The Best CD Rates in South Dakota for 2025

Certificate of deposit (CD) accounts can help you save for short or long-term goals, and if you live in South Dakota, you have plenty of savings options. Where can you find the best CD rates? We've done the research to find the top banks in South Dakota for CD savers. 

The Best CD Rates in South Dakota

CorTrust Bank

CorTrust Bank offers standard CDs, with terms ranging from 91 days to 5 years, and two special rate CDs with 8-month terms. The highest rate is available with the 8-month special CD for people who have a Preferred or Premium Checking account with CorTrust, but you can still earn a competitive rate with any other CD option. The minimum deposit ranges from $500 to $25,000, depending on the type of CD you decide to open and the term. 

First Premier Bank

First Premier Bank has standard CDs with terms ranging from 30 days to 72 months, as well as several special CDs and rewards CDs. The highest rate currently on tap is offered with the 7-month special CD, but rates overall are solid. The minimum deposit for all First Premier Bank CDs is $500.  

First Bank & Trust

First Bank & Trust doesn't offer as many CD options as some of the other banks profiled here, but the rates are among the highest you'll find in South Dakota. You can open a 12-month CD with $500, or an 18-month CD with $1,000. With the 12-month CD, you'll need to maintain a $1,000 minimum balance to earn the highest advertised rate. 

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

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 allow you to save money and earn interest for a set maturity term. Once the term ends, you can withdraw the money you initially deposited, along with the interest earned. CDs can have terms of less than one month or terms that extend up to 10 years.

Standard CDs offer fixed rates, so you're guaranteed to earn interest as long as you leave the money in your account. Once your CD matures, you can:

• Roll your savings over to a new CD
• Withdraw the interest only and roll the rest into a new CD account
• Withdraw the interest and your original deposit and use it however you'd like

CDs are different from savings accounts or money market accounts. Those accounts also earn interest, but they don't lock your money in. 

You can withdraw money from a savings account or money market account whenever you like. Your bank may, however, charge a penalty fee if you make too many withdrawals from your savings account in a single month. 

CDs are good for saving money that you know you won't need right away. Why? Because if you withdraw money from a CD before maturity, the bank may charge you a fee to do so. 

How to Choose a CD

As you compare CDs in South Dakota, dig into the details. It's important to check the interest rate, but there are other factors to consider as well. 

Interest rate

CD rates aren't the same at every bank and some pay a better rate than others. Here are some things to know about CD interest rates:

• Online banks may pay higher rates than traditional banks or credit unions. 
• Special or promotional CDs may earn more interest than standard CDs, but there may be specific requirements you need to meet to get the advertised APY. 
• CD rates are usually fixed for the entire term, unless you have a raise your rate or bump up CD. 

Banks may advertise an interest rate and an annual percentage yield for CDs. The APY represents the annual rate of return on a CD. 

Maturity term

CD terms can span days, months or years. Your term, along with your CD rate and the amount you deposit, determine how much interest you earn altogether. 

Here's how CD terms compare

• 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

How long should you leave your money in a CD? It depends on when you think you'll need the money. 

You want it to stay in your account long enough so you can earn some decent interest. But you don't want the term to be so long that you risk triggering an early withdrawal penalty if you end up needing the cash before maturity.

Minimum opening deposit

Banks can impose minimum opening deposit requirements for CDs. For example, you might need $500 or $1,000 for a standard CD. Jumbo CDs may require $10,000 to $100,000 to open. And some banks have no minimum deposit requirement at all. 

If you plan to build a CD ladder consider how the opening deposit requirements affect your ability to do so. A CD ladder means you have multiple CDs with different terms and different rates. 

For example, you might open a 6-month CD, a 12-month CD, an 18-month CD and a 24-month CD. Laddering can help you avoid early withdrawal penalties and keep pace with changing rates if your next maturity date is always just around the corner. However, you'll need to be sure you can cover the opening deposit requirement for each "rung". 

Early withdrawal penalty

Early withdrawal penalties are how the bank ensures that you leave your money in your CD account until maturity. Many banks charge them, although some don't. 

If your bank imposes 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

Even if you don't plan to make an early withdrawal, it's still good to know what the penalty is and when you might have to pay it. If you need to pull money from savings in an emergency, you can calculate the cost of withdrawing from CDs vs. savings accounts or other financial accounts. 

Flexibility options

Some CDs offer more flexibility than others. In addition to standard CDs, your bank might offer:

• No penalty CDs that allow for early withdrawals with no fee
• Bump-up or raise your rate CDs that increase your rate during the term
• Add-on CDs, which allow you to deposit additional funds after account opening
• Jumbo CDs, which are designed to hold larger amounts of money
• IRA CDs that earn interest and enjoy some tax advantages

Any CD you choose should align with your goals and needs. For example, if you don't want to miss out on CD rate increases you might choose a bump rate or raise your rate CD. And if you want a safe, secure way to save for retirement, you might opt for an IRA CD instead. 

Make Sure to Compare with Online Banks

Online banks can give traditional banks a run for their money when it comes to CDs and savings accounts. While you typically won't have branch banking access, you may enjoy higher rates on savings accounts and pay fewer fees. 

When looking at CDs from online banks, compare the same features mentioned early. Check the:

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

Also, look at the options you'll have to fund your account. You may need to link an account at a different bank to make your first deposit. After that, you may be able to open new accounts or deposit money through online and mobile banking or wire transfers. 

FDIC Insurance

FDIC insurance protects deposit accounts when a bank fails. Many banks, including online banks, are FDIC-insured so your money is safe. 

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. However, they are insured up to the same limit by the National Credit Union Administration (NCUA). That's good to know if you're contemplating a credit union CD vs. online CDs or traditional bank CDs. 

You can tell whether a bank is FDIC-insured by checking its website or visiting a branch. Banks are required to display FDIC signage online and in person. 

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. South Dakota doesn't have personal income tax, so you won't pay additional state tax on your CD interest. 

Which CD pays the highest rate?

CD rates aren't static and the one paying the highest rate at any given time can change from one day to the next. Online banks tend to pay higher CD rates than traditional banks or credit unions, although that isn't always true. Comparing rates for CDs at different financial institutions can help you find the best one for your needs. 

Can you use CDs to save for retirement?

You can use an IRA CD to set aside money for retirement while enjoying some tax advantages. IRA CDs work like other CDs but with one important difference: they're subject to the same tax rules as Individual Retirement Accounts. Banks can offer traditional and Roth IRA CDs and jumbo IRA CDs to savers. 

Is a credit union CD good?

Credit union CDs, which are called share certificates, can be a good savings option if you're earning a competitive rate. You'll need to join a credit union to open a CD account, and while some impose strict membership requirements, others will accept anyone.