The main places to buy CDs online

You can buy a CD from three types of institutions: traditional banks with online platforms, online-only banks, and brokerage firms. Each route has different strengths depending on what matters to you — whether that's the highest rate, the shortest term, or the ability to buy and sell before maturity.

Traditional banks like Chase, Bank of America, and Wells Fargo all let you open a CD through their websites. Online-only banks like Ally, Marcus, and Discover often post higher rates because they have lower overhead costs. Brokerage firms like Fidelity, Charles Schwab, and E*TRADE sell CDs issued by many different banks, which means you can compare hundreds of options in one place without opening separate accounts.

The choice between them usually comes down to rate, term length, and whether you want the option to sell your CD before it matures. A bank CD locks you in — you pay a penalty if you withdraw early. A brokered CD can be sold on the secondary market, though the price you get depends on interest rate movements.

Key Takeaways

  • Online-only banks typically offer higher CD rates than traditional banks because their operating costs are lower.
  • Brokerage firms let you compare CDs from multiple banks in one account, which saves time if you want to shop rates across institutions.
  • Bank CDs charge an early withdrawal penalty if you need the money before maturity; brokered CDs can be sold but the sale price fluctuates with interest rates.
  • You will need to provide your Social Security number, address, and proof of identity to open a CD, whether you buy it from a bank or a broker.
  • CD rates change daily, so the highest rate today may not be the highest rate when you are ready to buy.

How to compare rates across banks

The fastest way to see what different banks are offering is to visit their websites directly and look for the CD rates page. Most banks display current rates for common terms — 3 months, 6 months, 1 year, 2 years, 5 years — without requiring you to log in. Write down the rate, the minimum deposit, and any special conditions (some banks offer higher rates if you set up automatic deposits, for example).

If you want to see many banks at once, financial websites like Bankrate, DepositAccounts, and Money Market Rates publish CD rates from dozens of institutions and update them daily. These sites do not sell CDs themselves — they are comparison tools. You still open the account directly with the bank you choose. The advantage is speed: you can see whether an online-only bank is beating your current bank by 0.5% or 1.5% in minutes, rather than visiting ten websites.

When you compare, look at the annual percentage yield (APY), not just the interest rate. APY accounts for how often the bank compounds interest, so it shows you the true return. A CD with a 4.50% APY will earn more than one with a 4.50% rate if the second one compounds less frequently.

Opening a CD at an online-only bank

Online-only banks like Ally, Marcus, and Discover have no physical branches, so the entire process happens on their website or mobile app. You visit their site, click the link for CDs, choose your term and deposit amount, and then provide your personal information — name, address, Social Security number, and date of birth.

The bank will ask you how you want to fund the CD. Most let you transfer money from another bank account using your routing and account number. Some also accept wire transfers or checks. The transfer usually takes one to three business days to clear, and your CD begins earning interest once the money arrives.

One thing to confirm before you open the account: what happens when your CD matures. Some banks automatically renew it for another term at the current rate. Others move the money to a regular savings account. You can usually change this setting in your account, but it is worth checking the default so you are not surprised.

Buying CDs through a brokerage account

If you already have a brokerage account at Fidelity, Charles Schwab, E*TRADE, or a similar firm, you can buy CDs directly through that account without opening a separate bank account. The brokerage acts as a middleman, connecting you with CDs issued by banks across the country.

The advantage is convenience and selection. Instead of opening five different bank accounts to compare five different rates, you see hundreds of CDs in one place, sorted by rate, term, and issuing bank. You can buy a CD from Bank A and a CD from Bank B without leaving your brokerage account.

The trade-off is that brokered CDs work differently at maturity. When a bank CD matures, the bank either renews it or returns your money. When a brokered CD matures, the brokerage returns your principal to your cash account — it does not automatically renew. You have to decide what to do with the money next. Also, if you need to sell a brokered CD before maturity, you sell it on the secondary market rather than paying an early withdrawal penalty. The price you receive depends on whether interest rates have risen or fallen since you bought it.

What you need to provide to open a CD

Whether you buy from a bank or a broker, you will need to verify your identity. Have your Social Security number, current address, and date of birth ready. Most institutions will ask for a government-issued ID — a driver's license or passport — though they usually verify this electronically rather than asking you to upload a photo.

You will also need to decide how to fund the CD. If you are transferring from another bank, you will need that bank's routing number and your account number. If you are funding from a brokerage account, the money is already there. Some banks and brokers accept wire transfers, which clear faster but may carry a small fee.

If you are opening a CD in a joint account (with a spouse or partner, for example), both account holders will need to provide their information and verify their identity. The bank will ask how you want the account titled and whether you want survivorship rights, which determine what happens to the money if one account holder dies.

Understanding CD rates and terms you will see online

When you shop for CDs, you will see terms ranging from a few months to five years or longer. Shorter terms (3 to 6 months) have lower rates because the bank has your money for a shorter time. Longer terms (3 to 5 years) have higher rates because the bank can lend that money out for longer. The difference between a 6-month CD and a 5-year CD can be 1% or more in APY, depending on the economic environment.

You will also see minimum deposit requirements. Most banks require at least $500 or $1,000 to open a CD, though some online-only banks have minimums as low as $100. A few banks have no minimum at all. The minimum does not affect the rate — a $500 CD earns the same percentage as a $50,000 CD at the same bank.

Rates change constantly. The rate you see today may be different tomorrow. If you see a rate you like, you can usually lock it in by opening the account that day, but some banks give you a window of a few days to fund the CD at the rate you saw. Check the bank's terms before you start the application.

Frequently Asked Questions

Can I buy a CD with money from another bank without opening a checking account?

Yes. You only need a way to transfer the money — either a bank transfer using your routing and account number, a wire transfer, or a check. You do not need to open a checking account at the bank where you buy the CD.

What if I find a higher rate after I already bought a CD?

With a bank CD, you are locked in at the rate you bought. If you withdraw early, you pay a penalty. With a brokered CD, you can sell it on the secondary market, though the sale price may be lower than what you paid if rates have risen. For future CDs, you can always shop again when your current one matures.

Do I need to have a minimum amount of money to start?

Most banks require a minimum deposit of $500 to $1,000 to open a CD. Some online-only banks have lower minimums of $100 or less. A few have no minimum. Check the specific bank's requirements before you apply.

Is my money safe if I buy a CD from an online-only bank?

Yes, as long as the bank is FDIC-insured. Check the bank's website or the FDIC's bank search tool to confirm. FDIC insurance covers up to $250,000 per depositor per bank, so your CD is protected even if the bank fails.

How long does it take for the money to start earning interest?

Interest usually begins once your deposit clears, which typically takes one to three business days for a bank transfer. Wire transfers and checks may clear faster or slower depending on the bank. The bank will tell you the exact date your CD begins earning interest when you open it.