Best Certificate of Deposit (CD) Rates in Connecticut for 2025
- Connecticut State Employees Credit Union offers CDs at branches in cities like Hartford and New Haven.
- Leader Bank in Simsbury is known for its diverse CD offerings.
- Marcus by Goldman Sachs CDs are backed by a 10-day guarantee, meaning if rates go up within 10 days after you open your account, you'll get the higher rate.
If you’re seeking a low-risk investment in Connecticut, a certificate of deposit (CD) might be worth exploring. It can help you meet various short- and long-term financial goals, like saving for a house or buying a new car. Our team did the heavy lifting to help you find the ideal CD for your unique situation and uncovered the best CD rates in the Constitution State below.
Top CD Rates in Connecticut
Popular Banks and Credit Unions in Connecticut
- Connecticut State Employees Credit Union: Founded in 1946, Connecticut State Employees Credit Union offers CDs at its branches throughout the state in cities like Hartford, New Haven, Norwich, and Storrs.
- Northwest Community Bank: Locally owned and operated, Northwest Community Bank is known for its low rates and competitive fees on CDs and other products, such as mortgages and home equity loans.
- Leader Bank: Leader Bank has a location in Simsbury and is known for its diverse CD offerings and personalized customer service.
- Online Banks: Many online banks offer CDs with higher rates than you’d find at traditional brick-and-mortar banks, making them a good option for investors in Connecticut.
Online Banks Offering CDs
Connecticut residents who are looking for competitive rates and flexible terms may benefit from CDs at online banks. Here are some advantages of online CDs:
- Higher Interest Rates: Online banks usually offer higher interest rates on their CD products because they have lower operating costs than traditional institutions.
- Accessibility: You can open and manage your CD account from anywhere, regardless of where you are in Connecticut, as long as you have internet access.
- Low Minimum Deposits: Many online banks promote low or no minimum deposit requirements, meaning CDs may be within reach, even if you don’t have a lot of money to invest.
- FDIC Insurance: In most cases, online banks are FDIC-insured, giving you the same reassurance you’d receive at a brick-and-mortar bank.
Here are some popular online banks with great CD rates for Nutmeggers:
- Ally Bank: Ally Bank offers a number of CDs to meet varying investor needs, such as high-yield CDs, raise-your-rate CDs, and no-penalty CDs. Plus, you can enjoy a 10-day best rate guarantee.
- Bread Savings: Bread Savings CDs have no monthly maintenance fees and can be easily monitored via the highly rated mobile app.
- Discover® Bank: Discover Bank doesn’t charge fees on its CD products and advertises several promotional CDs at very competitive rates.
- Marcus by Goldman Sachs: Marcus by Goldman Sachs CDs are backed by a 10-day guarantee and 24/7 customer service.
Be sure to shop around to hone in on CDs that make sense for your particular needs.
Factors to Consider When Choosing a CD in Connecticut
Focusing on these factors is a good idea as you search for CDs in the Constitution State.
Interest Rates
Fortunately, high CD rates are available at local Connecticut banks as well as online banks. However, you’ll likely find better rates through online banks that have lower overhead costs.
Minimum Deposit Requirements
Every financial institution has its own minimum deposit requirements. The good news is that many banks and credit unions will allow you to open a CD for as little as $500 or $1,000.
Term Length
You’ll find that longer-term CDs tend to offer better interest rates than shorter-term CDs. Before choosing a CD, determine when you’d like to withdraw the funds.
Early Withdrawal Penalties
Even though CDs typically offer higher rates than traditional savings accounts, you’ll likely owe a penalty if you pull money out of your account before your term is up. Make sure you’re aware of potential withdrawal penalties and other fees.
FDIC or NCUA Insurance
Do not open a CD unless the bank or credit union is insured by the FDIC or NCUA. Otherwise, you may lose your hard-earned money if the institution fails. FDIC or NCUA insurance can protect deposits of up to $250,000.
Local vs. Online Options
Local banks and credit unions such as Connecticut State Employees Credit Union and Northwest Community Bank may be good options if you prefer a personalized customer service experience. However, online banks like Ally Bank and Bread Savings may be better if you’re looking for higher rates and lower fees.
Promotional Offers
Many institutions promote CDs with special rates or bonuses. These promotional offers change often, so it’s wise to look for them regularly.
These factors can make it easier for you to find the ideal CD for your specific goals.
Pros and Cons of Certificates of Deposit
Pros
- Greater returns than traditional savings accounts.
- Different products to meet varying needs and budgets.
- FDIC or NCUA insurance for deposits up to $250,000.
Cons
- They are not as liquid as other investments, which may be a problem if an emergency arises and you need the cash.
- Longer-term CDs may not keep up with inflation and higher cost of living.
- Can higher returns with other financial products.
Ready to Grow Your Savings?
If you like the idea of a predictable income stream, a certificate of deposit should be on your radar. You can choose a CD from a local bank or credit union in Connecticut or opt for an online CD. However, before you sign on the dotted line and open a CD account, shop around and compare all of the CDs at your disposal.
FAQs
Yes, you can expect to pay taxes at the federal and state levels in Connecticut.
The 3-month CD at Northwest Community Bank and the 6-month CD at Bread Savings are solid choices for Connecticut’s short-term CDs.
Local credit unions make sense in Connecticut for personalized service and in-person banking, but online banks usually offer higher rates and lower fees.
