The main places to buy CDs online

You can purchase CDs from three types of institutions: traditional banks with online platforms, online-only banks, and brokerage firms. Each route has different minimum deposit amounts, interest rates, and account structures, so the best choice depends on whether you want simplicity, the highest rate, or access to many CD terms in one place.

Traditional banks like Chase, Bank of America, and Wells Fargo all let you open CDs through their websites if you already have a checking or savings account with them. Online-only banks such as Marcus, Ally, and Discover often offer higher rates because they have lower overhead costs. Brokerage firms like Fidelity, Charles Schwab, and E*TRADE let you buy CDs from multiple banks through a single account, which is useful if you want to compare rates without opening separate accounts everywhere.

The rate you receive depends on the bank's current offer, the CD term length (3 months to 5 years is common), and how much you deposit. Rates change daily, so a bank offering 4.5% one week may offer 4.2% the next. Shopping across multiple sites takes 10 to 15 minutes and can mean hundreds of dollars in difference over the CD's life.

Key Takeaways

  • Online-only banks typically offer higher CD rates than traditional banks because they have lower operating costs.
  • Brokerage platforms let you compare and buy CDs from multiple banks in one account, saving time if you want to ladder CDs across different terms.
  • CD rates change daily, so checking rates on the same day across three to five sites helps you find the best current offer.
  • Minimum deposits range from $500 to $25,000 depending on the bank and CD term, so confirm the minimum before you start the purchase process.
  • All CDs purchased from FDIC-insured banks are protected up to $250,000 per account holder per bank, regardless of where you buy them.

Online-only banks and their CD rates

Online-only banks consistently offer rates 0.5% to 1% higher than traditional brick-and-mortar banks because they do not maintain physical branches. Marcus (owned by Goldman Sachs), Ally Bank, Discover Bank, and American Express Personal Savings all publish their CD rates on their homepages and update them daily. You can see the rate for each term length—typically 3 months, 6 months, 1 year, 2 years, 3 years, and 5 years—without logging in.

The process is straightforward: you visit the bank's website, select the term and deposit amount, and complete the account opening online. You will need a Social Security number, proof of address, and a way to fund the account (usually a bank transfer from another account). Most online-only banks fund CDs within one to two business days after you transfer money in.

The trade-off is that you cannot walk into a branch or call a local number. Customer service is phone and email only, though most online banks respond within 24 hours. If you prefer talking to someone in person, a traditional bank's CD may be worth the lower rate.

Traditional banks with online CD purchase

If you already bank with Chase, Bank of America, Wells Fargo, or another large bank, you can open a CD through their website without visiting a branch. Log into your online banking portal, find the CD or savings product section, and follow the prompts. The minimum deposit is often $500 to $1,000, though some banks require $2,500 or more for certain terms.

The advantage is convenience: your CD sits in the same account login as your checking and savings, and you can manage it without opening a new account elsewhere. The disadvantage is that their rates are usually 0.3% to 0.8% lower than online-only banks. For example, if Marcus offers 4.8% on a 1-year CD and your bank offers 4.2%, that difference costs you $60 per $10,000 deposited over one year.

Some traditional banks also offer promotional rates for new CD customers. Check your bank's website or call their customer service line to ask whether a higher rate is available if you open a CD this month. These promotions change frequently and are not always advertised on the main page.

Brokerage platforms for comparing multiple banks

Fidelity, Charles Schwab, E*TRADE, and Merrill Edge all let you buy CDs from dozens of banks through a single brokerage account. This is the fastest way to compare rates across institutions without opening separate accounts. You log into your brokerage account, search for CDs by term and rate, and buy directly. The CD is held in your brokerage account, and the interest is deposited there when the CD matures.

The main benefit is speed and transparency. You see rates from 20 to 50 banks side by side, sorted by rate, term, and minimum deposit. You can filter by FDIC insurance status (all are insured), early withdrawal penalty, and whether the bank allows rate bumps (the ability to increase your rate if rates rise during your CD term). This takes the guesswork out of shopping.

The drawback is that brokerage CDs are held in a brokerage account, not a bank account. If you do not already use a brokerage, opening one adds a step. Also, some brokerage platforms charge a small transaction fee per CD purchase, though most major brokers waived these fees in recent years. Check the platform's fee schedule before you buy.

How to compare rates across sites

Start by listing the CD term you want—say, a 1-year CD with a $10,000 deposit. Then visit three to five rate-comparison sites or banks on the same day and record the rate each offers. Bankrate, DepositAccounts, and DepositRates all publish current rates from hundreds of banks and update them multiple times daily. You can also visit individual bank websites directly.

Write down the rate, the minimum deposit, any promotional bonus, and the early withdrawal penalty for each option. The penalty matters: if you need the money before the CD matures, you will lose some or all of the interest. A CD with a 6-month interest penalty is safer than one with a 12-month penalty if you think you might need the money.

Once you have narrowed it to two or three banks, check whether they offer a rate bump or step-up CD. A rate bump lets you increase your rate once if rates rise during your term. A step-up CD automatically increases your rate at set intervals. These features cost you a slightly lower starting rate but protect you if rates climb.

Minimum deposits and account requirements

Minimum deposits vary widely. Online-only banks often accept $500 or $1,000 minimums, while some traditional banks require $2,500 or $5,000. A few banks, particularly those offering very high rates, may require $25,000 or more. Check the bank's website before you start the application process so you do not waste time on a CD you cannot afford.

Some banks waive the minimum if you set up automatic transfers from another account or if you maintain a linked checking account with them. Others offer lower minimums for certain terms—for example, $500 for a 1-year CD but $5,000 for a 5-year CD. These details are usually buried in the fine print, so call the bank's customer service line if the website is unclear.

If you have less than $500 to deposit, look for banks that offer no-minimum savings accounts or money market accounts instead. These pay lower interest than CDs but let you start saving without a floor.

Funding your CD and what happens next

Once you have chosen a bank and opened the account, you will fund the CD by transferring money from another bank account. Most banks accept ACH transfers (electronic transfers from your checking or savings account at another bank), which take one to three business days. Some banks also accept wire transfers, which are faster but may carry a fee.

After the money arrives, the bank confirms the CD term and locks in the rate. You will receive a confirmation email with the maturity date, the interest rate, and the amount you will receive when the CD matures. Set a calendar reminder for one month before the maturity date so you can decide whether to renew the CD, move the money elsewhere, or withdraw it.

When the CD matures, the bank will either automatically renew it at the current rate (if you do not take action) or deposit the principal and interest into a linked savings or money market account. Read the bank's renewal policy before you buy so you understand what happens if you do nothing.

Frequently Asked Questions

Can I buy a CD from a bank that is not in my state?

Yes. Online banks have no physical location, so geography does not matter. Even traditional banks with branches in only a few states let you open CDs online from anywhere in the United States. FDIC insurance covers CDs from any bank regardless of where you live.

What is the difference between buying a CD directly from a bank and buying one through a brokerage?

When you buy directly from a bank, the CD is held in a bank account and insured by the FDIC up to $250,000. When you buy through a brokerage, the CD is held in a brokerage account but is still FDIC-insured because the brokerage holds it at an FDIC-insured bank. The main difference is convenience: brokerages let you compare many banks at once, while buying directly requires visiting each bank's website separately.

Do I need to have an existing account to open a CD?

No. Most banks let you open a CD as your first account with them. You will need a Social Security number, proof of address, and a way to fund the account (usually a transfer from another bank). Some banks do require you to open a checking account first, so check the bank's website if you are unsure.

What happens if I need the money before the CD matures?

You can withdraw the money, but you will pay an early withdrawal penalty. The penalty is usually three to twelve months of interest, though some CDs charge a percentage of the principal. Before you buy, compare the penalties across banks—a lower rate with a smaller penalty may be better than a higher rate with a steep one.

Are CDs bought online as safe as CDs bought in a bank branch?

Yes. As long as the bank is FDIC-insured, your CD is protected up to $250,000 whether you buy it online or in person. Check the bank's FDIC status on the FDIC website before you deposit money. All major banks and most online-only banks are FDIC-insured.