Short-term investments with low risks and high rewards: the best 9-month CD rates

The best 9-month CD rates: Our 10 top picks*

The 10 best 9-month CDs of April 2024

MYSB Direct

9-month APY	5.20%
Minimum Deposit	$500
Early withdrawal penalty	All earned interest

Why we picked it

With just a $500 deposit, you can earn 5.20% APY on a 9-month CD through MYSB Direct. It’s one of the lowest minimum deposits with an attractive CD rate that typically requires a much higher initial deposit to qualify for. To get started, it takes three minutes to open your account. From there, you can fund via automated clearing house (ACH) or through a transfer using Plaid. 

TAB Bank

9-month APY	5.27%
Minimum Deposit	$1,000
Early withdrawal penalty	90 days’ interest on the amount withdrawn

Why we picked it

With a minimum opening deposit of $1,000, you can earn 5.27% APY, which is a substantial yield, although the trade-off is you’ll have to deposit twice as much as our top pick to earn it. Your CD comes with several options for interest payments. These include compounding, check, and transfer.

EverBank

9-month APY	5.05%
Minimum Deposit	$1,000
Early withdrawal penalty	1/4 of total interest due if withdrawn before maturity

Why we picked it

With a 9-month CD at Everbank, you can choose at CD opening if you want to withdraw your interest. This allows you to receive regular income on your investment prior to CD maturity. However, keep in mind that this can reduce the overall growth of your investment as the interest won’t be there to compound. 

Marcus by Goldman Sachs

9-month APY	4.90%
Minimum Deposit	$500
Early withdrawal penalty	90 days’ interest on the principal at the CD’s rate

Why we picked it

Your minimum deposit on a 9-month CD with Marcus by Goldman Sachs is just $500, and you’ll earn 4.90% APY. What sets it apart is its 10-day CD rate guarantee. This means that if you deposit money into a CD and the rate goes up within 10 days, you will get that rate automatically. 

Ally Bank

9-month APY	4.40%
Minimum Deposit	$0
Early withdrawal penalty	60 days of interest

Why we picked it

Similar to our previous recommendation, Ally Bank also has a 10-day best rate guarantee. If you get a CD and the rate goes up within 10 days, you’ll get the new, higher rate automatically. However, unlike most banking institutions, there is no minimum opening deposit. This is ideal if you’ve got a small amount to invest and don’t want it sitting in your checking account until you need it. 

Synchrony Bank

9-month APY	4.90%
Minimum Deposit	$0
Early withdrawal penalty	90 days of simple interest at the current rate

Why we picked it

Synchrony Bank is another financial institution with no minimum deposit. This means that even if you’re investing $1, you’re still earning 4.90% APY in a 9-month CD. This is another attractive choice considering most institutions require $500 or $1,000 minimum deposits. However, if your plan is to accumulate as much interest as possible, larger deposits benefit more substantially from compound interest, making them more effective for accumulating wealth over time.

Sallie Mae Bank

9-month APY	4.85%
Minimum Deposit	$0
Early withdrawal penalty	90 days’ simple interest on the amount withdrawn

Why we picked it

To open a 9-month CD with Sallie Mae Bank, a minimum deposit of $0 is required, and you’ll earn a 4.85% APY. This CD is FDIC-insured and offers an automatic renewal feature upon maturity, allowing for a “set-it-and-forget-it” approach to saving.

While you’re opening a CD, consider getting its SmartyPig online piggy bank, which allows you to set both short- and long-term goals and make automatic deposits and withdrawals. 

Capital One

9-month APY	4.25%
Minimum Deposit	$0
Early withdrawal penalty	3 months’ interest

Why we picked it

Capital One is another bank that offers a rate lock guarantee, where if the interest rate increases within 10 days of funding your CD, you’ll receive the higher interest rate automatically. At maturity, your CD will renew automatically, although you’ll have 10 days to redeem your CD without penalty at that time.

Live Oak Bank

9-month APY	5.15%
Minimum Deposit	$2,500
Early withdrawal penalty	90 days’ of simple interest

Why we picked it

While the minimum deposit for a 9-month CD at Live Oak Bank is quite a bit higher at 5.15% APY, it makes up for it with some of the highest CD rates we’ve seen. Your money is FDIC-insured and you can keep track of your renewal and maturity dates online.

Discover Bank

9-month APY	4.25%
Minimum Deposit	$2,500
Early withdrawal penalty	3 months simple interest

Why we picked it

While Discover’s minimum opening deposit is a little higher at $2,500, it still offers an attractive 4.25% APY on its 9-month CDs. Discover is also one of the few banks that allow you to make a transfer via phone for the initial funding of your CD. You can also do an online transfer or mail a check to its P.O. box.

Pros & cons of a 9-month CD

A 9-month CD can be a smart investment to make, depending on your financial goals. However, there are a few drawbacks. Here’s what you need to know.

Pros

• Insurance protection: If your CD is through a credit union, it’s insured by the NCUA. If it’s through a bank, it’s insured by the FDIC. Both offer insurance on deposits of up to $250,000.
• Competitive rates compared to savings accounts: A CD typically offers a higher rate than a savings account with the same level of risk.
• Temporary commitment: Compared to multiyear CDs, a 9-month CD is a relatively short-term investment.

Cons

• Lower yields: A 9-month CD will usually have a lower yield than a longer-term CD, although this is more likely to occur during a low-interest rate environment when banks anticipate rates to rise.
• Limited liquidity: If you anticipate needing your funds any time within the nine months, consider an alternative as you’ll pay an early withdrawal penalty if you take your money out before it reaches maturity.
• Rate lock-in: While some banks offer a 10-day period where if rates rise after funding your CD, you’ll get the higher rate automatically, not all of them do. You could lose out on other more lucrative opportunities if rates rise after you’re locked in.

How to choose the best 9-month CD

When looking for the best 9-month CD, consider the following: 

• Compare rates: Look for the highest APY across multiple banks and credit unions.
• Understand penalties: What happens if you need to withdraw your money early? How much is your penalty?
• Your minimum deposit: What’s the minimum amount you have to deposit into the CD? Is there a maximum? Will you get a better rate for adding more?
• Renewal policy: What happens at CD maturity? Will your money roll over into a new CD automatically? How long is the grace period?

Alternatives to 9-month CDs

While a 9-month CD can be a good short-term investment option, there are alternatives with the same risk and better liquidity. Here are a few:

• Savings accounts: While you’re unlikely to receive as good a rate as you’d find in a CD, a savings account is still a low-risk investment and you won’t have any penalties for taking your money out. 
• High-yield savings accounts: A high-yield savings account is a type of savings account that offers much better rates than you’d find in a standard savings account. However, there may be restrictions on how often you can make transactions in the account.
• MMAs: An MMA combines both checking and savings account features. However, you’ll usually get a much better interest rate along with check writing privileges. 

Best CD rates for more terms

Not all banks with higher rates are available nationwide for 9-month CD terms. Our main emphasis is on options that are widely accessible, but it is worth considering that local or regional banks may have attractive rates, although they may not be widely available.

More CDs to consider:

Frequently asked questions