What are CDs and what are they for?

Do you want to have all the information about CDs? We have conducted an analysis for Responsible Economy on CDs, covering what they are, their purpose, and the best banks to consider for hiring one. Welcome!

What are CDs?

CDs or certificates of deposit are a financial savings instrument. Thanks to CDs we can get interest with the money we have saved. The main function of the CDs is to obtain a remuneration so that our savings grow every year.

How do they work?

The operation of certificates of deposits is very simple. Banks offer a certain interest rate and a given time. You only have to make a deposit in the CDs and the bank will remunerate you the agreed interest rate during the time specified in the deposit contract.

You should also know that if you withdraw the money early you will have a penalty. You should try to keep the money in the bank for the agreed time.

Video with the best CDs in 2023

Here you have a video with the 10 best CDs that you can open in 2023 in the United States. We show you all features of each CD:

Best CD in 2023

What are the best deposits?

We have made a ranking of the best certificates of deposit that you can open in the United States in 2023:

Logo capital One CDs
  • 5.25% APY
  • Minimum deposit: $0
  • Term: 18 months
  • Member FDIC
Marcus by Goldman Sachs
  • 5.10% APY
  • Minimum deposit: $500
  • Term: 12 months
  • Member FDIC
CIT Bank Logo
  • 5.00% APY
  • Minimum deposit: $1,000
  • Term: 6 months
  • Member FDIC
synchrony-bank-logo
  • 5.40% APY
  • Minimum deposit: $0
  • Term: 16 months
  • Member FDIC
Alliant Logo
  • 5.18% APY
  • Minimum deposit: $1,000
  • Term: 12 months
  • Member FDIC
Bask bank logo
  • 5.15% APY
  • Minimum deposit: $1,000
  • Term: 12 months
  • Member FDIC
Barclays Logo
  • 5.15% APY
  • Minimum deposit: $0
  • Term: 12 months
  • Member FDIC
BMO logo
  • 5.25% APY
  • Minimum deposit: $1,000
  • Term: 13 months
  • Member FDIC

Frequent questions

Now we answer all the questions you may have about certificate of deposit:

Related content

Finally, we show you related content of certificates of deposits:

Updated the day 20 July, 2023 by Alfredo Barandiarán

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