At face value, certificates of deposit (CDs) and share certificates may not seem worth your time. However, they’re low-risk investments that offer attractive returns. When you opt for a CD, you make a lump sum deposit, committing your funds for a fixed period in exchange for a fixed interest rate.
In collaboration with Curinos, we analyzed a dataset comprising over 20,000 data points from banks and credit unions across Ohio. We identified the best CDs in the states based on which ones offered the highest annual percentage yields (APYs).
CDs and share certificates are considered deposit accounts, so balances up to $250,000 are covered by FDIC or NCUA insurance.
Best CD rates in Ohio overall
View this interactive chart on Fortune.com
Compare rates from our partners
Additionally, we've collected data from banks across the country to identify the banks and credit unions providing the best CDs. Our choices have competitive interest rates and minimal opening deposit requirements.
Best CD rates in Ohio by term
Leveraging data from Curinos, we identified the leading 6-month, 1-year, and 5-year CDs in Ohio.
To qualify for these rates, you may need to meet specific criteria which are outlined in the notes column of the tables below. Note that this field may be empty. For the most up-to-date information, we recommend directly contacting the relevant bank or credit union.
Best 6-month CD rates in Ohio
Attain a stellar APY without committing your funds for an extended duration by opting for a 6-month CD. Bear in mind that choosing a longer maturity usually yields a higher APY.
View this interactive chart on Fortune.com
Best 1-year CD rates in Ohio
If you're not ready for a prolonged financial commitment, consider a 1-year CD. Moreover, certain CDs come with low minimum opening deposit requirements, making them accessible regardless of your savings amount.
View this interactive chart on Fortune.com
Best 5-year CD rates in Ohio
If your financial goal is set in the distant future, a 5-year CD could be a solid bet. Although it involves a lengthier commitment, 5-year CDs typically offer higher rates compared to shorter-term options.
View this interactive chart on Fortune.com
What is a certificate of deposit?
When you opt for a CD, you commit your funds for a specified period and receive a fixed interest rate. If your bank or credit union is protected by FDIC insurance or NCUA coverage, your CD is secure, at least up to $250,000.
One major drawback of investing in CDs is that if you withdraw your funds before the CD matures, you’ll be on the hook for paying an early withdrawal penalty, often equal to a few months' of interest.
What does APY mean on a CD?
The APY, or annual percentage yield, is a number that represents the interest you accrue in one year. For example, if you deposited $2,000 in a 1-year CD with a 5% APY, you would accumulate $100 by the end of the year.
What are the most common types of CDs?
There are many different types of CDs, but traditional, brokered, and no-penalty CDs are common types of CDs.
- Traditional CDs. Simply deposit your money for a fixed period, and in return, receive regular interest payments. It's that straightforward.
- Brokered CDs. Financial institutions sell these CDs to brokerages. Brokerages then turn around and sell them to customers with more attractive APYs than traditional CDs.
- No-Penalty CDs. Seeking flexibility? With these CDs, you can access your funds without incurring an early withdrawal fee. However, these CDs may offer slightly lower interest rates.
How to choose the best CD in Ohio
There are over 200 FDIC-regulated banks in Ohio and 170 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:
- Term length. The duration of your CD's term indicates how long it takes to mature. This may range from a few months to years. Choose a term that aligns with your needs and financial goals.
- APY. The annual percentage yield (APY) is a number that represents that rate of return over one year. A higher APY equals more interest.
- Minimum deposit requirements. Sometimes, banks and credit unions require you to make a minimum investment to open a CD. This initial deposit is lump sum which can vary from a few dollars to thousands—you’re usually not allowed to make additional contributions.
- Early withdrawal penalties. Most CDs penalize you for withdrawing funds early, so you could lose earned interest and part of your principal balance. While early withdrawals can’t always be planned, it's good to know there is a penalty before you sign up.
- Deposit insurance: FDIC and NCUA insurance provides depositors with insurance coverage of up to $250,000 per depositor or share owner. Double-check that your account is insured to protect your money in case of a bank failure.
