The Best CD Rates in Montana for 2025
Montana is home to a number of banks and credit unions, many of which offer CDs for savers. Finding the best CD rates makes sense if you're looking for maximum growth potential from your savings. We've scouted out the landscape to find the Montana banks offering the most attractive CD interest rates.
The Best CD Rates in Montana
Farmers State Bank
Farmers State Bank offers regular CDs with terms ranging from 30 days to 5 years, along with a few special CDs that deliver above-average rates. All CDs require a $1,000 minimum opening deposit. You'll need to visit a branch to open a regular CD, but you can open a special CD online in minutes.
Wells Fargo
Wells Fargo offers 3-, 6 and 12-month standard CDs, plus 4-, 7 and 11-month special CDs. You'll get the highest rates with special CDs, but there's one caveat. These CDs require a minimum of $5,000 to open; you only need $2,500 to open a standard CD at Wells Fargo.
U.S. Bank
U.S. Bank has a variety of CD options to choose from, including standard CDs, special CDs, step-up CDs and trade-up CDs. Special CDs earn the highest interest rates and require a $1,000 minimum deposit to open. Minimum deposit requirements for other U.S. Bank CDs range from $500 to $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 Montana, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Montana (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Billings, Missoula, Great Falls and Bozeman.
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 are time deposit accounts. When you open a CD, you agree to leave your money alone for a set period called a term. In exchange, the bank agrees to pay you interest.
At the end of the term, your CD matures. At that point, you can roll the money over to a new CD or withdraw it.
So, why would you choose a CD vs. a savings account? Here are the benefits of CDs, at a glance:
- CDs offer a guaranteed rate of return and rates can sometimes surpass what you could earn with a high-yield savings account or money market account.
- Banks can offer different types of CDs and you can choose the one that's tailored to your savings goals and needs.
- Since you're saving at a bank, there's virtually no risk of losing money in a CD account.
The main drawback of a CD is that your money is locked in until the term ends. Your bank may allow you to withdraw money early, but it can charge a penalty fee if you decide to do so.
How to Choose a CD
Which Montana CD is the right one for you? Here are some of the most important factors to compare to help you decide.
Interest rate
The first thing to look at with any CD is the interest. The higher the rate, the more interest you can earn.
Here are a few things to know about CD rates:
- You may need to meet a minimum balance requirement to earn the highest advertised rate.
- Rates are usually fixed for the entire term, unless you have a CD that allows you to bump up or raise your rate before maturity.
- CD rates can change at any time to track changes to an underlying benchmark rate.
Your maturity term and the type of CD you decide to open can also influence the rate you earn.
Maturity term
Your maturity term is the length of time your bank expects you to keep your money in the CD. Maturity terms can last from a few days to several years.
Your choice of CD term should reflect when you think you'll need to withdraw your savings. Here's a quick rundown of what you should know.
- Short-term CDs are suited for holding money that you'll need in less than one year.
- Mid-term CDs can help you save (and potentially earn a higher rate) for 1 to 3 years.
- Long-term CDs can have terms up to 10 years and are generally good for money you know you won't need for a long time.
What if you need to pull money from a CD before it matures? Your bank may charge an early withdrawal penalty.
Building a CD ladder can help you avoid this fee. Laddering means you open multiple CDs with different term lengths, so that you're always approaching a maturity date.
Minimum opening deposit
How much money do you need to open a CD? It depends.
At the lower end, you may need $100 to $1,000 to open a CD account. Some banks set the minimum a little higher, at $2,500 to $5,000. A jumbo CD may require $10,000 to $100,000 or more to open.
Opening deposit requirements matter because you need to be certain you can afford to open any CD you've got your eye on. And if you're planning to ladder CDs, you'll need to be able to meet the minimum deposit requirement for each one.
Early withdrawal penalty
As mentioned, banks can charge early withdrawal penalties for CDs. The fee varies by bank.
Banks can charge:
- A flat fee
- A fee that's equivalent to some or all of the interest earned
- A combination of both
Some banks don't charge these fees, or they offer no penalty CDs. With a no-penalty CD, you can withdraw money before maturity, and it won't cost you any of your interest or a flat fee.
Even if you don't plan to pull money out before maturity, it's still smart to be aware of the penalty if your bank charges one. Should you run into a financial emergency, you'll want to know whether tapping your CD early to cover it will cost you.
Flexibility options
CDs aren't one-size-fits-all, and banks can offer different types to meet different needs. Here are some of the CDs you might be able to open, in addition to standard CDs.
- No penalty CDs
- Bump up or raise your rate CDs
- Add-on CDs that let you make monthly deposits to your account after opening
- Jumbo CDs
- IRA CDs for retirement
- Special or promotional CDs
More CD options mean more flexibility, which is a good thing. You can evaluate the rates, deposit requirements and special features for each CD your bank offers to decide which one to open.
Make Sure to Compare with Online Banks
Montana banks have a lot to offer, but don't forget about online banks. Opening a CD with an online bank can unlock some valuable benefits, including:
- Higher interest rates for CDs and other savings accounts
- Lower account deposit requirements or minimum balance requirements
- Fewer fees
You can open a CD online and manage your account with mobile banking. You won't be able to visit a branch, but you may not mind if you're earning the best rate on your savings.
Check out the best online banks for CD savers nationwide.
FDIC Insurance
FDIC insurance protects depositors up to $250,000 in case a bank fails. That doesn't happen often but if it does, the FDIC helps you get your money back, up to the maximum coverage limit.
Most banks, including online banks, are FDIC-insured. You don't need to do anything other than open an account to activate your coverage.
Credit union CDs, called share certificates, aren't covered by FDIC insurance. The National Credit Union Administration (NCUA) offers similar coverage to credit union customers, so you don't have to worry about those deposits going unprotected.
FAQs
Is CD interest taxable?
CD interest is taxable at the federal level and in states that tax income, interest and dividends. Your bank should send you a Form 1099 showing how much interest you earned on your CDs in January of each year. You'll use this form to complete your federal tax return and your Montana state tax return.
Who has the best CD rates in Montana?
Farmers State Bank has some of the best CD rates in Montana, but online banks give it a run for its money. When comparing Montana CDs, check the rates first, but also look at the minimum deposit requirements and early withdrawal penalties to get a sense of how they measure up.
Can anyone open a CD in Montana?
Banks usually require you to be at least 18 to open a CD in Montana or any other state. You'll also need to provide documentation showing proof of residency and citizenship status. Kids can open CDs at Montana banks with the help of a parent or legal guardian.
Is a CD better than a savings account?
CDs can be better for saving if you're earning the highest rate possible and you know you won't need the money for the time being. A savings account, on the other hand, can offer more flexibility since you can make withdrawals as needed.
