Whether you’re shopping for a new CD (Certificate of Deposit) account or deciding whether to renew an existing one, there are more things to consider than the APY (annual percentage yield.)
Use the tips below to choose the provider and terms that work best for you.
CD Shopping Tips
- The easiest option is to renew a current CD if the new APY is competitive. But be sure to reread the terms. Details may have changed.
- Start shopping at least ten days before an existing CD matures, especially if you’re moving funds to another financial institution. You need to allow time for transfers on both ends of the transaction, which can take 3-5 days each.
- Search online for “best CD rates today.” Your results will likely include sites like Bankrate and NerdWallet, but don’t stop there. They tend to put sponsors at the top of their lists and there may be better options.
- Compare APYs (annual percentage yields). As of July 31, 2025, rates range from about 3.50% to 4.25% APY. I just opened a 6 month CD account at Discover.com with 4.20% APY.
- Check terms. Common terms are 3 months, 6 months and 1, 2, 3 or 5 years. If you think rates will be going down, opt for longer terms. If you think they may be going up, choose shorter terms.
- Make sure the account is insured. FDIC insurance will cover up to $250k.
- Confirm there are no fees, hidden or not.
- Check the minimum deposit required, if any.
- Read the fine print for early withdrawal penalties.
- If your assets are held in the name of a trust, make sure the provider accepts CD accounts in the name of the trust. Marcus by Goldman Sachs, for example, does not. Call providers to confirm their policy before you start the application.
- Determine whether the financial institution offers branch access or online access only.
- See if they offer a rate guarantee between the time you create the account and when it’s funded. Funding can take anywhere from 1 to 10 days.
- Confirm auto renew policies.
- Check grace period policies. Providers offering a grace period allow you to renew or withdraw your funds for a few days after the CD maturity date without penalty. You may not earn interest during the grace period.
- Determine whether the provider gives you a choice of adding monthly interest to the CD or transferring it to another account. If you can transfer to another account, must that account be with them?
Other Things to Consider
Plan ahead and be prepared to move your funds as quickly as possible. You may not earn interest from either financial institution while your funds are in transition, which can take 1-10 days.
If you need ongoing access to your funds consider a high interest savings account. Synchrony Bank was offering a 3.80% APY and Capital One was offering a 3.50% APY as of July 31, 2025. The rates are variable, but I’ve had a Capital One 360 Performance Savings account for over a year and the rate hasn’t changed.
Consider creating a CD ladder. A CD ladder consists of multiple CDs in smaller amounts with staggered maturity dates. This allows you to access some funds earlier and take advantage of higher interest rates if they become available. Here’s a good guide to how to build a CD ladder.
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