Certificates of deposit (CDs) might not seem flashy but they're solid, low-risk investments offering attractive returns. By depositing a lump sum in a CD, you're agreeing to a fixed interest rate over a set period.
Our collaboration with Curinos has allowed us to analyze over 20,000 data points from diverse financial institutions, leading us to the best CDs in Illinois based on their annual percentage yield (APY).
Plus, with the backing of the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) insurance, these CDs ensure your investments are secure up to $250,000.
Best CD rates in Illinois overall
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Compare rates from our partners
Sometimes the best rates aren't local. Looking beyond Illinois, we offer a broader perspective on the best CD rates available nationwide. Our partners provide competitive rates and flexible deposit options for savvy savers everywhere. Discover these top choices on our best CD rates page.
Best CD rates in Illinois by term
Are you looking for the best CD rates in Illinois? Our analysis, anchored in Curinos data, has some of the best rates across various terms including 6-month, 1-year, and 5-year CDs. The “Notes” column lists essential details and specific requirements, although it may sometimes be empty. For the most current and detailed information, we suggest contacting the respective financial institutions directly.
Best 6-month CD rates in Illinois
For a short-term investment, a 6-month CD can offer a competitive interest rate without tying up your funds for too long. This brief commitment period allows your savings to grow at a guaranteed fixed rate.
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Best 1-year CD rates in Illinois
A 1-year CD can be an excellent choice for those seeking a balance between decent rates and a manageable time commitment. These CDs often offer more attractive rates than shorter-term alternatives without needing a multiyear investment.
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Best 5-year CD rates in Illinois
A 5-year CD is an excellent choice for savers with long-term financial goals. It offers the opportunity to secure a high rate for an extended period, protecting your savings from market volatility.
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What is a certificate of deposit?
A CD is a savings instrument offered by financial institutions that locks in a specific sum of money for a predetermined term, usually ranging from a few months to several years, at a fixed interest rate.
CDs are known for their safety as they are typically insured by the FDIC or NCUA for up to $250,000. The main trade-off with a CD is its lack of liquidity. Withdrawing funds before the maturity date generally results in penalties.
What does APY mean on a CD?
APY on a CD quantifies the real rate of return, factoring in how often interest is compounded. Unlike simple interest rates, APY provides a more accurate reflection of your earnings by considering the compounding effect, where interest is earned on both the principal and accrued interest over time. This metric is vital for comparing the actual earning potential across different CDs.
What are the most common types of CDs?
There are several types of CDs. These include but are not limited to:
- Traditional CD: The most standard form where money is deposited for a fixed period, earning a predetermined interest rate.
- No-penalty CD: Offers the flexibility to withdraw funds before maturity without penalties, typically at a slightly lower interest rate.
- Bump-up CD: Allows the holder to request a rate increase if market interest rates rise, usually limited to one bump-up per term.
- Jumbo CD: Requires a larger minimum deposit (often $100,000-plus) and usually offers higher interest rates.
- Brokered CD: Sold through brokerage firms, these CDs may offer higher rates and are traded on the secondary market.
- Callable CD: Offers a higher interest rate but gives the bank the option to "call" or terminate the CD before its maturity if interest rates drop.
How to choose the best CD in Illinois
There are over 400 FDIC-regulated banks in Illinois and more than 190 NCUA-regulated credit unions. Selecting the best CD involves a few key considerations:
- Term length: The maturity period of CDs ranges from as brief as a week to as extensive as 10 years. It's crucial to match the term length with your financial timeline and objectives.
- APY: This figure greatly influences the growth of your investment. Higher APYs translate to more interest earnings over time.
- Minimum deposit: Different banks and credit unions have varying requirements for the minimum amount needed to open a CD. This amount can be as minimal as a few dollars or as substantial as several thousand. Since most CDs are single deposit accounts, ensuring you can meet this initial requirement is important.
- Penalties for early withdrawal: While some CDs offer flexibility, others may impose penalties for accessing funds before the maturity date. Understanding these penalties is essential, especially if unforeseen circumstances arise that necessitate early withdrawal.
- Deposit insurance: With FDIC and NCUA insurance, your deposits in Illinois are protected up to $250,000 in the event of bank or credit union failure. Verifying this insurance coverage offers peace of mind for your investment.
