Best CD Rates Today

Bank CD Rates · 1-Year

APYs from the banks' official rate pages · checked 2026-11-09

National CD Rates Today

FDIC national rates and rate caps · October 19, 2026

How Much Does $10,000 Earn in One Year?

The highest CD rate in our current ranking is a 1-year CD, and so is every other entry. All four rates come from the banks’ official rate pages and were checked on November 9, 2026. Because every term is the same length, the order is a straight comparison of annual percentage yield (APY). The spread between the top and bottom entries is a fraction of a percentage point. The gap between any of them and the national average 12-month CD rate the FDIC publishes, 1.76% as of October 19, 2026, is much larger.

That changes how to use the list. The rate tells you which of the four pays most, but at this level the minimum opening deposit, the type of CD, the early withdrawal terms and the renewal rules can decide whether a CD fits you. One entry is bought through a brokerage account and works differently from the bank CDs below it. One requires $10,000 to open. The cheapest to open accepts $500.

How This CD Ranking Is Ordered

The ranking sorts CDs by APY from highest to lowest. The comparison is tight for two reasons:

• Same term. Every entry is a 12-month CD. The banks label it differently (“1 year,” “12-month CD,” “12 months”), but the commitment is the same length. You are not weighing a 6-month rate against a 5-year rate, where a higher APY could simply reflect a longer lock-up.
• Same measure. Every rate is an APY, which includes the effect of compounding over a year. That puts banks that compound daily and banks that compound monthly on equal footing.

The order does not account for the minimum deposit, the early withdrawal penalty, the account type or the institution’s other products. A CD can rank first and still be out of reach if your deposit is below its minimum, or a poor fit if you might need the money before maturity.

What the “$10,000 Earns” Column Assumes

The earnings column is the deposit multiplied by the APY: $10,000 × 4.75% = $475, and so on down the list. That figure holds only if:

1. you deposit exactly $10,000 on day one,
2. you leave the full balance and all credited interest in the CD for the whole 12 months,
3. the rate stays at the listed APY when you open and fund the account, and
4. interest compounds inside the CD rather than being paid out to another account.

The fourth assumption matters most for brokered CDs (covered below), which commonly pay interest out in cash. Paid-out interest stops compounding unless you reinvest it yourself.

How Big the Differences Are in Dollars

On a $10,000 deposit for one year, the gap between the first and fourth entries is $35 ($475 versus $440). The gap between the top entry and the FDIC national average for the same term is $299 ($475 versus $176). Choosing any competitive CD over an average one moves your earnings far more than choosing between competitive CDs.

Reading the National CD Rate Table

The FDIC’s national rates and rate caps, published October 19, 2026, cover deposit products from savings to 60-month CDs. Each figure measures something different, and only one of them describes rates people actually earn.

National Rate

The FDIC national rate is an average of the rates insured banks and credit-union-comparable institutions in its data set pay on a product, weighted by each institution’s share of domestic deposits. Institutions holding the most deposits pull the average hardest, so the figure reflects what a typical dollar in that product earns, not what a rate shopper can get. At 1.76% for a 12-month CD, it sits well below the CDs in our ranking.

The averages themselves show a pattern. The 12-month national rate (1.76%) is higher than the 24-month (1.55%), 36-month (1.39%), 48-month (1.31%) and 60-month (1.41%) rates. On average, banks are not paying more for longer lock-ups right now. That says nothing about any one bank’s rate sheet, where a long-term CD can still pay more than its 1-year CD, but it does mean “longer term, higher rate” is not a safe assumption.

Rate Cap

The national rate cap is a regulatory ceiling, not an offer. Under FDIC rules on brokered deposits, banks that are less than well capitalized are generally limited in how much they can pay on deposits. The cap is the reference point for that limit. No bank in our ranking is paying the 6.20% cap. At that rate $10,000 would earn $620, a hypothetical ceiling for comparison, not a rate available to open.

Treasury Yield

The FDIC’s Treasury figure is the yield on U.S. Treasury securities of a similar maturity: 4.54% for the 12-month term. Treasuries are the market’s baseline for low-risk interest, so this is a useful yardstick. A CD paying well below the matching Treasury yield is asking you to accept less than the federal government pays to borrow for the same period.

Two cautions apply when lining up the Treasury yield against a CD APY:

• The dates differ. The FDIC figures are dated October 19, 2026, while the CD rates were checked November 9, 2026. Treasury yields move every trading day.
• The math differs. Treasury yields are quoted on a bond-equivalent basis that does not assume compounding the way APY does. Over one year the difference is small, but the two numbers are not computed identically.

Unlike the rate cap, the Treasury yield is a real alternative you can buy. That comparison comes up again in the section on Treasury bills.

Where the Listed CDs Actually Differ

The four entries differ in minimum deposit and in how you hold the CD. Those are the differences worth knowing before you pick.

Charles Schwab: A Brokered CD Held in a Brokerage Account

The Schwab entry is a brokerage product. Its CDs are brokered CDs: certificates issued by FDIC-insured banks and sold through Schwab’s brokerage, held in a brokerage account rather than opened directly with the issuing bank. Its $1,000 minimum fits that format, since brokered CDs are typically bought in $1,000 increments.

The structure changes several things:

• Getting out early. A brokered CD usually cannot be cashed in with the issuing bank for a fixed penalty. To exit before maturity you sell it on the secondary market at whatever price buyers offer. If rates have risen since you bought, the price will usually be below what you paid, so the loss depends on market conditions rather than a known number of months of interest. If rates have fallen, you might sell at a gain. The amount is not known in advance either way.
• Interest payments. Brokered CDs commonly pay interest out to the brokerage account’s cash balance instead of compounding inside the CD. On a 12-month CD that pays at maturity the difference is negligible, but on a CD paying monthly or semiannual interest, your actual growth depends on what you do with each payment.
• Call features. Some brokered CDs are callable. The issuing bank can redeem them early, typically when rates fall, which ends your locked-in rate.
• Insurance. FDIC coverage comes from the issuing bank, not from Schwab. It counts toward your $250,000 limit at that issuing bank, including any deposits you already hold there directly.

Brokered CDs suit people who already have a brokerage account, want to hold CDs from several banks in one place, and are confident they will hold to maturity. They are a weaker fit if there is a real chance you will need the money early, because the exit price is unknown.

Popular Direct: The Highest Minimum on the List

Popular Direct’s 12-month CD requires $10,000 to open, the highest minimum among the four entries. Its “$10,000 earns” figure is calculated at exactly that minimum. Anyone with less cannot open it.

Popular Direct is the online-only division of Popular Bank, the New York-headquartered U.S. banking subsidiary of Popular, Inc. Because Popular Direct is a division of Popular Bank rather than a separate bank, deposits at Popular Direct and Popular Bank fall under the same FDIC insurance limit.

Popular Direct’s early withdrawal penalties are set by term, with longer CDs carrying larger penalties.

Bread Savings: Online Bank With a $1,500 Minimum

Bread Savings requires $1,500 to open its 1-year CD. It is the online consumer deposit brand of Comenity Capital Bank, part of Bread Financial, a company better known for store-branded credit cards. It operates without branches, so account opening, funding and servicing happen online or by phone. Deposits are insured under Comenity Capital Bank’s FDIC coverage.

Marcus by Goldman Sachs: The Lowest Minimum on the List

Marcus has the lowest minimum among the four at $500. It is the consumer banking brand of Goldman Sachs Bank USA, and deposits are insured under that bank. Marcus locks the posted rate when the account is funded with the minimum within 10 days of opening, and maximum balance limits apply.

Marcus also offers no-penalty CDs alongside its standard CDs. The CD in our ranking is a standard 12-month CD, so do not assume it carries no-penalty terms.

Which Entries Your Deposit Qualifies For

By minimum deposit:

A few terms need confirming before you open. Popular Direct sets its early withdrawal penalty by term, so check the penalty on the 12-month CD’s disclosure rather than assuming it matches another term. Marcus locks its posted rate only when the account is funded with the minimum within 10 days of opening, so check current terms if you will open and fund on different days. At Schwab, check whether the specific brokered CD is callable before buying. Beyond the minimum deposit, each institution sets its own eligibility and account-opening requirements.

What a CD Rate Is, and How APY Works

A CD rate is the interest a bank or credit union pays you for leaving a deposit in a certificate of deposit for a fixed term. Banks quote two related numbers:

• The interest rate (sometimes called the nominal rate) is the annual rate before compounding.
• The annual percentage yield includes compounding: interest credited during the year starts earning interest itself.

APY is the figure to compare because it puts every compounding schedule on the same basis. The standard formula:

APY = (1 + r ÷ n)^n − 1

where r is the nominal annual rate and n is the number of compounding periods per year.

Hypothetical example: a CD with a 4.30% nominal rate compounded monthly has an APY of (1 + 0.043 ÷ 12)^12 − 1, or about 4.39%. Compounded daily, the result is roughly the same, about 4.39%. At normal CD rates, compounding frequency makes little difference over one year. The quoted APY already includes it, which is why comparing APYs avoids confusion.

Earnings on Terms Other Than One Year

For a CD that compounds and is held to maturity, earnings over any term are:

Earnings = Deposit × [(1 + APY)^(months ÷ 12) − 1]

Hypothetical examples, each assuming interest stays in the CD and no withdrawals:

• $10,000 at 4.50% APY for 6 months: $10,000 × (1.045^0.5 − 1) ≈ $222.50
• $10,000 at 4.50% APY for 12 months: $450.00
• $10,000 at 4.00% APY for 36 months: $10,000 × (1.04^3 − 1) ≈ $1,248.64

A 6-month CD does not pay half a year’s worth of earnings and then stop for good. You get your money back sooner and must reinvest it at whatever rate is available then, which may be higher or lower.

If a CD pays interest out instead of compounding (common with brokered CDs and some bank CDs on request), earnings are simple interest: deposit × rate × years, and you control what happens to each payment.

How a CD Works

A certificate of deposit is a deposit account with a contract attached. When you open and fund one, you agree to four things:

• The rate. Most CDs carry a fixed rate for the whole term. The bank cannot lower it, and you cannot raise it if market rates climb (unless the CD has a bump-up or step-up feature).
• The term. The length you agree to leave the money in, ending on the maturity date. Common terms run from 1 month to 5 years, with some banks offering 7- or 10-year CDs.
• The principal. The amount you deposit at opening. Most CDs do not accept additional deposits later. Add-on CDs are the exception.
• The institution’s terms. The deposit agreement sets the early withdrawal penalty, how and when interest is credited, and what happens at maturity.

Interest is typically credited monthly or quarterly. It is either added to the CD balance, where it compounds, or transferred to another account if you choose that option at opening.

What Happens at Maturity

When the term ends, most bank CDs give you a grace period, often a week to 10 days, though the length varies by bank. During that window you can withdraw, add funds or change the term without penalty.

If you do nothing, many CDs renew automatically into a new CD of the same (or a similar) term at the rate the bank is offering on that date. That renewal rate is set by the bank at the time and can be well below the rate that drew you in. The renewal rate is not shown in a ranking like this one, and it is the main reason to set a reminder for your maturity date.

Credit unions often call their CDs share certificates. They work the same way, and credit unions usually require you to become a member first, typically by opening a savings (share) account with a small balance.

Early Withdrawal Penalties

Breaking a bank CD before maturity triggers an early withdrawal penalty. The deposit agreement defines it, and the structure varies by institution and often by term:

• A number of days or months of interest, such as 90 days for a short CD or 12 months for a long one. This is the most familiar format.
• A percentage of the amount withdrawn, such as a fixed share of the balance.
• All interest earned, with a minimum, where the penalty takes whatever interest has accrued but no less than a stated number of months’ worth.

Federal rules set a floor. Under Regulation D, a time deposit must carry a penalty of at least seven days’ simple interest on amounts withdrawn within the first six days after deposit. Above that floor, banks set their own terms.

Why the Penalty Can Reach Your Principal

A penalty measured in months of interest is a fixed amount. It does not shrink because you have earned less.

Hypothetical example: you put $10,000 in a 12-month CD at 4.50% APY with a penalty of 90 days of interest. That penalty is roughly $10,000 × 4.50% × (90 ÷ 365), about $111. If you withdraw after two months, you have earned only about $74. Depending on the agreement, the bank may take the shortfall from your principal, so you walk away with less than you deposited. If you withdraw after nine months, you have earned about $333 and keep roughly $222 after the penalty.

Read the penalty clause for three details:

1. Whether it is calculated on the amount withdrawn or the full balance. Some banks allow partial withdrawals and penalize only the amount taken; others require closing the whole CD.
2. Whether it can be taken from principal. Some agreements cap the penalty at interest earned; many do not.
3. Waivers. Some agreements allow penalty-free withdrawal on the account owner’s death or a court finding of incompetence. Required minimum distributions from IRA CDs may also be treated differently. These terms vary by bank.

Breaking a CD to Chase a Higher Rate

If rates rise after you open a CD, breaking it to reinvest can pay off only when the extra interest over the remaining term exceeds the penalty. Hypothetical example: with $10,000, six months left, and a penalty of 90 days of interest at 4.00%, the penalty is about $99. Moving to a new CD paying 1 percentage point more over those six months earns about $50 extra. That is less than the penalty, so breaking the CD loses money. The math favors staying put unless the rate gap is large or a lot of time remains.

For a brokered CD, the comparison is different: there is no fixed penalty, but rising rates are exactly what pushes the CD’s sale price down.

Types of CDs

The CDs in our ranking are standard fixed-rate CDs. Other types trade some yield for flexibility, or the other way around:

• Traditional CD: fixed rate, fixed term, one deposit at opening, penalty for early withdrawal.
• No-penalty CD: lets you withdraw the full balance after an initial waiting period (often a few days after funding) without a penalty. Rates are typically set below the same bank’s standard CD of a similar term, and most require withdrawing everything at once.
• Bump-up CD: lets you request a rate increase, usually once or twice during the term, if the bank raises its rate for that CD. You have to watch rates and ask for the bump yourself.
• Step-up CD: raises the rate automatically on a schedule set at opening. The advertised APY is often a blended figure across the term, so compare it with standard CDs on that basis.
• Add-on CD: accepts additional deposits after opening, sometimes with limits on amount or frequency.
• Variable-rate CD: the rate moves with a benchmark such as the prime rate, a Treasury yield or an inflation index, while the term stays fixed.
• Jumbo CD: requires a large opening deposit, commonly $100,000 or more. A jumbo label does not guarantee a higher rate than the same bank’s standard CD.
• Brokered CD: bought through a brokerage, as with the Schwab entry above, and sold on the secondary market rather than broken with the bank.
• IRA CD: a CD held inside a traditional or Roth IRA, which changes the tax treatment but not the CD mechanics.

Pros and Cons of CDs

Pros

• A rate locked for the full term. A fixed-rate CD keeps paying its rate even if the Federal Reserve cuts rates and savings account yields fall.
• Known earnings and a known date. With the APY and term set, you can calculate the payoff and the day it becomes available before you deposit.
• Federal deposit insurance. CDs at FDIC-insured banks and NCUA-insured credit unions are protected up to $250,000 per depositor, per institution, per ownership category.
• No market price risk if held to maturity. A bank CD’s value does not fluctuate the way a stock or bond fund’s does.
• A built-in barrier to spending. The penalty makes it harder to dip into money meant for a planned goal.

Cons

• Limited access. Withdrawing before maturity costs a penalty that can exceed the interest earned.
• Rate risk in both directions. If rates rise after you lock in, you earn less than new CDs pay. If rates fall, a short CD leaves you reinvesting at lower rates when it matures.
• One deposit. Most CDs do not accept additions, so new savings need a new CD or another account.
• Inflation can outpace the yield. A fixed rate set today can fall below inflation if prices accelerate.
• Lower long-run growth than stocks. CDs remove market risk, and with it the higher expected returns that stocks have historically offered over long periods.
• Renewal at a lower rate. Automatic renewal can roll your money into a CD paying far less than the original rate if you miss the grace period.

How to Choose a CD

The ranking answers one question: which 12-month CD here pays the highest APY. Choosing a CD takes a few more.

1. Set the term by when you need the money. Match the maturity date to a known expense (tuition due in August, a home down payment next spring) or to the earliest date you might need the cash. The highest rate on a term you cannot commit to is not the right CD for you.
2. Check that your deposit meets the minimum. Minimums among the four ranked CDs range from $500 to $10,000. Some CDs also cap the maximum deposit.
3. Compare APYs within the same term. A 5-year CD paying more than a 1-year CD is not automatically better. You are being paid for a longer commitment.
4. Read the early withdrawal penalty. If there is any chance you will break the CD, a smaller penalty can be worth more than a slightly higher rate. If you are likely to need the money early, consider a no-penalty CD or a high-yield savings account instead.
5. Decide between a bank CD and a brokered CD. A bank CD has a known exit cost; a brokered CD has a market-dependent one. Brokered CDs make it easy to hold several banks’ CDs in one account.
6. Check what happens at maturity. Note the grace period length and whether the CD renews automatically. Set the instruction you want at opening if the bank allows it.
7. Confirm insurance coverage. Look up the bank’s FDIC certificate or the credit union’s NCUA charter, and add up what you already hold at that institution, including under other brand names.
8. Keep a cash buffer outside the CD. Money for emergencies belongs in an account you can reach without a penalty. That way the CD is never the first thing you have to break.

Deposit Insurance on CDs

CDs at banks are covered by the Federal Deposit Insurance Corporation; CDs at federally insured credit unions are covered by the National Credit Union Administration’s Share Insurance Fund. The standard limit for both is $250,000 per depositor, per insured institution, per ownership category.

Ownership categories are separate pools of coverage. Single accounts, joint accounts, certain retirement accounts such as IRAs, and trust accounts are each insured separately. A married couple can therefore have more than $250,000 insured at one bank by using single and joint accounts. The FDIC’s rules for each category set the exact amounts.

Two details catch people with CDs:

• Brands are not separate banks. Online banks are often divisions or brand names of a chartered bank. Popular Direct deposits are insured as Popular Bank deposits; Bread Savings deposits as Comenity Capital Bank deposits; Marcus deposits as Goldman Sachs Bank USA deposits. Money in two brands of the same bank shares one limit.
• Brokered CDs count at the issuing bank. A brokered CD from Bank X counts toward your limit at Bank X. If you also hold a CD directly with Bank X, the two are added together.

Coverage includes principal and accrued interest up to the limit. A $250,000 CD that has earned interest can therefore push you past full coverage before maturity.

How to Build a CD Ladder

A CD ladder splits your money across several CDs with staggered maturity dates, so part of it becomes available at regular intervals. You avoid locking everything into one term at one rate, and you get regular chances to reinvest at current rates.

A Five-Year Ladder

Hypothetical example with $25,000:

1. Divide the money into five equal parts of $5,000.
2. Put one part each into a 1-year, 2-year, 3-year, 4-year and 5-year CD.
3. When the 1-year CD matures, reinvest it in a new 5-year CD.
4. A year later, the original 2-year CD matures. Reinvest it in another 5-year CD.
5. Keep going. After four years, all five CDs are 5-year CDs, and one matures every 12 months.

Once the ladder is built, every rung earns a 5-year rate (whatever 5-year rates are when it renews) while a fifth of the money comes free each year. The FDIC averages show 5-year CDs do not always pay more than 1-year CDs, so check that the long rungs are earning a premium before committing to that structure.

A Short Ladder

The same idea works over one year: split money across 3-, 6-, 9- and 12-month CDs, and roll each maturing rung into a new 12-month CD. After the first year, a quarter of the money matures every three months. This suits savings you will draw on within a year or two.

Ladders can mix institutions. Each rung can go to whichever bank pays the best rate for that term when you buy it, as long as you track the maturity dates and keep totals within insurance limits.

Why CD Rates Change

Banks set CD rates themselves, but the rate environment is driven largely by the federal funds rate, the overnight lending rate the Federal Reserve targets. When the Fed raises its target, banks’ funding costs rise and deposit yields tend to follow. When it cuts, they tend to fall. Treasury yields, which reflect markets’ expectations for future Fed policy, feed into CD pricing as well, especially for longer terms.

Recent history shows the effect. The Fed held its target near zero from March 2020 until March 2022. It then raised rates rapidly to combat inflation, reaching a range of 5.25% to 5.50% in July 2023, the highest level since 2001. Top CD yields climbed with it, from very low levels in 2021 to above 5% at the peak.

For a saver, a Fed rate increase means that newly opened CDs and savings accounts generally start paying more. Existing fixed-rate CDs do not change. A cut works the other way: savings account rates can drop almost immediately, while a CD you have already opened keeps its rate until maturity.

Nobody can say with certainty where CD rates go next year. Fed officials publish projections, and futures markets price expectations, but both change as economic data arrive. A CD is a commitment to a known rate for a known period. If you are unsure about the direction of rates, a ladder spreads the timing risk.

CDs and Inflation

What a CD earns after inflation is roughly its APY minus the inflation rate over the same period. A CD paying 4.50% when prices rise 3% leaves you about 1.5 percentage points ahead in purchasing power, before taxes. If inflation rises above your fixed rate during the term, your real return turns negative even though the nominal balance keeps growing. For historical context on how far inflation has swung, see the U.S. inflation rate by year.

How CD Interest Is Taxed

CD interest is ordinary interest income, taxed at your regular federal rate and generally by your state as well.

• Timing: interest is taxable in the year it is credited to your account, even if it stays in the CD and you cannot withdraw it without a penalty.
• Multi-year CDs: for CDs longer than one year that pay all interest at maturity, the IRS generally requires you to report interest as it accrues each year under original issue discount rules, not in one lump at maturity.
• Tax forms: the bank sends Form 1099-INT when you earn $10 or more in interest in a year. Interest below that threshold is still taxable.
• Penalties are deductible: an early withdrawal penalty appears on Form 1099-INT and can be deducted as an adjustment to income, whether or not you itemize.
• IRA CDs: inside a traditional IRA, interest is tax-deferred until withdrawal; inside a Roth IRA, qualified withdrawals are tax-free. The CD’s own early withdrawal penalty still applies if you break the CD before maturity, separately from any IRA withdrawal rules.

Only the interest is taxed. The principal you deposited is not.

Alternatives to CDs

CD vs. Traditional Savings

The FDIC national average savings rate is 0.38% in the same October 19, 2026 release, against 1.76% for the average 12-month CD. Many large banks pay far less than the average on standard savings. A traditional savings account offers full access, but at these rates a balance you will not touch for a year earns very little there.

CD vs. High-Yield Savings

High-yield savings accounts, mostly from online banks, pay rates far above the national average with no lock-up. The trade-off is that the rate is variable: the bank can change it at any time, and it tends to fall when the Fed cuts. A CD fixes the rate in exchange for access. A common split is to keep emergency money in a high-yield account and put money with a set date into a CD. Current options are compared in the best high-yield savings accounts.

CD vs. Money Market Account

A money market account is a bank deposit account, insured like savings, that often adds check-writing or a debit card. The FDIC national average is 0.63%, and competitive money market accounts pay much more. Rates are variable and some accounts require high minimum balances to earn the top tier. Do not confuse these with money market funds, which are investment products and are not FDIC-insured.

CD vs. Treasury Bills

Treasury bills are short-term U.S. government debt with maturities of one year or less. You buy them at a discount and receive face value at maturity; the difference is your interest. Hypothetical example: paying $956 for a $1,000 bill that matures in a year earns $44.

Three differences from a bank CD matter most:

• State tax. Treasury interest is exempt from state and local income tax. CD interest is not. Hypothetical example: in a state with a 5% income tax, a CD at 4.75% APY keeps about 4.51% after state tax (ignoring federal deduction interactions), slightly below a 4.54% Treasury yield that owes no state tax. The higher your state rate, the more this matters.
• Exiting early. T-bills can be sold before maturity in the secondary market at the going price, similar to a brokered CD, rather than incurring a fixed penalty.
• Where you buy. T-bills are sold at auction through TreasuryDirect or bought through a brokerage account.

Backing is the U.S. government directly, rather than federal deposit insurance up to a limit.

CD vs. Money Market Funds and Brokerage Cash

Brokerage accounts hold cash in a sweep account or a money market fund. Sweep rates at some brokerages are low, while money market funds that invest in Treasuries and other short-term debt pay rates that track short-term market yields. Money market funds are not FDIC-insured and their yields change daily, but they are designed for stability and can usually be sold any trading day.

CD vs. I Bonds and Other Bonds

Series I savings bonds pay a rate tied to inflation, reset every six months. They cannot be redeemed in the first 12 months. If redeemed before five years, you forfeit the last three months of interest. Purchases are limited to $10,000 per person per year electronically. For other bonds, such as corporate, municipal and Treasury notes beyond one year, prices move with rates and credit conditions. Bond funds add diversification but no maturity date, so there is no guaranteed return of principal on a set day.

CD vs. Annuities

A fixed annuity is an insurance contract, not a bank deposit. Multi-year guaranteed annuities resemble CDs in offering a fixed rate for a set number of years. They are backed by the insurer and state guaranty associations rather than FDIC insurance, interest grows tax-deferred, and surrender charges and tax penalties on withdrawals before age 59½ make them a retirement product rather than a short-term savings tool.

FAQs