CD lengths can vary from a few months to several years. In addition to the interest rate, picking a term length that closely matches your needs and financial goals is an important consideration when
Understanding CD term lengths
CDs pay a fixed interest rate for a predefined period. The CD term lengths you can choose from vary by institution, but typically range from three months to five years.
- Short-term CDs mature in less than one year. Common term lengths are three, six and nine months. Some institutions may offer terms as short as 28 days.
- Mid-term CDs mature in one to three years. Common term lengths are 12, 18, 24 and 36 months.
- Long-term CDs mature in four to five years (48 or 60 months). Some institutions offer terms as long as 10 years.
Term Length
Interest Rate
Liquidity
Best For
Short-Term
3-12 Months
2.5-3.2%
APY
High
Access
Emergency Fund
Quick access needed
Mid-Term
1-3 Years
3.5-4.2%
APY
Medium
Access
Medium Goals
Balanced approach
Long-Term
4-5+ Years
4.5-5.1%
APY
Low
Access
Long-term Growth
Maximum growth