The Best Bank CD Rates of 2016

My very first investment was in certificates of deposit. I was a teenager, and CDs paid more than 10%. While we can’t get that kind of return today, a certificate of deposit is a safe place to hold cash. And if you pick a high yield CD, you will earn a decent return.

So here’s a list of featured CD offers with competitive rates:

Featured CD: Earn 1.25% APY on a 12-month CD from BBVA. FDIC insured.

Synchrony Bank offers one of the highest rates on certificates of deposit. The bank offers CD terms of 3 to 60 months with a low minimum deposit of just $2,000

GE Capital Bank is a newcomer to our list and offers one of the most competitive rates available. GE Capital offers CD terms from 6 months to 6 years. The minimum deposit is just $500.

Discover Bank first opened its doors in 1911 in Greenwood, DE. Originally known as the Greenwood Trust Company, the bank joined Discover Financial Services in 2000. It currently offers CD accounts with terms ranging from 3 months to 120 months. Discover Bank also offers a 12-month IRA CD.

Ally Bank continues to win awards for outstanding customer service and is always at the top of the list for interest rates. Personally, I have a few different Ally deposit accounts and even though their rates change on a frequent basis, I appreciate the service and quality of website they offer. Formally GMAC, Ally continues to re-brand itself in a positive direction.

EverBank has approximately 1,500 employees and more than $6.5 billion under management. Its certificates of deposit range in terms from 3 months to 60 months, with interest rates (APR) currently ranging from 0.30% to 1.81% for its Yield Pledge CD. Penalties for early withdrawal vary depending on the term of the CD. The range is a penalty equal to 90 days simple interest for its 13 week and 26 week CDs to 900 days of simple interest for its 5-year CD.

FNBO Direct or First National Bank of Omaha, is a subsidiary of First National of Nebraska. First opened in 1857 as a local bank, it is now the largest private bank in the United States, with more than 6.6 million customers and more than $20 billion in managed assets. FNBO Direct offers the standard CD terms as well as a competitive savings account, bill pay account and credit card.

Sallie Mae offers only three of the more basic CD terms and even though you might think ‘student loan’ before you think ‘savings’, there guys are more than capable of handling both. Their online savings account continues to offer one of the best interest rates available today and the account takes less than 120 seconds to open.

HSBC Direct is part of HSBC Bank USA, N.A., which has about 450 branches in the U.S., and HSBC Group, which has more than 10,000 office worldwide. Its online CD account is offered in terms ranging from 6 months to 60 months, with a variety of interest rates. Early withdrawals from an account incur a penalty equal to 30 days’ simple interest.

The above rates are for a 1 year CD. Each bank, however, offers certificates of deposit with terms as short as 3 months all the way up to 5 years or more.

Published or Updated: May 10, 2016
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.


  1. Matthew Ruff says:

    Very informative, thank you for the charts and comparison of rates.

  2. Dave Banas says:

    Leave your 401k money in your company fixed income at 3.5

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