The Best CD Rates in Louisiana for 2025

With its unique blend of cultures and a thriving economy, Louisiana offers a wide array of banking institutions–from major national brands to local banks. This abundance can make it difficult for residents to find and compare certificates of deposit (CDs). We’ve taken on the task of evaluating these options to help you discover the best CD rates available in Louisiana.

The Best CD Rates in Louisiana

Capital One

Capital One offers some of the most competitive CD rates available nationwide covering terms from 6 months to 5 years. The early withdrawal penalty for these CDs are also very low compared to what other banks might charge. Capital One CDs do not have a minimum deposit requirement.

Fidelity Bank

Fidelity Bank runs limited time promotions with CD rates that are astonishingly high for specific terms (may vary throughout the year). The minimum opening deposit for Fidelity Bank CDs is $1,000.

Home Bank

Home Bank provides impressive CD rates during special promotions that tend to have shorter maturity terms under 2 years. The minimum opening deposit for Home Bank CDs is $2,500.

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 Louisiana, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 banks by deposit market share in Louisiana (based on FDIC June 2024 data) with more than 5 retail branches in the state--with presence in major cities including New Orleans, Baton Rouge, Shreveport, Lafayette, and Lake Charles.

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?

Certificates of deposit, or CDs, are a type of savings account offered by banks and credit unions. Unlike regular savings accounts, which allow you to deposit and withdraw money at any time, CDs require you to lock in your funds for a specific period, called a term. In return for this commitment, you receive a guaranteed interest rate.

Here's how it works:

• You deposit a set amount of money into a CD.
• You agree to keep that money in the CD for a fixed term, such as 6 months, 1 year, or 5 years.
• The bank pays you a fixed interest rate on your deposit during the term.
• At the end of the term, the CD matures, and you can withdraw your original deposit plus the earned interest.

This fixed term and interest rate structure makes CDs a predictable way to grow your savings. You know exactly how much interest you will earn, as long as you keep your money in the CD until it matures. For more basic information, refer to this CD Basics Guide.

How to Pick a Certificate of Deposit

Choosing the right CD involves considering several factors.

Interest rate

The interest rate is a key factor. Higher interest rates mean you earn more money. Compare interest rates from different banks and credit unions to find the best deal. Small differences in interest rates can add up to significant earnings over time. Pay close attention to the Annual Percentage Yield (APY), which accounts for compounding interest.

Maturity term

The maturity term is the length of time you agree to keep your money in the CD. Terms can range from a few months to several years.

• Short-term CDs (less than 1 year): These offer quicker access to your funds but usually have lower interest rates.
• Long-term CDs (1 year or more): These offer higher interest rates but tie up your funds for a longer period.

Consider your financial goals and when you might need access to your money when choosing a term.

Minimum opening deposit

Banks require a minimum deposit to open a CD. This amount varies widely, from a few hundred dollars to several thousand. Choose a CD with a minimum deposit that fits your budget.

Early withdrawal penalty

If you withdraw your money before the CD matures, you will likely face an early withdrawal penalty. This penalty can be a portion of the interest earned or even some of the principal. Understand the penalty before opening a CD.

Flexibility 0ptions

Some CDs offer flexibility options, such as:

• Bump-up CDs: These allow you to increase your interest rate if rates rise during the term.
• Some CDs allow for additional deposits during the term. However, most do not.

Compared to Online CDs Available Nationwide

Online banks often offer higher CD interest rates and lower minimum deposit requirements than traditional brick-and-mortar banks.

Here's why you might consider online CDs:

• Higher Interest Rates: Online banks have lower overhead costs, which allows them to offer more competitive interest rates.
• Lower Minimum Deposits: Many online banks offer CDs with minimum deposits as low as $1.
• Convenience: You can open and manage your CD online from anywhere.

When researching CDs, include online banks in your search to find the best rates and terms.

FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) insures deposits at member banks up to $250,000 per depositor, per insured bank, for each account ownership category.

Here's what you need to know:

• FDIC insurance covers your principal and accrued interest.
• Most banks, including online banks, are FDIC-insured.

FAQs

What happens when a CD reaches maturity? Does it renew?

When a CD reaches maturity, you have several options:

• Withdraw the funds: You can withdraw your original deposit and the earned interest.
• Renew the CD: Many banks offer automatic renewal, which rolls your funds into a new CD with the current interest rate and term. Check your CD agreement to see if automatic renewal is offered.
• Move the funds to another account: You can transfer the funds to a different savings or checking account.

What is a CD ladder?

A CD ladder is a saving strategy where you purchase CDs with staggered maturity dates. This allows you to have access to some of your funds at regular intervals while still earning higher interest rates on longer-term CDs.

How is interest accrued in a CD?

Interest in a CD is typically compounded daily. This means that interest is calculated and added to your principal each day, and then the next day's interest is calculated on the new, larger principal. Some CDs may compound monthly or quarterly. The APY reflects the effect of compounding.

How are interest earnings in CDs taxed?

Interest earned on CDs is considered taxable income. You will receive a 1099-INT form from your bank at the end of the year, reporting the interest you earned. You must include this interest income on your federal and state tax returns.