Best Certificates of Deposit (CD) in Vermont for 2025
- Northfield Savings Bank is the biggest bank headquartered in Vermont. It offers a 9-month CD special with a 4.00% APY.
- First National Bank of Orwell was founded in 1832. It offers several short- and long-term CDs with competitive interest rates.
- Savers can open CDs at Vermont Federal Credit Union with just $5.
- Online banks have some of the highest CD rates in Vermont.
Certificates of deposit (CDs) are popular savings vehicles because they offer guaranteed returns with minimal risk because they are backed by the Federal Deposit Insurance Corporation.
Savers can open a certificate of deposit at a Vermont-based financial institution – we’ve highlighted the largest banks and credit unions in the state for you – or you can open one at an online bank. Both options are great for short- and long-term savings goals since interest rates remain strong. Keep reading to learn about which banks and credit unions offer the best CD rates in Vermont.
Highest CD Rates in Vermont
Popular Banks and Credit Unions in Vermont
Many of the most popular banks and credit unions in Vermont are headquartered in neighboring New England states. The three financial institutions featured below were founded in Vermont and maintain corporate headquarters in the state.
Northfield Savings Bank: Northfield Savings is the largest bank headquartered in Vermont. It was founded in Northfield in 1867 and has 14 branch locations in Chittenden and Washington counties.
Union Bank: Union Bank has served Vermont residents since 1891. The bank has 19 branch locations in Vermont and another five that serve residents of western New Hampshire.
North Country Federal: Founded in 1950 by a handful of General Electric employees, North Country Federal Credit Union serves residents of 10 Vermont counties, as well as Coos and Grafton counties in New Hampshire and Clinton County in northeastern New York.
First National Bank of Orwell. First National Bank of Orwell dates back to 1832, making it the oldest financial institution in Vermont. It has CD terms of 6 to 24 months, with rates from 3.00% to 3.75%.
Online Banks: While Vermont has many excellent regional banks and credit unions, savers may wish to open a certificate of deposit at an online financial institution. Online banks tend to offer the most competitive interest rates on CDs.
Online Banks Offering CDs in Vermont
As noted, online banks make a compelling case for your savings dollars with higher-than-average interest rates on certificates of deposit. Higher interest rates equate to higher yield, but there are many other factors that also make online banks stand out.
Low or no fees
Online banks benefit from the reduced overhead that comes with not having any physical branch locations. They tend to offer much lower or zero fees on standard banking products such as checking and savings accounts.
FDIC Insurance
Digital banks provide consumers with the same peace of mind as traditional banks – your money is protected up to $250,000 for each account by the Federal Deposit Insurance Corporation.
Simplicity
Online banks make it super easy to open new CD accounts, transfer funds, and conduct routine banking business. A few taps on a smartphone is usually all it takes.
Robust mobile apps
You won’t get to interact with bankers at branch locations, so online banks tend to have very robust mobile apps and websites to provide a seamless customer experience.
Low account minimums
Traditional banks often require minimum deposits of $500 to $5,000 – or more – in order to access their highest interest rates on certificates of deposit. Many online banks offer CDs with $100 or lower minimum opening deposit requirements.
Here are three online banks offering some of the highest CD rates in Vermont:
Ivy Bank. Ivy Bank offers four just CDs with terms ranging from 3 to 24 months, but interest rates are exceptional on its 3-month CD (4.35%) and good on its 2-year certificate of deposit (3.50%).
Ally Bank. Ally Bank has a range of CD options to meet different financial goals. It has CDs with terms ranging from 3 to 60 months with APYs from 2.90% to 3.90%. Ally also offers bump-up CDs where you have the option of raising your rate once for the 2-year CD or twice on the 4-year CD.
Bread Financial. Bread offers some of the best CD rates in Vermont. Savers can choose from CD terms of 3 to 60 months, with interest rates ranging from 3.80% to an exceptional 4.45%. Bread’s minimum opening deposit requirement is $1,500.
We’ve highlighted just a few of the many online banks that offer exceptional interest rates on certificates of deposit. A little internet sleuthing can help you find other online banks offering the best CD rates in Vermont.
Factors to Consider When Choosing a CD in Vermont
Vermont’s economy is driven by tourism, manufacturing and agriculture, but the state is known for more than its exquisite maple syrup. Technology is another important driver of the state’s economy as well as arts and music. Downward pressure in any one of these sectors could cause a ripple effect that adversely affects the CD rates offered by regional banks and credit unions.
A few additional factors that could influence overall yield when investing in CDs in Vermont include:
Declines in national interest rates. The Federal Reserve has maintained its position on interest rates throughout much of 2025. Any future cuts to its benchmark interest rate will lead to lower yield on all interest-bearing savings products.
Downturns in the national economy. Bear runs in public stock markets and a national or regional economic downturn would likely cause banks to tighten interest rates offered on CDs and other savings vehicles.
State taxes. Vermont has a graduated personal income tax system with tax rates ranging from 3.35% to 8.75% depending on income – and interest earned from CDs counts towards gross personal income.
Pros and Cons of CDs
CDs are great for savers because they are safe and dependable. They do come with potential drawbacks, however.
Pros
- Guaranteed returns
- Interest rates won’t change
- Insured by FDIC
- Wide range of term options for short- and long-term savings goals
Cons
- Lack of liquidity
- Access invested funds prior to maturity will incur in early withdrawal penalty
- Greater returns may be found in other types of investments
Start your Journey to Greater Savings with a CD
Vermont residents can get a jump on their personal savings by opening a certificate of deposit at a regional financial institution or online bank. Interest rates remain high, making it a great time to boost your personal savings by investing in CDs.
Start your journey today by comparing different term lengths, interest rates and minimum deposit requirements for the best CDs in Vermont.
FAQ
Interest earned on CDs counts toward your personal income tax in Vermont and your nominal tax rate at the federal level.
Vermont-based banks and credit unions offer strong interest rates on both long- and short-term CDs. Online banks also offer competitive interest rates on certificates of deposit. The best bank is the financial institution that aligns with your savings goals.
While there was a time in 2023 when a few financial institutions were offering a 7% CD, those were very limited offers that are no longer available.
