If saving more money is one of your financial goals for the new year, you're not alone. According to Fidelity, 44% of Americans share that goal. And for the second year in a row, more than half of savers are focusing on short-term priorities like building emergency savings instead of long-term goals such as retirement or college savings.
To help you reach these short-horizon goals, a CD can make sense since you get locked into a fixed savings rate for a chosen time period. Here are some of the best CDs to consider for your short-term savings needs.
Short-term goals
For 3-month goals
If you're working with a short timeline of around three months to reach a financial goal like buying a new appliance or taking a short getaway, a 3-month CD can be a smart way to keep your money safe and growing without locking it away for too long. By the time the CD matures, you'll have earned a bit more interest, which can help you put extra money toward your balance or other expenses.
Bask Bank offers a competitive 3-month CD with solid rates and a minimum deposit of $1,000. If you're looking for a lower minimum, Quontic Bank's 3-month CD requires just $500 to open and also offers attractive rates.
Bask Bank CDs
Annual Percentage Yield (APY)
From 3.65% to 3.85% APY
Terms
From 3 months to 24 months
Minimum balance
$1,000 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
You may withdraw interest that has been credited to your account during the current term without penalty, but you will be subject to an early withdrawal penalty if any portion of your principal balance is withdrawn: CDs with terms of 6 months up to and including 1 year are subject to a fee of 90 days of simple interest based on the principal amount withdrawn; CDs with terms greater than 12 months are subject to a fee of 180 days of interest based on the principal amount withdrawn. If your accrued interest is less than the penalty's total amount, the difference will be deducted from your principal.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Can withdraw interest early with no penalty
Cons
- $1,000 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fee applies to principal
- Doesn’t offer CD options beyond the traditional type
- No physical branch locations
Quontic Bank CDs
Annual Percentage Yield (APY)
From 3.00% to 3.85% APY
Terms
From 3 months to 5 years
Minimum balance
$500 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
Withdrawals before the maturity date are subject to penalties. For time deposits up to 12 months, the penalty will be equal to the interest for the full length of the stated term. For time deposits 12 months to under 24 months, the penalty equals one year interest. For time deposits 24 months and over, the penalty equals two years interest. If the accrued interest exceeds the penalty amount, the excess accrued interest over the penalty amount will be paid to you. If the accrued interest is less than the penalty amount, a reduction of the principal balance may result.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- As a Community Development Financial Institution (CDFI), Quontic supports economically disadvantaged communities
- Has loan offices in South Florida, Melville, Astoria and Indianapolis
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fee applies
- Doesn’t offer CD options beyond the traditional type
- No physical branch locations
For 6-month goals
If your goal is a little farther out, say about six months, such as saving for home improvements, tuition payments, or holiday travel, a 6-month CD can be a practical way to grow your savings while keeping it secure. This term length strikes a balance between earning better interest than shorter terms and keeping your funds accessible within a reasonable timeframe. It's also well-suited for building funds for planned expenses like medical bills or car maintenance that require some preparation.
Marcus by Goldman Sachs offers the best rate we found for a 6-month CD. It requires only a $500 minimum deposit and has no fees.
Marcus by Goldman Sachs® CDs
Annual Percentage Yield (APY)
From 3.85% to 4.05% APY
Terms
From 6 months to 6 years
Minimum deposit
$500
Monthly fee
None
Early withdrawal penalty fee
If you withdraw the balance entire principal amount from your CD account prior to maturity, you'll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Here's how early withdrawal penalties are calculated:
Early Withdrawal Penalty = Interest Rate ÷ 365 (or 366) × Penalty Days × Original Principal Balance
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No monthly fee
- Offers CD options to raise your APY and withdraw with no penalty
- 10-Day CD Rate Guarantee: If the rate on your CD goes up within first 10 days of opening, you'll get that rate automatically
Cons
- $500 minimum deposit
- You can't access your money before your CD term ends
- Early withdrawal penalty fees apply
- No physical branch locations
For 1-year goals
If your goal is about a year away, such as saving for a down payment on a car, funding a special event like a wedding or preparing for upcoming home renovations, a 1-year CD can help you save steadily within your timeframe while earning more by keeping your money in place. It might feel challenging to lock your funds away for a full year but the extra interest you earn can make a noticeable difference.
Marcus by Goldman Sachs is another great pick for this goal, with solid rates on their 1-year CD. Synchrony Bank is also worth checking out since their CDs don't have a minimum balance so you can put in whatever amount feels right. And if a full year feels like too long, both banks have 9-month CDs that still offer really good rates.
Synchrony Bank CDs
Annual Percentage Yield (APY)
From 0.25% to 4.00% APY
Terms
From 3 months to 60 months
Minimum balance
None
Monthly fee
None
Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there's no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.
Terms apply.
Pros
- Above-average APYs
- Range of CD terms
- No minimum balance
- No monthly fee
- Offers CD options to raise your APY, withdraw with no penalty and save for retirement
Cons
- You can’t access your money before your CD term ends
- Early withdrawal penalty fee on certain CDs
- No physical branch locations
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
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