Best 9-month CD rates of July 2024
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 5:18 a.m. UTC July 1, 2024
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After years of suffering through abysmal rates, you can find 9-month certificates of deposit (CDs) that pay more than a 5.00%, a huge boon to your overall financial health. Beyond yields, though, you want to opt for a financial institution that charges low fees and requires a low minimum balance.
Account details and annual percentage yields (APYs) are accurate as of June 27, 2024.
Best 9-month CD rates
- Ally Bank High Yield certificates of deposit.
- Greenwood Credit Union certificates.
- Synchrony Bank certificates of deposit.
- Sallie Mae certificates of deposit.
- Fidelity certificates of deposit.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
Ally Bank High Yield certificates of deposit
Greenwood Credit Union certificates
Fidelity certificates of deposit
Compare the best 9-month CDs
| INSTITUTION | 9-MONTH APY | MIN. DEPOSIT REQUIREMENT |
|---|---|---|
Ally Bank High Yield certificates of deposit
| 4.85%
| $0
|
Greenwood Credit Union certificates
| 5.50%
| $1,000
|
Synchrony Bank certificates of deposit
| 4.90%
| $0
|
Sallie Mae certificates of deposit
| 4.85%
| $2,500
|
Fidelity certificates of deposit
| 5.20%
| $100 to $1,000
|
Methodology
We looked at over 140 CDs offered by 84 financial institutions and evaluated them to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on. Here are the categories we analyzed and how we weighted each.
- APY: 50%
- Customer experience: 10%
- Minimum deposit: 10%
- Compound interest schedule: 10%
- Digital experience: 5%
- Availability: 10%
- Available terms: 5%
We believe that potential earnings reign supreme, so a CD’s APY was the most heavily-weighed factor in our calculations. Non-APY factors still played a part, such as customer experience.
To round out the score, we analyzed CD accounts further, valuing those with lower minimum deposits, daily compound interest schedules (rather than monthly) and those that are nationally available (think credit unions with an open versus limited membership).
We monitor over 80 financial institutions, including Capital One, PenFed, Discover, Chase, TD Bank, Marcus by Goldman Sachs, TIAA Bank, Colorado Federal Savings Bank and American Express Bank.
Why some banks didn’t make the cut
Not all financial institutions made our list for the best six-month CDs. Those that earned much lower ratings didn’t make the cut because they had an overall low score due to poor APY, high minimum deposit requirements and poor customer ratings.
If you’re wondering why the largest banks in the nation didn’t make the cut, it’s primarily because they don’t offer the most competitive CD rates. Typically the highest APY CDs are offered by relatively smaller banks looking to make some noise and attract customers. The largest companies enjoy the benefits of being a defacto go-to when people think of opening a bank account.
What is a 9-month CD?
A 9-month CD is a certificate of deposit that pays interest at a fixed rate for nine months. Because you agree to keep your funds in the account throughout the term, you typically earn a higher interest rate than you would with a traditional savings account.
Once the CD term ends, you can either withdraw your funds — along with the interest you earned — or roll the money into a new CD account. You get the benefit of at least $250,000 in deposit insurance, too, as long as the financial institution is federally insured. Deposit insurance protects you against bank failure.
If you need to withdraw your money before the CD matures, you may pay a penalty that’s equal to a few months’ worth of interest, typically between 60 and 90 days.
Short-term vs. long-term CDs
Nine-month CDs are usually categorized as short-term CDs, which generally have terms of 12 months or less. Long-term CDs mature in three years or more, while medium-term CDs fall somewhere in the middle.
No matter the term, standard CDs work the same way: Make a deposit and agree to keep the funds in the account for the term in return for a guaranteed interest rate. If you need your money before the term ends you’ll pay an early withdrawal fee.
When choosing a CD, one of the most important features to consider is its term. You’ll need to choose one that works with your financial goals and timeline. Here’s a rundown on short-term vs. long-term CDs.
Short-term CDs
A short-term CD generally has a term of 12 months or less, which provides the flexibility to either use your money when the CD matures or renew it at a better interest rate.
Here are some of the benefits of a short-term CD:
Higher interest rates: Short-term CDs right now come with higher interest rates compared to longer-term CDs, so you may earn more money on your deposit. (When the Fed eventually lowers interest rates, and the economy as a whole weakens, that dynamic could change). A CD calculator can help you estimate your earnings.
Shorter maturity timelines: You’ll lock away your funds for a shorter period of time, so you get your money back sooner. This allows you to spend your money if you need it, or open another CD with a higher rate if one’s available.
But short-term CDs also have some downsides:
Interest rate risk: If you prioritize short term CDs because they offer higher yields at the moment, you may end up with less earning over the long-haul. That’s because long-term yields are still relatively high, especially compared to pre-pandemic levels. If you lock in a 10-year CD at a 4.00% APY, say, you guard yourself against rates going down in the future. If you stick with just short-term rates, then, you’re more sensitive to interest rate changes, which is a negative if they end up falling.
Requires a plan: You’ll need to research your options sooner than you would with a longer-term CD. Will you withdraw the funds, research better rates somewhere else or simply renew the CD at the same institution?
Long-term CDs
Long-term CDs generally have maturities of three to 10 years or more. Savers open long-term CDs when they want to lock in a good rate and know they won’t need their money for a while.
Some of the pros of a long-term CD include:
Lock in high returns. While your bank or credit union likely offers a lower yield on its long-term CDs than short-term ones (a testament to these weird economic times), long-term rates are high by recent historical standards. Moreover, long-term yields are liable to fall should the economy slow down. If you want to lock in a high rate for money you won’t need for five years, such as your kid’s college tuition, this is a good option.
Set it and forget it. You don’t have to think about what you’ll do with your funds for a longer period of time compared to a CD with a shorter term.
But consider the cons of a long-term CD, too:
Opportunity costs. By locking your money into a longer-term CD, “you may miss out on other savings opportunities that could provide higher returns or better liquidity,” said Jane Lee, area director for Citi U.S. Personal Banking.
What is a good CD rate?
A good CD rate is relative — meaning it depends on the term, what other banks are offering and what’s happening in the overall marketplace.
As of June 17, 2024, the national average 6-month CD is paying a 1.81% APY, while the national average 12-month CD is paying a 1.86% APY, according to the Federal Deposit Insurance Corp. (FDIC). The national agency doesn’t track 9-month CDs, but they likely pay a rate somewhere in the middle.
Many banks and credit unions are offering high-yield CDs paying rates around 4.30% to 5.00% APY or more for 9-month terms.
“CD rates are great compared to the last 10 years, but still lower compared to some times in the ‘80s,” when they hit 18%, said Scott Ferguson, a certified financial planner and wealth advisor at Abundant Life Financial.
How to find the best CD term and rate
Researching your options will give you a better chance at finding a CD with the best interest rate and a term that works for you. Here’s how to start:
- Consider your financial goals. Define what you’re saving for and when you’ll need the money. Then choose a CD term that aligns with that goal. You could also open a CD ladder if you need your money at some point or you think rates are on the rise.
- Research banks. Check out a mix of large and small banks and credit unions — including the institution where you normally keep your money. Lee says you may qualify for limited-time relationship benefits or special offers depending on where you’re located. If you like your bank and it offers competitive rates on CDs, then “spending a lot of time to go to a new bank with new paperwork may not be worth it for a relatively small rate difference,” Ferguson says.
- Compare CDs. After finding several reputable banks, start looking through their CD offerings. Check the terms, interest rates, penalties and minimum opening deposits to see what’s available to you.
- Narrow your choices. Once you have a few good options, read the fine print and look for any drawbacks. For instance, Ferguson says, “what happens when the CD matures; does it automatically start a new time period and if so, at what rate?”
- Choose your CD. The best CD has a term that works for your financial goals, pays a good interest rate, and doesn’t charge excessive fees and penalties.
Frequently asked questions (FAQs)
According to Ferguson, “the best time to open a 9-month CD would most likely be when you need to spend the money in 10 to 12 months.”
But if you think rates will increase in the near future, he adds, you can open a shorter-term CD and then renew at a higher rate when the CD comes due.
“Keep in mind that you are taking a risk that the rate could go down in this scenario,” Ferguson said.
If a 9-month CD term doesn’t work for you, then you have some options:
- A short-term CD: If you expect to need the money sooner than 9 months, consider 3-month CDs and 6-month CDs.
- A no-penalty CD: True to its name, a no-penalty CD doesn’t charge a fee when you withdraw funds before the maturity date.
- High-yield savings accounts: High-yield savings accounts don’t come with a term, so you won’t be penalized if you need to withdraw your funds, but their rates are still competitive.
Online banks and community banks typically offer the highest rates for 9-month CDs. That’s because they usually have lower overhead costs compared to large, national banks with brick-and-mortar branches. Online banks often pass on the savings to customers in the form of higher rates.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
