Best Certificates of Deposit Rates in Hawaii for 2025
- Synchrony Bank has a wide range of CD options, including no-penalty and bump-up CDs.
- Marcus customers can earn a competitive rate on a high-yield 12-month CD with a minimum deposit of just $500.
- First Hawaiian Bank, the largest and oldest bank in Hawaii, offers CD promotional rates that are well above its regular rates.
Although the Federal Reserve implemented a string of cuts to the federal funds rate in 2024, interest rates still remain elevated, which is good news for savers.
Certificates of deposit are a good way for Hawaii residents to increase their personal savings because they offer some of the highest yields available for standard savings products with minimal risk and fixed returns. If you are looking for a short-term place to park some extra money or longer-term savings options, there are many different banks and credit unions offering some of the best CD rates available in Hawaii.
Keep reading to learn how to capitalize on current high interest rates by purchasing certificates of deposit explicitly tailored to meet the needs of Hawaii residents.
Best CD Rates in Hawaii
Savers have many different options when it comes to finding the highest CD rates in Hawaii. Here’s a sampling of regional financial institutions serving residents of the Aloha State.
Popular Banks and Credit Unions in Hawaii
Hawaii residents can purchase certificates of deposit at well-known national banks, but a host of regional banks and credit unions serves the islands. Here are some of the most popular financial institutions in Hawaii:
HawaiiUsa Federal Credit Union. With more than 135,000 members, HawaiiUsa is the largest credit union serving the Hawaiian Islands. Members also can access more than 290 Bank of Hawaii ATMs at no cost.
Bank of Hawaii. Founded in 1897, the Bank of Hawaii is among the oldest financial institutions in the state. It’s popular among residents for its longevity, large network of branch and ATM locations, and extensive work to support Hawaii’s rich cultural heritage.
First Hawaiian Bank. Publicly traded FHB is the largest bank in Hawaii. Founded in 1858, it is also the oldest bank serving the islands. FHB has 44 branch locations in Hawaii.
Pearl Hawaii Federal Credit Union. Pearl Hawaii was founded in 1937 and is one of the largest credit unions serving Oahu residents. It’s noted for its robust online and mobile banking services.
Online banks. Although Hawaii is served by some excellent regional banks and credit unions, digital banks can be a good alternative to traditional financial institutions. Since they have lower overhead than brick-and-mortar banks, online-only banks usually offer extremely competitive rates on savings products such as certificates of deposit.
It’s important to note that some Hawaii-specific banks and credit unions are only available on certain islands.
Online Banks Offering CDs in Hawaii
Digital banks usually stand out for their low or no-fee structures and competitive interest rates on CDs and high-yield savings accounts. There are many other compelling reasons to consider opening a certificate of deposit at an online bank, including:
Low minimum deposit requirements. Some financial institutions require hefty minimum deposits to open CDs or other types of consumer accounts. Many online banks, however, have minimum deposit requirements as low as $100 or $500.
Federally insured. Online banks have the same FDIC deposit insurance as traditional banks – up to $250,000 on CDs and other accounts.
Accessibility. You’ll never have to worry about the bank closing before you can get there when you choose a digital bank. Enjoy 24-hour access to your accounts through mobile apps and website portals.
Easy to join. Digital banks usually have a streamlined process for opening new accounts or purchasing CDs. You typically can become a member in as little as five to 10 minutes.
Excellent mobile and online banking experiences. Digital banks rely on easy-to-use and well-designed mobile apps and websites to enhance the customer experience.
Here’s a sampling of online banks that offer some of the best CD rates in Hawaii:
Discover
Discover® Bank offers a full range of traditional banking services, including personal loans, high-yield certificates of deposit, credit cards, money market accounts, and individual retirement accounts. CD terms range from 3 months to 10 years, and Discover’s 12-month CD has an attractive 4% APY.
Marcus
This online bank, founded by Goldman Sachs, offers some of the highest annual percentage yields on certificates of deposit among digital banks. Marcus savers can earn 4.25% on a high-yield 12-month CD with a minimum deposit of just $500 or 4.30% on a 9-month CD.
Synchrony Bank
Synchrony Bank offers a 13-month CD with an exceptional 4.35% APY and no minimum deposit. It has a wide range of other options, including no-penalty and bump-up CDs. Standard terms range from three to 18 months, or you can choose longer-term CDs up to five years.
Ally
Ally Bank offers high-yield, bump-up, and no-penalty certificates of deposit, as well as traditional CDs with attractive interest rates.
Savers should research multiple online banks to find the CD that best meets their financial goals.
Factors to Consider When Choosing a CD in Hawaii
If you are considering purchasing certificates of deposit in Hawaii, some key factors could affect the overall yield of your CDs.
Drop in Interest Rates
The Federal Reserve made significant cuts to its benchmark interest rate in 2024. Its rate-cut schedule for 2025 is much more modest, but additional cuts are projected that will result in less yield on interest-dependent savings products such as CDs.
Decline in Tourism Revenue
Hawaii banks and credit unions do better when the regional and national economies are strong. Economic uncertainty could lead to a dip in consumer spending, which could impact tourism revenue across the islands, which saw 9.6 million visitors in 2023.
Natural Disasters
Events such as the devastating wildfire in Lahaina, Maui, in 2023 continue to impact tourism and the regional economy.
Pros and Cons of CDs
Certificates of deposit are popular among savers due to their dependable returns and low risk. However, they have additional benefits and some drawbacks.
Pros
- Guaranteed Returns
CDs offer a fixed interest rate for the entire term, so you know exactly how much you’ll earn by maturity. - Low Risk
CDs are insured by the FDIC (up to $250,000 per depositor, per bank), making them a safe place to park your money. - Better Rates Than Savings Accounts
CDs usually offer higher interest rates than traditional savings accounts, especially for longer terms.
Cons
- Lack of Liquidity
Your money is locked in for a set term. Withdrawing early typically triggers a penalty. - Lower Returns Than Other Investments
CDs usually have lower potential returns than stocks or mutual funds, which might not keep pace with inflation. - Fixed Interest Rate
If rates rise after you open your CD, you’re stuck with the lower rate for the duration of the term.
Catch the Wave and Begin Your Savings Journey Today
The information compiled here should help you start your search for the best CD rates in Hawaii. Choose from short-term CDs when you have extra money, or opt for longer-term two-year CDs as part of a more comprehensive savings strategy. Savings accounts in Hawaii are also important to explore for money you need access to without paying a penalty.
If you are ready to start saving, begin your journey by comparing the highest CD rates in Hawaii.
Frequently Asked Questions
Interest earned on CDs and other savings products is taxable at both the federal and state levels. In Hawaii, personal income tax is progressive, depending on the total income earned.
Numerous financial institutions in Hawaii offer competitive interest rates on short—and long-term certificates of deposit.
Online banks often offer slightly higher interest rates on CDs, which can be attractive to savers looking to maximize their earning potential. However, purchasing CDs and banking at regional banks keeps your money in your local economy and is an important part of the regional economic engine.
