The Best CD Rates in Oregon for 2025
Oregon's banking landscape offers a variety of choices for those interested in certificates of deposit (CDs). To help residents make informed decisions, we've analyzed the available options and compiled a list of the most competitive CD rates offered by local Oregon banks.
The Best CD Rates in Oregon
BMO Bank
BMO Bank is known to offer occasional CD rate specials that are highly competitive–these tend to have uncommon maturity terms. Still, these CDs span a wide time window, such as 13 months to 59 months, which means there is likely a special CD maturity term that fits your savings goal. The minimum deposit requirement for BMO Bank CDs is $1,000.
Umpqua Bank
Umpqua Bank provides very competitive CD rates on shorter maturity terms, in addition to promotional CD rates on terms that vary. The minimum deposit requirement for Umpqua Bank CDs is $1,000.
Washington Federal Bank
Washington Federal Bank tends to run promotions with special CD rates that stand out from the crowd. While the maturity terms for these CDs will vary, depositors can earn a rate bump if they have an eligible Washington Federal Bank checking account or open the CD with $25,000 in new money. The minimum opening deposit for Washington Federal Bank CDs is $1,000.
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 Oregon, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Oregon (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Portland, Salem, Eugene, Gresham, and Hillsboro.
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, often called CDs, are financial products offered by banks and credit unions. They serve as a safe way to save money while earning interest over time. Unlike a traditional savings account, where funds can be withdrawn anytime, CDs require you to commit your money for a set period. In return, you receive a fixed interest rate that is typically higher than what savings accounts offer. This makes CDs a popular choice for people who want guaranteed returns without taking risks, such as those found in stocks.
The key feature of a CD is locking in your funds for a fixed term. Terms can range from a few months to several years, depending on the CD you choose. During this time, you cannot access your money without facing a penalty. The bank pays you interest for keeping your funds deposited, and this rate stays the same throughout the term. This stability is a major difference from savings accounts, where interest rates can change based on market conditions. CDs are ideal for saving for specific goals, like a down payment on a house, when you don’t need the money right away.
How to Pick a Certificate of Deposit
Choosing the right CD involves looking at several factors to match your financial needs. Here’s what to consider:
Interest rate
The interest rate is one of the most important aspects of a CD. It determines how much you’ll earn over the term. Rates vary between banks, so comparing options is essential. A higher rate means more earnings, but it’s wise to check if the rate is competitive for the term length you want. For example, a 1-year CD might offer 2%, while a 5-year CD could provide 3%. Use online tools or bank websites to compare CD interest rates and calculate your potential returns.
Maturity term
The maturity term is how long your money stays locked in the CD. Short-term CDs, like 6 months or 1 year, offer quicker access to your funds but often have lower rates. Long-term CDs, such as 3 or 5 years, typically pay higher interest but reduce liquidity. Think about when you’ll need the money. If you can wait longer, a long-term CD might maximize your earnings. If you need flexibility, a shorter term could be better.
Minimum opening deposit
Banks set different minimum deposit amounts to open a CD. Some require $500 or $1,000, while others might ask for $10,000 or more. Online banks often have lower requirements, sometimes as little as $1. Check the minimum before choosing to ensure it fits your budget. A higher deposit might unlock better rates at some institutions, so weigh this against your available funds.
Early withdrawal penalty
Withdrawing money from a CD before its term ends comes with a penalty. This could be a loss of several months’ worth of interest or a percentage of your principal. For instance, a 1-year CD might charge 3 months of interest as a penalty. Always review the penalty terms before committing. If you think you might need the money early, look for CDs with milder penalties or consider a savings account instead.
Flexibility options
Some CDs offer features to increase flexibility. Bump-up CDs let you raise your interest rate once during the term if market rates increase. Add-on CDs allow you to deposit more money after opening. These options are less common but can be useful if you expect rates to rise or want to save more over time. Ask banks about these features when researching.
Compared to Online CDs Available Nationwide
When exploring Certificates of Deposit, don’t overlook online banks. These institutions operate without physical branches, which reduces their costs. As a result, they often pass savings onto customers through better CD terms. Researching online CDs available nationwide can lead to higher interest rates and more accessible options compared to traditional banks.
Online CDs frequently offer advantages. They tend to provide higher interest rates—sometimes 0.5% to 1% more than brick-and-mortar banks—because of lower overhead. Minimum deposit requirements are also often lower, with some starting at just $1. This makes online CDs appealing if you’re starting with a smaller amount. Additionally, online banks make it easy to compare rates and apply from home, saving time and effort. Always verify the bank’s reputation and insurance before depositing.
FDIC Insurance
FDIC insurance is a critical factor when choosing a CD. The Federal Deposit Insurance Corporation (FDIC) protects your money in case the bank fails. For CDs, this means your principal and earned interest are safe up to $250,000 per depositor, per insured bank, per account category. This coverage applies to most banks, including online ones, as long as they are FDIC members. Check a bank’s FDIC status on its website or through the FDIC’s official site.
This insurance gives peace of mind, ensuring your savings are secure even in economic downturns. Credit unions offer similar protection through the National Credit Union Administration (NCUA), with the same $250,000 limit.
FAQs
What happens when a CD reaches maturity? Does it renew?
When a CD reaches maturity, the term ends, and you can withdraw your money plus interest. Banks often notify you before this date. If you do nothing, many CDs automatically renew for the same term at the current rate offered by the bank. This new rate might differ from your original one. To avoid an unwanted renewal, act quickly—most banks give a grace period of 7 to 10 days after maturity to withdraw or change the CD.
What is a CD ladder?
A CD ladder is a strategy to balance returns and access to funds. You split your money into multiple CDs with different maturity terms—like 1, 2, 3, and 4 years. As each CD matures, you reinvest it into a new long-term CD. This approach provides regular access to some funds while earning higher rates on longer terms.
How is interest accrued in a CD?
Interest on a CD accrues based on the rate and compounding frequency. Compounding can be daily, monthly, or quarterly—the more frequent, the more you earn. For example, a $1,000 CD at 2% annual interest compounded monthly grows slightly more than if compounded yearly. Interest is typically paid at maturity for short-term CDs or periodically (like monthly) for longer terms, depending on the bank’s policy.
How are interest earnings in CDs taxed?
Interest earned from CDs is taxable as ordinary income in the year it’s paid or made available to you. Banks report this to the IRS via Form 1099-INT if you earn $10 or more annually. You’ll owe federal income tax, and possibly state tax, based on your tax bracket. Keep records of interest payments and consult a tax professional to ensure accurate filing.
