In today’s world of low interest rates, finding a good place to grow your savings can be tough. Currently, California’s Certificate of Deposit (CD) rates are significantly higher than the national average. As a result, they surpass the rates offered in many other states. For instance, while the average one-year CD in the U.S. pays about 1.81% interest, many California banks, on the other hand, offer rates above 5% for the same term. Let’s explore how you can find the best CD rates in California and make your savings work harder for you.

List of Best CD Rates in California

Here are the banks offering the best CD rates in California as of July 2024:

Navy Federal Credit Union EasyStart Certificate

Navy Federal Credit Union offers EasyStart Certificates with rates from 4.15% to 4.75%. You can open one with just $50, and terms range from 6 months to 2 years. A nice feature is that you can add money to your CD anytime. Furthermore, they also offer a special 12-month CD with a 5.30% APY. Nevertheless, it has a $3,000 maximum deposit and, in addition, requires a checking account with direct deposits.

Limelight Certificate of Deposit

Limelight Bank offers one of the best CD rates in California ranging from 4.25% to 5.25% APY. Their CDs require a minimum deposit of $1,000, which is relatively accessible for many savers. Terms are available from 6 to 36 months, thus it certainly works well for people with short to medium-term money goals.

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PenFed Credit Union Money Market Certificates

PenFed Credit Union’s Money Market Certificates offer rates from 3.00% to 4.00% APY. These CDs require a $1,000 minimum deposit and are available in terms ranging from 6 months to 7 years. Therefore, it’s a good option for both short and long-term savers.

Popular Direct Certificates of Deposit

Popular Direct provides Certificates of Deposit with impressive rates from 4.30% to 5.35% APY. Their standout offer is a 5.35% APY for a 6-month term. However, these CDs require a substantial minimum deposit of $10,000. Terms range from 3 to 60 months, with many options offering rates over 5%. It is important to note that early withdrawal penalties can be steep, ranging from 89 to 730 days of simple interest depending on the term.

Charles Schwab Bank CD OneSource

Charles Schwab Bank’s CD OneSource is a marketplace for brokered CDs, offering rates up to 5.56% APY. These CDs require a $1,000 minimum deposit and are available in terms from 1 month to 10 years. A unique feature, however, is that you can trade or sell these CDs on the secondary market before maturity without incurring a penalty. Nevertheless, they may lose value if sold early.

Citi Certificates of Deposit

Citi’s Certificates of Deposit, for instance, is another bank offering the best CD rates in California. Specifically, they have various rates ranging from 0.05% to 4.75%. You can start with just $500, and terms run from 3 months to 5 years. Additionally, they also offer promotional CDs, including a 15-month CD with rates from 2.00% to 3.00% APY. Keep in mind that shorter terms tend to have lower rates. 

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Best CD Rates in California Bread Savings Certificates of Deposit

Bread Savings provides Certificates of Deposit with rates from 4.15% to 5.25% APY. These CDs require a $1,500 minimum deposit and are available in terms from 1 to 5 years. They offer high maximum balance limits of $1 million per account and $10 million per customer. Interest is compounded daily and credited monthly, and there are no maintenance fees.

USAlliance Federal Credit Union Certificate Accounts

USAlliance Federal Credit Union offers Certificate Accounts with rates ranging from 0.75% to 5.15% APY. These CDs have a low minimum deposit of $500 and terms from 3 to 60 months. They offer an 11-month no-penalty CD with a 4.80% APY. They charge early withdrawal penalties on other CDs, ranging from 180 to 360 days of dividends depending on the term. Anyone can join USAlliance FCU by becoming a member of one of their affiliated nonprofits.

Tips for Finding the Best CD Rates in California

The financial world is not stagnant, which means you need to be up to date to always know the CDs offering the best rates. Here are some tips to keep in mind:

  1. To get started, use online comparison tools to quickly survey many banks at once.
  2. Check rates weekly, as they can change frequently.
  3. You can also consider credit unions, which in many cases, offer higher rates than banks.
  4. Look beyond APY – consider the minimum deposit and early withdrawal penalties too.
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Best CD Rates in California: Other Options Besides CDs

If you’re not sure about CDs, consider these alternatives:

  • High-yield Savings Accounts: They offer good rates and let you access your money anytime.
  • Money Market Accounts: These are generally easier to access and unlike CDs, they are not for a fixed term.
  • No-penalty CDs: No-penalty CDs allow you to withdraw your money without fees. However, they usually have lower rates than traditional CDs. Nevertheless, they remain popular due to their flexibility and accessibility.