Best Certificates of Deposit (CDs) in Montana for 2025
- CDs pay interest for a set period, and rates are locked in.
- You may pay an early withdrawal penalty to take money from a CD account before it matures.
- Online banks, traditional banks, and credit unions can offer Montana CDs with competitive rates.
- Consider the rates, maturity terms, and minimum opening deposit requirements when comparing CDs.
Certificate of deposit (CD) accounts help you save for your big (or small) financial goals. You earn interest for a set term and once your CD matures, you can decide what to do with your savings.
Montana residents have plenty of options when deciding where to save their money while earning a competitive rate. We’ve researched the best CD accounts in Montana to help you narrow down your search.
Best CD Rates in Montana
Popular Banks and Credit Unions in Montana
1. Billings Federal Credit Union: Billings Federal Credit Union is a community credit union that extends membership across most of Montana and parts of northwestern Wyoming. If you have $2,500, you can open a share certificate account or an IRA share certificate to build retirement savings.
2. Farmers State Bank: Farmers State Bank has offered banking services to Montanans since 1907, with branches and ATMs concentrated in the western part of the state. CD rates are some of the highest you can earn, with a wide range of terms to choose from.
3. Freedom Bank: Located near Glacier National Park, Freedom Bank is committed to providing outstanding service in the local community. You’ll find CDs with terms suited to different goals and rates are well above the national average.
4. Whitefish Credit Union: Whitefish Credit Union is the largest credit union in Montana, with over $2 billion in assets. CD options are a little more limited here, compared to other banks, but you can’t beat the outstanding rates.
Online Banks Offering CDs
Online banks lack a physical footprint, but they can make up for that with excellent rates and minimal fees. Here are some of the best reasons to consider opening a CD account with an online bank, versus a local Montana bank or credit union.
Higher interest rates: Online banks can offer competitive rates on savings and CD accounts, which may beat out brick-and-mortar banks. They can afford to do that because they have lower overhead costs.
Low minimum deposits: An online CD may require a smaller deposit to open, which is great if you’re just getting started with saving. Some online banks have no opening deposit requirements at all for CD accounts.
Low or no fees: CDs usually don’t have monthly fees, but banks can charge other fees, including early withdrawal penalties. Online banks may charge fewer or lower fees compared to other banks.
Quick account setup: No branch? No problem, since you can open a CD account online in minutes. You’ll just need to complete the application and link another bank account to make your opening deposit.
FDIC insurance: FDIC insurance protects deposits if a bank fails. Most online banks are FDIC-insured, so you can be sure that your money is safe.
Mobile app convenience: Online and mobile banking make it easy to stay connected to your CD savings on the go. You can log in to check your balance, review your maturity date or open a new CD in minutes.
Best CDs from Online Banks
If you’re looking for an online CD account, here are four options you might consider.
1. Bread Savings: Bread lets you choose from CD terms ranging from three months to five years, with a minimum deposit of $1,500. You’ll get the best rate with a 6-month CD, but all Bread CDs pay an above-average APY.
2. Ponce: Ponce Bank offers CDs with terms from 1 to 60 months and rates are impressive across the board. Opening deposit requirements range from $500 to $1,000, depending on the CD term you choose.
3. Western Alliance Bank: Western Alliance Bank offers CDs with terms from 3 to 12 months and you only need $1 to open an account through Raisin. CD rates are some of the highest you can earn at any online bank.
4. Ally Bank: Ally offers a full range of CD options, including high-yield CDs, raise your rate CDs and no-penalty CDs. There’s no minimum deposit required to open any of these accounts and you can earn a solid rate with any term.
Is an online CD account right for you? It could be, if you’re comfortable managing your money online and don’t need branch banking access. Comparing online CDs to CDs from Montana banks can help you decide which one to choose.
Factors to Consider When Choosing a CD in Montana
CD accounts can vary from bank to bank and one may be a better fit for you than another. Here are some of the most important things to weigh when comparing Montana CDs.
Interest Rates
Some banks are more generous than others when it comes to how much CD interest you could earn. Look at the banks in your local area to see how the rates measure up. Then, compare them to banks and credit unions in other parts of the state and online.
Term Length
Your CD term matters since it determines how long you’ll have to leave your money in the account. Terms can range from 30 days to 60 months and the term you choose can affect the rate you earn.
Minimum Deposit
Banks decide how much you need to open a CD account. At some Montana banks, the threshold is $100 to $500; at others, it’s much higher. Any CD you choose should have an opening deposit requirement that you can easily meet.
Accessibility
Banking locally means you can pop in to a branch if you need to, but online and mobile banking capabilities also matter. Look for a bank that offers online and mobile banking features that are user-friendly and fit your needs.
Pros and Cons of CDs
CDs may work better for some savers than others. Here’s a quick guide to the pros and cons using CDs to save.
Pros
- CD rates are fixed so you earn a guaranteed rate of return and can easily predict how much your money will grow.
- Low opening deposit requirements can make CDs accessible even if you’re a beginner at saving.
- CDs are safe and secure when held at an FDIC-insured bank, or an NCUA-insured credit union.
- Your rate is locked in for the term, so if rates go down after opening your account you won’t lose out on interest earnings.
Cons
- CDs require you to commit to leaving your money in the account for a set period
- Banks can charge early withdrawal penalties if you take money out of a CD before its maturity date.
- Long-term CDs are less attractive when CD rates are expected to rise.
- A CD may offer a lower return rate than stocks or other types of investments.
Fast Track Your Savings Goals With CDs
CDs are a safe, secure place to keep your money until you plan to use it. If you live in Montana, it helps to know which local banks and credit unions offer the best rates and terms. Ready to kickstart your savings journey? Compare the best CD rates available now.
Frequently Asked Questions
CD interest is taxable in Montana, just like other forms of personal income. Montana has a graduated income tax rate ranging from 4.70% to 5.9%. Your bank should send you a 1099 at the end of the year showing how much interest you earned. You’ll need this form to complete your federal and state tax returns.
You’ll need to check individual requirements, but Montana residents should be able to open CD accounts online. Some banks have a larger geographic footprint than others, which can affect the range of CD options offered in your state.
Credit unions can offer CD rates that are similar to banks. The difference is that a credit union is owned by its members, while a bank is not. Montana is home to several credit unions, each of which has a different field of membership, but they’re all worth a look if you’re on the hunt for the highest CD interest rates.
