The main places to buy CDs online

You can buy CDs from three types of financial institutions: traditional banks with online platforms, online-only banks, and brokerage firms. Each one sells CDs, but they work slightly differently and offer different term lengths and interest rates.

Traditional banks like Chase, Bank of America, and Wells Fargo let you open a CD through their website if you already have an account with them, or sometimes as a new customer. Online-only banks like Ally, Marcus, and Discover have no physical branches—you do everything through their website or app. Brokerage firms like Fidelity, Charles Schwab, and Vanguard sell CDs from multiple banks, which means you can compare rates across institutions in one place instead of visiting each bank's website separately.

The CD itself works the same way no matter where you buy it: you deposit money, agree to leave it untouched for a set period (the term), and receive a fixed interest rate. The main difference is convenience and the range of options available to you.

Key Takeaways

  • Online-only banks and brokerage firms typically offer higher interest rates than traditional banks because they have lower overhead costs.
  • Brokerage firms let you compare CD rates from multiple banks on one screen, saving time if you want to shop around.
  • All CDs sold through FDIC-insured banks or credit unions are protected up to $250,000 per depositor, regardless of where you buy them.
  • CD terms range from three months to five years or longer, and rates vary by term length and current market conditions.
  • You can buy a CD in minutes once you choose a provider, but money usually takes one to three business days to transfer from your checking account.

Online-only banks and their CD rates

Online-only banks have become the most common place to buy CDs because they offer higher interest rates than traditional brick-and-mortar banks. They have no physical locations to maintain, no tellers to pay, and lower overall costs—so they pass some of that savings to customers through better rates.

Banks like Marcus (owned by Goldman Sachs), Ally, Discover, and American Express all sell CDs online. You create an account, verify your identity, and fund the CD from a linked checking account. The process takes about 10 to 15 minutes. Each bank sets its own rates and term options, so a three-month CD at Marcus might pay 4.75% while Ally pays 4.50% for the same term. Rates change daily based on what the Federal Reserve does and what each bank decides to offer.

The downside is that you have to visit each bank's website separately to compare rates. If you want to know which bank is offering the best rate on a one-year CD, you'll need to check five or six sites. Some people use rate-tracking websites like DepositAccounts or BankRate to see current rates across multiple banks, but you still have to go to each bank to actually open the account.

Brokerage firms and CD ladders

Brokerage firms like Fidelity, Charles Schwab, and Vanguard sell CDs from dozens of banks through a single platform. Instead of visiting Marcus, then Ally, then Discover, you log into your brokerage account and see rates from all of them at once. You can filter by term length, sort by interest rate, and buy directly.

This approach is especially useful if you want to build a CD ladder—a strategy where you buy multiple CDs with different maturity dates so that one matures every few months or every year. For example, you might buy a one-year CD, a two-year CD, and a three-year CD all at once. When the one-year CD matures, you can reinvest that money in a new three-year CD, and the ladder keeps rolling. A brokerage platform makes this much easier because you can see all the options and execute multiple trades in one session.

Brokerage firms also handle the paperwork and FDIC insurance tracking for you. If you buy CDs from five different banks through Fidelity, Fidelity keeps track of how much you have at each one to make sure you stay within the $250,000 FDIC insurance limit per bank. You don't have to track that yourself.

Traditional banks and existing customers

If you already have a checking or savings account at a traditional bank, you can usually open a CD through that same bank's website without starting from scratch. Chase, Bank of America, Wells Fargo, and most regional banks let existing customers add a CD to their account in a few clicks.

The advantage is simplicity: you're already logged in, your identity is already verified, and you can move money between your checking account and the new CD instantly. The disadvantage is that traditional banks almost always offer lower CD rates than online-only banks or brokerages. A one-year CD at Chase might pay 4.00% while the same term at Marcus pays 4.75%. Over a year, that difference adds up.

Some traditional banks do offer competitive rates on CDs, especially if you have a large deposit or if the bank is trying to attract new customers. It's worth checking your current bank's rates before you assume you need to go elsewhere, but most people will find better rates by shopping online.

What to compare when you're shopping

Interest rate is the most obvious thing to compare, but it's not the only one. The term length matters too—a bank might offer 5.00% on a six-month CD but only 4.50% on a one-year CD. You need to pick a term that matches when you'll actually need the money. If you need the money in eight months, a six-month CD won't work because you'll have to pay an early withdrawal penalty to access it.

Early withdrawal penalties vary widely. Some banks charge three months of interest; others charge six months or a flat fee. Before you open a CD, read the bank's disclosure document to see what the penalty is. If you think there's any chance you'll need the money before the CD matures, a bank with a lower penalty is worth choosing even if the interest rate is slightly lower.

Minimum deposit amounts also vary. Some banks let you open a CD with $500; others require $2,500 or $10,000. If you're starting small, make sure the bank you choose accepts your deposit size. FDIC insurance is the same everywhere—$250,000 per depositor per bank—so don't pay extra for insurance; it's automatic.

How to fund a CD once you've chosen one

Once you've picked a bank or brokerage and decided on a term and amount, the funding process is straightforward. You'll link a checking account from another bank, and the institution will ask you to verify it by depositing a small amount (usually $0.01 to $0.99) and confirming the amount in your checking account. This takes one to two business days.

After verification, you can transfer money from that checking account to your CD. The transfer usually takes one to three business days to complete. Some banks let you fund a CD immediately if you already have an account with them—for example, if you're moving money from your Chase checking account to a Chase CD, it can happen the same day.

Once the money arrives and the CD is opened, you're done. The bank will send you a confirmation with the maturity date, the interest rate, and the early withdrawal penalty. Mark the maturity date on your calendar so you know when the CD will pay out and you can decide what to do with the money next.

Comparing rates across different websites

If you want to find the highest rate without visiting 20 different bank websites, rate-tracking sites like DepositAccounts.com, BankRate.com, and DepositRates.com show current CD rates from dozens of banks. You can filter by term length and sort by interest rate to see which banks are offering the best deal that day.

These sites update rates multiple times per day, so the rate you see is usually current. However, rates can change between the time you see them on the tracking site and the time you actually open the account. When you click through to the bank's website, always confirm the rate before you fund the CD.

Some of these tracking sites earn a commission when you open a CD through their link, but that doesn't change the rate you pay. The bank pays the commission, not you. You'll get the same rate whether you find the bank through a tracking site or by visiting the bank's website directly.

Frequently Asked Questions

Can I buy a CD if I don't have a checking account at that bank?

Yes. Most online-only banks and brokerages let you open a CD as a new customer. You'll need to verify your identity (usually with a Social Security number and driver's license) and link a checking account from another bank to fund the CD. Traditional banks sometimes require you to be an existing customer, so check their website first.

What happens when my CD matures?

The bank will notify you a few days before the maturity date. You can choose to reinvest the money in a new CD at the current rate, move it to a savings account, or withdraw it. If you don't do anything, most banks automatically reinvest the money in a new CD with the same term at the current rate. Read your CD agreement to see what your bank does by default.

Is my money safe if I buy a CD from an online-only bank?

Yes, as long as the bank is FDIC-insured. Check the bank's website or the FDIC's bank search tool to confirm. All deposits up to $250,000 are protected by the FDIC, whether the bank has physical branches or not. Online-only banks are just as safe as traditional banks.

Can I withdraw money from a CD before it matures?

Yes, but you'll pay an early withdrawal penalty. The penalty is set by the bank and is disclosed before you open the CD. Penalties typically range from three to six months of interest, though some banks charge a flat fee instead. If you think you might need the money, ask about the penalty before you commit.

Do I need a lot of money to open a CD?

No. Minimum deposits range from $500 to $10,000 depending on the bank. Some online-only banks have minimums as low as $500 or even $100. Check the bank's website to see what they require before you start the account-opening process.