Best Certificates of Deposit (CDs) in Colorado for 2025
- Fellowship Credit Union has 5 locations in Colorado, and its one-year CD rates are the highest in the state.
- People's Credit Union in Colorado has a minimum deposit of only $100 on its CDs.
- You can choose between high-yield, raise-your-rate, or no-penalty CDs at Ally Bank.
- Synchrony, an online bank, offers standard CDs, no-penalty CDs, and two-year CDs with bump-ups.
If you want to earn a bit more from your savings, a certificate of deposit (CD) can be a great way to do that. CDs are deposit accounts, meaning they have some of the same benefits as savings accounts. However, in exchange for locking your money up for a longer period, you can often earn a far higher return than you would on a traditional savings account.
CD rates and features vary significantly from one financial institution to the next, so shopping around is important. Let’s dive in to learn some of the best CD rates in Colorado, factors to consider when choosing a CD, and the pros and cons of CDs.
Best CD Interest Rates In Colorado
Popular Banks and Credit Unions in Colorado
- Fellowship Credit Union: Headquartered in Lamar, Colorado, Fellowship Credit Union serves Colorado residents at five locations. Its one-year CD rates are the highest in the state.
- People’s Credit Union: People’s Credit Union has a minimum deposit of just $100 on its CDs, which is lower than most other banks and credit unions.
- Credit Union of Denver: One of the largest credit unions in Colorado, Credit Union of Denver offers impressive rates on terms ranging from three months to five years.
- Online Banks: Online banks often offer higher CD rates due to their low overhead costs. They’re also easily accessible and serve customers nationwide.
Online Banks Offering CDs
While local banks and credit unions have some perks, so do online banks. Here are some reasons you may want to open your CD through an online bank:
- Higher interest rates: Online banks often offer higher interest rates than traditional banks and credit unions because they have lower overhead costs.
- Low minimum deposits: You may be able to open an online CD with a lower minimum deposit, and some banks have no minimum deposit at all.
- 24/7 accessibility: Thanks to website and mobile app access, you can access your online bank’s CD account anytime and from anywhere.
- Low or no fees: Many online banks skip the fees that traditional banks and credit unions charge. In the case of CDs, it’s also easier to find no-penalty CDs.
- Quick account setup: You can typically set up a CD with an online bank in minutes from any location using a website or app without visiting a branch in person.
- Other financial tools: Online banks often have mobile apps with various other tools and features, including budgeting tools, access to credit scores, and more.
If you’re considering opening a CD through an online bank, here are a few options to consider:
- Marcus by Goldman Sachs: Marcus by Goldman Sachs offers high CD interest rates, ranging from 4.10% to 4.50%.
- Synchrony Bank: Synchrony allows you to choose from standard CDs, no-penalty CDs, and two-year CDs with bump-ups (meaning rate adjustments if interest rates go up).
- Discover® Bank: Discover Bank offers one of the widest ranges of CD terms, ranging from just three months to 10 years, with a maximum rate of 4.10%.
- Ally Bank: With Ally Bank, you can earn up to 4.00% APY and choose between high-yield, raise-your-rate, or no-penalty CDs.
Whether you’re working with a local bank or credit union or a popular online bank, it’s important to shop around for the best rates and terms.
Factors to Consider When Choosing a CD in Colorado
Before locking up your money in a CD, shopping around for the best one is important. Here are some factors to consider when you’re choosing a CD in Colorado:
Interest Rate
Interest rates can vary widely from one CD to the next, even at the same bank. Make sure to shop around to choose the highest rate for your desired term.
Term Length
CD terms can range from a few months to five to 10 years. Make sure to choose the term that best aligns with your financial goals.
Minimum Deposit
Some banks don’t require minimum deposit amounts, while others require $1,000 or more. Keep this in mind when choosing a CD.
Penalty
If you take your money from your CD, you’ll likely pay an early withdrawal penalty (though some banks offer no-penalty CDs).
Promotional Rates
Some banks and credit unions offer promotional rates for first-time customers or specific CD terms, which can help you earn higher returns.
Online vs. Local
Consider whether you’d prefer the hands-on service of a local bank or credit union or the accessibility of a major online bank.
Pros and Cons of CDs
CDs have some major advantages, including their high interest rates and variety of term options. However, it’s also important to consider the downsides.
Pros
- High returns: CDs typically have higher returns than traditional savings tools.
- Fixed interest rates: Thanks to their fixed rates, CDs offer guaranteed returns.
- Term options: You can find CD terms ranging from a few months to several years.
- Protection from loss: CDs are covered by FDIC and NCUA insurance, meaning you aren’t at risk of losing your money.
Cons
- High returns: CDs typically have higher returns than traditional savings tools.
- Fixed interest rates: Thanks to their fixed rates, CDs offer guaranteed returns.
- Term options: You can find CD terms ranging from a few months to several years.
- Protection from loss: CDs are covered by FDIC and NCUA insurance, meaning you aren’t at risk of losing your money.
Ready to Start Saving?
If you’re considering opening a CD to jumpstart your savings, now is the perfect time. If you’re concerned about not having your money readily available without incurring a penalty, savings accounts in Colorado are also worth exploring. Compare CD rates in Colorado today to find the best option to fit your financial goals.
Frequently Asked Questions
Yes, you’ll pay state income taxes on your CD interest in Colorado. The state is one of a handful that has a flat income tax rate, meaning you’ll pay the same rate no matter what your household’s taxable income.
Fellowship Credit Union offers the highest-paying CD for a local bank or credit union in Colorado, while Marcus by Goldman Sachs has one of the highest-paying online CDs. Both currently have a maximum APY of 4.50%. As we know, these rates can change at any time, so it’s important to contact the bank or credit union to get the most accurate CD interest rates.
Local credit unions in Colorado are highly competitive with online banks, but it’s important to shop based on the terms you need. Once you know your desired CD term, you can narrow down the best rate.
