Best Short-Term CD Rates on Raisin in {currentMonth} 2024

  • FDIC or NCUA insured. No fees. $1 minimum deposit.

  • 24/7 online access to funds.

Select a product and save

Best Short-Term CD Rates on Raisin in {currentMonth} 2024

  • FDIC or NCUA insured. No fees. $1 minimum deposit.

  • 24/7 online access to funds.

Select a product and save

About Short-Term CD Accounts

How to Choose a Short-Term CD

Selecting the right under-1-year CD can be valuable for meeting your financial goals. 

Raisin's digital savings platform offers some of the most competitive short-term CDs available on the market, all from trusted, federally insured banks and credit unions. Let's delve into the key factors you should consider when making your selection.

  • Interest rate and APY: The first factor you'll want to look at is the Annual Percentage Yield (APY). This number includes the base interest rate and also accounts for how frequently the interest is compounded, giving you a more comprehensive view of what your potential earnings will be.

  • Security: Before you deposit your money, it's crucial to check if the financial institution is insured by the FDIC or the NCUA. This provides an extra layer of security to your investment, making CDs one of the safest financial vehicles available. All CDs on the Raisin platform are from federally insured financial institutions.

  • Minimum deposit: The amount required to open a CD can vary from one institution to another. The key is to find an option that fits well with your current financial situation. With Raisin, you'll find CDs that have a $1 minimum deposit to open.

  • Fees and penalties: Be aware that fixed-term CDs often come with penalties if you withdraw your money before the term ends. Always read the fine print to understand any additional fees or penalties that may apply in such cases.

  • Compound interest schedule: Lastly, pay attention to how frequently the interest compounds - daily, monthly, or annually. The frequency can impact your overall returns, especially on short-term CDs.

How Does a CD Account Work?

Understanding the mechanics of a CD account is crucial for making the most out of your investment. Let's delve into the specifics to see how a CD works, how it differs from other types of deposit accounts, and what safety measures are in place to protect your investment.

Fixed Term And Interest Rate

The key feature that sets a CD apart from other savings options is its fixed term and interest rate. When you open a CD, you agree to deposit a sum of money for a predetermined period, which can range from as short as one month to as long as several years. During this term, the interest rate on your deposit is locked in, ensuring a predictable and guaranteed return. 

CDs tend to offer among the highest available interest rates of all banking deposit products, making them particularly appealing in an environment where interest rates are volatile. The longer the CD's term, the higher the interest rate usually is. For example, there can be as much as an 8x difference in average rates between a 1-month CD and a 12-month CD.

Maturity

The end of a CD's term is known as its maturity date. At this point, you have a few options. You can withdraw the money you initially deposited along with the interest earned, or you can roll over the CD into a new one with a new term. Some financial institutions may automatically roll over the CD for you if you don’t choose by the maturity date, so it's crucial to be aware of this date and your institution's policies.

Types of CDs

There are various types of CDs to consider based on your financial needs and goals:

  • Fixed-term CDs: These are the most standard type of CDs, where you agree not to touch the money for a fixed period in exchange for a guaranteed interest rate.

  • No-penalty CDs: These CDs offer more flexibility by allowing you to withdraw your funds before the term ends without incurring a penalty. However, they often come with a slightly lower interest rate.

Safety Measures

CD accounts are a very safe, low-risk instrument for earning passive income. Perhaps the greatest advantage of CDs is the security they offer. Most CDs from banks are insured by the Federal Deposit Insurance Corporation (FDIC), while those from credit unions are insured by the National Credit Union Administration (NCUA). This means that even if the financial institution fails, your deposit is insured up to $250,000 per depositor, per account, per insured institution. This provides a level of security that is hard to match with riskier investments like stocks or ETFs.

Accessibility

How easily you can access your money is another critical factor in choosing a savings account. Here are the accessibility features for both types of accounts:

  • CD accounts: Fixed-term CDs usually come with penalties for early withdrawal, discouraging you from accessing your funds before the agreed term ends. However, no-penalty CDs offer more flexibility and don't charge for early withdrawal.

  • High-yield savings accounts: May have limits on the number of transactions you can make, but generally allow more flexible access to your funds without early withdrawal penalties.

Benefits of Certificates of Deposit (CDs)

Dropping a coin into a piggy bank

Certificates of deposit, also known as CDs, are a type of deposit account offered by banks and credit unions. CDs allow you to earn interest on your money like other deposit accounts, such as a savings account, but there are some key aspects that make CDs unique. Notably, CDs tend to offer among the highest available interest rates of all banking deposit products.

Unlike savings accounts or money market accounts, you can deposit a set amount of money into your CD account and commit to leaving your money there for a fixed period of time. Terms may last as little as three months, or as long as five years (60 months) or even longer. In return, you'll earn a fixed amount of interest based on a predetermined interest rate. The rate of a CD typically does not change during the term, which is why you may see the product called a fixed-term CD. Another type of CD is a no-penalty CD, which gives the owner more flexibility to withdraw funds before the CD's maturity date.

When the CD term is up — when the product has reached maturity — you’ll be able to withdraw your original balance plus any interest earned, or opt to rollover all or part of those proceeds into a new CD with a new term. A key benefit of opening a CD is you’ll know exactly how much of a return you’ll receive when your money is ready to withdraw at the maturity date you selected.

CD Accounts vs. High-Yield Savings Accounts

CD Accounts
Fixed interest rates depending on the term length.

VS

High-Yield Savings Accounts
Interest rate may be subject to change based on market conditions and financial institution
CD Accounts
Some banks may require high minimum deposits for CDs; $500 is common (Raisin does not)

VS

High-Yield Savings Accounts
Some banks may require high minimum deposits and charge fees if you dip below the minimum (Raisin does not)
CD Accounts
With fixed-term CDs, customers may be charged a penalty for early withdrawal. No-penalty CDs do not have early withdrawal fees

VS

High-Yield Savings Accounts
Some banks may place limits on frequency of withdrawals from high-yield savings accounts (Raisin does not)

Tips for Using Certificates of Deposit

Flat lay arrangement with a calculator, cash, a notepad, and a pen

There are a host of advantages to leveraging certificates of deposit (CDs) to boost your savings. You are likely to earn more interest with a CD compared to that of a competitive high-yield savings account. Plus, the interest rate you earn for the duration of the CD term won’t fluctuate over time. And you can pick a term to fit your needs. This feature allows you to structure CDs in sequences, such as the CD ladder, which provides periodic access to savings while tapping the highest available interest rates of the longest-term products.

Click the button to read more about how to maximize your savings with CDs.

What Is Raisin?

Family spending time out door

Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.

Safety

Safety

Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.

Choice

Choice

Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.

Convenience

Convenience

One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.

How Raisin Protects Your Money and Personal Information

Federal Deposit Insurance Corporation

FDIC logo

All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.

Click to learn more about FDIC insurance

National Credit Union Administration

NCUA logo

All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.

Click to learn more about NCUA insurance

Cybersecurity is a top priority at Raisin

SOC2 logo

We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.

Click to learn more about SOC 2 certification

Open an Account in 3-5 Minutes

Select a product

Select

the right product for your savings goals.

Register for a Raisin account

Register

with an email address and password, then verify your identity and bank information.

Add funds

Fund

the savings products you add to your new Raisin account.

How Raisin Compares

With Raisin
One secure account guards your personal data and safely allows you to tap into yields from multiple savings products

VS

With traditional banking
Multiple signups, savings accounts, and products at different institutions each require you to provide sensitive personal information.
With Raisin
The platform brings together diverse and competitive federally insured savings products, including CDs with a range of terms, that increase your earnings potential.

VS

With traditional banking
There are fewer product options, possibly limiting your savings potential.
With Raisin
Only one account is required. You manage all your chosen savings products through the Raisin platform.

VS

With traditional banking
By opening new accounts at multiple institutions, you get more statements, must remember more passwords, and waste time.

FAQs

Secure Messaging Center

Email: support.us@raisin.com

Call: 844-994-EARN (3276) (Monday to Friday from 9:00 a.m. - 4:00 p.m. ET)

The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.

© 2024 Raisin GmbH. All rights reserved.

*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit. Minimum opening deposit is $1.00.

Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodian Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodian Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Lewis & Clark Bank is the Custodian Bank.