Best Certificates of Deposit in Minnesota for 2025
- Midwest Bank has some of Minnesota's highest CD interest rates.
- Customers can open a CD at Think Bank for just $250.
- Citizens Bank Minnesota offers a special IRA CD product that has a competitive interest rate.
- Ally Bank doesn’t charge penalties when you withdraw money from your CD account early.
Opening a savings account at one of the best banks in Minnesota is a great way to create a home for your money. However, if you want your money to work for you more, getting a certificate of deposit (CD) in Minnesota can boost your savings.
These accounts allow you to earn a higher interest rate than you would with a regular savings account in exchange for keeping your money in the account for a specific amount of time. This makes a CD a good bet if you want a safe way to grow your money.
In this guide, we look at the interest rates offered by banks and credit unions around the state and online financial institutions. Also, you’ll find pointers on choosing a CD that’s right for you and the pros and cons of these accounts.
Top CD Rates in Minnesota
Popular Banks and Credit Unions in Minnesota
Whether you want a one-year CD or one with longer or shorter terms, there are several places around the state to choose from. The following are examples of where to find the best CD rates in Minnesota.
Citizens Bank Minnesota: In addition to CDs that can be opened with a $500 minimum deposit, Citizens Bank Minnesota offers special CDs with higher rates that can be opened with at least $2,500. There is also a 60-month special IRA CD with a 3% rate.
Blaze Credit Union: Blaze Credit Union offers regular, premium, and jumbo CDs, so those who want to invest larger amounts of money can choose the premium and jumbo options, which yield higher interest rates.
Citizens Alliance Bank: Consumers can get CDs with terms that range from four to 38 months with 3.20%–4.55% interest rates. CDs can be opened with a $500 deposit.
Online Banks: Minnesota residents can often get CDs from online banks, which offer higher rates than the ones offered by local banks and credit unions.
Online Banks Offering CDs
Have you thought about doing business with an online bank, but you’re unsure whether or not this is the best route to take? Online banks have a number of benefits, including the ones below:
FDIC protection
Just as with brick-and-mortar banks, your money is protected when you open a CD at online banks because they are also insured by the Federal Deposit Insurance Corporation (FDIC). This means that the FDIC protects your money up to $250,000, so you won’t lose your funds if the unthinkable happens.
Interest rates
One of the biggest advantages of online banks is that they offer higher interest rates than you’ll usually get from traditional financial institutions. Since online banks don’t have the overhead of local branches, they can pass their savings on to consumers through very healthy interest rates.
Fees
In addition to high interest rates, consumers can enjoy low fees from online banks. Fees, like monthly maintenance charges, can eat into account balances. However, online banks may save you a significant amount of money. In fact, at some online banks, you may not be charged any fees at all.
Convenience
While you won’t be able to get information about your account in person, an online bank still provides great convenience. If you want to check your account or make transactions online, you can easily do so on the company’s website or mobile app. Also, you can reach customer service representatives—in some cases, 24 hours a day—by phone or online chat, so you’re never far from the information you need, when you need it.
Tools
Online banks often offer tools that can help you manage your money. You may have access to budgeting tools, for example, to stay on top of what’s going in and out of your account. Also, you may be able to use peer-to-peer transfer services that help you further manage your money efficiently.
Are you intrigued? Now that you know some good reasons to work with an online bank, review the institutions below to learn more.
CDs from Online Banks
Bank5 Connect: Bank5 Connect CDs can be opened with a $500 deposit, and customers do not have monthly maintenance charges. A special 24-month CD allows you to make deposits throughout the term.
Bread Savings: Among Bread Savings’ offerings are three-month, six-month, and two-year CDs. There are no monthly maintenance fees, and you can easily access your account on the company’s website or mobile app.
American Express: Besides CDs with healthy interest rates, American Express has high-yield savings accounts.
Ally Bank: Ally Bank provides CDs with no maintenance charges or penalties for withdrawing the money before the end of the term. The company also has digital banking tools.
With this information, you can decide how online banks can help you reach your financial goals. An option is available for a three, six, or 18-month CD term.
Factors to Consider When Choosing a CD in Minnesota
Just as with any other type of account, there are specific considerations that consumers in Minnesota have when choosing a CD. The following are some factors to think about as you make your choice.
Local or national banks. Local and national banks both offer CDs, however, you may prefer a more personal touch when choosing a bank. For example, if you’re looking for the best savings accounts in Minnesota, as well as checking accounts, you may want to open a CD along with your other accounts to keep your money in the community and get more personalized service.
Special offers. To entice consumers to open an account, banks may have special CD offers with higher rates than other available products. These offers come and go, so it’s best to take advantage of a good deal when you find one, because you never know how long it will last.
Perks. Banks in Minnesota may offer different perks with their CD accounts. For example, at Minnesota National Bank, you can get a higher CD rate when you open a premium checking account.
Pros and Cons of CDs
CDs are a good investment, but they have some drawbacks. Below are the pros and cons of CDs you should know.
Pros
- Interest rates on CDs are often significantly higher than those on traditional savings accounts.
- Interest rates of CDs are fixed, so you know exactly how much you’ll be earning.
- There is a wide range of CD terms available.
Cons
- If you need to take the money out of your account early, you may be charged a penalty.
- The returns for CDs are lower than those for other investments.
- When interest rates go up, you miss out on getting more value for your investment.
Want to Enjoy the Best CD Rates in Minnesota? Compare Banks Now
CDs can be a good way to reach your short- or long-term financial goals. Whether you want to pay for a vacation next summer or plant the seeds for a nest egg, these investments are flexible enough to help you do it. Compare the best CDs in Minnesota today to find the one right for you.
Frequently Asked Questions
It depends on what you’re looking for. Credit unions can be a huge benefit if you’re interested in keeping your money in a nonprofit organization with ties to the community. However, there may be requirements for joining certain credit unions that make many people ineligible.
Banks, on the other hand, are for-profit companies that often offer consumers more choices of products and locations, making banking more convenient.
Yes. Minnesota does have an income tax, so the interest earned from bank accounts should be reported on state tax returns.
It depends on what your goals are. Online banks often provide higher interest rates than local banks and credit unions. However, if you’re accustomed to doing in-person banking, you may not feel comfortable putting your money in a financial institution that doesn’t have a brick-and-mortar presence in your community. Also, some consumers prefer to support local banks because they invest in small businesses and contribute to the area’s economy.
