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Best CD Rates for February 2024

Unlock the best CD rates today and watch your savings grow with exceptional returns that align with your financial goals.
CD-rates-over-5-percent

The best CD rates for February 2024 have reached 5.00% APY and higher, a stark contrast to the national average of 1.86% APY for one-year CDs. If you were to open a CD with $25,000 earning 1.86%, by the end of 1 year the total interest earned is $465.00.

Compare that to earning 5.00%:

Initial Deposit

$25,000

Interest Earned on 5.00%

$1,250

12-Month CD

5.00% APY

Best CD rates for February 2024 (1 year term)

First Citizens Bank

11-Month CD
5.00% APY
/Month
Minimum $5,000 balance
No maintenance fees
Mobile & Online Banking
FDIC insured

Quontic Bank

12-Month CD
5.30% APY
/Month
Minimum $500 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

CIT Bank

11-Month No-Penalty CD
4.90% APY
/Month
Minimum $1,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

Western Alliance Bank

6-Month CD
5.28% APY
/Month
Powered by Raisin
Minimum $1 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

Patriot Bank

13-Month CD
5.15% APY
/Month
Powered by Raisin
Minimum $1 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

Green State Credit Union

10-Month CD
5.20% APY
/Month
Powered by Raisin
Minimum $1 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

How to choose the best CD

Choosing the best certificate of deposit (CD) can be a great way to save money for a big purchase or for retirement. Here are some factors to consider when choosing a CD:

Interest rate. The interest rate is the most important factor to consider when choosing a CD. The higher the interest rate, the more money you will earn on your investment. Compare interest rates from different banks to find the best deal.

Term. The term of a CD is the length of time that you will lock up your money. CDs are available in a variety of terms, ranging from a few months to several years. Choose a term that you are comfortable with and that coincides with your savings goal.

Early withdrawal penalties. If you withdraw your money from a CD before the maturity date, you will be charged an early withdrawal penalty. This penalty can be significant, so it is important to make sure that you will not need to access your money before the CD matures.

FDIC insurance. Make sure that the bank you choose is insured by the FDIC. This will protect your money in the event that the bank fails.

Minimum deposit. The minimum deposit is the amount of money that you need to open a CD. Some banks have no minimum deposit requirement, while others require a minimum deposit of $500 or more. Choose a bank that has a minimum deposit requirement that you can afford.

Types of CDs

Just like there are different types of bank accounts, there are different types of CDs. The best type of CD depends on your individual needs and goals. When choosing a CD consider your time horizon, your risk tolerance, and your need for flexibility when making your decision.

Here are the most common types of CDs:

1. Traditional CDs

Traditional CDs offer a fixed interest rate for the entire term, which means that you know exactly how much money you will earn when the CD matures. However, you will be charged an early withdrawal penalty if you withdraw your money before the maturity date. Traditional CDs are a good option for long-term savings goals.

  • Pros: Fixed interest rate, low risk, FDIC insured
  • Cons: Early withdrawal penalties, lower flexibility

2. No-penalty CDs

No-penalty CDs also offer a fixed interest rate for the entire term, but you will not be charged an early withdrawal penalty. This makes them a good option for short-term savings goals or emergency funds. However, no-penalty CDs typically have lower interest rates than traditional CDs with the exception of CIT Bank that offers a No-Penalty CD that earns 4.90% APY.

  • Pros: No early withdrawal penalties, higher flexibility than traditional CDs
  • Cons: Lower interest rates than traditional CDs

3. Bump-up CDs

Bump-up CDs allow you to increase your interest rate once or twice during the term. This makes them a good option for moderate-term savings goals or investors who want the potential to increase their interest rate. However, bump-up CDs typically have lower initial interest rates than traditional CDs.

  • Pros: Potential to increase interest rate, moderate flexibility
  • Cons: Lower initial interest rates than traditional CDs, limited number of interest rate bumps90

Benefits of Certificate of Deposits

Certificates of deposit (CDs) can be a good option for saving money for a big purchase, especially if you have a specific savings goal and a set time frame for making the purchase. CDs offer a number of advantages, including:

  • Guaranteed returns – Unlike stocks or bonds, CDs offer a guaranteed return on your investment. This means that you know exactly how much money you will earn when the CD matures.
  • Low risk – CDs are considered to be a very low-risk investment. This is because they are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
  • Flexible terms – CDs are available in a variety of terms, ranging from a few months to several years. This means that you can choose a CD that has a maturity date that coincides with your savings goal.

Best alternative to CDs

CDs give most savers the best bang for their bucks when it comes to earning interest; however, depending on the type of CD, your money is locked up for a particular amount of time.

Traditional CDs are not liquid, meaning that you cannot withdraw your money before the maturity date without incurring an early withdrawal penalty. This penalty can be significant, so it is important to make sure that you will not need to access your money before the CD matures.

high-yield savings account offers unparalleled flexibility, allowing you to withdraw money at any time without incurring a penalty. While some savings accounts may charge a fee for exceeding a certain number of withdrawals in a monthly statement cycle under Regulation D, these instances are typically less severe compared to the strict withdrawal restrictions of CDs.

Best online savings rates

The national savings rate is 0.46% APY. This online bank pays way more.

CIT Bank

Platinum Savings
5.05% APY
/Month
Minimum $5,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

CIT Bank

Savings Connect
4.65% APY
/Month
Minimum $100 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured

CIT Bank

6-Month CD
5.00% APY
/Month
Minimum $1,000 balance
No maintenance fees
Mobile & Online Banking
Deposits are FDIC insured
Disclaimer: Our goal is to provide the most relevant and current information. However, the information is for informational purposes only and is not intended to be personal financial advice.

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