New CD Rate Leader Is a Large U.S. Bank That's Available Nationwide

Key Takeaways

The highest-paying CDs are typically offered by smaller banks and credit unions, with big banks often paying much less.
But right now, BMO—the 12th largest U.S. bank—is paying a nation-leading 5-year rate of 4.80% APY, in addition to competitive rates on CD terms as short as 6 months.
These offers are available from BMO's online-only division, BMO Alto.
Though other high-yield savings accounts pay more, BMO Alto also offers a reasonably competitive 5.10% APY on its savings account.
For terms shorter than 5 years, our daily ranking of the best CDs provides numerous options that offer more than BMO, including almost a dozen CDs that pay 5.40% to 5.65% APY.

Rare Opportunity to Earn a Tip-Top Rate From a Very Big Bank

Seasoned CD shoppers know that the best returns typically come from smaller banks and credit unions, often with unfamiliar names. But if you prefer depositing your money with a bigger, brand-name bank, you're in luck right now.

On Friday, BMO Alto boosted its rates for CD terms of 3 years and longer, and its new 5-year return is especially notable. You can now lock in a nation-leading 4.80% APY for 60 months with BMO Alto—which will secure that high rate for you until the middle of 2029.

BMO (formerly BMO Harris) is the nation's 12th largest bank, ranked by total deposits. While the Chicago-based bank operates about 1,000 physical branches located primarily in the Midwest, last year it launched BMO Alto, an online-only portal serving customers who live anywhere in the country. BMO Alto offers certificates of deposit (CDs) with terms ranging from 6 months to 5 years.

Looking for a Shorter Term? You've Got Plenty of High-Paying Options

If you're interested in putting some of your savings in a CD, but not for such a long term, don't fret. Our daily ranking of the best CD rates provides abundant options to earn a top rate in any term.

True, many of the CDs are from banks or credit unions with less name recognition than the big banks. But given a CD's "park it and forget it" nature (you'll probably only interact with your CD account when you open it and another time when the CD matures and you withdraw the cash), it's very easy to hold CDs at a different institution than where you primarily bank.

You Can Count on Federal Protection

Just because a bank or credit union is small, or you haven't heard of it, doesn't make it unsafe. Your deposits at any FDIC bank or NCUA credit union—regardless of its size—carry equal federal protection in the unlikely case that the institution fails.

If you still prefer to stick with a large institution, BMO Alto is one of the more attractive options because they offer a reasonably competitive CD rate in every term starting with 6 months. Below you can see what BMO Alto is paying compared to the Top 15 options in each of our CD term rankings.

Other Big Banks

Interested in a different big-name bank? CD rates offered by the four biggest banks—Chase, Bank of America, Wells Fargo, and Citi—are often quite a bit lower than what you can earn elsewhere. Occasionally one of these banking giants will offer a somewhat competitive rate on a select CD term, but you can do even better by expanding your search to CDs from the 30 largest banks. Banks in this tier that have a history of offering better-than-average CD rates include Ally, American Express, Capital One, Discover, Marcus by Goldman Sachs, and Synchrony.

How BMO Alto's Savings Account Rate Compares

If you're also in the market for a savings account, we compile a daily ranking of the best high-yield savings accounts as well. BMO Alto doesn't make our list of the Top 15 rates, which currently range from 5.15% to 5.55% APY. But it does offer a rate of 5.10% APY, which is the highest rate from a Top 30 bank.

While it can be tempting to put your money in a savings account instead of committing it to a CD, beware that savings account rates can go down at any time. But the rate you lock in when you open a CD is yours to keep for the duration of the term.

Where Are Interest Rates Headed?

While it was previously expected the Federal Reserve would reduce interest rates more than once this year, the central bank is currently in "wait and see" mode. That's because inflation is proving sticky above 3%. Until it feels confident inflation is heading sustainably down near 2%, the Fed says it's not ready to begin cutting rates. This could keep savings and CD rates in a holding pattern as well. But, as soon as the Fed signals it's ready to begin rate reductions, rates on savings accounts and new CDs will begin dropping.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.