The Best CD Rates in Vermont for 2025

Vermonters interested in saving may look to CDs for safety, security and competitive rates. Finding the right bank (or credit union) starts with comparing CD rates to see which accounts offer the highest yields. We've researched the best CD interest rates in Vermont to help you find the right account for your needs. 

UnionBank

UnionBank offers standard, IRA and jumbo CDs with terms ranging from 6 to 60 months. The minimum deposit for standard and IRA CDs is $100 to $1,000, depending on the term; the minimum jumps to $100,000 for jumbo CDs. Rates are well above average, and you can earn a solid APY with virtually any CD term. 

Northfield Savings Bank

Northfield Savings Bank has CD accounts with terms from 6 to 60 months, all of which require $1,000 to open. There's also a $1,000 minimum balance requirement to earn the maximum advertised APY. Currently, the best rates are available with Northfield's 9-month CD special. 

Bar Harbor Bank & Trust

Bar Harbor Bank & Trust offers flexibility with its CD options. You can open an account with as little as $500 and make additional deposits for CDs with terms of 1 to 11 months. Advantage CDs, meanwhile, allow you to make one penalty-free withdrawal during the term and rates are competitive for all CD accounts. 

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

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 open a CD, you deposit your money for a set term. The bank pays you interest throughout the term, usually at a fixed rate. Once the term ends, your CD matures. 

At maturity, you can:

• Roll your savings over to a new CD, either with the same term of a different one
• Withdraw the interest only and roll the rest of your savings into a new CD
• Close your CD and transfer the money into a high-yield savings account, money market account or checking account

A CD locks your money in for the term, which may be anywhere from 7 days to 7 years. If you need to pull money out before maturity, your bank could charge an early withdrawal penalty fee. 

CDs lack some of the flexibility of savings accounts, but they can make up for that with solid rates. Your rate stays the same for the entire term, so if rates go down after you open your account, you won't miss out on any interest earnings. 

How to Choose a CD

With so many CDs to choose from, finding the best fit can feel a little overwhelming. Here are some of the most important factors to consider when comparing Vermont CDs. 

Interest rate

If you're opening a CD, of course you want to know what rate you can earn. Your rate determines how much your money grows during the term. 

Here's what you should know about CD interest rates:

• Rates vary by term and by the type of CD you have.
• You may need to meet a minimum balance requirement to earn the highest rate.  
• CD rates may be higher at online banks vs. traditional banks, but not always. 
• Rates are always subject to change. 

Is now a good time to open a CD? Checking interest rate trends can help you decide. 

When CD rates are trending up, it could make sense to build a CD ladder. A ladder consists of multiple CDs with different terms. You can open new accounts periodically to cash in on rising rates. 

When CD rates are trending down, you may want to lock in the highest rate possible before they go lower. Your money can continue to grow at a decent rate, even if savings account rates bottom out. 

Maturity term

Your CD's maturity term is how long the bank requires you to keep your savings in the account. CD terms may be shorter than 30 days or extend several years. Your choice of term can depend on your goals and how soon you anticipate needing the money. 

• Short-term CDs (1-12 months) can hold money you know you'll need soon. 
• Mid-term CDs (1-3) may be better for goals that are further away, if you don't anticipate any big CD rate jumps. 
• Long-term CDs (3+ years) are best for money you know you won't need for the near future.

If you're worried about early withdrawal penalties, you could try laddering with CDs that have maturity terms spaced a few months apart. That way, your next maturity date is always just around the corner. 

Minimum opening deposit

CDs require a minimum deposit to open. The threshold usually depends on the bank and the type of CD. 

For instance, you may be able to open a standard CD with $100, $500 or $1,000. Jumbo CDs may require $10,000 to $100,000 to open. And special CDs may be somewhere in the middle, with opening deposit requirements of $2,500 or $5,000. 

Regardless, it makes sense to choose a CD that has an opening deposit requirement you can comfortably meet. Remember that if you're laddering CDs you'll need to meet a minimum deposit requirement for each account you open. 

Early withdrawal penalty

Early withdrawal penalties can take a bite out of your CD savings. Some banks don't have them but many do, so you should be aware of what you might pay. Banks can charge a flat fee, a percentage of the interest earned or a combination of the two. 

You may be able to avoid early withdrawal penalties if you:

• Choose a CD term that aligns with when you know you'll need the money
• Build a CD ladder with different maturity terms
• Opt for a no-penalty CD

No-penalty CDs let you take money out early without a fee. There may be a limit on how many withdrawals you can make before maturity. Keep in mind that no-penalty CDs may earn lower rates than other CDs. 

Flexibility options

CDs are not all alike and banks can offer more than one type. In addition to standard or regular CDs, you may be able to choose from:

• No penalty CDs
• Bump up or raise your rate CDs 
• Add-on or step-up CDs
• Jumbo CDs 
• IRA CDs
• Special or promotional CDs

Each one is designed to do something different for you. IRA CDs, for example, let you save for retirement on a tax-advantaged basis. Add-on CDs, meanwhile, allow you to continue making deposits to your account monthly. 

Comparing the features and benefits, as well as the pros and cons, of each type of CD can help you decide what degree of flexibility you need with your savings. 

Make Sure to Compare with Online Banks

Local Vermont banks have some attractive CD options, but online banks are also worth checking out. Online banks can offer higher CD rates and lower opening deposit requirements, while charging fewer fees. 

If you're thinking about an online bank, ask yourself how comfortable you are with online and mobile banking. Look for a bank that offers solid customer support in case you have questions and multiple ways to deposit or withdraw money. 

Learn more about the best online banks for savers. 

FDIC Insurance

Though it doesn't happen often, banks sometimes fail. When they do, the FDIC is there to help. 

FDIC insurance protects depositors up to $250,000 if a bank goes under. That means if a bank you have CD accounts with fails, your money doesn't just disappear. The FDIC helps you recover it, up to the maximum coverage limit. 

Most traditional banks and online banks are FDIC-insured. A quick check of the bank's website or a visit to a branch can help you verify its status. 

What about credit union CDs? The FDIC doesn't insure them, but the National Credit Union Administration (NCUA) does. The coverage limit is the same, which is good to know if you're thinking of joining a credit union to open a CD. 

FAQs

Is CD interest taxable? 

CD interest is taxable as income on your federal tax return. Your bank should send a Form 1099 at the end of the year showing how much interest you earned. You'll use this form to complete your tax return. You'll also need to carry over the amount to your state return if your state has an income tax, which Vermont does.  

What do you need to open a CD account?

Opening a CD is a fairly simple process. You'll need to fill out the bank's application, share a copy of your photo ID and verify your residency status. If you're opening a CD account online, you'll also need to link a bank account to make your initial deposit. If you're opening a CD at a branch, you can make your first deposit with a check or cash. 

Are CDs safe?

CDs are a safe, secure way to save money if you keep your account at an FDIC-member bank or an NCUA-insured credit union. Since CD rates are locked in for the term, there's essentially zero risk of losing money. 

Do CDs come with a debit card or checks?

CDs are meant to keep your money in place and untouched until maturity. Banks don't offer debit cards or checks with a CD account. If you'd like to have those options for accessing your savings, you might consider opening a money market account instead.