The Best CD Rates in Nebraska for 2025

Nebraska savers have plenty of options when choosing a CD account. But which banks and credit unions offer the best CD rates? We've researched CD accounts in Nebraska to help you find the right one for your needs. 

The Best CD Rates in Nebraska

Cornhusker Bank

Cornhusker Bank offers standard CDs with terms ranging from 30 days to 60 months, along with 5-month and 13-month special CDs. CD rates are well above the national average and surpass the typical rates traditional banks offer. You'll need $1,000 to open most Cornhusker Bank CDs; 30-day CDs require $100,000 to get started. 

BMO

BMO CDs feature terms from 3 months to 5 years, and all CDs require a $1,000 minimum opening deposit. CD rates are higher than other traditional banks, though not the best you can get in the state. If you want a better rate, consider one of BMO's special CDs which have terms from 13 to 59 months. 

First State Bank Nebraska

First State Bank Nebraska offers a handful of special CDs that earn some of the highest APYs anywhere. You can open a 6-month, 12-month or 24-month CD online, and all CDs have a $500 opening deposit requirement. The highest APY is reserved for the 6-month special CD, though you can still get a solid rate with the 12- or 24-month terms. 

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 Nebraska, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Nebraska (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Omaha, Lincoln, Grand Island and Kearney.

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 savings account that allows you to establish interest for a set term. CDs offer a guaranteed rate of return and you can calculate how much interest you'll earn, based on the APY and term.

Once the term ends, your CD matures. At that point, you can:

• Roll your savings over to a new CD
• Withdraw the interest only and put the rest into a new CD
• Withdraw the entire amount

Banks may renew your CD automatically. There may be a grace period in which you can add more money to your CD before the new term begins.

If you need to take money out early, your bank may charge an early withdrawal penalty. No penalty CDs let you avoid that. These CDs allow early withdrawals without a penalty, but they may earn a lower APY than other CDs. 

You can find CDs at traditional banks, credit unions and online banks. Credit union CDs are called share certificates.

How to Choose a CD

Choosing a CD in Nebraska requires some research to make sure you're picking the right one for you. Here are some of the most important considerations when comparing CDs. 

Interest rate

CDs earn interest but the rate you earn can vary from one bank to another. As you shop for CDs in Nebraska pay attention to:

• CD rates at brick-and-mortar banks vs. online banks vs. credit unions
• Special or promotional rate CDs that may pay more than standard CDs
• Rates and maturity terms

Longer-term CDs often pay better rates, but that isn't true at every bank. You might earn a higher APY with a shorter-term, promotional CD or an IRA CD instead.

Maturity term

Your maturity term is how long you're expected to leave money in your CD account. That's important to note if you want to avoid an early withdrawal penalty. The term you choose should fit your savings goals and when you expect to need the money.

Here's how to compare CD terms:

• Short-term CDs (3-12 months) give you more flexibility since maturity isn't far away, but rates may be lower
• Mid-term CDs (1-3) years can pay higher rates, but lock your money in for a longer time
• Long-term CDs (3+ years) may pay better rates, but you'll be waiting longer to withdraw your savings

While you're comparing terms, review the bank's CD renewal policies. Specifically, look at how long you'll have to make changes to your account at maturity and whether renewal is automatic.

Minimum opening deposit

The amount of money you need to open a CD varies by bank. Some banks require $500; others have a minimum deposit of $1,000 or more. And some don't require a minimum deposit at all. 

Deposit requirements matter if you want to build a CD ladder. Laddering is when you open multiple CDs with different maturity terms. The goal is to avoid early withdrawal penalties since a maturity date should always be right around the corner.

Laddering can also help you keep up with changing CD rates. If rates go up after you open one CD, you can still cash in on them by opening a new CD to add a rung to your ladder.

Early withdrawal penalty

Early withdrawal penalties are the bank's way of ensuring that you keep your money in the account until the term ends. Not all banks charge CD penalties but many do.

Banks may charge:

• A flat fee
• A percentage of the interest earned
• A combination of both

Even if you don't plan to make an early withdrawal, it's still smart to check the penalties. If an emergency comes along that requires you to break into your CD you can weigh the cost before making a move. 

Flexibility options

Standard CDs let you save for a set period and earn interest. Banks can offer standard CDs, along with some specialty options: 

• No penalty CDs allow for early withdrawals with no fee
• Bump-up or raise your rate CDs give you a chance to increase your rate once or twice during the term
• Add-on CDs let you deposit additional funds after account opening

If you're considering any of these CD options, compare the rates carefully. It could make sense to stick with a standard CD if the APY is higher.

Make Sure to Compare with Online Banks

Online banks usually can pay higher CD rates than traditional banks, thanks to their lower operating costs. Many online banks offer high-yield CDs in Nebraska and nationwide. 

Here are a few things to know about online banks:

• They may charge fewer fees for CDs and other savings accounts.  
• Opening deposit requirements for a new CD may be lower.
• Online and mobile banking can help you stay connected to your money 24/7.

As you compare CDs at online banks, pay attention to interest rates, opening deposit requirements, and early withdrawal penalties. 

FDIC Insurance

FDIC insurance protects depositors against bank failures. While those are rare, the FDIC is there to safeguard your money if your bank goes under.

• Most banks, including online banks, are FDIC-insured.
• FDIC insurance protects depositors up to $250,000; that limit applies at each bank you have accounts with. 
• Credit unions aren't protected by the FDIC; instead, they're insured by the National Credit Union Administration (NCUA). 

A visit to a bank's website should tell you if it's FDIC-insured. You can also look for FDIC signs at bank branches.

FAQs

Do you have to pay taxes on CD interest?

The IRS considers CD interest to be taxable income, which means you'll have to report it on your return when you file. Your bank should send you a Form 1099 at the end of the year showing how much CD interest you earned. You'll also report it on your state tax return, since Nebraska assesses a personal income tax. 

What's the difference between a CD and a savings account?

CDs are savings products that have a time requirement; you're expected to leave your money in the account until the CD matures. Savings accounts offer more flexibility, since you can make withdrawals as needed. When weighing CD rates vs. savings account rates, consider how soon you may need the money to choose the best account for your needs. 

What's an IRA CD?

An IRA CD is a CD account that's designed specifically for retirement savings. IRA CDs work like other CDs, in that they earn interest and have a set maturity date. The difference is that they're subject to the tax rules of traditional and Roth individual retirement accounts. 

Can minors have a CD account?

Some banks allow you to open CD accounts for kids. A parent or guardian opens the account and is the account owner; the child is listed as a co-owner. You might set up one or more CD accounts for your kids to help them save money for college or set aside cash to buy their first car when the time comes.