Updated March 7, 2025

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Best Certificates of Deposit in California for  2025

Written by Rob Sabo

Financial Expert

Edited by Kristin Marino

Managing Editor

Certificates of deposit (CDs) have long been among the most common and safest savings instruments available to consumers. With high federal interest rates still providing strong returns for both short- and long-term CDs, savers in California should consider opening a CD in 2025, especially since interest rates are predicted to drop at some point in the year.

Keep reading to learn which banks and credit unions offer the best CD rates in California. 

Best CDs in California

Certificates of deposit are considered a safe investment because they offer fixed returns and are backed by a guarantee of up to $250,000 by the Federal Deposit Insurance Corporation ($500,000 for married couples).

It may take a bit of sleuthing to find the best CD rates in California, but here are five financial institutions offering high interest rates.

Popular Banks and Credit Unions in California

Chase Bank is one of the most popular banks in the Golden State, with 48 branch locations in Los Angeles, 36 in San Diego, and 33 in San Francisco. Citibank, meanwhile, has almost 300 branch locations throughout California, and Golden 1 Credit Union has 83 branch locations. Wells Fargo and Bank of America are also plentiful throughout California.

Here are five prominent banks in the Golden State.

1. Golden 1 Credit Union was founded in Sacramento in 1933. It boasts more than $20 billion in assets, making it one of the nation’s largest credit unions.
2. Chase Bank provides a wide range of financial services and has an exceptional mobile banking app.
3. Financial Partners Credit Union has been member-owned since 1937. It typically offers higher savings rates and lower loan rates than the many national banks operating in California.
4. SoFi Bank operates throughout the U.S. but is headquartered in San Francisco. Its high-interest savings accounts are hard to beat.
5. Online banks and financial institutions often offer extremely competitive interest rates, making them a viable option for savers seeking the best CDs in California.

Online Banks Offering CDs

Online-only financial institutions typically offer higher CD interest rates and more favorable loan terms than traditional banks because they have significantly lower overhead than their brick-and-mortar competitors. You won’t be able to walk into a branch location to open a certificate of deposit, but California residents have many compelling reasons to consider online banks.

• Better interest rates. Interest rates are usually slightly more competitive at online banks than at traditional banks in an effort to bring in new customers.
• Smaller minimum deposits. Some online financial institutions offer minimum deposit amounts of $500 or less for new Certificates of Deposit. Big banks often start at $5,000 or $1,000.
• Federally insured. You may never meet your online bankers in person, but they are definitely real people. Online banks enjoy the same FDIC assurances as traditional banks.
• Accessibility. Online-only banks generally have robust mobile banking apps and online banking portals that make it easy to manage or renew your CD.
• Lower fees. Online banks attract new customers by eliminating common banking fees such as monthly maintenance and similar fees.

Here are four online banks offering high CD rates in California.

• Banc of California: CD rates are based on your account balance, making this bank a great option for California savers with larger balances.
• Marcus: Marcus’ CD rates for terms ranging from six to 36 months are all at or above 4%. Plus, Marcus only requires a minimum deposit of $500 to open a new CD.
• Discover® Bank: Discover offers a wide range of CD terms, some with slightly higher promotional interest rates.
• Synchrony Bank offers customers some of the highest interest rates available. As an added bonus, There are no minimum deposit requirements.

This is just a small sampling of CD offerings at online banks. Many more offer some of the best CD rates in California.

Factors to Consider When Choosing a CD in California

Savers in the Golden State have so many options when it comes to finding the highest CD rates in California. Yield is only one piece of the puzzle, though. Here are some additional considerations:

Deposit requirements

Some banks require hefty opening deposits that can delay your ability to open a CD if you don’t have enough cash on hand. You’ll also have reduced liquidity with larger CD balances. Banks that have softer minimum deposit requirements provide increased liquidity and flexibility.

Early Withdrawal Penalties

Financial institutions in California and online-only banks typically assess a penalty if you don’t let the CD mature (reach the end of its term). Penalties vary but are usually assessed as a percentage of lost interest, such as three or six months.

Interest Income Tax

Any money earned from interest after purchasing a certificate of deposit is taxed as ordinary income. For instance, if you are in the 25-percent tax bracket, then one-quarter of your CD’s earnings will be part of your federal income tax liability. California also levies a state income tax.

Pros and Cons of CDs

Certificates of deposit can be great savings instruments, but they do have some drawbacks.

Start Your Savings Journey Today

Use the information we’ve provided here to find some of the best CD rates in California. You can choose from short-term CDs of three and six months to longer-term options such as 18 months, two years, and longer. Whether you choose a California-based or online bank, financial institutions throughout the Golden State offer CDs tailored to match your personal budget and financial goals.

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