The Best CD Rates in Hawaii for 2025

Hawaii is a vacation spot for some and a permanent home to many others. If you live on the islands and are looking for the best CD rates, you have numerous banks and credit unions to choose from. We've researched the top CD interest rates in Hawaii, so read on to learn how they compare. 

The Best CD Rates in Hawaii

First Hawaiian Bank

First Hawaiian Bank has a wide selection of CD options, including standard CDs, jumbo CDs, IRA CDs and online CDs. Some of the best rates apply to 6- and 12-month online CDs, but First Hawaiian offers some impressive rates on in-branch promotional CDs as well. The minimum opening deposit requirement is $500 or $1,000, depending on the type of CD you want to open. 

Bank of Hawaii

Bank of Hawaii offers regular and special CDs, all of which you'll need to visit a branch to open. You can choose from a 3-month, 6-month or 12-month term, and rates are competitive across all CD options. Opening deposit requirements range from $2,500 to $100,000+ and some CDs have a minimum balance requirement to earn the advertised rate.  

Territorial Savings

Territorial Savings, a division of Bank of Hope, offers promotional and standard CDs, either of which you can open online. Standard CD terms range from 3 to 60 months, while promotional CDs have terms of 3 to 12 months. Rates are highest for promotional CDs and the minimum opening deposit requirement for CD accounts is $1,000. 

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 Hawaii, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Hawaii (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Honolulu, Pearl City and Hilo.

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?

CDs or certificate of deposit accounts pay interest to savers like a savings account, with one key difference. When you put money into a CD, you agree to leave it there for a set period, which may be anywhere from 14 days to 5 years or longer. 

A CD is a way to save for short or long-term goals, virtually risk-free. The bank pays you a guaranteed interest rate, so you can easily estimate how much your money will grow. Once your CD term ends, it matures. At that point you can:

• Roll your savings over to a new CD, either with the same term or a different one
• Withdraw the interest you earned and deposit the rest into a new CD
• Withdraw all your savings and use it however you'd like

CDs are alternatives to high-yield savings accounts and money market accounts. These accounts let you earn interest on your money, but you have more flexibility since you can make withdrawals at any time. If you take money from a CD before maturity, your bank may charge an early withdrawal penalty. 

You can find CDs offered at big banks, community and regional banks, credit unions and online banks. Credit union CDs are called share certificates, but they work the same way as bank CDs. 

How to Choose a CD

Hawaii banks can offer plenty of variety when it comes to CDs. Here are some of the most important considerations when deciding which CD account to open. 

Interest rate

CDs pay interest, but rates can vary widely from one bank to the next. If you're hoping to get the best rate possible on a CD, here are a few things to keep in mind. 

• Banks typically use a benchmark rate to decide where to set CD rates. If the benchmark rate goes up or down, banks can adjust CD rates accordingly. 
• Rates can vary for different types of CDs. For example, you might get a higher rate with a special or promotional CD than with a regular CD. 
• CD rates are usually fixed unless you open a raise your rate or bump up CD. Either one could help you increase your rate once or twice during the CD term. 
• You may need to meet a minimum balance requirement to earn the highest advertised rate. 

Using an online CD calculator can let you see how much interest you could earn with one CD vs. another, based on the rate and the amount you deposit. 

Maturity term

CD maturity terms dictate how long the bank expects you to keep your money in the account. Terms may be as short as 7 or 14 days, or extend up to 10 years. 

Here's a look at how CD terms compare:

• Short-term CDs (1-12 months) can pay decent rates if you get a special or promotional CD and you don't have to wait as long to withdraw your savings. 
• Mid-term CDs (1-3) may pay higher rates, but you'll have to be comfortable leaving the money in your account for a longer period. 
• Long-term CDs (3+ years) can sometimes pay the highest rates, but that isn't always true. 

Which CD term should you choose? It depends on your goals and how quickly you think you'll need the money. If your bank charges an early withdrawal penalty, that could cost you if you need to pull money from a CD before maturity. 

Minimum opening deposit

Banks can require a minimum opening deposit for CD accounts. This is the lowest amount you can open an account with. 

A typical minimum is $500 to $1,000, but some banks may expect you to have $2,500 or $5,000 instead. Jumbo CDs, which are designed to hold larger amounts of money, may have minimum opening deposit requirements of $10,000 to $100,000 or more. 

Paying attention to opening deposit requirements matters if you plan to build a CD ladder. Laddering is a savings strategy that involves opening multiple CDs with different maturity terms. CD ladders can help you avoid early withdrawal penalties since a maturity date is always around the corner. 

Early withdrawal penalty

Early withdrawal penalties are not uncommon, as banks use them to encourage people to keep their money in their CDs for the full term. The amount you pay depends on the bank and its policies. 

For example, your bank might charge: 

• A flat fee
• A fee that's equivalent to some or all of the interest earned
• A combination of both

No penalty CDs can help you avoid these fees. These CDs let you make withdrawals during the maturity term without a fee, though there's a catch. No penalty CDs typically pay lower rates than other types of CDs. 

Flexibility options

Standard or regular CDs let you earn a set interest rate for a set term. They're pretty straightforward, but they aren't the only way to save. Your bank may offer other CD options, including:

• No penalty CDs
• Bump up or raise your rate CDs 
• Add-on CDs, which allow you to make additional deposits after account opening
• Jumbo CDs
• IRA CDs for retirement savings
• Special or promotional CDs

If your bank gives you any or all of these options, think about what best fits your needs. Then, consider the rates each CD earns, the opening deposit requirements and the early withdrawal penalty, if any. 

Make Sure to Compare with Online Banks

Online banks are an attractive alternative to traditional banks when opening CD accounts or savings accounts. Not only can you potentially earn higher CD rates but you may pay fewer fees as well. 

The trade-off is that most online banks don't have a physical footprint. So, if you prefer branching banking, then you may want to stick with a local Hawaiian bank or a big bank with a Hawaiian location. 

If you're considering online bank CDs, take time to compare:

• Interest rates
• Minimum deposit requirements
• Minimum balance requirements, if any
• Early withdrawal penalties and other fees
• Online and mobile banking access

Learn more about the best online banks for savers. 

FDIC Insurance

FDIC insurance protects depositors up to $250,000 when a bank fails. Bank failures aren't a common occurrence, but if your bank goes under, the FDIC steps in to help you get your money back. 

If you plan to open a CD account online or at a traditional bank, it's easy to verify their FDIC-member status. Just look for the FDIC logo on the bank's website or the FDIC plaque when you visit a branch. 

The FDIC doesn't insure credit union accounts, but the National Credit Union Administration (NCUA) does. The coverage limits are the same. 

FAQs

Is CD interest taxable? 

The IRS counts CD interest as taxable income, which means you'll need to include it on your tax return when you file. Your bank should send you a Form 1099 at the end of the year showing the amount of interest earned from your CDs. You'll also report CD interest on your state tax form, since Hawaii has personal income tax. 

How do credit union CDs work?

Credit union CDs, called share certificates, work much the same as bank CDs. The difference is that you'll need to join a credit union to open a CD account; banks don't have any membership requirements. You can open a share certificate at a local credit union or join a credit union online. Many online credit unions extend membership to anyone, regardless of where they live. 

How much money can I put in a CD?

Banks can impose minimum and maximum deposit limits on CDs, which vary by financial institution. Some banks, for instance, may cap CDs at $250,000, which is the maximum FDIC coverage limit. Others may let you put $1 million or more into a CD. 

Who can open a CD?

Adults 18 and older can open CD accounts or share certificate accounts at credit unions. Banks can specify what forms of identification you'll need to provide to get started. If you're under 18, you'll need a parent or legal guardian to open a CD account. Online and traditional banks can offer CD accounts for minors to help them start working toward their savings goals.