The Best CD Rates in North Dakota for 2025

CD accounts offer a safe, secure way to grow your money until you need it. North Dakota residents have a variety of banking options to choose from, many of which offer competitive CD rates. Read on to learn which North Dakota banks offer the best CD interest rates.

The Best CD Rates in North Dakota

Bell Bank

Bell Bank offers standard CDs, IRA CDs and a flexible no-penalty CD that allows early withdrawals. You'll need $500 to open a standard or IRA CD, while the opening deposit requirement rises to $5,000 for a no-penalty CD. All the bank's CD rates are well above the national average; currently, the best APY is available with a 7-month special CD. 

Dakota Community Bank & Trust

Dakota Community Bank & Trust offers multiple CD options, with terms from 3 to 89 months. The minimum balance to open a CD and earn the advertised APY ranges from $100 to $99,000, depending on the type of CD and its term. The 89-month special CD pays the highest rate overall, but you can still earn a solid APY with Dakota Community Bank & Trust's other CD accounts.

Bank Forward

Bank Forward gives you several ways to save with CDs, including standard fixed-rate options and IRA CDs. The minimum opening deposit requirement for most CDs is $500, though you'll need $2,500 to open a 7-month IRA CD. All CDs renew automatically, unless you direct Bank Forward to do something else with the money in your account when it matures.

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

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 are time deposit accounts. When you put money into a CD, you agree to leave it there for a set period. The bank pays you interest until your CD matures. A typical CD term is anywhere from 30 days to 60 months, though some banks offer shorter and longer terms. 

What happens at maturity? You can:

• Roll your savings over to a new CD if you don't need the money right away
• Withdraw the interest only and put the rest of the money into a new CD
• Close your CD and withdraw all your savings

Banks offer CDs as an alternative to high-yield savings accounts and money market accounts. These accounts pay interest, but your money isn't tied up for a set term; you can withdraw money whenever you need to. The trade-off is that your rate isn't locked in, which is one of the main draws of CD accounts. 

Where can you find CDs? Local and regional banks, big banks and online banks offer them. Credit unions can issue share certificates, which are the equivalent of bank CDs. 

How to Choose a CD

The best North Dakota CD for you is the one that earns a competitive rate and a reasonable opening deposit requirement. Here are the key points to consider when deciding which CD to open.

Interest rate

Most CDs offer fixed interest rates, which means the rate won't change during your term. However, banks use a benchmark rate to decide where to set CD rates. If the benchmark rate goes up or down, banks can adjust rates for new CD accounts accordingly.

Here are a few other things to keep in mind about CD rates:

• Banks may offer special or promotional CDs with higher rates than standard or regular CDs.
• You may need to meet a minimum balance requirement to earn the highest advertised rate, on top of the opening deposit requirement. 
• CD rates can be higher than savings account or money market rates, but not always.

An online CD calculator can help you estimate how much interest you could earn, based on current rates. 

Maturity term

Your maturity term determines how long you have to wait to withdraw money from a CD without a penalty. Banks can impose an early withdrawal penalty if you take money out before the end of the term. 

Here's how CD terms compare:

• Short-term CDs (1-12 months) can offer solid rates if you get a special or promotional CD, and you don't have to lock your money in as long. 
• Mid-term CDs (1-3) may reward you with higher rates if you know you won't need your savings in the near term.
• Long-term CDs (3+ years) can sometimes pay the highest rates, but you're required to leave your money untouched for much longer. 

Choosing a CD term comes down to your needs and goals for saving. Comparing rates across different maturity terms can help you decide how long you're comfortable leaving your money in a CD. 

Minimum opening deposit

Minimum opening deposits for CDs vary from bank to bank. The range can be anywhere from $100 to $100,000, depending on the type of CD you want to open. 

You'll need to have enough set aside to meet the minimum deposit requirement for any CD you plan to open. If you want to build a CD ladder, you'll need to meet the minimum for each account. 

A ladder means you have multiple CDs with different maturity terms. When one CD matures, you can roll it over or withdraw the money. Laddering gives you flexibility and helps you avoid early withdrawal penalties. 

Early withdrawal penalty

Banks use early withdrawal penalties to encourage you to leave your CDs alone until they mature. You might pay a flat fee, a percentage of the interest earned or both to withdraw from a CD early. 

No penalty CDs offer a workaround. These CDs let you withdraw money during the term without a fee. The trade-off is that you might earn a lower interest rate compared to other CDs that have an early withdrawal penalty. 

Flexibility options

CDs aren't all the same. Banks can offer different types of CDs to attract different types of customers. 

Here's a sampling of what you might choose from:

• No penalty CDs
• Bump up or raise your rate CDs that increase your rate once or twice during the term
• Add-on CDs, which allow you to make additional deposits to your account monthly
• Jumbo CDs for holding larger amounts
• IRA CDs, which let you save for retirement
• Special or promotional CDs

Think about what you want and need a CD to do for you. And remember that you aren't limited to just one type of CD for saving. You can open any or all of the CDs listed here, as long as you meet the opening deposit requirements for each one. 

Make Sure to Compare with Online Banks

Online banks offer opportunities to earn some of the highest CD rates. That's because they have lower overhead costs, so they can afford to pass some of the savings on to their customers. 

Here are a few things to know as you compare online banks:

• Opening deposit requirements may be lower, making CDs more accessible.
• You'll need to connect another bank account to make your opening deposit.
• Fees may be lower, including the early withdrawal penalty.

If you're interested in moving all your money to an online bank, look for one that offers checking accounts, savings accounts, CDs and other financial products so that all your needs are covered. 

Learn more about the best online banks for savers. 

FDIC Insurance

FDIC insurance protects depositors up to $250,000 in the event that a bank fails. That's not an everyday occurrence, but it does happen. And when a bank fails, the FDIC helps you get your money back, up to the full coverage limit. 

Most traditional and online banks are FDIC-insured. It's easy to verify a bank's status by checking its website for the FDIC logo; these signs should also be on display at branches.

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

FAQs

Is CD interest taxable? 

CD interest is taxable as income under federal tax rules. Your bank should issue a Form 1099 at the end of the year showing how much interest you earned. You'll need this form to complete your federal tax return and your state return. North Dakota does have personal income tax, though it's one of the lowest rates in the country. 

What are brokered CDs?

Brokered CDs are CDs that are issued by a bank but sold by a brokerage. The appeal of a brokered CD lies in the opportunity to potentially earn higher interest rates. However, these CDs have some unique risks and you may end up losing money if you invest in them without understanding how they work. 

Are CDs a good investment?

CDs can be good investments for people who want to earn a guaranteed rate of return, with little risk of losing money. Bank CDs are safe and secure, as long as you hold them at an FDIC-member institution. It's possible to earn a higher rate of return with stocks or other investments, but you have to be comfortable taking more risk. 

Should I put $50,000 in a CD?

Putting $50,000 into a CD could make sense if you know you won't need the money, you want to park it somewhere safe and you can earn a decent interest rate. If $50,000 is all the money you have, putting it into a single CD may not be a great idea since you could trigger an early withdrawal penalty if you need to tap into your savings.