Best CDs Rates in New Jersey for 2025
- Manasquan Bank offers its highest CD rates with CDs that have terms ranging from 18 months to 7 years.
- Freedom Bank CDs offer a low opening deposit requirement and competitive rates.
- Online bank Marcus offers CDs with competitive rates and a $500 starting balance.
- Synchrony Bank, also online, has an even lower opening deposit requirement low of $0.
Certificate of deposit accounts or CDs offer a safe, secure way to fund your financial goals. CD accounts feature guaranteed rates, though some banks may be more generous than others when paying interest.
Today, we’re looking at the best CD accounts in New Jersey for Garden Staters who are ready to grow their money.
Best Certificates of Deposit in New Jersey
Popular Banks and Credit Unions in New Jersey
New Jersey has numerous banks and credit unions, many of which offer CD products. Some of the top local banking options for CD accounts in New Jersey include Freedom Bank, Manasquan Bank, and Affinity Federal Credit Union.
Freedom Bank: Freedom Bank CDs feature a low opening deposit requirement and competitive rates. The 10-month special CD offers the best APY, but rates for 5-month and 15-month CDs aren’t far behind.
Manasquan Bank: Manasquan Bank is geared toward New Jersey savers who are looking for variety. The highest CD rates are reserved for CDs with terms ranging from 18 months to 7 years. There’s also a special CD option for savers who are stashing away a down payment on a home.
Affinity Federal Credit Union: This credit union is suited to savers looking for mid-term CDs; the highest APY is available for an eight-month term. You can choose from standard share certificates or promotional accounts, including IRAs and business certificates.
Online Banks Offering CDs
No discussion of the best CD accounts in New Jersey is complete without a look at online banks. Opening a CD account with an online bank can yield numerous benefits to New Jersey savers, including:
• Higher rates. Online banks tend to have lower overhead costs than traditional banks. They often pass that savings on to customers in the form of higher CD rates.
• Lower minimums. Traditional banks may expect you to deposit anywhere from $500 to $2,500 to open a new CD account. Online banks’ minimum deposit may be as low as $0.
• FDIC insurance. FDIC insurance protects deposits if a bank fails. The best online banks for CD savers are FDIC-insured, so your money is covered up to the maximum limit.
• Low or no fees. The most common CD fee is an early withdrawal penalty, which banks can charge if you take money from your account before it matures. Many online banks offer no-penalty CDs, which allow fee-free withdrawals if you need cash in a pinch.
• Easy account opening. Opening a CD online is quick and easy. You choose a bank, select the CD you want to open, share some information, and link a bank account to make your first deposit.
• Variety. CDs aren’t one-size-fits-all; you can choose from different terms to meet your needs. For example, you might open a 1-year, 18-month, and 2-year CD to build a CD ladder.
With that in mind, here are four of the best online CD accounts for New Jersey residents.
Top CD Rates from Online Banks
Bread Savings: Bread Savings offers online CD accounts with terms ranging from three to 60 months. Out of all the New Jersey CD accounts listed here, Bread pays the highest APY overall.
Marcus: Marcus is suited to savers who may be looking for longer CD terms with a modest opening deposit requirement. You can get started with $500, and all of Marcus’s CDs earn outstanding rates, even with shorter terms.
Discover Bank: Discover offers the longest CD option of our top picks, with a 10-year term. The opening deposit requirement is $0, which could be ideal for New Jersey residents who are just getting started with saving.
Synchrony Bank: Synchrony Bank also keeps the opening deposit requirement low, at $0, and you can choose from a wide range of CD terms. You might consider saving with Synchrony if you’re also interested in opening a high-yield savings account or money market account at the same bank.
These are just some of the banks representing the best savings options in New Jersey. Finding the right bank and CD account for your needs requires a little research to see how the competition stacks up.
Factors to Consider When Choosing a CD in New Jersey
If you’re looking for New Jersey CDs, it helps to know what to compare. Here are a few factors that could affect your choice of CD accounts.
Online vs. Traditional Bank
The first thing to consider is whether you want to open a CD online or stick with a local New Jersey bank. If you’re thinking local is the way to go, consider the rates you could earn, the CD terms available, and whether you’ll need to visit a branch to open your account.
Interest Rates
Getting the best CD rates possible makes sense if you’re committing to saving. What’s happening with interest rates nationally and in the local economy can influence how CD rates move. Check out how rates at New Jersey banks compare to one another, then look at online banks that offer accounts in the state to see if those rates match what you’re seeing locally.
Tax Rates
CD interest is taxable income, whether you’re paying the IRS or the state. New Jersey has one of the highest income tax rates of any state, which is something to keep in mind if you’re hoping to earn a nice chunk of change from CD interest.
Pros and Cons of CDs
Are CDs a good way to grow your money? Like anything else, there are advantages and disadvantages. Here’s how the pros and cons compare.
Pros
- CDs can offer guaranteed rates, so it’s easy to calculate how much interest you can earn.
- Saving in a CD is generally safe if you have your account at an FDIC-insured bank.
- Building a CD ladder is a great way to fund different financial goals while taking advantage of rising rates.
- If you have to break into your CD early because of an emergency or hardship, most banks will allow you.
Cons
- Withdrawing money from a CD early can trigger a penalty fee.
- You could miss out on interest earnings if CD rates increase after opening an account.
CDs Make Saving Simple
CDs can keep your money safe until you need it, and you can earn some decent interest if you choose the right place to bank. Ready to get more bang for your savings dollars? Compare CD rates in New Jersey now!
FAQs
New Jersey has an income tax, so your CD interest is considered taxable. The tax rate is graduated, ranging from 1.40% to 10.75%.
New Jersey has just over 100 banks and credit unions — but which one should you choose if you’re looking for a CD account? Credit unions are a good fit for people who want to own a stake in the institution that holds their money. New Jersey banks, meanwhile, may be better if you don’t meet the membership requirements to join a credit union.
Based on our research, Manasquan Bank is one of the best New Jersey banks for CD accounts. Rates are well above the national average, and you have a broad range of CD terms from which to choose.
