Looking to grow your savings with minimal risk? Certificates of Deposit (CDs) can be a great option—if you know how to find the best rates.

CDs are time-bound savings accounts that typically offer higher interest rates than traditional savings accounts. In exchange, you agree not to withdraw your money for a fixed term—ranging from a few months to several years. Here’s how to find the most competitive CD rates in the country and get the most out of your investment.

1. Start by Comparing Banks and Credit Unions

Online banks and credit unions often offer the highest CD rates, sometimes significantly better than traditional brick-and-mortar banks. Look beyond the big names and explore:

• Online-only banks like Ally, Marcus by Goldman Sachs, and Synchrony
• Credit unions that offer membership to broad groups (e.g., Alliant, PenFed)
• Regional banks with promotional CD offers

Use rate comparison sites such as Bankrate or NerdWallet to scan the latest top offers.

2. Pay Attention to CD Terms and Minimum Deposits

CD terms can range from 3 months to 5 years or more. In general, the longer the term, the higher the rate—but only if you’re not penalized for early withdrawal.

Some high-yield CDs also require a higher minimum deposit. Choose the balance between term length, return, and liquidity based on your financial goals.

3. Look for Promotional Rates

Banks often run limited-time promotions with exceptionally high rates to attract new customers. These promotions might:

• Require opening a new account
• Have specific deposit amounts or terms
• Be available only online

Act quickly, as promotional rates can disappear fast once the bank reaches its deposit goals.

4. Avoid Early Withdrawal Penalties

CDs are a commitment. Withdrawing your money before maturity usually results in a penalty, which can wipe out your interest earnings.

If you might need access to funds early, consider:

• No-penalty CDs, which let you withdraw early without a fee
• CD ladders, which break your total deposit into several CDs with staggered maturity dates
• High-yield savings accounts or money market accounts for more liquidity

5. Consider Laddering to Stay Flexible

CD laddering involves dividing your investment into multiple CDs with different maturity dates. For example:

• $5,000 into 1-year CD
• $5,000 into 2-year CD
• $5,000 into 3-year CD

As each CD matures, you can reinvest at current rates or access the funds if needed. This approach helps you capture higher long-term rates while keeping some liquidity.