Best Certificates of Deposit (CDs) in Illinois for 2025
- First Mid Bank & Trust is a well-established institution in Illinois offering banking and investment solutions, including competitive CDs.
- Credit unions such as Citizens Equity First Credit Union (CEFCU) offer good CD rates designed to benefit Illinois customers.
- Marcus by Goldman Sachs, an online bank, offers competitive, high-yield rates and flexible term options.
- Another online bank, Synchrony, offers several promising CD options, including bump-up and no-penalty CDs.
Certificates of deposit (CDs) offer Illinois residents a safe and predictable way to grow their savings while earning a fixed interest rate. Whether you’re saving for a short-term goal or planning for the future, CDs provide stability and guaranteed returns with minimal risk.
This guide highlights the best CD rates in Illinois, including those available through local or regional banks and credit unions across the state and online. Learn where to find the most competitive rates and terms that align with your saving needs.
Best Certificates of Deposit in Illinois
Popular Banks and Credit Unions in Illinois
Several banks in Illinois provide strong CD offerings, including Wintrust Bank and First Mid Bank & Trust. Credit unions like Alliant Credit Union and Citizens Equity First Credit Union (CEFCU) also offer attractive rates designed to benefit local savers.
Wintrust Bank: A trusted local bank with flexible savings and lending services.
First Mid Bank & Trust: A well-established institution offering banking and investment solutions.
Alliant Credit Union: A well-regarded credit union known for its high-yield CDs, competitive loan rates, and range of digital banking services.
Citizens Equity First Credit Union: A reliable credit union with competitive savings and loan options.
Online Banks: Many online banks offer high-yield CDs, often with better rates than local banks, making them a strong alternative for Illinois residents.
Online Banks Offering CDs
Online banks have become popular for those looking to maximize their savings. They often provide higher rates on saving products, including CDs, compared to traditional brick-and-mortar institutions. Here are some of the benefits of CDs offered by online banks:
- Higher interest rates: Online banks typically offer higher CD rates than local banks and credit unions because they have lower operating costs. This allows them to pass savings on to customers.
- Low minimum deposits: Many online banks offer lower deposit requirements, making it easier to start saving.
- Low or no fees: Online banks often have lower overhead costs, allowing them to eliminate or reduce maintenance and service fees.
- FDIC insurance: Just like traditional banks, reputable online banks are FDIC-insured, ensuring your deposits are protected up to the applicable limits.
- Seamless account setup: Opening an account at an online bank is typically a quick and straightforward process.
Online banks provide competitive CD rates and added convenience for Illinois residents. Here are some of the top options to consider:
- Marcus: Marcus by Goldman Sachs offers competitive, high-yield rates and flexible term options.
- Ally Bank: Known for its customer-friendly bank accounts and lack of fees, Ally Bank offers a range of CD terms with competitive rates and no minimum deposit requirements.
- Synchrony: Synchrony offers some of the best CD rates online, including bump-up and no-penalty CD offerings.
- Bread Savings: Bread Savings is a strong option for those seeking high-yield CDs with short and long-term options to suit different savings goals.
Online banks continue to be a great alternative to traditional institutions. The combination of higher yields, fewer fees, and the convenience of managing your savings from anywhere.
Factors to Consider When Choosing a CD in Illinois
When comparing certificates of deposit, consider factors like interest rates, deposit requirements, and early withdrawal penalties. You should also consider how long you want to keep funds in a CD. Terms can range from as short as one week up to ten years. If you have short-term savings goals, 1-year CDs may be a good fit. For those with a longer savings timeline, 5-year CDs are an attractive option, especially ones offering competitive rates.
If you’re thinking about opening a CD through an Illinois bank or credit union, consider state-wide and local economic conditions, tax implications, and promotions.
Economic growth and interest rates
Illinois’ economy saw moderate growth in 2024, but job and income growth are slowing compared to regional and national averages. This economic trend could impact future CD rates.
State tax considerations
While Illinois does not tax interest income from CDs for individuals, federal taxes still apply. Always consult a tax professional to understand the implications of your overall financial plan.
Local promotions
Some Illinois banks and credit unions may offer promotional CD rates or member-exclusive benefits.
Pros and Cons of CDs
Pros
Cons
- Funds are inaccessible until maturity without a penalty
- Fixed rates may not always keep up with inflation
- May earn lower returns than riskier investments
Compare CD rates in Illinois Now
Finding the best CD rates can help you grow your savings confidently. Whether you choose a local bank or credit union or opt for a high-yield CD at an online bank, comparing options means you’re more likely to secure the highest returns. Consider pairing a CD with a checking account or savings account in Illinois for a more comprehensive banking strategy.
Start exploring the best CD rates today to maximize your savings potential.
FAQs
Yes, CDs from banks are FDIC-insured up to $250,000 per depositor, per institution. Credit Union CDs are insured through the National Credit Union Administration (NCUA) for the same amount.
Interest earned on CDs in Illinois is subject to federal income tax and may also be taxed at the state level in some instances. Check with a tax professional to understand how CD earnings could affect your overall tax liability.
Yes, online banks often provide higher CD rates and lower deposit requirements than traditional banks. Compare CD rates locally to those offered by popular online banks to find the best option for your needs and financial goals.
