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Best CD rates in California for 2024

  • The best CD rates for California range from 4.75% to 5.10% APY, which is over three times than the national average.
  • Short-term CDs are ideal for saving for near-future events like vacations. On the other hand, long-term CDs are better for those who already have a sizeable emergency fund.
  • Jumbo CDs offer higher APYs but also have hefty minimum deposit requirements.
  • Before depositing money in a CD, ensure you understand the APY, the minimum deposit requirement, the term, and any potential early withdrawal penalties.

Our top picks for the best CD rates

Compare the best CD rates in California

Advertiser Disclosure
Issuer
APY
Term length
Minimum deposit
Compounding frequency
Alliant Credit Union
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4.75%
12 months
min_deposit
Monthly
Banc of California
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5.13%
12 months
$1000.00
Daily
BMO Alto
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4.80%
6 months
$0.00
Monthly
Discover
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5.10%
9 months
min_deposit
Daily
Marcus by Goldman Sachs
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4.80%
12 months
min_deposit
Daily
Quontic Bank
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5.10%
12 months
min_deposit
Daily
Sallie Mae Bank
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4.95%
10 months
$1.00
Daily

Our top picks for banks with the best CD rates in California

Advertiser Disclosure

Alliant

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on Alliant's secure website
APY
4.75%
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

The Alliant Credit Union 12-month CD offers a 4.75% APY (4.80% APY for Jumbo CDs with deposits of $75,000 or more) and a minimum deposit of only $1,000. As one of the largest credit unions in the U.S. with 850,000 members and 88 years of experience, opening a CD at Alliant is a safe, secure way to earn guaranteed returns.

This CD is a good option if you are saving money to achieve a short-term goal, such as a planned vacation, house deposit or something else you anticipate in a little more than one year.

PROS

  • Competitive APY
  • Range of CD terms
  • NCUA insured

CONS

  • Minimum opening deposit of $1,000 to $75,000
  • Need to be a credit union member
  • Interest compounded monthly, not daily

Banc of California

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via Raisin's secure website
APY
5.13%
Term Length
12 months
Minimum Opening Deposit
$1000.00
Why We Like It

Editor's take

Banc of California offers a 12-month CD with an APY of 5.13%, which is significantly higher than many other options. You can open an account with as little as $1, and the CD is penalty-free.

This is a good choice for people who want to earn more interest than they could with a regular savings account and won’t need to access their money. The minimum deposit of only $1 also means this CD is accessible to nearly anyone who wants to open a CD account.

PROS

  • Competitive APY
  • NCUA insured

CONS

  • High minimum opening deposit of $1,000

BMO

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on BMO's secure website
APY
4.80%
Term Length
6 months
Minimum Opening Deposit
$0.00
Why We Like It

Editor's take

Why we like it A BMO Alto six-month CD offers 4.80% APY and is a great way to maximize your short-term savings. It doesn’t have a required minimum deposit or balance, but you must deposit money within 15 days of opening your account to keep it open. It is also FDIC-insured to provide added security and peace of mind.

This CD is good for people who need to meet a shorter-term financial goal and who want to earn higher interest than they could with a regular savings account.

PROS

  • Competitive rate
  • No minimum deposit or balance
  • Interest paid monthly

CONS

  • Early withdrawal penalty

Discover

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on Discover's secure website
APY
5.10%
Term Length
9 months
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

The Discover nine-month CD has a competitive APY of 5.10%, which is unusual for a short-term CD. It doesn’t charge account fees, and your deposit is FDIC-insured. You can open a CD with a minimum deposit of $2,500 and make your deposit online through a bank transfer or over the phone.

The Discover nine-month CD is an excellent choice if you have the funds to meet the minimum deposit requirement and are looking for high interest rates on a shorter-term CD.

PROS

  • No Fees
  • Guaranteed rates and FDIC Insured
  • Live 100% US-Based Support 24/7

CONS

  • High minimum deposit of $2,500

Marcus by Goldman Sachs

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on Marcus' secure website
APY
4.80%
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

The Marcus by Goldman Sachs 12-month CD pays 4.80% and has an initial opening deposit requirement of $500. However, you can continue adding funds to the CD within the first 30 days after opening your account to fund it fully.

This is a good option for people who plan to add more money to their CD but can only meet the initial $500 minimum deposit requirement. This CD is also a solid choice if you are looking at creating a CD ladder.

PROS

  • 24/7 customer contact center
  • Multiple CD terms
  • Online account management
  • Insured by the FDIC

CONS

  • Large minimum deposit requirement
  • No ATMs or physical branches
  • Lower-than-average rates on some CD terms

Quontic

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on Quontic's secure website
APY
5.10%
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It

Editor's take

The Quontic Bank six-month CD offers an APY of 5.10%, over three times higher than the national average for six-month CDs. Its low minimum deposit requirement of $500 makes it accessible to many people, and it’s an excellent option for those who don’t wish to have their money tied up for very long or who are building a CD ladder.

PROS

  • No monthly service fee
  • FDIC Insured
  • Takes less than 3 minutes to open an account
  • Your hard-earned money is safeguarded and guaranteed a strong return.

CONS

  • $500 minimum deposit
  • No physical branches
  • Doesn’t accept cash deposits

Sallie Mae
LEARN MORE on Raisin's secure website
APY
4.95%
Term Length
10 months
Minimum Opening Deposit
$1.00
Why We Like It

Editor's take

The Sallie Mae Bank 10-month CD offers an APY of 4.95%, almost three times higher than the national average for 10-month CDs.

With a minimum deposit requirement of only $1, this CD is accessible to nearly anyone who wants to save money to achieve a short-term financial goal. Daily compounding also helps your money earn interest faster in this CD account.

PROS

  • Automatic renewal option
  • Insured by the FDIC
  • No monthly fees
  • Competitive rates

CONS

  • $2,500 minimum deposit
  • No physical branches
  • Fee for returned deposits

Current CD rates in California

California’s best CD rates are currently around 5% APY, with terms ranging from six months to two years. These rates are comparable to the best CD rates found in the rest of the country and are typically the highest for 12-month CDs. 

Compared to the national average rates, which, according to the FDIC, currently stand at 1.85% for 12-month CDs, the best CD rates in California are significantly higher. They range from 2.8 to 3.5 percentage points more than the average rates for each CD term length.

How to find the best CD rates in California

If you plan to invest in a CD, finding a bank or credit union that offers the highest APY for your desired term length is essential. Here are some things to consider when comparing your options.

APY

A CD’s annual percentage yield (APY) refers to how much interest it earns in a year and includes the effect of compounding. It’s best to choose a bank or credit union that offers the highest APY for the term you’re looking for. Some banks, including a few of our top picks, offer CDs with 5% APY. Although rare, a few credit unions and other financial institutions even provide CD rates of 6%.

Term length

A CD’s term length is how long you agree to leave your deposit in the account. CDs are illiquid, which means you generally can only access your funds once it matures. If you withdraw money before your CD reaches its maturity date, you’ll likely be assessed an early withdrawal penalty and forfeit some or all of the interest your money earns.

Minimum deposit

Many banks and credit unions require a minimum deposit to open a CD. However, some do not, which makes their CDs accessible to more investors. For accounts with no minimum deposit requirement, you’ll need to deposit funds within a few days of opening the account to keep it activated.

Early withdrawal penalties

All banks and credit unions must assess an early withdrawal penalty of seven days’ interest if you withdraw funds from a CD within 15 days of opening it. While the government sets a minimum penalty, many institutions impose higher ones. The amounts can differ based on the CD’s term length and the institution.

For CDs with terms of less than one year, the penalties are typically three months’ interest. With some institutions, you’ll forfeit all of the interest you earned for the CD’s entire term length. Ensure you understand a CD’s early withdrawal penalties and avoid investing in a CD if you need to access your funds before the term ends.

Deposit insurance

CDs offered by FDIC-insured banks provide security if the bank fails. Credit unions can insure accounts with the National Credit Union Association (NCUA). In both cases, deposit insurance covers up to $250,000 per account. This assures that your money will be safe and is an important consideration when you evaluate your CD options.

Short-term vs. long-term CDs in California

Short-term CDs have terms of less than a year, such as three-month and six-month CDs, while long-term CDs mature in a year or longer. Typically, long-term CDs pay higher APYs than short-term CDs, but short-term CDs now offer competitive rates. The term you choose should depend on your financial goals and your particular situation.

A short-term CD is the better choice if any of the following applies to your situation:

A long-term CD might be the better choice if any of the following applies:

CD laddering

Some people choose to open both short- and long-term CDs to create what is called a CD ladder. You can use this strategy to spread a sizeable lump sum across several CDs with varying terms. This allows you to take advantage of the higher rates offered by long-term CDs while freeing up cash at short-term intervals.

When each CD matures, you can re-invest the money into a CD with the longest term. A typical CD ladder has five accounts with varying terms. These may range from a one-year CD to a five-year CD. With this strategy, when your five-year CD matures, you’ll then have five-year CDs maturing each year.

Jumbo CDs in California

A jumbo CD is a savings product offered by some banks that typically offers the highest APY available for certificates of deposit. These accounts usually require a large minimum deposit amount, around $100,000. 

California’s best jumbo CD rates are reserved for the largest amounts and longest terms. For example, Alliant Credit Union offers 4.80% APY on their 12-month Jumbo CD, compared to the 4.75% APY for their regular CD.

A jumbo CD can be a good choice if you have a sizeable investment portfolio, want to reduce your market risk and know that you won’t need access to your money for the term’s length. As long as your jumbo CD is less than $250,000, your money will be safe.

FAQ: Best CD rates in California

Who has the highest CD rates in California?

Quontic Bank’s six-month CD, Sallie Mae’s 10-month CD, and Discover’s nine-month CD offer the best California CD rates. Each of these CDs has an APY of 5.10%, which is currently higher than the other available options.

Which bank has the best 6-month CD rates in California?

Currently, Quontic Bank offers the best six-month CD rates in California at 5.10% APY. This means you can earn higher interest with a CD vs a savings account and will only have to tie up your money for a short time. However, if you do withdraw early, you’ll forfeit six months’ interest.

Which bank has the best 1-year CD rates in California?

The Marcus by Goldman Sachs 12-month CD currently offers the best CD rates in California at 5.00% APY for one-year CDs. However, you must leave your money in the account until it matures to avoid early withdrawal penalties.

Should I get a short-term or a long-term CD?

The right CD term length for you will depend on several factors. Short-term CDs are best if you want to avoid tying up your funds for a long time and believe that CD rates might increase soon. On the other hand, a long-term CD is a good choice if you already have a sizeable emergency fund saved and will not need to access your funds during the CD’s term.

What happens if I withdraw from my CD before it matures?

You could receive an early withdrawal penalty if you withdraw money from a CD before it matures. The penalties can range from several months’ interest to forfeiting all interest earned in the account. Review the disclosures the bank provides to understand the early withdrawal penalties and determine whether it is a good choice for you.

About the Author

Kimberly Varvel
Kimberly Varvel Finance

Kimberly Varvel brings over 12 years of experience in commercial real estate finance, specializing in loan processing, underwriting, and sales. With more than five years as a licensed real estate professional and over 14 years as a professional freelance writer, Kimberly has a unique blend of practical experience and writing expertise. Her comprehensive knowledge in the real estate sector enables her to provide insightful, accurate, and engaging content that helps readers navigate the complexities of commercial real estate finance.

About the Reviewer

Blake Esken
Blake Esken Los Angeles Times

Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.

As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.

He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.

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