![]() ![]() Goldman Sachs Bank actually offers a higher 1.64% rate, for instance, but it has a 270-day penalty for early withdrawals. The biggest draw of this Barclays online CD is that there's no minimum balance-many CDs require deposits of $5,000, $10,000 or even more-and the early withdrawal penalty is only 90 days of simple interest. If you're not sure what your finances will look like within a year, you might do better with an online checking or savings account. Make sure you won't need those funds in the coming year an early withdrawal will cost you. Barclays 12-month CD offered the best rate among those surveyed by and Money.Įarly Withdrawal Penalty: 90 days of simple interest on the amount withdrawn. Interest: 1.49% (with an APY of 1.5%) Although a couple of other 12-month CDs came close, this is top for an online CD account. You'll be practicing financial discipline and earning a little extra money, too. This online CD account is the best place to put away some cash where you won't be tempted to spend it. The Winner: Barclays Bank Delaware, 12-Month CDīarclays Bank's online CD is Money's pick for the best 12-month CD. If you do withdraw the money beforehand, you'll have to pay an early withdrawal penalty. A CD will generally offer a higher interest than a savings account, but the caveat is that you can't access the money until the CD matures. It's an FDIC-insured vehicle where you earn interest on your deposited funds. ![]() (Bankrate also picked a few winners of its own.) What Is a Certificate of Deposit?Ī certificate of deposit is like a savings account, with a couple of key differences. It's common to find CDs with either sub-1% interest rates or astronomically high minimums-if not both.Īs part of its Best Banks analysis this year, Money worked with our data partner,, to identify the best CD. Interest rates on savings have been around the bottom of the barrel for the past several years now, however, and that's been making it harder for savers to eke out any significant gains on their deposits. A certificate of deposit is a pretty low-hassle way to put some money you don't need right away to work for you. ![]()
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