Best Certificates of Deposit (CD) in Alaska for 2025
- Interest rates remain high, making CDs a good investment choice for dependable yield.
- Global Credit Union offers a high-yield 18- to 23-month CD with a 4.07% interest rate.
- Savers can open a 1-year CD with a 4.15% interest rate and $500 minimum deposit at Alaska Air Group Credit Union.
- Online banks offer exceptional interest rates on both long- and short-term CDs, making them a good alternative to traditional banks and credit unions.
Interest rates are expected to remain high for the rest of 2025, making certificates of deposit (CDs) a good investment option for growing your personal savings.
The Federal Reserve’s rate cuts in 2024 and early 2025 largely ended 5% interest rates on CDs and other savings products, but many Alaska-based financial institutions and online banks offer rates well above 4% on both short- and long-term certificates of deposit.
Check out the financial institutions highlighted below to find some of the best CD rates in Alaska and begin your journey toward increased savings.
Best CD Rates in Alaska
Popular Banks and Credit Unions in Alaska
Alaska has several regional banks headquartered in the state, as well as many credit unions that serve the state’s larger cities and small communities. Wells Fargo also operates numerous locations throughout the state.
Here’s a look at some of the most popular Alaska-based financial institutions:
First National Bank of Alaska: First National Bank of Alaska is the state’s largest Alaska-based bank. It has been recognized for multiple years by regional publications as the best bank in Alaska and the best place to work. It offers CDs starting at $750 minimum deposit with rates as high as 3.50%.
Global Credit Union: GCU serves more than 750,000 members in Alaska, Washington, Idaho, California, and Arizona, but its roots date back to 1948 when a small group of civilian employees from Alaska Air Depot at Elmendorf Air Force Base in Anchorage pooled their savings to start a credit union.
Northrim Bank: Founded in 1990, Northrim bills itself as Alaska’s community bank. It has 20 locations throughout the state, including eight branch locations in Anchorage.
Online Banks: Alaskans have many options when it comes to investing in CDs from financial institutions headquartered in the state, but they might be able to find higher interest rates – and greater yield – from online banks.
Why Alaska Savers Should Consider Online Banks
Online banks make a compelling case for your business by offering exceptional interest rates on interest-bearing savings products such as certificates of deposit. Here are a host of reasons why savers in Alaska should consider an online financial institution versus a traditional bank or credit union when it comes to investing in CDs.
Above-average interest rates. Digital banks don’t have physical branch locations, so they have significantly reduced overhead compared to traditional financial institutions. This allows them to offer higher interest rates on CDs and other savings products.
Lower-than-average deposit requirements. Online banks often require a minimum opening deposit of $100 or less on certificates of deposit, while traditional banks may start their CDs with opening deposits of $500, $1,000, or $2,500.
Lower fees. In addition to great interest rates, online banks often make a case to earn your business by offering reduced or zero fees on standard banking/savings accounts and CDs.
Accessibility. Make banker’s hours a thing of the past by going fully online. You can access your accounts at any time with your digital bank’s website or app, and online banking apps tend to be feature-rich tools that provide crucial insight into your saving, spending, and budgeting habits.
Account insurance. Online banks provide account insurance from the Federal Deposit Insurance Corporation of up to $250,000 per individual account.
Online Banks Offering CDs in Alaska
The four online banks below offer some of the highest CD rates in Alaska:
Newtek Bank. Newtek Bank offers exceptional rates on several short-term certificates of deposit. Its 6-month CD has a 4.50% APY, and its 9-month CD checks in at 4.45%. Newtek’s 12-month, 18-month, and 2-year CDs are also at or above 4.20%.
Northern Bank Direct. The online division of Northern Bank of Woburn, Mass., offers 10 different term lengths on certificates of deposit (6-60 months). Interest rates range from 3.44% on 18-60 month CDs to a high of 4.51% on a 6-month CD with a $500 minimum balance.
Rising Bank. Rising’s 2-year CD has a 3.94% interest rate, which is a strong rate for a longer-term CD. It also offers CD terms of 6, 12, and 15 months, with rates between 4.18% and 4.34%.
Popular Direct. Popular Direct makes a strong case for your CD investments by offering term lengths ranging from 3 to 60 months and interest rates between 4.11% and 4.30%.
Many other online banks offer strong interest rates on short- and long-term certificates of deposit. Consider blending CDs of different term lengths to create a CD ladder.
Factors to Consider When Opening a CD in Alaska
Savers should consider a few micro and macroeconomic trends before opening a CD in Alaska, since each has the potential to affect overall yield.
Alaska’s economy is heavily dependent on oil and natural gas – extraction of both is the largest industry in the state. Future changes in federal energy policies that impact fossil fuels could negatively affect the state and trickle down to its regional banks and credit unions.
Additional factors that have the potential to disrupt or impact yield on CDs include:
Term length. Banks often offer reduced interest rates on their longer-term CDs (though online banks may keep them high) as a hedge against future declines in interest rates.
Changes in federal interest rates. The Federal Reserve has kept interest rates relatively high through 2025, but any future cuts to the federal funds rate will result in lower interest rates (and reduced yield) on interest-bearing savings products such as CDs.
State taxes. Alaska does not levy an individual income tax, so you’ll only have to pay taxes on CD interest at the federal level when you file your Form 1040.
Pros and Cons of CDs
Savers can maximize their potential for yield by investing in Certificates of Deposit rather than leaving money sitting stagnant in checking and savings accounts. CDs offer many benefits, but they can also have some potential drawbacks.
Pros
- Dependable, guaranteed yield
- Fixed interest rates
- Federally insured for minimal risk
- Wide range of term lengths to accommodate different savings strategies
Cons
- Reduced liquidity
- Penalties if you withdraw your funds early
- Greater yield may be found in other types of investments
Increase Your Savings by Investing in CDs
We’ve done the legwork to help you better understand CDs and highlighted some of the best CD rates in Alaska.
If you are ready to increase your personal savings, start today by comparing the highest CD rates online and in Alaska.
FAQ
Yield is important, but other factors dictate the best place to invest in CDs. If you choose a local bank or credit union, you’ll have a banker on your team who can help you craft the best savings strategy for your financial situation and savings goals. You’ll also be putting your money to work in your community.
Interest from CDs is taxable, but since Alaska does not have a state income tax, you’ll only have to pay taxes on that income at the federal level.
What are the most popular terms for CDs in Alaska?
Term lengths for CDs depend on your savings goals. One common method of investing in CDs is to purchase a mix of short- and long-term CDs, a strategy called CD laddering. Consider blending CDs of 3, 6, and 9 months with terms such as 18 to 24-month CDs, or longer.
