Best Certificates of Deposit (CDs) in South Dakota for 2025
- Black Hills Federal Credit Union consistently offers competitive rates across all of its CD terms, which range from 3 months to 5 years.
- Bread Financial offers online CDs with rates that consistently outperform many in-state institutions.
- Many South Dakota banks and credit unions offer CDs with minimum deposits starting at $500 or lower, making them accessible for a wide range of savers.
- Several South Dakota financial institutions, including Reliabank, Plains Commerce Bank, and Dakotah Bank, frequently offer promotional CD specials that typically earn higher yields than their standard CD offerings.
If you live in South Dakota, numerous banks and credit unions within the state offer competitive rates on interest-bearing accounts, including certificates of deposit.
CDs are an excellent way for South Dakota residents to grow their savings securely. In exchange for leaving the funds in your account untouched for a predetermined period, financial institutions offer competitive interest rates, typically higher than savings accounts.
Whether you’re looking for short-term options or long-term investments, this guide will help you find the best CD rates from banks and credit unions in South Dakota and online.
Best CD Rates In South Dakota
Popular Banks and Credit Unions in South Dakota
Black Hills Federal Credit Union: Black Hills FCU offers competitive CD rates and flexible terms, with low-barrier membership requirements.
First Interstate Bank: The regional full-service bank operates over 300 branch locations across 14 states, including South Dakota.
Dakotah Bank: Dakotah Bank offers a wide range of terms on standard CDs and frequently runs promotions for CD specials, which often include higher rates.
Online Banks: Online banks provide a banking alternative to local options, typically with more competitive yields, fewer fees, and digital money management tools.
Online Banks Offering CDs
Online banks are a strong option for South Dakotans because they offer more competitive rates than most traditional banks. Because they operate without physical branches, they can offer better returns and fewer fees.
Here are some of the reasons online banks are worth considering:
- Higher interest rates: Online banks often offer more competitive CD and savings account rates than traditional banks and credit unions.
- Low minimum deposits: Many CDs from online institutions require a minimum deposit of only $500 or less to open.
- Quick account setup: Applications can typically be completed online in just a few minutes.
- Digital tools: Account access and management are streamlined through mobile apps.
Here are a few online banks worth considering if you’re looking for the best CD rates:
- Bread Savings: Bread Savings offers some of the highest online CD rates available, including short-term options like 18-Month CDs and long-term offerings such as 5-Year CDs.
- First Internet Bank: First Internet Bank CDs consistently earn high yields across all of its CD terms and can be opened with a $1,000 minimum deposit.
- Capital One: Capital One CDs offer terms ranging from six months to five years, with no minimum balance requirements and flexible interest payments.
- Synchrony Bank: Synchrony Bank’s high-yield CDs are easily opened online and have no minimum balance requirements. The bank also offers no-penalty and bump-up CDs for additional flexibility.
These online banks are a great fit if you’re comfortable managing your finances digitally and want to maximize savings opportunities.
Factors to Consider When Choosing a CD in South Dakota
Interest rates aren’t the only factor to consider when comparing CDs. There are also some state-specific considerations to take into account:
Economic conditions: South Dakota’s economy remains relatively steady midway through 2025, though the latest reports highlight population stagnation, rising property tax burdens, and new agricultural tariffs. These factors could influence how banks and credit unions set their CD rates in the future.
Tax environment: South Dakota doesn’t tax personal income, including interest earned from CDs and savings accounts, helping residents keep more of their earnings.
Banking access: South Dakota is a largely rural state, which may limit local banking options, depending on your location.
Pros and Cons of CDs
CDs are dependable savings tools that earn interest without the volatility of other investments. While they offer predictable returns, they may not suit every financial need.
Pros
- Predictable earnings through fixed interest rates
- Deposit protection through the FDIC or NCUA
- Great options for short- or mid-term savings goals
- Higher APYs than regular savings accounts
Cons
- Less liquid than other savings options
- Inflation can outpace returns on long-term CDs
- Lack of flexibility if you want access to funds
- Penalty fees for withdrawing funds before maturity
Start Saving Smarter
If you’re looking for a secure, low-risk way to earn interest on your money, a CD might be the right fit. Whether you want a short-term savings vehicle like a 1-Year CD, a mid-term option like a 2-Year CD, or a longer-term CD, there are plenty of options in South Dakota to help you reach your financial goals.
Compare CD rates in South Dakota now and put your money to work for you!
Frequently Asked Questions
No, South Dakota does not tax personal income, so CD interest is only subject to federal taxes.
Several South Dakota banks and credit unions offer competitive rates on CD terms from three months to one year.
Some South Dakota credit unions offer strong rates comparable to what you might find at an online bank. Comparing both can help you find the best fit.
