Online banks and credit unions have higher interest rates than the average CD.The most competitive 18-month CDs offer more than 5% APY. The best 18-month CD rate is 5.30% APY from Alliant Credit A fixed-rate certificate of deposit (CD) is a low-risk investment instrument that has a set interest rate over its entire term. more Jumbo Certificate of Deposit (CD): Meaning, Pros and Cons CD vs. IRA Overview. CDs and IRAs both help you save and grow your money. However, one is a short-term savings tool, and one is an investment account. A CD is a type of savings account. With a CD Rates for its standard CDs range from 0.05% APY for a one-month CD to 0.25% APY for a 60-month CD. There’s a $500 (maximum of $250,000) minimum deposit to open a standard CD. FEATURED PARTNER OFFER Open a Variable-rate CD. Earn 5.60% APY on a 3 year variable CD from Valley Direct. 3. Bump-up CD. If you want a little more flexibility with your CD terms, Manske said you might decide to choose CDs provide higher rates because of their significant risk than bank deposit plans. 3. Investment Horizon. The maximum duration for CDs is 12 months, allowing investing your money for a short period. In contrast, FDs provide a larger range of tenures, from 7 days to 20 years. 4. Collateral for Loan. Annuity Rates Dwarf CD Rates. As of early January 2022, you can earn up to 3.15% annually on a five-year fixed annuity. For comparison, the top five-year CD rate was 1.30%, according to Bankrate CD pros and cons. Pros. Cons. CDs are FDIC insured, meaning that the federal government will back your deposit up to $250,000 if the financial institution holding your money should fail. CDs may have lower payouts when compared with annuities with similar terms. The average 5-year CD rate is currently around 2.25%. Bank of America’s fixed-term CDs are like its featured CDs, but there are more terms to choose from. Term lengths range from one month to 10 years, and most earn 0.03% APY, well below the FDIC A flexible CD combines the safety of a fixed-rate account with the ability to bump your rate or pull out penalty free. Are you annoyed with the measly 0.5% rate on your bank savings account? qoIf.