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Top Fixed Deposit Account Rates in 2023

When it comes to deciding where to invest a lump sum of money, the plethora of banking institutions and promotions available can make it more complicated than saving the money in the first place. Each account promises to grow funds, but at what cost?

This article simplifies the process by outlining the best fixed deposit account rates for 2023. There are a wide variety of choices available, and you can find the best fixed deposit account rates if you start searching now – before it’s too late.

Fixed Deposit Accounts, Simplified

A fixed deposit account (FD) is a type of savings account where a sum of money is deposited for a fixed period of time, with interest earned during that period. In the United States, it is commonly referred to as a certificate of deposit (CD).

The duration of an FD or CD typically ranges from one month to ten years, depending on the account holder’s goal. The interest rate offered on a fixed deposit account usually increases with the length of the tenure.

Signs Of A Good Account

A good fixed deposit account should offer a competitive Annual Percentage Yield (APY), which is much higher than a regular savings account. The account should also be secured by a reputable financial institution.

A good FD or CD should also allow for partial withdrawals or premature closures without significant penalties, and it should not restrict access to funds through online banking.

The Best Fixed Deposit Accounts of 2023

Capital One

Capital One offers nine terms of CDs that range from six months to five years, with a 5.00 percent APY for an 11-month term and no minimum deposit required. The penalty for early withdrawal depends on the term length, with CDs less than one year penalized three months of interest and CDs longer than one year penalized six months of interest.


Marcus, an online financial platform by Goldman Sachs, offers high-yield CDs that can be opened within minutes, with a 4.40 percent APY on a 12-month term. If the rate improves within the first ten days of the account being opened, Marcus adjusts the CD to the better rate.

The platform requires a $500 minimum deposit and charges steep penalties for early withdrawals, penalizing three months’ worth of interest for terms less than one year or nine months’ worth for terms between one to five years. Early withdrawal on a six-year CD incurs a penalty of a whole year’s worth of interest.

CIT Bank

CIT Bank offers an assortment of standard, jumbo, and no-penalty CD options to new customers, with 4.65 percent APY on a 13-month term. Their $1,000 minimum requirement on standard CDs is not ideal for everyone, and their jumbo CDs do not yield ‘jumbo-sized’ earnings compared to other banks’ typical offerings. However, their no-penalty CDs allow customers to withdraw funds early without incurring a hefty fine.


Synchrony’s CD offer features a 4.60 percent APY on a 14-month term, with no minimum deposit. This deal leads to higher interest earnings than what their competitors offer. The bank features flexible bump-up options on their CDs. While there is no early withdrawal penalty on the interest accumulated, standard penalties apply to the principal amount.

Be Mindful Of The Fine-Print

Investors must meet specific criteria before trusting a bank with their hard-earned money. Any fixed deposit account chosen should offer a high APY, and investors should consider the CD’s compounding frequency to predict a higher return.

Funds should be insured by the FDIC or the government, and access to funds should be available at all times in case of an emergency. Finally, it is advisable to avoid monthly maintenance fees and account minimums, as these will diminish returns.