If you’re looking for a safe place to stash cash while earning more than a traditional savings account, certificates of deposit (CDs) can make a lot of sense right now.
CDs pay you a fixed rate of interest in exchange for keeping your money locked away for a set period. They’re protected by FDIC or NCUA insurance — up to $250,000 per depositor, per institution — so they’re as close to risk-free as you can get.
But rates change often, and not every CD is a great deal. Here’s where money expert Clark Howard recommends you look for the best CD rates today — and how to make sure you’re getting a truly smart return.
Top Picks for Opening CDs
Clark recommends avoiding traditional big banks for CDs. “You’ll almost always get lower rates there,” he says. Instead, he points people toward brokerages and credit unions — where competition tends to push yields higher.
Here are three excellent places to find competitive CD rates right now.
1. Fidelity
Fidelity offers an extensive lineup of brokered CDs — meaning you can shop CDs from multiple banks and credit unions all in one place.
- You can often find 6-month and 12-month CDs with rates near 4% APY.
- Minimum investments typically start at $1,000.
- All CDs are FDIC-insured through the issuing bank.
2. Vanguard
Vanguard also lets you purchase CDs from many different banks — sometimes offering rates even higher than you’ll find directly.
- CD terms range from 1 month to 10 years.
- Many options (non-callable) currently yield between 3.8% and 4.2% APY, depending on term length.
- Like Fidelity, CDs bought through Vanguard are FDIC-insured by the issuing bank.
3. Navy Federal Credit Union
If you qualify for membership, Navy Federal is one of the best credit unions for CD (or “share certificate”) rates and customer service.
- Recent rates: around 3.85% APY on a 12-month certificate, and up to 4% APY for certain promotional terms.
- Minimum deposit: $1,000 for a Standard Certificate.
- Membership open to: active duty and retired military, Department of Defense (DoD) employees, and eligible family members.
- NCUA-insured up to $250,000.
Other Strong Credit Unions To Watch
If you’re not eligible for Navy Federal, consider Alliant Credit Union, a Chicago-based credit union open to anyone nationwide. The credit union frequently offers 12-month CDs near 4% APY.
Why CDs Are Worth a Look
As Clark explains in his guide to CDs, these accounts can be great if you have money you know you won’t need for a while.
Pros:
- Safe, guaranteed returns
- Often higher yields than savings accounts
- Predictable — you know exactly how much you’ll earn
Cons:
- Early-withdrawal penalties
- Fixed terms — not ideal if you might need cash soon
- Rates can look worse if interest rates rise after you lock in
Still, for savers who want to earn more on idle cash, CDs are a solid tool — especially if you shop around.
Clark-Smart Tips for CD Shoppers
- Compare before you commit. Don’t assume your current bank has the best offer — it probably doesn’t. You can calculate interest rates to really see the difference.
- Ladder your CDs. Spread your money across several terms (for example, 12, 24, and 36 months) to keep flexibility as rates change. This CD Ladder calculator can help you see the numbers and explore scenarios.
- Watch for early-withdrawal penalties. They can eat up your earnings if you cash out too soon.
- Read the fine print. Brokered CDs can’t always be broken early, while bank CDs typically can — for a fee.
- Stick with insured institutions. Make sure any bank or credit union you use is FDIC- or NCUA-insured.
Final Thoughts
The best CD rates aren’t at the big banks.
Clark recommends starting your search at Fidelity, Vanguard, or a strong credit union like Navy Federal (or Alliant, if you’re not military-affiliated).
You’ll lock in a solid yield, keep your money safe, and avoid the frustration of earning next to nothing on your savings.
