Best Certificates of Deposit (CDs) in North Carolina for 2025
- Piedmont Federal Bank offers a companion deposit account, which is a savings account that has a higher interest rate when you also have a CD.
- Coastal Federal Credit Union's CDs automatically renew at the end of their terms.
- Lumbee Guaranty Bank offers CD terms that are less than one year, so you can get four- to nine-month terms.
- Minimum deposits to open a CD can range from $0 to $5,000.
Opening a savings account at one of the best banks in North Carolina can go a long way toward helping you meet your financial goals. However, if you want to give your money an extra boost, consider opening a certificate of deposit (CD). CDs are savings accounts that accrue more interest than regular accounts, which allows you to earn more. In exchange for these CD interest rates, you agree to keep your money in the account for a predetermined amount of time.
Continue reading this page to learn more about the best CDs in North Carolina. You will find information about the rates that are offered by different banks and credit unions around the state, the benefits and drawbacks of purchasing CDs, and what to look for when choosing these financial products.
Top CD Rates in North Carolina
Popular Banks and Credit Unions in North Carolina
There are several banks in the state that offer CDs. Just as you would when opening a checking accounts in North Carolina, you should find the bank that’s best for your needs. Let’s take a look at some of these banks you can choose from.
Coastal Federal Credit Union: Coastal Federal Credit Union has CDs that provide daily compounding dividends. At the end of their terms, these products are automatically renewed so you can seamlessly continue growing your savings.
Bank of Oak Ridge: This bank has CDs that can be opened with a $3,500 deposit. There are six- and 12-month terms available.
Piedmont Federal Bank: Piedmont Federal Bank offers a companion deposit account (CDA) with its CDs. These accounts allow you to earn higher interest than you would with other savings accounts.
Online Banks: If you feel comfortable banking online, CDs from online banks may be a good choice. Online banks often offer higher interest rates than traditional ones, and they tend to have low or no fees.
Online Banks Offering CDs
Online banks are increasing in popularity—and for good reason. Since they don’t have the overhead of traditional financial institutions, they’re able to provide perks that you won’t find at the neighborhood bank. Below we outline some of the factors that make online banks a good choice for CDs and beyond.
Interest and fees
One of the most important benefits of doing business with online banks is the higher interest rates. Although some CDs from brick-and-mortar banks in North Carolina may have competitive interest, generally, online banks offer rates that are significantly higher. Additionally, online banks tend to charge much lower fees, which can make a big difference in your balance. In some cases, you may not have to pay any fees.
Minimum deposits
Some banks have high required opening deposits for CD accounts—even over $1,000 depending on the bank. Online banks tend to have low minimum deposits, or no minimum requirement at all.
Quick account setup
It is extremely easy to set up a CD account at an online bank. Once you provide basic personal information and set up a transfer to put money into the account, you may be able to open a CD within minutes.
Mobile app convenience
Just because online banks don’t have branches doesn’t mean that you won’t be able to conveniently get information about your account. In fact, it’s as convenient as an app on your mobile device. Online banks may have robust apps that allow you to find out what’s going on with your account and make transactions.
Budgeting tools
To further help customers take care of their financial well-being, online banks may offer budgeting tools. As a result, you can manage the money in all of your accounts and make good decisions based on your financial goals.
Want to know more? Look at the specific online banks that offer CDs below, so you know exactly what different options have to offer.
Bank5 Connect: If you want more flexibility with your CDs, you may be interested in Bank5 Connect’s two-year CD because the company allows consumers to make deposits throughout its term. Customers can also choose other CD products, and are not charged a monthly maintenance fee with any of them.
Bread Savings: Bread Savings charges no monthly maintenance fees on its three-month, six-month, and one-year CDs. The company’s website and mobile app provide easy access to account information.
American Express: There are a variety of CD terms available, including 18-month CDs. You can further maximize your money with the American Express high-yield savings accounts.
Ally Bank: Ally Bank allows you to take advantage of digital banking tools so you can keep track of your accounts. CDs have no maintenance fees, and you will not be charged penalties for withdrawals.
Are you still interested in an online bank? Now that you know what some of the choices are, you’re better equipped to find one that has what you’re looking for.
Factors to Consider When Choosing a CD in North Carolina
What should you think about before choosing a CD in North Carolina? Not every CD is going to be right for you, so below are some factors to consider as you decide.
Banks versus credit unions. Banks are for-profit companies that generally give consumers a wide range of banking product choices. The bigger the bank, the more locations you’re likely to find, which can add to the convenience.
A credit union, on the other hand, is a nonprofit organization that is dedicated to the community. Although credit unions in North Carolina have traditionally catered to specific consumer groups, such as those who work in a certain field, the state is considering legislation that will make it easier for those in rural areas to have access to credit unions.
Terms. Terms on CDs can be extremely flexible, so if you want a shorter option, there are institutions in North Carolina that can accommodate you. For example, Piedmont Federal Bank has three-month CDs, while Lumbee Guaranty Bank and Bank of Oak Ridge have four- and six-month terms respectively.
Automatic renewal. Busy consumers may not have the time to track when their CDs are about to expire. When you choose a product that has automatic renewal, this won’t be an issue, so you can continue taking advantage of the returns on your investment. For example, at Coastal Federal Credit Union, CDs renew automatically for your convenience.
Pros and Cons of CDs
CDs have their good and bad characteristics, just as any other banking product. Here are some of the good sides of opening a CD:
Pros
- You will always know what your returns will be because you lock in an interest rate when you open a CD.
- Interest rates tend to be much higher with CDs than other types of savings accounts.
- As with other bank accounts, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA).
- CDs are easy to open.
- There is a wide range of terms available, so you’re able to take advantage of short- and long-term options.
Cons
- You will likely be charged a penalty for taking money out of the account before the term has ended.
- When interest rates increase, you’re locked into a lower rate that will mean earning less money.
- CDs earn lower interest than other types of investments.
Find the Best CD Rates in North Carolina Now
Whether you want to use them for long- or short-term goals, CDs are a great vehicle to get you where you want to go. There are several alternatives available from credit unions and banks around the state, as well as online institutions, so you’re sure to find the best one for your needs.
Compare the best CDs in North Carolina today so you can get started making your money work for you.
FAQs
Yes. Since there is a state income tax in North Carolina, interest on CDs is taxed. However, according to the North Carolina Department of Revenue, the interest on bonds and notes are not subject to state income tax.
Interest rates on CDs in North Carolina can range between 1 and 4%. At Lumbee Guaranty Bank CD interest rates are currently higher than average.
It depends on your preferences. Many consumers are increasingly interested in doing business with banks that are based in their communities because they tend to have an interest in helping the area thrive. Local banks often invest in small businesses and provide services that are customized to the communities they serve.
Despite these benefits, sometimes big banks may be a better option. Usually there will be more branches available from a national bank, so depending on where you live, they may be more convenient to get to. Also, national banks keep abreast of the latest developments in the field, so they may have more robust product choices.
