Best 9-month CD rates for October 2023

A 9-month CD can be an ideal place to stash cash for short-term savings goals, like a vacation fund or a special event. And with interest rates still elevated — the best 9-month CD rates are topping 5.00% APY — now may be a perfect time to put your money in a high-yield CD.

Of course, finding the best 9-month CD rate requires some research. It’s essential to compare not only rates, but also minimum deposits, early withdrawal penalties, and other pros and cons. Here are our top picks to help you get started.

Merrick Bank requires a substantial minimum deposit to open a 9-month CD. But if you can afford that minimum, the total interest earned over 9 months would be an impressive $1,033.57. 

• The minimum deposit may be prohibitively high for some savers.
• The early withdrawal penalty is 90 days of interest. 

With a $0 minimum, Ally Bank’s CDs are an accessible option for people who want a great return no matter the amount of cash they deposit. While Ally’s CD rates are not usually the highest, right now you can earn an impressive 5.00% APY on their 9-month CD. 

• It’s easy to find transparent product information on the website. 
• The mobile app is user-friendly.
• The early withdrawal penalty is 60 days of interest, which is lower than most banks. 

If you live in Florida or Texas — and can afford the high minimum deposit requirement — Amerant offers an impressive APY on its 9-month CD. If you live elsewhere, you can still open a CD with Amerant, but the APY will be lower at 2.75%.  

• The minimum deposit is higher than many banks.
• 9-month CDs are available to Florida and Texas residents only. 
• The early withdrawal penalty is 180 days of interest, the steepest we’ve seen. 

Synchrony Bank’s $0 minimum deposit makes its CDs available to a broader range of income levels. You can also withdraw interest at any time, without a penalty, though you’ll see a greater impact from compounding interest if you leave it in place. 

• Bump-up, no-penalty, and IRA CDs are available.
• The mobile app is highly rated. 

With 500 physical branches in nine states, Capital One provides an in-person big bank experience (depending where you live), while offering the rates of an online bank, no matter where you live. While there are higher 9-month CD rates out there, Capital One does not have a minimum deposit requirement, making it accessible to all savers.

• A $0 minimum deposit means anyone can save. 
• You can choose monthly interest payouts. 
• The mobile app is highly rated.

• The early withdrawal fee is 90 days of interest. 
• You can find higher rates elsewhere.

A 9-month CD (or “share certificate” in credit union jargon) is a timed deposit account that pays a fixed interest rate for nine months. Like other CDs, you can add money to a 9-month CD one time (when you open the account), and your money stays locked up until the CD matures. If you need your cash sooner, you’ll have to withdraw the entire amount and pay an early withdrawal penalty. (An early withdrawal penalty can be worth it if you lock in a higher APY with a new CD.) 

A 9-month CD works like other CDs. You generally have a seven to 10-day grace period to decide what to do when the CD matures: Close the account and take the cash or renew it at the then-current interest rate. If your bank or credit union doesn’t hear from you, it will renew your CD automatically for a similar term at an APY that could be higher or lower than your original CD (if you had a special or promotional CD, it will renew at the closest available term).

You might be able to withdraw your interest each month, which can provide a nice income stream. However, keep in mind that doing so reduces the APY because you’ll miss out on the power of compounding. Otherwise, when you close the CD, you’ll receive your deposit and the accrued interest. 

TIP: APYs represent what you earn in a year (APY means annual percentage yield). CDs with terms of fewer than 12 months will earn less than the full APY. 

A 9-month CD makes sense if you have a short-term savings goal and want to keep your cash locked up so you won’t be tempted to spend it. Of course, it’s also worth considering if you have money earning next to nothing in a low-interest bank account (or your piggy bank). Opening a CD takes just a few minutes, so it can be well worth the effort. 

Consider a 3-month or 6-month CD if you want to keep your money stashed for a very short period. On the other hand, a one-, two-, three-, four-, or five-year CD makes sense if you won’t need the cash and want to lock in a guaranteed APY while rates are still elevated. 

However, remember that many banks and credit unions currently offer higher rates on a few CDs only — and low (or even poor) rates on everything else. You’ll generally find the best CD interest rates at online banks and credit unions (you might have to switch banks to score the best APYs). 

You can add money to a CD when you open and fund the account, or when you renew it. Otherwise, you can open a separate CD to add to your overall CD balance (consider a jumbo CD if you plan to stash a lot of cash). Another option is to create a CD ladder, dividing your deposit into multiple CDs with different maturities. When rates rise, you can renew the shorter-term CDs at the new, higher rate. When rates fall, you still have a higher APY locked in with your existing longer-term CDs.  

The Federal Reserve has raised interest rates 11 times since embarking on its rate-hiking campaign in March 2022 to tamp down on inflation. While the Fed declined to increase rates at its most recent meeting, there’s a good chance it will lift interest rates once more in 2023. If that happens, CD rates would likely increase slightly until projected rate cuts begin in 2024. 

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].