Best 9-month CD Rates of [current_month_year] (2024)

10 Best 9-month CD Rates of 2024

Best for Automatic Interest Payments

Live Oak Bank

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Vault Verified

APY

4.90%

Min. Deposit Requirement

$2,500

Term Length

9 months

Early Withdrawal Penalty

90 days of interest

Why We Chose It

Live Oak Bank is an online bank that primarily serves business owners, but also offers personal banking services including high-yield CDs. This bank’s 9-month CD currently has one of the highest CD rates, and interest can be automatically dispersed monthly.

Pros

• Option to set up automatic interest payments
• No monthly fees or interest disbursem*nt fees
• Manage your renewal online

Cons

• High minimum opening deposit of $2,500
• Automatic CD renewal after 10-day grace period
• No physical branches

Best for Renewal Bonus

Best for Renewal Bonus

Ally

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Vault Verified

APY

4.45%

Min. Deposit Requirement

None

Term Length

9 months

Early Withdrawal Penalty

60 days of interest

Why We Chose It

Ally Bank offers a high-yield nine-month CD with no minimum deposit requirements and a 10-day guarantee for the best interest rate offered. Customers also get a 0.05% loyalty reward when you renew your CD and you won’t pay monthly maintenance fees.

Pros

• No minimum deposit
• Loyalty reward upon renewal
• No monthly maintenance fees

Cons

• No cash deposit
• No physical branches

Best for Low Minimum Deposit

Marcus Goldman Sachs

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Vault Verified

APY

4.90%

Min. Deposit Requirement

$500

Term Length

9 months

Early Withdrawal Penalty

90 days of interest

Why We Chose It

Marcus Goldman Sachs has a high-yield CD with a lower minimum opening deposit than some other banks at just $500. Plus, if the interest rate on your CD increases during the first 10 days, you’ll be able to lock in the higher rate for your term.

Pros

• $500 minimum deposit
• 10-day rate guarantee
• Withdraw interest penalty-free at any time

See Also

Best Online Banks April 2024Wells Fargo CD Rates 2024: Earn up to 4.75% APY

Cons

• No physical branches
• No cash deposits
• CD renews automatically after a 10-day grace period

Best for No Minimum Balance

Synchrony Bank

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Vault Verified

APY

4.90%

Min. Deposit Requirement

None

Term Length

9 months

Early Withdrawal Penalty

90 days simple interest

Why We Chose It

Synchrony Bank offers 9-month CD rates with no minimum balance requirement so it’s easier to open an account. You can also withdraw interest earned any time during your CD term without a penalty.

Pros

• No minimum balance requirements
• Withdraw interest penalty-free
• Deposit funds via bank transfer, mobile check deposit or wire transfer

Cons

• Penalty of 7 days’ simple interest for closing your CD during the first week
• Quarterly statements instead of monthly

Best for Fractional CD

Fidelity

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APY

5.15%

Min. Deposit Requirement

$100

Term Length

9 months

Early Withdrawal Penalty

None

Why We Chose It

Fidelity offers brokerage CDs, which are similar to bank CDs but can be sold on the market before reaching maturity. Fidelity offers high interest fractional CDs that are FDIC-insured and have a low deposit requirement of $100.

Pros

• Low $100 minimum deposit requirement
• Fixed interest rate during your CD term
• Option to sell your CD funds before the maturity date

Cons

• Costs associated with selling your CD before the maturity date
• High minimum deposit required for best rates
• CD rates can fluctuate

Best for Advanced Maturity Alert

EverBank

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Vault Verified

APY

5.05%

Min. Deposit Requirement

$1,000

Term Length

9 months

Early Withdrawal Penalty

68 days simple interest

Why We Chose It

EverBank’s 9-month CD has a competitive interest rate and you can choose to withdraw the interest your CD earns at the time of opening your account. EverBank also notifies you 20 days before your CD matures allowing enough time to decide to withdraw funds or open a new CD.

Pros

• No monthly fees
• 20-day advanced maturity alert
• Smaller early withdrawal penalty for a 9-month CD than other banks

Cons

• $1,000 opening deposit
• Few physical locations
• CD automatically renews at maturity

Best for Socially Responsible Banking

Forbright Bank

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Vault Verified

APY

5.30%

Min. Deposit Requirement

$1,000

Term Length

9 months

Early Withdrawal Penalty

3 months interest

Why We Chose It

Forbright Bank offers one of the highest 9-month CD rates, with a $1,000 minimum opening deposit. It also helps fund renewable energy and energy efficiency projects so your funds will make an impact in reducing carbon emissions.

Pros

• Competitive CD interest rates
• No opening fees or maintenance fees
• Bank supports a more sustainable future

Cons

• Physical branches only in Maryland and Virginia
• Can’t open an IRA CD online
• CD can’t be funded from more than one source

Best for Smaller Early Withdrawal Penalty

CIBC Bank

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Vault Verified

APY

5.11%

Min. Deposit Requirement

$1,000

Term Length

9 months

Early Withdrawal Penalty

30 days

Why We Chose It

The CIBC Bank 9-month Agility CD earns a highly competitive interest rate on deposits of $1,000 or more, with just 30 days of interest penalty if you withdraw funds before maturity. Although the bank’s website says that the highest rates are usually only available when you deposit a minimum of $25,000, the current 9-month CD rate of 5.11% APY is the same for all deposit amounts over the minimum. The account has no monthly maintenance fees, and you can transfer funds from another CIBC Bank USA account by mailing a check or transferring money from another U.S. Bank after activating your CIBC account.

Pros

• 30-day early withdrawal penalty is smaller than most other banks
• 10-day maturity grace period
• Multiple ways to fund CD

Cons

• Interest compounds monthly
• Unable to automatically withdraw interest as earned
• Higher interest rates are usually reserved for large deposits

Best for High Interest Earnings

TAB Bank

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Vault Verified

APY

5.27%

Min. Deposit Requirement

$1,000

Term Length

9 months

Early Withdrawal Penalty

90 days of interest

Why We Chose It

If you have at least $1,000 to fund a 9-month CD, you’ll earn one of the most competitive interest rates of 5.27% APY with TAB Bank. Interest accrues daily, and you can withdraw earned interest without penalty. However, you’ll face an early withdrawal penalty of 90 days of interest if you withdraw the principal before maturity. TAB Bank has CDs that range from six months to five years, plus Traditional, Roth and Coverdell IRA CDs are also available.

Pros

• Range of CD terms and types available
• No account or maintenance fees
• Highly rated mobile app

Cons

• No physical branch locations
• $1,000 minimum deposit is higher than other banks
• CD renews automatically after a 10-day grace period

Best for CD Laddering

America First Credit Union

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APY

5.25%

Min. Deposit Requirement

$500

Term Length

9 months

Early Withdrawal Penalty

60 days of dividend

Why We Chose It

Although America First Credit Union requires membership to take advantage of the highly competitive 9-month CD rate, you only need to fill out an application, open a savings account and pay $1 to become a member. An America First Credit Union 9-month Share Certificate—the credit union equivalent of a CD—earns 5.25% with a minimum $500 deposit. With certificate terms from three months to five years, America First offers many ways to build a CD ladder to help you meet your savings goals.

Pros

• Shorter early withdrawal period than other banks
• Earns a highly competitive interest rate with low minimum deposit
• Specialty CD options available

Cons

• Must open a savings account to be eligible for a CD
• Physical branches only in Idaho, Oregon, Nevada, Utah, Arizona and New Mexico

9-Month Certificate of Deposit Overview

If you want to invest your money and grow your savings, 9-month Certificates of Deposit (CDs) could be an option worth considering. CDs are different from savings accounts since you can’t add and withdraw funds regularly, but it’s also a low-risk investment that can provide a higher return in a short timeframe.

What Is a 9-Month CD?

A 9-month certificate of deposit is a type of financial account that offers a fixed interest rate over a set term of 9 months. When you open a 9-month CD, you’ll put in a lump sum of money, typically with a minimum deposit requirement.

The best CDs come in a variety of terms that can range from six months to seven years on average, and the interest rate can vary depending on the term length and other factors. Even though nine months is a shorter term, you can still expect a competitive interest rate offer from banks and credit unions including the options in our list.

How Do 9-Month CDs Work?

To open a 9-month CD, you will need to deposit a certain amount of money with a bank or other financial institution. Most banks require that you fully fund your CD within the first few days. Typically, the minimum deposit amount is relatively low, but it may vary depending on the bank.

Once you make the deposit, you cannot withdraw the funds until the CD term has ended. If you withdraw the money early, you may incur a penalty fee. However, some banks allow you to withdraw the earned interest without paying a penalty. Though you can take this action, it will lower your overall earnings since the interest won’t be able to compound for the full length of the CD term. At the end of the term, you will receive your original deposit amount plus the interest earned unless you withdraw the interest early.

Who Should Get a 9-Month CD?

If you have a specific savings goal in mind and want a higher rate of return than a traditional savings account, you may want to consider a 9-month CD. Whether you’re looking to save for a down payment on a home, fund a vacation, or make a large purchase within the next year, a 9-month CD can be an excellent tool to help you earn interest on your savings and reduce the temptation to withdraw the money early.

On the other hand, if you need your funds in case of an emergency or do not have a specific savings goal, a CD may not be the best option for your situation. Since a 9-month CD has a shorter term, you may not want to risk losing out on at least three months of interest payments for withdrawing the money too soon which is common among most 9-month CDs.

Short-Term vs. Long-Term CDs

Although there isn’t a rule on what constitutes a short-term CD, it’s generally accepted that a short-term CD matures within a year of opening the account. These CDs are usually found in three-month term increments, though you can get them as short as one month:

• 3-month CDs
• 6-month CDs
• 9-month CDs
• 1-year CDs

Long-term CDs take more than one year to mature, often going up to 10 years. Like short-term CDs, long-term CD interest rates vary widely by bank and CD type. For example, Synchrony Bank’s 24-month bump-up CD rate is currently 3.60% APY compared to its traditional 24-month CD rate of 4.20% APY. A bump-up CD allows you to increase the interest rate once during the term, which can be advantageous during times when interest rates are on the rise.

Historically, long-term CDs have had higher rates than short-term CDs, but with the FDIC’s short-term interest rate increase to stave off higher inflation, short-term CDs have seen higher rates in recent years. But with a high probability that interest rates will drop this year, you may start seeing rates begin to normalize, making long-term CDs more attractive for savers with long-term goals.

Which to Choose?

Short-term CDs allow you to access your money much sooner than long-term CDs. You’ll often earn higher interest rates until the Federal Reserve lowers rates. You’re also less likely to incur an early withdrawal penalty, which can defeat the purpose of locking up your money to earn more interest than a savings account.

However, you can set and forget long-term CDs; with a CD sitting for a longer term, you’ll earn more interest overall. You can also lock in a competitive rate now without worrying about how Federal Reserve cuts could affect your CD strategy and savings goals.

What is a Good CD Rate?

A good CD rate depends on bank offerings, the interest rate climate and the CD term you want. The FDIC doesn’t provide national averages for 9-month CDs, but its average rate for 6-month CDs is 1.52% APY and 1.81% APY for 12-month CDs.

The best 9-month CD rates range from 4.00% APY to 5.30% APY or more, which far surpasses the FDIC averages for any CD term. Comparing CD rates from various banks can help you find the most competitive interest rate for the CD term you need that beats the average.

Pros and Cons of 9-Month CDs

A 9-month CD won’t be the best option for everyone so you’ll want to compare these benefits and drawbacks with your personal preferences before making a final decision.

Pros

• High interest rate. CD rates are subject to change at any time, but when rates are high, you can take advantage of the opportunity to earn a much higher interest rate than you would with a traditional savings account.
• Fixed interest rate for a set term. Opening a CD account allows you to lock in a fixed interest rate so you don’t have to worry about your rate going down if the market changes.
• Relatively low minimum deposit amount. You can open a CD with most banks for less than $1,000 and some banks even have no minimum opening deposit requirements.

Cons

• Lack of accessibility. With a CD, your money is not liquid so you can’t conveniently transfer it to a checking or savings account without paying a fee.
• Penalty fees for early withdrawal. It’s harder to access the money in your CD account before the maturity date due to the early withdrawal penalty so make sure you can comfortably keep the money in the account to avoid a fee.
• Interest rates may not be as high as other options. Since CDs are a low-risk investment, you won’t earn as much as you could if you invested in long-term options like mutual funds and exchange-traded funds.

What To Consider When Choosing a 9-Month CD

If you’re thinking about opening a 9-month CD, you should consider several factors.

CD Types

When it comes to CDs, you have different types to choose from. Examples include traditional CDs, jumbo CDs for saving larger amounts, IRA CDs and fractional CDs. You’ll have to research each type and check if it fits your financial goals.

For example, if you have a large amount to deposit and want to maximize your return, a jumbo CD might be suitable since it requires a higher deposit. If you’re interested in a 9-month CD however and want simplified terms, a traditional CD would be one of your best options.

Interest Rate

One of the best benefits of opening a CD is getting a competitive interest rate to earn a higher return. Compare rates across different banks and credit unions to ensure you’re getting the best rate possible. Most banks display current CD interest rates online as well as a calculator tool that shows how much you can earn so you can easily weigh your options.

Remember that interest rates are just one option and you don’t have to choose the bank that has the highest CD interest rate. Consider the other factors such as withdrawal penalty and features offered by the bank.

Minimum Deposit Amount

The minimum deposit amount for a 9-month CD may vary depending on the bank, but typically, it ranges from $500 to $1,000. Some banks also have no minimum deposit requirements so you can open a CD with any amount.

While no minimum deposit requirement is a nice feature to have, depositing a higher amount means you’ll have more money to accumulate interest during the CD term. Look at your budget and goals for a 9-month CD to determine how much you can comfortably afford to deposit.

Early Withdrawal Penalties

Early withdrawal penalties ensure the bank retains the funds for the full term, forcing you to pay a penalty fee if you withdraw before the maturity date. An early withdrawal penalty for a CD can range from a few months’ worth of interest to a year of interest earned or more.

For shorter-term CDs, the early withdrawal penalty is usually around three months’ worth of interest payments. That’s still a third of the interest you’d earn with a 9-month CD, so it’s best to keep the money in your account until it matures.

If you’re worried about early withdrawal penalties, some banks offer no-penalty CDs where you won’t be charged for taking money out before the CD matures. But these options may only apply to a certain term length which is also subject to change.

Your Financial Goals and Upcoming Plans

When choosing a 9-month CD, it’s important to consider your overall financial goals and upcoming plans. If you’re saving for a specific goal, such as a down payment on a home, make sure the CD aligns with your timeline. Get an idea of where you stand on renewing the CD or withdrawing the funds when the term is up so you don’t feel rushed or pressured when the CD’s maturity date approaches.

If you anticipate needing access to the funds before the CD matures, a CD may not be the best savings tool for you. Make sure you have some savings set aside in a regular or high-yield savings account first to cover any emergencies or unexpected costs before locking all your money into a CD.

Newsweek writer Mandy Sleight contributed to this post.