Best Certificates of Deposit (CDs) in Indiana for 2025
- Community First Bank of Indiana offers a 30-day CD with a 3.50% interest rate and a $25,000 opening deposit.
- American Community Bank in Indiana offers a variety of CDs and savings accounts with opening deposits as low as $1.
- Vio Bank's CDs can be opened with $500 deposit and have terms from 6 months to 5 years.
You work hard to be able to put money away, so you want to get the most out of it. Consumers in Indiana can leverage certificates of deposit (CDs) to do just that. CDs are a great tool for building your savings because they allow you to earn a much higher interest rate than you would with a regular savings account, and in exchange, you agree to keep your money in the account for a certain amount of time.
CDs are offered by banks and credit unions around Indiana, as well as online banks. In this guide, we take a look at the best CD rates in Indiana. Also, we will detail some of the benefits and drawbacks of CDs and the criteria you should consider when choosing one.
Top CD Rates in Indiana
Popular Banks and Credit Unions in Indiana
- American Community Bank: In addition to CDs, this bank has savings accounts with opening deposits as low as $1, as well as accounts that don’t have any fees.
- Community First Bank of Indiana: Community First Bank of Indiana offers standard CDs, along with special CD/IRA accounts.
- Horizon Bank: Consumers can determine the status of their investment by using the growth calculator on the bank’s website.
- Online Banks: Online banks offer impressive rates that may be higher than even the best CD rates in Indiana. Also, there are a variety of terms you can choose from.
Online Banks Offering CDs
Have you considered opening a CD account at an online bank? The following are some good reasons to.
24/7 Accessibility: Online banks often have longer customer service hours than traditional banks. In some cases, you may be able to reach customer service representatives online or by phone 24 hours a day.
FDIC Insurance: Just as with their traditional counterparts, you can be sure that your accounts at online banks are safe because they carry insurance from the Federal Deposit Insurance Corporation (FDIC). As a result, your accounts are protected up to $250,000.
Higher Interest Rates: With a CD account, you’re already getting a higher interest rate than you would with a regular savings account. These rates can be even higher rate at an online bank.
Low Minimum Deposits: In some cases, banks require a high minimum opening deposit for CDs. However, with online banks, the opening deposit can be much lower, and in some cases, there is no minimum amount at all.
Quick Account Setup: Part of what makes online banks so attractive is the convenience that comes with them. You are able to open an account online quickly—sometimes within minutes.
Has your interest piqued now that you’ve learned the benefits of opening a CD at an online bank? The following are some specific options for you to review.
- Bank5Connect: When you open a CD at Bank5Connect, you will not be charged any monthly maintenance fees.
- CIT Bank: There are CDs with no opening fee requirements and penalties for withdrawing money early.
- Forbright Bank: This bank’s CDs, which have a wide range of terms available, can be opened with $1,000.
- Vio Bank: Vio Bank’s CDs can be opened with $500 deposit and have terms ranging from six months to several years.
Now that you have learned about different available online CDs, you can decide if one is the right option for you.
Factors to Consider When Choosing a CD in Indiana
Everyone has different criteria they look for when choosing a banking product, so chances are, you already have things in mind that you want from a CD in Indiana.
One of the things you may be thinking about is terms. Based on your financial goals, you may be looking for a long-term option. Products on the longer end of the spectrum can include two-year CDs, but in some cases, the terms may be five or even ten years.
However, you may be looking for a short-term CD. This may mean that an 18-month CD is a good choice for you. Or you may want an even shorter term, which can be as low as three or six months. As you think about which CDs to purchase, determine how long you want to keep your money in an account.
Another factor that will obviously be on your mind is which banks offer the best CD rates in Indiana. You can get healthy, competitive rates that can range between three and four percent. Be sure to keep your eyes open for special CD promotions that banks and credit unions offer because they may provide higher rates than their usual offerings.
Pros and Cons of CDs
There will be pros and cons with any type of account you open at banks in Indiana, and CDs are no different. In order to make an informed decision, you should look at both sides before putting your money into any CD.
Pros
- Offer higher interest rates than even the best savings accounts in Indiana.
- Fixed rates provide guaranteed returns over the term of the CD.
- Funds are insured by the FDIC (for banks) or NCUA (for credit unions), making them a very safe investment.
Cons
- Fixed interest rates may not keep up with inflation, reducing real returns over time.
- Potentially lower returns compared to other investment options like stocks or mutual funds.
Are You Ready to Grow Your Savings Now?
One reason to consider certificates of deposit is because they can grow your savings and help contribute to a healthy financial future. Now that you have learned about CD rates in Indiana, you have taken a first step toward finding the best product. Companies have many options, so whether you are considering CDs based on their terms, interest rates, or convenience, there is one that will match what you’re looking for.
Frequently Asked Questions
Yes. Income is taxed in Indiana, including the amount earned from interest on savings accounts.
Some of the shortest CD terms are three to six months. If you want a faster return, Community First Bank of Indiana has a CD with a 30-day term. It has a 3.50% interest rate and can be opened with $25,000.
It depends on your banking preferences. If you prefer to keep your money in a community bank, then chances are you’re much better off opening a CD at a bank in Indiana. However, if you’re not concerned about banking locally and feel comfortable doing business online, then it may be a good idea to take advantage of the higher interest rates virtual banks offer.
