Best CD Rates in California
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Find the best CD options in California with the highest rates and guaranteed returns. Secure and grow your savings now.
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Here are some banks and credit unions with the best CD rates in California:
- Ponce Bank:
3-Month High-Yield CD - 4.52% APY - Always.bank:
24-Month Callable CD - 4.45% APY - mph.bank:
60-Month Callable CD - 4.42% APY - SkyOne Federal Credit Union:
12-Month Callable CD - 4.40% APY - Western Alliance Bank:
5-Month High-Yield CD - 4.40% APY - Western Alliance Bank:
6-Month High-Yield CD - 4.40% APY - mph.bank:
36-Month Callable CD - 4.38% APY - Western Alliance Bank:
9-Month High-Yield CD - 4.35% APY - Generations Bank:
10-Month High-Yield CD - 4.26% APY - SkyOne Federal Credit Union:
48-Month Callable CD - 4.25% APY - Golden 1 Credit Union:
9-Month CD - 4.60% APY - Charles Schwab Bank:
3-Month CD - Up to 4.58% APY - Flagstar Bank:
7-Month CD - 4.50% APY - First Foundation Bank:
9-Month CD - 4.40% APY - Veridian Credit Union:
9-Month CD - 4.40% APY - SchoolsFirst Federal Credit Union:
37-Month Share Certificate - 4.40% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Together Credit Union:
9-Month CD - 4.30% APY - Travis Credit Union:
7-Month CD - 4.30% APY - Patelco Credit Union:
9-Month Certificate - 4.25% APY
Looking for the best CDs in sunny California? You don't have to look too far.
California offers numerous CDs with attractive rates. From short to long-term CDs, you can secure a solid return and steady passive income for months or years. Explore the top offers in the Golden State below.
Best Bank CD rates in California
If you prefer getting a CD with a local California bank, here are some of the highest CD rates you can consider.
- Charles Schwab Bank:
3-Month CD - Up to 4.58% APY - Flagstar Bank:
7-Month CD - 4.50% APY - First Foundation Bank:
9-Month CD - 4.40% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Beal Bank:
3-Month CD - 4.25% APY - Armed Forces Bank:
9-Month CD - 4.15% APY - City National Bank (CNB):
3-Month CD - 4.07% APY - Community Commerce Bank:
12-Month CD - 4.07% APY - Home Bank of California:
6-Month CD - 3.98% APY - Chase:
3-Month CD (Relationship Rate) - 3.50% APY
Best Credit Union CD rates in California
Credit unions can offer very competitive rates and other perks to their members. Check out these credit unions in California with impressive CD rates.
- Golden 1 Credit Union:
9-Month CD - 4.60% APY - Veridian Credit Union:
9-Month CD - 4.40% APY - SchoolsFirst Federal Credit Union:
37-Month Share Certificate - 4.40% APY - Together Credit Union:
9-Month CD - 4.30% APY - Travis Credit Union:
7-Month CD - 4.30% APY - Patelco Credit Union:
9-Month Certificate - 4.25% APY - Spectrum Credit Union:
12-Month CD - 4.25% APY - Redwood Credit Union:
6-Month Certificate with Active Checking - 4.25% APY - California Credit Union:
12-Month CD - 4.20% APY - Global Credit Union:
18-Month CD - 4.05% APY
Best Online CD rates in California
Online banks are typically available to residents nationwide regardless of where you live. Here are the top online CDs available.
- Limelight Bank:
6-Month CD - 4.65% APY - Bask Bank:
3-Month CD - 4.65% APY - Popular Direct:
3-Month CD - 4.65% APY - Walpole Co-operative Bank:
7-Month CD - 4.50% APY - My eBanc:
6-Month CD - 4.50% APY - mph.bank:
60-Month Callable CD - 4.42% APY - Bread Savings:
1-Year CD - 4.30% APY - Synchrony Bank:
9-Month CD - 4.30% APY - Greenwood Credit Union:
6-Month CD - 4.25% APY - Marcus:
12-Month High-Yield CD - 4.25% APY
Best National Bank CD rates
If you're looking for a reputable large national bank, some offer decent CD rates from time to time.
- Charles Schwab Bank:
3-Month CD - Up to 4.58% APY - Fifth Third Bank:
3-Month CD - 4.52% APY - Citizens Bank:
7-Month CD - 4.50% APY - Huntington:
5-Month CD - 4.34% APY - BMO Alto 6-Month CD:
4.30% APY - Wintrust Bank:
7-Month CD - 4.25% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.25% APY - Hancock Whitney Bank:
3-Month CD - 4.25% APY - PNC Bank:
4-Month CD - 4.25% APY - Wells Fargo:
4-Month CD - 4.25% APY
Best CD Rates in California by Term
Looking to open a CD with a specific term? Here are some of the highest CD rates in California by CD term.
Best 3-month CDs in California:
- Charles Schwab Bank:
3-Month CD - Up to 4.58% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Beal Bank:
3-Month CD - 4.25% APY - City National Bank (CNB):
3-Month CD - 4.07% APY - Redwood Credit Union:
3-Month Certificate with Active Checking - 4.00% APY
Best 6-month CDs in California:
- Charles Schwab Bank:
6-Month CD - Up to 4.45% APY - Redwood Credit Union:
6-Month Certificate with Active Checking - 4.25% APY - Bank of Hope:
6-Month Preferred CD - 4.20% APY - Beal Bank:
6-Month CD - 4.20% APY - SchoolsFirst Federal Credit Union:
6-Month Share Certificate - 4.10% APY
Best 1-year CDs in California:
- Charles Schwab Bank:
1-Year CD - Up to 4.45% APY - Spectrum Credit Union:
12-Month CD - 4.25% APY - First Foundation Bank:
12-Month CD - 4.25% APY - Together Credit Union:
12-Month CD - 4.20% APY - California Credit Union:
12-Month CD - 4.20% APY
Best 5-year CDs in California:
- SchoolsFirst Federal Credit Union:
60-Month Share Certificate - 4.25% APY - Golden 1 Credit Union:
60-Month CD - 3.80% APY - Spectrum Credit Union:
60-Month CD - 3.50% APY - Beal Bank:
60-Month CD - 3.45% APY - SAFE Credit Union:
60-Month CD - 3.40% APY
What Is a CD?
A certificate of deposit, or CD, is a savings account where you deposit a fixed amount for a fixed number of months or years. In exchange, you earn a fixed APY that applies for the entire term.
Often, the APY on a CD is higher than what you can get on a regular savings account. But, you can't withdraw your money until the CD matures. The lock-in period is why banks can offer you high rates. You lose convenient access to your money in exchange.
If you withdraw early, be ready to pay early withdrawal penalties. It can range anywhere from 3 months to 1 year's interest, depending on the term.
Usually, no. CDs are risk-free investments. Your deposits are federally insured up to $250,000 for banks or credit unions that are FDIC or NCUA members. But, you can lose some of your money to penalties if you withdraw early enough.
How Much Interest Does a CD Earn?
If you deposited $10,000 in a 1-year CD with a 5% APY, you'd earn $500 after a year. How much you earn on a CD depends on three things: the CD term, APY, and the amount in your CD.
In general, the longer term, the higher the APY, and the bigger the amount, the better your interest earnings will be.
Here's a simple CD calculator to see how much your CD can earn.
Yes, you might need to pay state taxes on your CD interest earnings in California. You also need to pay federal income taxes on your CD.[1][2]
Where to Find the Best CDs in California?
If you are strictly looking at offers in California, check out CD specials from community banks and credit unions. They may offer promotional CDs for a limited time, sometimes with specific criteria to open. But, they usually come with good rates.
National banks may also offer CD specials that vary by location. There also may be some requirements to qualify.
Online banks typically give high CD rates too. Plus, the region is not restricted so you can easily open a CD with them.
One of the highest CD rates in California is Golden 1 Credit Union:
Pros and Cons of a CD
Pros:
- Fixed rate for a fixed term
- Usually offers higher APY than regular savings
- Keep earning at the same APY even if interest rate drops
- Federally insured up to $250,000 by the FDIC or the NCUA
Cons:
- Can't withdraw until CD matures
- Early withdrawal penalties can be costly
- Some restrictions like membership and minimum deposit
- Miss out on better APY and investments due to the fixed term
If you can park your money for months or years, a CD is a good option to lock in high rates. But if you need easy access to your money, liquid accounts like a savings account might be a better choice.
Should I Get a CD?
Whether or not you get a CD depends on your goals. They're safe investments if you need to save money for the short term, and want to lock in a good interest rate.
The big question is: can you afford to lose access to your funds for months or years? Remember that you usually can't withdraw your CD until it matures.
If you think you might need the money, opt for more liquid and convenient accounts instead. For example, many high-yield savings accounts offer competitive APY, and may be good alternatives.
- Western Alliance Bank:
High-Yield Savings Premier - 4.46% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.35% APY - Mission Valley Bank:
High Yield Savings Account - 4.50% APY - DR Bank:
High-Yield Savings Account - 4.40% APY
How to Choose the Best CD Rates in California?
When you're hunting for a CD in California, ask these questions:
How long is the term?
You want a CD term that fits your financial goals. Some banks or credit unions may offer more term options in-branch. If you can, inquire with a branch near you.
What is the APY?
Get the highest APY to maximize your earnings on a CD. Ask your local bank or credit union if they have CD specials in California.
Are there any requirements or restrictions?
Some CDs may only be available for residents in a certain county. Or some offers may be available to new customers only. Be sure to ask before you open an account.
What is the minimum deposit required?
The CD may have a minimum deposit. If you can't commit to or meet the requirement, look for CDs with little to no deposit requirements.
Most CDs will have early withdrawal penalties. So if you need to close your CD before it matures, be prepared to pay the penalties. Or if you're not sure if you can commit, find no penalty CDs to avoid paying any fees.
What Are the Types of CDs Available?
Here's a list of different types of CDs that may be available in California:
- Term CD: Standard CDs with a fixed rate for a fixed term
- No-Penalty CD: Allows you to withdraw money early without any withdrawal penalties
- Jumbo CD: Requires large deposits of usually $100,000+
- IRA CD: Offers tax advantages for retirement savings
- Bump-Up CD: Has an option to increase your rate during the term of the CD
- Add-on CD: Has an option to add more deposits during the term of the CD
- Home Bank of California:
3-Month Jumbo CD - 4.50% APY - SchoolsFirst Federal Credit Union:
5-Year Jumbo CD - 4.40% APY - Community Commerce Bank:
12-Month Jumbo CD - 4.39% APY - Bank of Hope:
3-Month Preferred Jumbo CD - 4.30% APY - Spectrum Credit Union:
12-Month Jumbo CD - 4.25% APY
Bottom Line
There are plenty of golden CD options in sunny California. But, take note: some CDs may have restrictions for you to open.
If you're just looking for a general high-yield CD, consider CDs from online banks instead. They usually have less restrictions and can be opened from anywhere.
References
- ^ Tax Foundation. State Individual Income Tax Rates and Brackets, 2024, Retrieved 05/15/2024
- ^ IRS. Topic no. 403, Interest received, Retrieved 05/15/2024
Write to Rue Atanacio at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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