Certificate of Deposit (CD) Basics

Discover the essentials of Certificate of Deposit (CD) investments. Get insights into CD features, benefits, and how they can help you grow your savings. Start maximizing your financial potential today.

In the current financial landscape, individuals and institutions alike are in pursuit of investment options that offer stability, favorable returns, and minimal risk. Certificates of Deposit (CDs) have long been a cornerstone of conservative investment strategies, providing a secure avenue for growing savings over time. In this article, we will delve into the offerings of various financial institutions, namely BMO Alto, Capital One, Marcus by Goldman Sachs, Synchrony Bank, and Alliant Credit Union, comparing their CD products, rates, and terms to help potential investors make informed decisions.

BMO Alto

  • Specs: BMO Alto Online Certificates of Deposit (CDs)
BMO Alto emerges as a competitive player in the online banking sector with its high-yield online-only CDs. A distinguishing feature is the 5.40% Annual Percentage Yield (APY) attached to a 12-month term, which signifies an above-average return on investment compared to the industry standard. With no minimum balance requirement and the ability to start with a $0 minimum opening deposit, BMO Alto CDs are accessible to a diverse range of investors, regardless of their financial standing.

Investors can choose from six available fixed terms, ranging from 6 months to 60 months, receiving interest payments on a monthly basis. The flexibility in term selection enables individuals to align their investment with specific financial goals, whether short-term or long-term.
  • The Benefits of a BMO Alto Online CD
A BMO Alto Online CD provides several advantages, including guaranteed growth on your savings, access to high interest rates on deposits, and the absence of account fees. These CDs are particularly advantageous for those looking to maximize short-term savings or for those planning to cultivate their long-term savings without the need for immediate access to funds. The guaranteed interest rate removes the uncertainty of fluctuating market conditions, offering a stable growth environment for one's savings.
  • Cost
There is a $0 minimum opening deposit required to start a BMO Alto Online CD, removing a common barrier to entry for many potential savers and investors.

Capital One

  • Specs
Capital One's online CDs offer a range of terms with competitive APYs, including a 12-month CD at 5.00%, an 18-month CD at 5.25%, and a 60-month CD at 4.10%. Like BMO Alto, there is no minimum balance to open an account, and the interest rate remains fixed throughout the term of the CD.

CD account performance is not tied to market variability, ensuring no risk to the principal. The APYs mentioned are variable and were effective as of October 2, 2023. Capital One offers the added benefit of FDIC insurance up to the allowable limits, providing an additional layer of security for investors. Interest can be paid out at the end of the term, monthly, or annually, depending on the account holder's preference.
  • Cost
There is no minimum balance required to open a Capital One 360 CD account.


  • Specs
Marcus by Goldman Sachs is known for its user-friendly online experience, allowing customers to open an account within minutes with a $500 minimum balance requirement. The fixed-rate CDs from Marcus ensure that investors know exactly how much interest they will earn over their chosen term. A variety of terms are available, providing flexibility to meet diverse financial goals.
  • Cost
A $500 minimum balance is required to open a CD with Marcus.


  • Specs
Synchrony Bank offers a range of CD products, including a Bump-Up CD with a 24-month term at 4.00% APY, and a No-Penalty CD for an 11-month term at 4.50% APY. Both options require no minimum balance, catering to savers who may not have a large sum to invest initially. The Bump-Up CD allows a one-time rate increase if Synchrony's rates for this product rise, while the No-Penalty CD provides flexibility in accessing funds without an early withdrawal penalty.
  • Cost
There is no minimum balance required for Synchrony's CDs.


  • Specs
Alliant Credit Union offers a 1-year CD with a minimum balance requirement of $1,000 and an attractive APY of 5.25%. As one of the largest credit unions in the United States, Alliant provides high rates on certificates with flexible maturity dates. Insured by the National Credit Union Administration (NCUA), Alliant stands out for its competitive rates and digital-first approach to banking.
  • Cost
A minimum balance of $1,000 is required to open a CD with Alliant.

When it comes to securing one's financial future, Certificates of Deposit stand out as a reliable and prudent choice for investors seeking a guaranteed return without exposure to market volatility. The brands discussed here—BMO Alto, Capital One, Marcus, Synchrony Bank, and Alliant—each offer unique CD products with varying terms and interest rates, catering to the diverse needs and goals of savers. From BMO Alto's high-yield, no minimum balance CDs to Alliant's flexible maturity dates and competitive rates, there is a CD option suitable for every investor. By carefully considering the specifications, benefits, and costs associated with each brand's offerings, investors can make an informed decision that aligns with their financial objectives and risk tolerance, paving the way for a more secure and prosperous financial future.