Which CD terms offer the best rates and returns this September?

Certificate of deposit rates remain high across terms in September, but the differences can affect a saver’s final return. The listed rates range from 3.95% for a three-month CD to 4.50% for a three-year account.

The highest rates in the comparison are 4.35% for 18 months, 4.35% for two years, 4.50% for three years and 4.40% for five years. Other listed options include 3.95% for three months, 4.20% for six months, 4.10% for nine months and 4.30% for one year.

Online banks may offer better rates than local branches because they face lower maintenance costs. The account term also affects the rate. In recent years, banks often offered higher rates on short-term CDs, reversing the historical pattern in which longer-term accounts generally paid more.

The highest rate is not automatically the best choice. Early-withdrawal penalties can consume most or all of the interest earned, so savers should deposit only money they can leave untouched until maturity. A one-year CD paying 4.30% may therefore suit someone better than a two-year account paying 4.35%.