The Best CD Rates in Alaska for 2025

Alaska residents have options when it comes to opening CD accounts. If you're looking for a local bank that offers competitive CD rates, we've got you covered. We've researched the banks offering the best CD interest rates to help you reach your savings goals. 

The Best CD Rates in Alaska

First Bank

First Bank offers CDs with terms as short as 7 days and as long as 60 months. You can choose from fixed-rate CDs that offer a guaranteed rate of return, or variable-rate CDs that can potentially pay more interest. Fixed-rate CDs have a minimum opening deposit of $500; variable-rate CDs require $20,000 to open. 

First National Bank Alaska

At First National Bank Alaska, you can open standard CDs with terms ranging from 30 days to 60 months, or a 365-day IRA CD. The minimum deposit requirement is $750, but CD rates are tiered, so higher balances earn a higher rate. If you're a super saver, First National Bank Alaska offers a special CD option for balances of $5 million or more. 

Denali State Bank

Denali State Bank has conventional CDs with 6-, 12- and 18-month terms; Smart Step CDs that allow you to make monthly deposits after account opening; and Christmas CDs that let you save for holiday shopping. You can start a Christmas CD with as little as $20; the minimum for other CD accounts is $500. The best rate is reserved for the 18-month conventional CD. 

Lock In The Highest CD Rates Before Interest Rates Crash Again

The Federal Reserve plans to continue dropping interest rates. To ensure that you continue to generate reliable returns for years to come, consider a CD now to lock in the highest available rates:

Methodology

To choose the best CD rates in Alaska, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Alaska (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Sitka, Juneau and Anchorage.

The top recommendations are the results of analyzing the CDs based on the following criteria:

• Annual percentage yield (APY) for each CD’s corresponding maturity term
• The number of CD maturity terms available from the bank with which their corresponding APYs are competitive
• Minimum opening deposit requirements

How Do CDs Work?

A CD or certificate of deposit is a time deposit account. In simple terms, that means you deposit your money for a set period. You earn interest and at the end of the period, your CD matures. At that point, you can: 

• Roll your savings over to a new CD to continue earning interest
• Withdraw the interest only and put the rest of the money into a new CD with the same or a different term
• Close your CD and deposit the money into a high-yield savings account, money market account or checking account

CDs are suited for saving when you know you won't need the money for the duration of the term. If you have to take money from a CD early, you risk triggering an early withdrawal penalty. 

Savings accounts and money market accounts can offer more flexibility, since you can make withdrawals at any time. But CDs have the potential to pay higher rates, which are locked in and guaranteed for the entire term. 

How to Choose a CD

Finding the right CD depends on what you need. Here are the most important factors to consider as you compare Alaska CDs. 

Interest rate

Most CDs offer fixed interest rates so the rate won't change during the term. That makes it easy to calculate how much interest you could earn. 

Here are some tips for comparing CD rates.

• Rates can vary by term or by the type of CD you're opening (i.e., no-penalty CD, add-on CD, etc.)
• Banks may set a minimum balance requirement to earn the highest advertised CD rates. 
• CD rates can be higher than savings account or money market rates, but it's worth comparing them to see which one pays more.
• Online banks may pay better rates for CDs than brick-and-mortar banks.

Also, know that CD rates can go up or down since they're tied to a benchmark rate. Tracking rate trends can give you an idea of whether CD rates are set to rise or fall. 

Maturity term

A CD maturity term is how long the bank expects you to leave the money in your account. If you take money out before maturity, your bank can charge an early withdrawal penalty. The penalty can detract from the interest you earn. 

Here's how to think about which CD term may be right for you. 

• Short-term CDs (1-12 months) may be a good fit if you know you'll need the money fairly soon, but want to earn some decent interest in the meantime.  
• Mid-term CDs (1-3) are better suited for goals that are farther away, like buying a car or planning a vacation. 
• Long-term CDs (3+ years) can work well for money that you want to park and leave alone to grow for several years. 

Ultimately, you have to decide how long you're comfortable leaving your money in a CD account. And you could always build a CD ladder that includes CDs with different terms if you want to cover all the bases. 

Minimum opening deposit

The minimum amount you'll need to open a CD varies from bank to bank. At the lower end, the minimum opening deposit might be $100 or even $0; at the higher end, it may be $100,000 or more.

Checking the opening deposit requirement matters since you want to be sure you have enough cash on hand to get started. If you're laddering CDs, you'll need to be able to meet the opening deposit requirement for each one. 

Early withdrawal penalty

Many, though not all, banks charge an early withdrawal penalty when you tap into your CD ahead of schedule. You might pay a flat fee, a percentage of the interest earned or both. 

Early withdrawal penalties are avoidable if you:

• Choose a CD term that fits with when you plan to use the money
• Build a CD ladder with different maturity terms
• Opt for a no-penalty CD

No-penalty CDs allow early withdrawals without a fee. The downside is that they may pay lower rates than other CDs that do charge the fee. 

Flexibility options

Standard or regular CDs are just one way to save. Banks can also offer:

• No penalty CDs
• Bump up or raise your rate CDs 
• Add-on or step-up CDs
• Jumbo CDs 
• IRA CDs
• Special or promotional CDs

Each one has different features and benefits. Bump up CDs, for example, allow you to raise your rate once or twice during the term if the benchmark rate increases. IRA CDs, meanwhile, let you save for retirement on a tax-advantaged basis.

Comparing the pros and cons of each type of CD can help you decide which ones offer the most flexibility, based on your needs. 

Make Sure to Compare with Online Banks

While you might be looking for a local Alaska bank to do business with, don't forget about online banks. Online banks can offer:

• Higher rates for CD and savings accounts
• Lower opening deposit requirements
• Fewer fees

You won't get the benefit of branch banking access, but that may be less important if getting a great rate is your main goal. Look for an online bank that offers convenient access through online and mobile banking, so you always stay connected to your money. 

Learn more about the best online banks for savers. 

FDIC Insurance

What happens if a bank fails? The FDIC is there to help. 

FDIC insurance protects depositors up to $250,000 should a covered bank go under. That means your CD savings won't go up in smoke; the FDIC helps you get it back, up to the coverage limit. 

Most traditional banks and online banks are FDIC-insured. You can check a bank's status online or by visiting a branch. 

The FDIC doesn't insure credit union accounts, but the National Credit Union Administration (NCUA) does. The coverage limit is the same, which is reassuring if you're weighing the benefits of joining a credit union to open a CD. 

FAQs

Is CD interest taxable? 

The federal government counts CD interest as taxable income. At the end of the year, your bank should send a 1099 showing how much interest you earned. You'll need to include that amount on your federal return. Alaska doesn't have a personal income tax, so CD interest shouldn't be taxable at the state level. If you have questions about paying taxes on CD interest, talk to a CPA or another tax professional. 

What do you need to open a CD online?

To open a CD online, you'll need to complete the bank's application, verify your identity and link an external bank account to make your opening deposit. You'll need your bank account number and the routing number to do that. If you have the information you need, it should only take a few minutes to open an online CD. 

Are CDs safe?

CDs are a safe way to save if you're keeping your money at an FDIC-insured bank or an NCUA-insured credit union. There's virtually no risk of losing money with bank or credit union CDs. 

How much money can I put in a CD?

The amount of money you can put in a CD usually depends on the bank. You may be capped at $1 million or $5 million, for example. When adding money to a CD, remember to keep FDIC coverage limits in mind so you don't leave any of your savings unprotected.