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:
4-Month High-Yield CD - 4.37% APY - Always.bank:
3-Month High-Yield CD - 4.35% APY - mph.bank:
60-Month Callable CD - 4.32% APY - Freedom Bank:
5-Month High-Yield CD - 4.30% APY - Western Alliance Bank:
6-Month High-Yield CD - 4.30% APY - Sallie Mae Bank:
14-Month No Penalty CD - 4.25% APY - Freedom Bank:
12-Month High-Yield CD - 4.25% APY - Sallie Mae Bank:
27-Month High-Yield CD - 4.25% APY - SkyOne Federal Credit Union:
48-Month Callable CD - 4.15% APY - Generations Bank:
10-Month High-Yield CD - 4.12% APY - Charles Schwab Bank:
1-Year CD - Up to 4.40% APY - Veridian Credit Union:
9-Month CD - 4.35% APY - Golden 1 Credit Union:
22-Month CD - 4.30% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - SchoolsFirst Federal Credit Union:
37-Month Share Certificate - 4.30% APY - Flagstar Bank:
7-Month CD - 4.25% APY - Beal Bank:
3-Month CD - 4.25% APY - Global Credit Union:
18-Month CD - 4.15% APY - Together Credit Union:
12-Month CD - 4.10% APY - Redwood Credit Union:
6-Month Certificate with Active Checking - 4.10% 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 National Bank CD rates
If you're looking for a reputable large national bank, some offer decent CD rates from time to time. Check out these offers for California residents:
- Charles Schwab Bank:
1-Year CD - Up to 4.40% APY - Citizens Bank:
10-Month CD - 4.35% APY - Fifth Third Bank:
3-Month CD - 4.26% APY - Wintrust Bank:
7-Month CD - 4.20% APY - Santander Bank:
6-Month CD - 4.15% APY - Valley National Bank:
3-Month Fixed Rate CD - 4.10% APY - M&T Bank:
6-Month Select CD - 4.10% APY - PNC Bank:
4-Month CD - 4.10% APY - Huntington:
5-Month CD - 4.08% APY - Hancock Whitney Bank:
3-Month CD - 4.00% APY
Best Local 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:
1-Year CD - Up to 4.40% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Flagstar Bank:
7-Month CD - 4.25% APY - Beal Bank:
3-Month CD - 4.25% APY - First Foundation Bank:
9-Month CD - 4.10% APY - Community Commerce Bank:
12-Month CD - 4.07% APY - Armed Forces Bank:
9-Month CD - 4.05% APY - City National Bank (CNB):
3-Month CD - 3.82% APY - Home Bank of California:
3-Month CD - 3.57% APY - Chase:
12-Month CD (Relationship Rate) - 3.00% 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.
- Veridian Credit Union:
9-Month CD - 4.35% APY - Golden 1 Credit Union:
22-Month CD - 4.30% APY - SchoolsFirst Federal Credit Union:
37-Month Share Certificate - 4.30% APY - Global Credit Union:
18-Month CD - 4.15% APY - Together Credit Union:
12-Month CD - 4.10% APY - Redwood Credit Union:
6-Month Certificate with Active Checking - 4.10% APY - Travis Credit Union:
7-Month CD - 4.10% APY - Patelco Credit Union:
9-Month Certificate - 4.00% APY - California Credit Union:
12-Month CD - 4.00% APY - Spectrum Credit Union:
12-Month CD - 4.00% 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.
- My eBanc:
6-Month CD - 4.55% APY - Marcus:
14-Month High-Yield CD - 4.50% APY - Bask Bank:
3-Month CD - 4.50% APY - Synchrony Bank:
16-Month CD - 4.40% APY - Limelight Bank:
6-Month CD - 4.35% APY - mph.bank:
60-Month Callable CD - 4.32% APY - Popular Direct:
6-Month CD - 4.30% APY - Sallie Mae Bank CD Rates:
Up to 4.25% APY - Walpole Co-operative Bank:
7-Month CD - 4.25% APY - Alliant Credit Union:
12-Month CD - 4.25% APY
Best Jumbo CD Rates in California
Have a substantial amount to save? Jumbo CDs may offer higher rates compared to standard CDs. But they typically require a minimum deposit of $100,000 or more.
Here are the top Jumbo CDs:
- Alliant Credit Union:
12-Month Jumbo CD - 4.30% APY - Alliant Credit Union:
6-Month Jumbo CD - 4.10% APY - Alliant Credit Union:
18-Month Jumbo CD - 3.85% APY - Alliant Credit Union:
3-Year Jumbo CD - 3.75% APY - Alliant Credit Union:
5-Year Jumbo CD - 3.70% APY
It's smart to compare both regular CDs and Jumbo CDs. Even if you have over $100k to save, it's not always necessary to choose a Jumbo CD if a regular CD fits your goals.
Yes. Like standard CDs, your deposits in Jumbo CDs are federally insured up to $250,000 by the FDIC for banks and NCUA for credit unions.
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 4.37% APY - Bank of Hope:
3-Month Preferred CD - 4.30% APY - Beal Bank:
3-Month CD - 4.25% APY - Spectrum Credit Union:
3-Month CD - 3.90% APY - SchoolsFirst Federal Credit Union:
3-Month Share Certificate - 3.85% APY
Best 6-month CDs in California:
- Charles Schwab Bank:
6-Month CD - Up to 4.30% 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 - Redwood Credit Union:
6-Month Certificate with Active Checking - 4.10% APY
Best 1-year CDs in California:
- Charles Schwab Bank:
1-Year CD - Up to 4.40% APY - SchoolsFirst Federal Credit Union:
12-Month Share Certificate - 4.15% APY - Together Credit Union:
12-Month CD - 4.10% APY - Community Commerce Bank:
12-Month CD - 4.07% APY - Beal Bank:
12-Month CD - 4.05% 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 - Beal Bank:
60-Month CD - 3.45% APY - SAFE Credit Union:
60-Month CD - 3.40% APY - Spectrum 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]
Short Term vs Long Term CDs
Short-term CDs are typically 1 year or less, and are ideal for short-term goals where you'll need access to your money soon. On the other hand, long-term CDs can go up to 10 years and offer the stability of a fixed APY for an extended period.
Choose a short-term CD if you:
- Are saving for a near-future goal
- Want to avoid the temptation of spending the money
- Expect interest rates to rise soon
Choose a long-term CD if you:
- Want to preserve capital and earn guaranteed returns
- Don't need the funds in the near future
- Expect interest rates to fall soon
What's better for you depends on your goals, how soon you'll need access to your funds, and the current financial environment.
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 Charles Schwab Bank:
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.
- CIT Bank Platinum Savings:
$300 Bonus - Discover® Online Savings:
$200 Cash Bonus - Western Alliance Bank:
High Yield Savings Account - 4.25% APY - UFB Portfolio Savings:
Earn up to 4.01% APY - Mission Valley Bank:
High Yield Savings Account - 4.27% 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
- 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 - Home Bank of California:
6-Month Jumbo CD - 4.09% APY - Spectrum Credit Union:
12-Month Jumbo CD - 4.00% 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
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