When it comes to your money, you should put your money in investments that promise the highest yields but the lowest risk. Enter certificates of deposit (CDs), low-risk investments where you tie up your money for a fixed period to get a fixed interest rate. 

To determine which CDs are the best, we partnered with Curinos, which provided us with over 20,000 data points from financial institutions in California. We narrowed our list down to the CDs with the highest annual percentage yields (APYs) to make sure you have the most lucrative options.

All of these picks are FDIC or NCUA-insured, too, so you know your money is safe if there’s a bank failure. 

Best CD rates in California overall

Compare rates from our partners

If you’re not in California and still want to score extra cash on your savings, we’ve gathered data from banks nationwide to determine the 10 best CD rates. These CDs offer some of the highest rates, regardless of where you’re located.

Best CD rates in California by term

We used Curinos data to figure out the best 6-month, 1-year, and 5-year CDs in California. 

However, in order to be eligible for these rates, you may need to fulfill certain requirements–which you can find in the notes field in the below tables. Some of the notes fields are blank, but contact the institution for the most current details.

Best 6-month CD rates in California

You don’t need to tie up your money for years to get a solid APY. Instead, you can opt for a 6-month CD–though you’ll typically get a higher interest rate by parting with your money for longer.

Best 1-year CD rates in California

If you don’t want a CD that lasts years but have an investing horizon that’s greater than six months, a 1-year CD could be a good bet. 

Plus, some CDs have low minimum opening deposit requirements, so you won’t need a lot of money to start investing.

Best 5-year CD rates in California

Want a safe, lucrative account to store money for a housing down payment in a few years? A 5-year CD could be the way to go. 

With a 5-year CD, you’ll have to give up your cash for a longer period, but you’ll usually get a higher return than you would with shorter-term CDs. 

What is a certificate of deposit?

A CD is a deposit account where you place money for a fixed period in exchange for regular interest payments. You might tie up your money for a few days or years. 

If you tap your money before the time period is up, you’ll be hit with early withdrawal penalties–typically worth a few months of interest.

What does APY mean on a CD?

APY refers to the annual percentage yield or the amount of interest you earn in a year. 

What are the most common types of CDs?

There are many types of CDs, but you’ll most commonly find traditional, brokered, and no-penalty CDs. 

Brokered CDs. Banks and financial institutions sell CDs to brokerages. In turn, brokerages offer them to customers with higher APYs than traditional CDs. 

No-penalty CD. Unlike traditional CDs, with a no-penalty CD, you won’t be charged for touching your money early. These CDs typically provide lower interest rates. 

Traditional CD. A reliable, trusty (as long as it’s FDIC or NCUA-insured) deposit account that provides a fixed rate of return when you lock your money up for a period of time.How to choose the best CD in California

There are over 190 FDIC-regulated banks in California and 250 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:

Term length: Your CD’s term length tells you how long it takes to mature. CD term lengths can be as short as one week or as long as 10 years. Choose a term length that meets your needs and aligns with your financial goals. 

APY: The annual percentage yield on your account significantly affects how much your money will grow. The higher the rate, the more you can expect to earn in interest. 

Minimum deposit: Most, but not all, banks and credit unions require that you invest a minimum amount of money to open a CD. The minimum opening deposit can range from zero dollars to thousands. Most CDs require depositing a lump sum and don’t allow additional contributions during the CD’s term length. Make sure you can meet the minimum opening deposit requirement. 

Penalties: Many traditional CDs charge early withdrawal penalties if you access your money before the term ends, which could mean losing out on interest you’ve already earned and possibly some of your principal balance.

Deposit insurance: FDIC and NCUA insurance provides depositors with insurance coverage if your bank or credit union fails–up to $250,000 per depositor or share owner, per ownership category. Make sure your account is insured in case of a bank failure. 



Original: Fortune | FORTUNE: Best California CD rates for November 2023