money yearly — all without paying any penalties and while benefiting from the higher yields of long-term CDs.

What happens when a CD matures?

When a CD reaches its maturity date you generally get a grace period that ranges from seven to 21 days depending on the bank. During this period you can decide whether you want to open a different CD account, renew your CD or withdraw your money.

If you let the grace period pass, the bank will most likely automatically renew your CD for the same term but with the current interest rate, which might be lower than your original rate. If this happens and you want to withdraw your money, you may have to pay a penalty fee or wait until the CD’s new term ends.

Best CD Rates FAQ

What is a CD?

A Certificate of Deposit or CD

is a type of savings account where you deposit a lump sum for a predetermined period of time at a fixed annual percentage yield (APY).

Who has the best CD rates now?

From the banks and credit unions on our list, CommunityWide FCU has the highest one-year CD rates as of December 2021, offering a 0.75% APY. Comenity Direct, PenFed Credit Union and CommunityWide FCU also offer highly competitive rates.

When will CD rates go up?

Due to the coronavirus pandemic, interest rates are low right now. This is partly due to the Federal Reserve having lowered interest rates several times in 2020. It’s unclear whether rates will rise in the foreseeable future, but it’s likely to happen if we see steady economic recovery.
However, most CDs still offer higher interest rates than even high-yield savings accounts.
If you worry about interest rates rising while your money is locked in a fixed interest rate, you can look into CD laddering.

What is a jumbo CD?

A jumbo CD is a certificate of deposit that requires a larger minimum deposit, typically of $100,000 or more. Because you’re investing a higher amount, jumbo CDs tend to offer higher rates of return than traditional CDs.

What is the difference between a CD and an IRA?

A certificate of deposit (CD) is a deposit account where you keep funds for a specific period of time at a fixed APY. Funds in a CD are not invested in the stock market — they’re simply kept in the account, collecting interest. An Individual Retirement Account (IRA), on the other hand, is a retirement account and funds deposited there can be invested in bonds, stocks, money market accounts or other investment vehicles.

What’s an IRA CD?

An IRA CD is a savings vehicle that lets you invest your IRA retirement investment money in certificates of deposit.

How We Chose the Best CD Rates

To find the best CD accounts, we gave preference to banks offering the highest APY rates and low to no monthly fees. We considered the type of products each offered, such as whether no-penalty CDs, rising-rate CDs, CD laddering and CD IRAs were available.

We evaluated minimum deposit requirements, CD terms and compounding schedule. In addition, we looked for banks offering grace periods after maturity and perks such as best rate guarantees, loyalty reward programs alongside online banking and mobile apps services.

All of our choices are either NCUA or FDIC insured.

Summary of Money’s Best CD Rates of January 2022

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