Best Certificates of Deposit (CDs) in Tennessee for 2025
- Tennessee doesn’t tax interest earned on CDs at the state level, allowing residents to retain more of their earnings.
- Ascend Federal Credit Union CDs are available in terms ranging from three months to five years, with some options requiring a minimum deposit of only $500.
- Knoxville TVA Employees Credit Union offers some of the most competitive CD rates in Tennessee, with strong yields available with most terms.
- Founded in 1906, FirstBank is one of the oldest banks in the state and offers a range of CD terms, from as short as one month to as long as five years.
Certificates of deposit (CDs) offer Tennessee residents a secure way to earn guaranteed returns with little effort. Whether you’re saving for a near-term purchase or growing funds over time. CDs are a stable investment that delivers fixed returns.
CD rates in Tennessee vary widely between financial institutions. Community banks and credit unions offer personalized service and local access, while online banks often deliver higher yields and more convenient digital tools. This guide covers the top CD rates offered by banks and credit unions across Tennessee.
Best CD Rates in Tennessee
Popular Banks and Credit Unions in Tennessee
- FirstBank: FirstBank brings over a century of banking experience and operates 77 full-service branch locations across Tennessee. The bank offers short- and long-term CD term options with a minimum balance requirement of just $500.
- Ascend Federal Credit Union: Based in Tullahoma, Tennessee, Ascend Federal Credit Union is one of the largest federally chartered credit unions in the country. It offers a range of CD terms with minimum deposit requirements starting at $500 on some terms.
- ORNL Federal Credit Union: One of the largest credit unions in East Tennessee, ORNL Federal Credit Union offers standard and jumbo CDs, as well as a high-yield promotional 7-month Special CD.
- Online Banks: Many online banks offer CDs with better interest rates than local banks, along with digital access to manage accounts from anywhere.
Online Banks Offering CDs
Online banks are a practical option for Tennessee savers looking for higher CD yields. With fewer overhead expenses, they often pass those savings on to customers through strong APYs and lower fees.
Some of the benefits associated with online CD accounts include:
- Competitive interest rates: Online banks often offer better interest rates than traditional brick-and-mortar banks.
- Low minimum deposits: In some cases, you can open an online CD with no minimum deposit requirement.
- Quick account setup: Opening a CD online typically takes only a few minutes.
- Digital tools: Most online banks offer intuitive mobile apps and tools to manage accounts at any time.
Tennessee savers can access some of the strongest CD rates through the following standout online banks:
- Bread Savings: Bread Savings is known for its high-yield CDs, which start at three months and require a minimum opening deposit of $1,500.
- EverBank: EverBank’s high-yield CDs range from three months to five years and can be opened with a minimum deposit of just $1,000.
- Popular Direct: Popular Direct CDs require a $10,000 minimum deposit to open, which is higher than many online banks, but offer highly competitive rates on all of its CD terms.
- Capital One: This popular online bank offers a wide range of CD terms, earning strong APYs with no minimum balance requirements.
Online CDs are a great alternative to accounts found at local banks and credit unions, especially if your goal is to maximize savings opportunities.
Factors to Consider When Choosing a CD in Tennessee
It’s essential to look beyond the numbers when selecting a CD in Tennessee and consider state-specific factors that may impact availability and rates.
- Economic Trends: Tennessee’s economy remains strong through mid-2025, with low unemployment and stable consumer demand. However, shifts in interest rate policy and national inflation could affect future CD offerings.
- Accessibility: Many credit unions in Tennessee offer inclusive member, making it easy for most residents to join and access higher rates.
- Taxes: Tennessee does not tax interest income from CDs. Tennessee residents can hold on to more of their earnings.
When choosing a CD, think about how soon you’ll need access to your money and what your financial priorities are. Shorter terms, such as 3-month CD, 1-year CD and 18-month CD, can offer competitive yields while keeping your funds relatively accessible. If you’re comfortable locking in your money for a longer period, a 2-year CD or 5-year CD can help you secure a consistent rate of return over an extended period.
Pros and Cons of CDs
Pros
- Fixed interest rates for predictable returns
- Typically safer than stocks or mutual funds
- Federally insured up to $250,000 per depositor
- A wide range of terms allows flexibility in financial planning
Cons
- Limited liquidity, especially with longer CD terms
- May underperform during rising interest periods
- Early withdrawal penalties can reduce interest earned
Boost Your Savings With A CD
If you’re looking for a dependable way to grow your savings with minimal risk, consider opening a CD. Compare options from trusted local banks, credit unions and online options to find the best rates and terms that support your financial goals.
Compare the best CD rates in Tennessee to find the one that best fits your needs.
FAQs
Some banks and credit unions offer CD terms as short as one month, and some offer promotional CD terms with higher rates.
Yes, many banks and credit unions allow online CD applications. Check with the financial institution to see if that’s an option.
Credit unions often have better rates than banks. As nonprofit organizations, they can pass on savings to members through more favorable rates and terms.
