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 3.95% to 4.15% APY
Terms
3 months to two years
Minimum deposit
$1,000
Early withdrawal penalty
Withdrawals of principal are subject to an early withdrawal penalty of 90 days of simple interest for CDs with terms of 6 to 12 months and 180 days of simple interest for CDs with terms greater than 12 months. If the accrued interest is less than the total penalty, the difference will be deducted from the principal.
Terms apply.
Pros
- Above-average APYs on shorter terms.
- You can withdraw any interest earned during your term without penalty
Cons
- $1,000 minimum deposit
- Only offers traditional CDs
- No physical branches
Quontic Bank CDs
Annual Percentage Yield (APY)
From 2.75% to 3.60% 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 on terms from 3 months to 5 years, covering a broad range of savings timelines.
- $500 minimum deposit to open, keeping the entry point accessible for most savers.
- No monthly fees, so every dollar you deposit stays working for you.
- As a Community Development Financial Institution, Quontic reinvests in economically disadvantaged communities, so your savings help support a broader mission.
Cons
- Only offers traditional CDs, with no no-penalty or bump-up options available.
- Early withdrawal penalties are on the heavier side, ranging from the full term’s interest for shorter CDs up to two years of interest for terms of 24 months or more.
- No physical branch locations, so all banking is done online or by phone.
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 3.90% to 4.35% APY
Terms
From 6 months to 6 years
Minimum deposit
$500
Early withdrawal penalty
For CD terms under 1 year, the penalty is 90 days of simple interest. For terms between 1 year and 5 years, the penalty is 180 days of interest. For terms of more than 5 years, the penalty is 270 days of interest. No-penalty CDs are not subject to a penalty after seven days.
Terms apply.
Pros
- Above-average APYs
- Low $500 minimum opening deposit
- 10-Day CD rate guarantee
- Offers no-penalty and bump-up CDs
Cons
- No-penalty CD doesn't allow a partial withdrawal
- 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)
0.25% to 4.35% APY
Terms
3 months to 5 years
Minimum deposit
None
Early withdrawal penalty
An early withdrawal penalty may be applied if you withdraw funds from the principal prior to the maturity date. For no-penalty CDs, withdrawals are not allowed within the first 6 days after account funding. After that, only the withdrawal of the entire balance is allowed.
Terms apply.
Pros
- Above-average APYs
- Nine term options, from 3 months to 5 years
- No minimum deposit
- Offers no-penalty, bump-up and IRA CDs
- If the rate increases within 10 days of account opening, you're automatically bumped up to the higher rate
Cons
- No physical branches
- No-penalty CD doesn't allow partial withdrawal
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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