June 5, 2024

Best CD Rates in California

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Find the best CD options in California with the highest rates and guaranteed returns. Secure and grow your savings now.

Who has the highest CD rates in California?
Here are some banks and credit unions with the best CD rates in California:

Looking for the best CDs in sunny California? You don't have to look too far.

California offers numerous CDs with attractive rates. From short to long-term CDs, you can secure a solid return and steady passive income for months or years. Explore the top offers in the Golden State below.

Best Bank CD rates in California

If you prefer getting a CD with a local California bank, here are some of the highest CD rates you can consider.

Best Credit Union CD rates in California

Credit unions can offer very competitive rates and other perks to their members. Check out these credit unions in California with impressive CD rates.

Best Online CD rates in California

Online banks are typically available to residents nationwide regardless of where you live. Here are the top online CDs available.

Best National Bank CD rates

If you're looking for a reputable large national bank, some offer decent CD rates from time to time.

Best CD Rates in California by Term

Looking to open a CD with a specific term? Here are some of the highest CD rates in California by CD term.

Best 3-month CDs in California:

Best 6-month CDs in California:

Best 1-year CDs in California:

Best 5-year CDs in California:

How long are you willing to lock in your funds in a CD?

What Is a CD?

A certificate of deposit, or CD, is a savings account where you deposit a fixed amount for a fixed number of months or years. In exchange, you earn a fixed APY that applies for the entire term.

Often, the APY on a CD is higher than what you can get on a regular savings account. But, you can't withdraw your money until the CD matures. The lock-in period is why banks can offer you high rates. You lose convenient access to your money in exchange.

If you withdraw early, be ready to pay early withdrawal penalties. It can range anywhere from 3 months to 1 year's interest, depending on the term.

Can I lose money on a CD?
Usually, no. CDs are risk-free investments. Your deposits are federally insured up to $250,000 for banks or credit unions that are FDIC or NCUA members. But, you can lose some of your money to penalties if you withdraw early enough.

How Much Interest Does a CD Earn?

If you deposited $10,000 in a 1-year CD with a 5% APY, you'd earn $500 after a year. How much you earn on a CD depends on three things: the CD term, APY, and the amount in your CD.

In general, the longer term, the higher the APY, and the bigger the amount, the better your interest earnings will be.

Here's a simple CD calculator to see how much your CD can earn.

CD Calculator

Are CDs taxed in California?
Yes, you might need to pay state taxes on your CD interest earnings in California. You also need to pay federal income taxes on your CD.[1][2]

Where to Find the Best CDs in California?

If you are strictly looking at offers in California, check out CD specials from community banks and credit unions. They may offer promotional CDs for a limited time, sometimes with specific criteria to open. But, they usually come with good rates.

National banks may also offer CD specials that vary by location. There also may be some requirements to qualify.

Online banks typically give high CD rates too. Plus, the region is not restricted so you can easily open a CD with them.

Who has the highest paying CD in California?
One of the highest CD rates in California is Beal Bank: 6-Month CD - 5.25% APY.

Pros and Cons of a CD


  • Fixed rate for a fixed term
  • Usually offers higher APY than regular savings
  • Keep earning at the same APY even if interest rate drops
  • Federally insured up to $250,000 by the FDIC or the NCUA


  • Can't withdraw until CD matures
  • Early withdrawal penalties can be costly
  • Some restrictions like membership and minimum deposit
  • Miss out on better APY and investments due to the fixed term

Is a CD better than a savings account?
If you can park your money for months or years, a CD is a good option to lock in high rates. But if you need easy access to your money, liquid accounts like a savings account might be a better choice.

Should I Get a CD?

Whether or not you get a CD depends on your goals. They're safe investments if you need to save money for the short term, and want to lock in a good interest rate.

The big question is: can you afford to lose access to your funds for months or years? Remember that you usually can't withdraw your CD until it matures.

If you think you might need the money, opt for more liquid and convenient accounts instead. For example, many high-yield savings accounts offer competitive APY, and may be good alternatives.

Compare Savings Account Offers

How to Choose the Best CD Rates in California?

When you're hunting for a CD in California, ask these questions:

How long is the term?
You want a CD term that fits your financial goals. Some banks or credit unions may offer more term options in-branch. If you can, inquire with a branch near you.

What is the APY?
Get the highest APY to maximize your earnings on a CD. Ask your local bank or credit union if they have CD specials in California.

Are there any requirements or restrictions?
Some CDs may only be available for residents in a certain county. Or some offers may be available to new customers only. Be sure to ask before you open an account.

What is the minimum deposit required?
The CD may have a minimum deposit. If you can't commit to or meet the requirement, look for CDs with little to no deposit requirements.

What if I need to withdraw my CD early?
Most CDs will have early withdrawal penalties. So if you need to close your CD before it matures, be prepared to pay the penalties. Or if you're not sure if you can commit, find no penalty CDs to avoid paying any fees.

What's the most important factor to you when choosing a CD?

What Are the Types of CDs Available?

Here's a list of different types of CDs that may be available in California:

  • Term CD: Standard CDs with a fixed rate for a fixed term
  • No-Penalty CD: Allows you to withdraw money early without any withdrawal penalties
  • Jumbo CD: Requires large deposits of usually $100,000+
  • IRA CD: Offers tax advantages for retirement savings
  • Bump-Up CD: Has an option to increase your rate during the term of the CD
  • Add-on CD: Has an option to add more deposits during the term of the CD

What are the best jumbo CD rates in California?

Bottom Line

There are plenty of golden CD options in sunny California. But, take note: some CDs may have restrictions for you to open.

If you're just looking for a general high-yield CD, consider CDs from online banks instead. They usually have less restrictions and can be opened from anywhere.


  1. ^ Tax Foundation. State Individual Income Tax Rates and Brackets, 2024, Retrieved 05/15/2024
  2. ^ IRS. Topic no. 403, Interest received, Retrieved 05/15/2024

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Best CD Rates

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Best Jumbo CD Rates

Jumbo CD Rates

Jumbo CDs can offer high interest for minimal risk. Find out who has the best jumbo CD rates.

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