If you're considering opening a savings account or CD today and want a competitive rate, Insider did the research to help you find the best rate across popular savings accounts and CD terms.
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Banks are fighting for customer dollars right now, and people with cash to spare are well-positioned to benefit from a high rate environment. With rates rapidly changing, how can you feel confident that you're getting the best savings account or best CD?
We monitor rates from banks and credit unions daily to help you feel confident before you open a new account. Here are the top rates for popular savings accounts and CDs on Sunday, October 22.
| Term | Rate | Where to Find It |
| No penalty (16 Month) | 5.40% APY | Western Alliance Bank, powered by Raisin |
| 6 Month | 5.76% APY | TotalDirectBank |
| 1 Year | 6.00% APY | |
| 2 Year | 5.60% APY | Newtek Bank |
| 3 Year | 5.60% APY | Valley Direct Bank |
| 5 Year | 4.86% APY | United States Senate Federal Credit Union |
See more CD rates »
| Best HYSA | Annual Percentage Yield (APY) | Requirements to Earn the Best APY |
| Popular Direct | 5.40% APY | $100 |
| BrioDirect | 5.35% APY | $5,000 opening account balance |
| Columbia Bank, powered by Raisin | 5.27% APY | Open an account with $1 |
| UFB High Yield Savings | 5.25% APY | None |
| Valley Direct Bank | 5.25% APY | None |
See more high-yield savings accounts »
Earn 7.00% APY on average daily balances up to $10,000 and 0.50% on balances above $10,000.
See more high-yield checking accounts »
Earn up to a $3,000 bonus when you open a new Chase Private Client Checking℠ account, transfer qualifying funds into a combination of eligible accounts within the first 45 days, and maintain your new money balance for at least 90 days from opening the account (offer expires 01/24/2024). Earn $1,000 when you deposit $150,000 - $249,999, earn $2,000 when you deposit $250,000 - $499,999, or earn $3,000 when you deposit $500,000 or more.
See more checking account bonuses »
BMO Relationship Plus Money Market Account
Earn up to $4,100 with qualifying transactions: Open a Relationship Plus Money Market account and maintain an eligible balance to earn up to a $3,500 bonus. Maximize your bonus by adding a personal checking account to earn up to an additional $600
See more savings account bonuses »
Earn up to a $250 bonus with qualifying direct deposits for eligible customers through 12/31/2023. Earn up to 4.50% APY on savings balances (including Vaults) with direct deposit.
See more bank account bonuses »
High-yield savings accounts aren't the only accounts paying favorable rates right now. You'll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.
The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase.
The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today's rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it's typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.
The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.
A cash management account is also like a savings/checking hybrid. You'll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn't. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.
The best CD rates may outpace any of the other accounts we've described above. That's because a certificate of deposit requires you to "lock in" your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you'll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you'll let the bank hold your money, the higher rate you'll get. CD rates aren't variable; the rate you get upon depositing your money is the rate you'll get for the length of your term.
Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.
Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.
The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.
The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.
The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.
The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.
The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.
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