10 CDs With High Interest Rates

Christina Lavingia

To most, the certificate of deposit is a typical bank account: safe, reliable and far from sexy. But that wasn't always the case. It's hard to believe CDs returned double digits not too long ago, especially since they will probably never reach those rates again.

So does that mean you shouldn't waste your time with a CD? Far from it. Despite an endless supply of mediocre accounts with even less impressive rates and fees, there are several standout banks offering CD options that can help you get closer to reaching your financial goals this year.

In a recent GOBankingRates poll of financial New Year's resolutions, saving money was the most popular response. Fortunately, if saving money tops your priorities for 2015 as well, there is a wealth of tools and products that can help -- many at a faster rate and higher yield than a traditional savings account. An option to consider in the new year is a certificate of deposit.

In October 2014, CDs averaged 0.51 percent APY across all term lengths -- several times higher than the average interest rate for savings accounts. It might be time to give CDs a try if you haven't already. Between short- and long-term options, CDs can be a beneficial way to grow your savings, especially in this low-interest rate environment.

With higher rates and a short time commitment of just 12 months, even those hesitant to lock down their savings can benefit from a one-year CD. Finding an account with a low (or no) minimum deposit requirement can make it even easier to open a CD regardless of how much money you are comfortable setting aside.

10 Best CD Accounts of 2015

With thousands of banks, credit unions and online institutions to choose from, getting started isn't always so easy. That's why, as part of its "Best Banks of 2015" series, GOBankingRates surveyed over 100 of the biggest traditional and online banks to find the 10 best CD accounts this year.

All 10 of these top-ranked accounts are offered by online banks, meaning they are available anywhere in the U.S. The highest rankings excelled in low minimum deposit requirements and high interest rates on 12-month terms.

1. Nationwide Bank. Rewarding those with higher account balances, Nationwide Bank's CD account offers 1.14 percent APY on deposits up to $99,999.99 and 1.19 percent APY on accounts over $100,000 for a 12-month term. The account also has a relatively low minimum deposit requirement of $500, ranking it in the top spot. There's also no minimum balance requirement to earn interest.

2. GE Capital Bank. With the same minimum deposit requirement as Nationwide Bank at $500 and only a slightly lower interest rate of 1.10 percent APY for a 12-month CD, GE Capital Bank's CD account ranked No. 2. GE Capital Bank also accepts high deposits, capping CD accounts at $1 million.

3. Ally Bank. Ally Bank's CD account is among the top for having no minimum deposit requirement and APY of 1.05 percent for 12-month terms. Ally Bank offers depositors a 10-day grace period to withdraw funds upon opening a CD account without incurring a penalty.

4. Bank5 Connect. Due to its $500 minimum account deposit and high 1 percent APY for terms of 12 months, Bank5 Connect's CD account claimed the fourth spot. Accounts at Bank5 Connect are protected above the FDIC's regular $250,000 threshold through Depositors Insurance Fund protection.

5. CIT Bank. The interest rate CIT Bank's Term CD offers is the same as GE Capital Bank's, 1.10 percent APY for a 12-month CD, but the minimum deposit requirement is higher, at $1,000. All CD accounts except for the bank's six-month option are also available as IRA CDs.

6. TIAA Direct. In the sixth seat, with the same minimum account deposit as CIT Bank of $1,000, TIAA Direct's CD account offers lower yields of 1.01 percent APY, making its returns just shy of double the national average. TIAA Direct customers enjoy choice, as the bank offers 11 different CD terms ranging from six months to five years

7. First Internet Bank. With a 1 percent APY that's barely below TIAA Direct's account, this account has a higher minimum account balance requirement of $1,000. First Internet Bank offers eight different CD terms, from three months to five years, to its customers.

8. Barclays Bank. Also requiring no minimum deposit requirement, Barclays Bank Delaware's 12-month Online CD account gleans a return of 0.80 percent APY. This online bank offers its customers nine term length options.

9. Synchrony Bank. With the highest minimum deposit requirement on the list, Synchrony Bank's Optimizer+Plus CD accounts require account holders to invest $2,000 into their CDs in exchange for a return of 1.15 percent APY* on 12-month terms. Encouraging savings, Synchrony Bank offers higher yields for greater balances, providing plenty of motivation to save.

10. Presidential Online Bank. Presidential Online Bank's 12-month CD offers a rate of 0.95 percent APY, and requires a minimum deposit of $1,000 to open, rounding out our list. Presidential Online Bank also offers a variety of short-term CD options, including 30-day, 60-day and 182-day terms; these options are perfect for those who don't wish to commit to a longer-term account.

It's not surprising that online banks took the top 10 spots. With no physical branches to run, online banks significantly cut their overhead costs and pass the savings on to depositors through higher rates and lower fees. If you haven't tried an online bank yet, these top-rated CD accounts might be your reason to make the switch in 2015.

*Synchrony Bank's APY was 1.10 percent APY at the time the rates were aggregated for this survey on Dec. 19, 2014, but has since been raised. Its ninth-place ranking reflects the original rate.

Christina Lavingia is an assistant editor and writer for GOBankingRates.com, a source for the best deposit and loan products, personal finance news and more.