CD Valet FAQs

A certificate of deposit (CD) is a safe savings account with a fixed term and predictable return. The CD rate is the interest you earn, and it's expressed as Annual Percentage Yield (APY) — the total amount your money will grow in one year, including the effect of compounding interest.

When you open a CD with a bank or credit union, you agree to keep your money in the account for a set period (for example, 6 months, 12 months, or 5 years). In return, the institution locks in your interest rate.

CDs are a safe, predictable way to grow savings, offering higher rates than regular savings accounts in exchange for locking your money for a set term.

Yes. All CDs listed on CD Valet are FDIC or NCUA-insured, giving you peace of mind that your deposits are protected.

Unlike other deposit marketplaces that only list advertisers, CD Valet shows you the largest collection of verified CD rates from both banks and credit unions — updated regularly by our team of expert RateWatchers and always federally insured. At CD Valet, you'll find 38,000+ rates from more than 4,900 financial institutions.

• Compare nationwide and local rates, including credit unions others don't list.
• Subscribe for free email alerts on top rates.
• Create an account to track your CDs, set maturity reminders, and build ladders.

Minimum deposits vary, usually from $500 to $5,000, depending on the institution and term.

Most CDs have fixed rates for the entire term, but some institutions also offer variable-rate CDs or bump-up CDs.

• A fixed-rate CD locks in your annual percentage yield (APY) for the full term, so your return won't change no matter what happens in the market.
• A variable-rate CD ties its APY to an external benchmark (like the prime rate or Treasury yields). Your return may increase if interest rates rise, but it can also decrease if rates fall.
• A bump-up CD starts with a fixed rate but gives you the option to request a one-time (or limited) increase if the bank or credit union raises CD rates during your term.

You can, but you'll usually pay an early withdrawal penalty.

CD interest can be paid monthly, quarterly, annually, or at maturity, depending on the bank or credit union. Be sure to read the account disclosures to learn how the financial institution pays interest.

Some CDs allow you to withdraw the interest as cash, while others automatically reinvest it back into the CD balance, providing the benefits of compound interest. The exact schedule and options are set by the financial institution offering the CD.

All credit unions and banks on CD Valet are federally insured, so CDs opened at them will be protected up to the defined limits. Credit unions may offer higherrate CDs, but they may not be available to you if you don't meet the credit union's membership requirements.

A CD ladder is a savings strategy where you open multiple certificates of deposit (CDs) with staggered maturity dates. This allows you to earn higher interest rates while still having regular access to your money.

For example, you might build a ladder using a mix of terms such as a 6-month CD, 12-month CD, 24-month CD, 3-year CD, 4-year CD and 5-year CD.

As each CD matures at different intervals, you can either withdraw the funds or reinvest them into a new long-term CD—helping you stay flexible while consistently capturing competitive rates.

CD Valet’s CD Ladder Guide and calculator make it easy to plan, optimize, and track your ladder strategy.

On CD Valet, just click “Open Now” on any featured listing to start the bank or credit union's secure online application. CD Valet connects you directly to the institution — we're not a middleman. Many of our partner banks and credit unions offer online account opening. For those that don't have this capability, you can provide your contact information, and a financial institution team member will reach out to you by phone or email.

An IRA CD is a certificate of deposit held inside an individual retirement account, combining tax advantages with the safety and predictability of a CD.

IRA CDs can be a good choice if you're nearing or in retirement, or if you want to protect part of your savings with a predictable yield. They are federally insured (FDIC/NCUA), offer reliable returns, and may qualify for tax-deferred or tax-free growth depending on whether you choose a Traditional or Roth IRA.

On CD Valet, you'll currently find IRA CDs available to open online from select financial institutions. When you click “Open Now,” you'll start the account opening process with the bank or credit union guiding you through eligibility, contribution types, and account setup.

When a CD matures, you can withdraw your funds or roll them into a new CD or another account. It's important to know when your CD matures so you can decide your next step, before it automatically renews.

No. CD Valet is completely free for consumers.

Compare the APY, term length, minimum deposit, early withdrawal penalties, interest payout schedule, and what happens at maturity before choosing a CD. Reviewing the best CD rates available can help you quickly compare these factors across banks and credit unions.

Always review the minimum deposit and understand the penalties if you need early access. Some CDs pay interest monthly or quarterly, while others compound until maturity. Also check how the institution handles maturity — many will automatically renew your CD unless you act.

CD rates generally go up when the Federal Reserve raises rates and down when it lowers them.

Banks and credit unions adjust CD yields based on the broader interest rate environment, competitive pressures, and their need for deposits to fund lending When the Fed raises its benchmark rate, financial institutions often increase CD rates to attract deposits. Conversely, when the Fed cuts rates, CD yields usually decline.

The best CD term depends on your savings goals and the interest rate environment — sometimes shorter CDs offer higher APYs, and sometimes longer CDs do.

In many cases, longer-term CDs pay more because you're committing your money for a longer period. But there are times when banks and credit unions make shorter-term CDs more competitive — for example, if rates are expected to fall, they may offer attractive short-term yields to draw deposits.

CD Valet's RateWatchers review and verify CD rates each week to ensure accuracy and catch errors that automated systems might miss.

On our site, you'll always see a “APY Updated on” date on rate pages. For email alerts, rates are accurate as of the day before the alert is sent.

Yes — you can open more than one CD at the same time, either at a single institution or across different banks and credit unions.

Some savers open multiple CDs to diversify terms, rates, or institutions. For example, you might place one deposit in a short-term CD for flexibility in case you need money, and another in a longer-term CD for higher earnings.

Laddering is a specific strategy that uses multiple CDs with staggered maturity dates to balance access and returns — but simply opening multiple CDs doesn't have to follow that pattern.