Who Has the Best CD Rates?

A certificate of deposit (CDs) is a security that certifies the amount of the legal deposit made to the bank and the right of the depositor (certificate holder) to receive, after the expiration of the established period, the amount of the deposit and the interest specified in the certificate at the bank that issued the certificate, or at any branch of this bank. Thus, a bank certificate of deposit is a security that confirms the fact that a legal entity has deposited and stored a certain amount of funds in a banking organization. It also indicates the validity period of this document, storage conditions, repayment, interest rate and any other required information.Who Has the Best CD Rates

The best CDs ratings

Best 3-Month CDs Rate Term Minimum
Spectrum Federal Credit Union 0.60% APY 3 months $500
Chevron Federal Credit Union 0.60% APY 3 months $500
BrioDirect 0.50% APY 3 months $500
Greenwood Credit Union 0.50% APY 3 months $1,000
NexBank 0.50% APY 3 months $10,000
Best 6-Month CDs Rate Term Minimum
CommunityWide Federal Credit Union 0.90% APY 6 months $1,000
TotalDirectBank 0.75% APY 6 months $25,000
Marcus by Goldman Sachs 0.75% APY 7 months $500
Best 1-Year CDs Rate Term Minimum
USAlliance Federal Credit Union 1.05% APY 12 months $500
Financial Resources Federal Credit Union 1.01% APY 14 months $500
Bank of Baroda 1.00% APY 12 months $1,000
Best 18-Month CDs Rate Term Minimum
The Federal Savings Bank 1.10% APY 18 months $10,000
USAlliance Federal Credit Union 1.05% APY 18 months $500
Bank of Baroda 1.00% APY 12-23 months $1,000
Abound Credit Union 1.00% APY 16 months $500
INSBANK Online 1.00% APY 18 months $2,500
Best 2-Year CDs Rate Term Minimum
Abound Credit Union 1.10% APY 23 months $500
Georgia’s Own Credit Union 1.10% APY 24 months $500
MAC Federal Credit Union 1.10% APY 24 months $1,000
MAC Federal Credit Union 1.30% APY 36 months $1,000
Georgia’s Own Credit Union 1.20% APY 36 months $500
The Federal Savings Bank 1.20% APY 36 months $10,000
Best 4-Year CDs Rate Term Minimum
MAC Federal Credit Union 1.35% APY 48 months $1,000
Georgia’s Own Credit Union 1.30% APY 48 months $500
Hiway Federal Credit Union 1.30% APY 48 months $25,000
Pen Air Federal Credit Union 1.25% APY 48 months $500
Wings Financial Credit Union 1.21% APY 48 months $10,000
Best 5-Year CDs Rate Term Minimum
The Federal Savings Bank 1.50% APY 60 months $10,000
Wings Financial Credit Union 1.41% APY 60 months $10,000
Alabama Credit Union 1.36% APY 60 months $500
Best 6- to 8-Year CDs Rate Term Minimum
Evansville Teachers Federal Credit Union 1.30% APY 72 months $1,000
SRP Federal Credit Union 1.26% APY 84 months $5,000
Air Force Federal Credit Union 1.15% APY 84 months $2,500
Bank of Baroda 1.10% APY 60-119 months $1,000
First National Bank of America 1.05% APY 72 months $1,000
Best 10-Year CDs Rate Term Minimum
Apple Federal Credit Union 1.10% APY 120 months $500
North American Savings Bank 1.01% APY 60-120 months $1,000
Discover Bank 0.80% APY 120 months $500

Options for issuing certificates of deposit

There are two types of release options. Certificates can be issued both on a one-off basis and in series.In the first case, an exception is made for one specific client, and he receives a unique security designed only for him, specially issued for such a case.

The second option is intended for a large mass of people or businesses. These are simple forms, albeit executed with all the requirements of the legislation, into which, if necessary, certain data are entered, after which the certificate of deposit is transferred to the depositor.

Note that bearer certificates of deposit have a lower yield than registered ones.

Types of certificates of deposit

Certificates can be registered or bearer. In the first option, only the person in whose name the paper was written out can receive money. In the second option, the certificate of deposit can be cashed by absolutely any person who currently owns the certificate.

Mandatory details of the certificate of deposit form

We list the required details of the certificate of deposit form:

  • name “Certificate of Deposit”;
  • series and number;
  • reason for issue;
  • the date of the deposit;
  • the size of the issued deposit (the amount of the deposit);
  • the unconditional commitment of the bank to return the amount deposited;
  • maturity date of the certificate;
  • interest rate for using the deposit;
  • the amount of accrued (due) interest;
  • early call rate;
  • name and address of the issuing bank and (for a personalized certificate) beneficiary. Contact information, bank details and correspondent account number.
  • For a personal certificate: the name and contact details of the depositor.

Also, the certificate of deposit must contain all the required signatures and seals.

Note that the certificate of deposit is considered invalid in the absence of any of the specified details.

Forms for securities are issued only by specialized printing companies licensed to issue. From this point of view, the document has a high degree of security, and it is almost impossible to forge it.

Circulation period of CDs

The term of circulation of CDs is determined by the issuing bank. According to laws, it cannot exceed 1 year (for savings – up to 3 years). Prolongation is not provided. At the end of the term, the certificate of deposit is transformed into a demand deposit.


Certificates of Deposit have a number of advantages:

  • a certificate of deposit acts as an excellent tool for investing funds of legal entities. All banks set the minimum amount of the certificate of deposit, which is available not only to large enterprises, but also to small businesses. Interest rates on such securities are very attractive. In addition, the interest rate is always fixed and the funds are disbursed to the client at the time of maturity. Cashing out is quick and easy.
  • the certificate can be transferred or assigned, donated or bequeathed to another person.
  • like most securities, a certificate of deposit can be used for mutual settlements or as collateral when getting a bank credit.
  • registration of the assignment of the right for a claim is confirmed on the back of the certificate. Most often, transactions for the purchase and sale of certificates are made in the same bank where they were issued.

Thus, a certificate of deposit combines the useful properties of securities and time deposits, which include:

  • High degree of reliability and low risks.
  • The document has a fixed interest rate. Changing the interest rate by the issuing bank is not possible.
  • Free circulation. You can sell, bequeath, donate. You can leave it as a pledge, for example, when getting a loan from a bank. Keep in mind that this often contributes to lower interest rates. Funds in a bank deposit, for example, are not subject to collateral.
  • Can be presented for redemption at any branch of the issuer.


The cons of purchasing a certificate of deposit are as follows:

  • capitalization (attachment) of interest is not provided, since the rate is fixed.
  • such documents have not been introduced into the deposit insurance system.
  • if a certificate of deposit is issued to a bearer, then its safety will have to be as carefully monitored as with cash. It should not fall into the hands of third parties.
  • the paper does not provide for partial replenishment or withdrawal of funds, therefore it can hardly be perceived as an instrument of accumulation.
  • the interest accrued on the certificate is taxed in the same way as for a classic deposit. The tax, which is usually about 35%, is withheld by the bank from the certificate owner.
  • the original cost of the certificate is taxed (13%) upon change of ownership. If the personal certificate passed to another person as a result of donation or inheritance, then this person will have to pay personal income tax, since he is the heir of the depositor.

Category: Finance

Tags: CDs