Key Takeaways
- A certificate of deposit can be a great choice regardless of the amount you have available to save.
- Many high-paying CDs require minimum deposits as low as $500 or $1,000.
- Today’s best nationwide CDs pay up to 4.65% APY, and you can lock that rate in until December—or choose a slightly lower rate for a longer guarantee.
- There’s usually a penalty for cashing in your CD early, which encourages you to keep your money in for the full term to maximize your savings.
- Opening more than one CD can be a useful strategy when interest rates are expected to drop in the coming months.
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Only Able to Open a Small CD? It’s Still Worth It
A certificate of deposit (CD) can be a great option if you have some extra cash that you don’t need access to right away, or you have a short-term savings goal you’re looking to reach. Your bank or credit union will guarantee a set rate for the full term in exchange for holding your deposit. Since the CD’s rate won’t change, you’ll know how much money you’ll earn–even if it’s just for a short amount of time. But what if you don’t have much money to commit? Is it still worth it?
At least 10 of the best CDs—paying 4.50% annual percentage yield (APY) or better—can be opened with $500 or $1,000. So even if you don’t have a large sum of money, or you’re nervous about locking it up for a period of time, you can still benefit. And, because most CDs have an early withdrawal penalty if you take money out before the maturity date, that can entice you to keep those savings untouched to maximize your earnings.
Another benefit to opening a CD with a smaller deposit amount is that it might allow you to spread your money into several CDs. This gives you the opportunity to open different certificates that mature at different times, so you can take advantage of different rates without giving up long-term access to your money. (This strategy is known as a CD ladder.) This is particularly helpful if you expect interest rates to drop in the future and you want to lock in higher rates now.
Tip
CD rates are historically high right now, but may drop later this year if the Federal Reserve opts to lower its federal funds rate. It’s currently expected that the Fed will cut rates sometime in 2025.
The Best CD Rates for Deposits of $500 or Less
These are the CDs with the best rates that require an opening deposit of $500 or less.
If You Can Deposit $1,000 or More, These Rates Are Even Better
These CDs require an opening deposit of $1,000 but pay higher rates. So if you can stretch to a $1,000 certificate, you may prefer one of these options:
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are consistently quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
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