The Best CD Rates in Rhode Island for 2025

Rhode Island is a small state, but it's packed with plenty of banking options for CD savers. If you're wondering which bank offers the most competitive CD rates, we've got you covered. Read on to learn which Rhode Island banks rate as the best for CD interest rates. 

The Best CD Rates in Rhode Island

Shoreham Bank

Shoreham Bank offers a full slate of banking products, including standard, online and IRA CD accounts. Terms range from 3 months to 5 years, with the 3- and 9-month standard CDs earning the best rates overall. The minimum opening deposit requirement for all Shoreham Bank CD accounts is $1,000

HarborOne Bank

HarborOne Bank has a range of CD options, including standard CDs, IRA CDs, savings builder CDs and special CDs. Rates are competitive across the board, though you'll earn the highest rate with the 7-month special CD. Minimum opening deposit requirements range from $100 to $1,000, depending on which type of CD you decide to open. 

Bristol County Savings Bank

Bristol County Savings Bank offers CDs with terms of 1 month to 5 years, which you can open at a branch. You can also open a 6-month or 5-year CD online if you have a Prime Time Checking account. Rates are impressive and you'll need $1,000 to get started; note that some CDs require a $5,000 minimum balance to earn the advertised APY. 

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

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 agree to leave your money in the account for a set period. The bank pays you interest until your CD matures. 

CDs can help you save for short or long-term goals and interest rates are fixed so you know how much interest you can earn. Once your CD matures, you can:

• Roll your savings over to a new CD
• Withdraw just the interest and put the rest into a new CD
• Withdraw all the money in your CD

CDs are just one way to save; you may also consider high-yield savings accounts or money market accounts. The difference is that CDs lock your money in for a set term; savings accounts and money market accounts don't. 

Your bank may cap the number of savings or money market account withdrawals you can make each month, but you don't have to wait for any maturity date to take money out. CDs, on the other hand, are designed to help you save for a specific period. 

How to Choose a CD

One CD may be better than another to help you meet your goals. Here are some of the most important factors to consider when researching Rhode Island CDs. 

Interest rate

Of course, you want to get a great rate on any CD account you open. The higher the rate, the more your money could grow throughout the term. 

Here are a few things to keep in mind as you compare Rhode Island CD rates:

• Online banks may pay higher rates than traditional banks or credit unions, but not always. 
• Some banks may offer more than just standard CDs to help you save.
• CD rates are usually fixed unless you open a raise your rate or bump up CD. 

Also, remember that CD rates are not set in stone; they're tied to a benchmark rate. If that benchmark rate goes up or down, CD rates can rise or fall accordingly. 

Maturity term

Your CD's maturity term represents how long you're expected to leave the money in your account. A typical CD term is anywhere from 30 days to 5 years, though you might find shorter or longer terms offered at different banks. 

Keep this in mind about CD terms:

• Short-term CDs (1-12 months) mean you don't have to wait as long to withdraw your money
• Mid-term CDs (1-3) years can pay higher rates but you'll need to leave your savings untouched a little longer
• Long-term CDs (3+ years) can sometimes pay the highest rates, but not always

Is a shorter or longer CD term better? A shorter term means you can withdraw money sooner, but you may not earn as much interest. A longer term could leave you with a larger amount to withdraw, if you can wait until maturity. 

The main thing to be aware of when choosing a CD term is whether the bank charges an early withdrawal penalty. This is a fee the bank can charge if you take money out of your account before the end of the term. 

Minimum opening deposit

CDs can have minimum opening deposit requirements like other bank accounts. A typical opening deposit is anywhere from $100 to $2,500, depending on the bank. Jumbo CDs may have opening requirements of $10,000 to $100,000. 

Opening deposit requirements matter, whether you're opening a single CD or building a CD ladder. A CD ladder consists of multiple CDs with different maturity terms and interest rates. 

As one CD matures, you can decide whether to roll it over to a new CD or pull the money out. CD ladders can help you avoid early withdrawal penalties and stay ahead of changing interest rates. 

Early withdrawal penalty

Banks can charge early withdrawal penalties when you take money out of a CD before it matures. They use these fees to encourage people to leave their savings alone for the full term. 

If your CD has an early withdrawal penalty, you might pay:

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

Early withdrawal penalties for CDs should be spelled out in the bank's fee schedule. If you can't find penalty information online, contact the bank to find out what you'll pay, if anything, to take money from a CD early. 

Flexibility options

CDs lock your money in for a set period, though some offer more flexibility than others. In addition to standard CD products, banks may offer:

• No penalty CDs, which allow for early withdrawals without a fee
• Bump-up or raise your rate CDs that let you increase your rate once or twice during the CD term
• Add-on CDs that let you make monthly deposits to your account after opening
• Jumbo CDs, which are designed to hold larger amounts of money
• IRA CDs, which are CDs that follow the tax rules of Individual Retirement Accounts
• Special or promotional CDs, which offer higher rates for a specific term

If your bank offers multiple CD options, don't be overwhelmed; take time to compare them. The goal is to find the right CD with the best rates and features for your savings goals. 

Make Sure to Compare with Online Banks

Brick-and-mortar banks and credit unions aren't your only savings option for Rhode Island CDs. Online banks are worth a look if you're hoping to earn higher rates or pay fewer fees. 

Remember to compare:

• Interest rates
• Minimum deposit requirements
• Early withdrawal penalties, if any

Also, think about how comfortable you are banking online. If you prefer to have branch banking access to your money, you might stick with a traditional bank. Or, you could put some of your money at a brick-and-mortar bank and some of it at an online bank. 

FDIC Insurance

The FDIC insures deposit accounts at member banks. If the bank fails, the FDIC helps you get your money back, up to a certain limit. 

FDIC insurance protects depositors up to $250,000. The limit applies per bank, per account ownership type. 

The FDIC doesn't insure credit union accounts, but the National Credit Union Administration (NCUA) does. That's reassuring if you're weighing a credit union CD vs. a bank CD. 

FAQs

Is CD interest taxable? 

CD interest is counted as taxable income on your federal tax return. Your bank should send you a Form 1099 at the end of the year showing the amount of CD interest you earned. You'll need to enter the amount on your federal return and carry it over to your state return. Rhode Island has a personal income tax, which extends to CD interest. 

Is a bank or credit union CD better? 

Bank CDs and credit union CDs, called share certificates, are pretty similar. The biggest differences usually lie in how much you need to deposit to open an account and what interest rate you'll earn. Also, be aware that you'll need to join a credit union to open a CD account. Some credit unions have strict membership requirements, while others extend membership to anyone.

Is a CD safe?

A CD is a safe, secure way to save money if you're keeping your funds at an FDIC or NCUA-insured bank or credit union. There's virtually zero risk of losing money with a CD, and if you have a guaranteed rate, you can easily estimate how much interest you'll earn over the term. 

Can anyone open a CD account?

Banks usually require you to be 18 (or 19, depending on which state you live in) to open a CD account either online or at a branch. The same goes for credit unions. If you're under 18, you'll need a parent or legal guardian to open an account for you. Online and traditional banks can offer CD accounts for minors.