The Best CD Rates in South Carolina for 2025

South Carolina touts a diverse range of financial institutions–from large national banks to local community banks. With so many options available, residents might find it challenging to navigate and compare the various certificates of deposit (CDs) offered. We’ve compiled the best CD rates for savers in South Carolina after research into all these options.

The Best CD Rates in South Carolina

United Bank

United Bank offers very high interest rates on its digital CDs, which can only be opened online. These particular CDs have uncommon maturity terms but they are still great for short-term and long-term savings goals. The minimum opening deposit for United Bank digital CDs is $500.

Conway National Bank

Conway National Bank provides CDs for a wide range of maturity terms, from 7 days to 5 years. The majority of the CDs have a solid interest rate that is higher than most banks in the state. Moreover, you can earn a slight APY bump when start with a higher deposit. The minimum deposit requirement for Conway National Bank CDs is $500.

United Community Bank

United Community Bank offers excellent CD rates during their promotional periods–especially on shorter maturity terms. These CDs can be opened online or at a branch. The minimum opening deposit for these United Community 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 South Carolina, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 banks by deposit market share in South Carolina (based on FDIC June 2024 data) with more than 5 retail branches in the state--coverage and availability in major cities including Charleston, Columbia, North Charleston, Mount Pleasant, and Rock Hill.

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 (CDs) are a type of savings account offered by banks and credit unions. They allow you to deposit a fixed amount of money for a specific period of time, known as the term. In exchange, the bank guarantees a fixed interest rate for the duration of the term. Unlike traditional savings accounts, which allow you to withdraw funds at any time, CDs require you to lock in your money until the term ends.  

The primary purpose of a CD is to provide a safe and predictable way to grow your savings. Because the interest rate is fixed, you know exactly how much you will earn by the time the CD matures. This makes CDs a popular choice for individuals who want to save for a specific goal, such as a down payment on a house or a future expense, without risking their principal.  

When you open a CD, you agree to keep your money in the account for the entire term, which can range from a few months to several years. If you withdraw your funds before the term ends, you will typically face an early withdrawal penalty. This penalty can vary depending on the bank and the length of the term.  

How to Pick a Certificate of Deposit  

Choosing the right CD requires careful consideration of several factors. Here are the key elements to evaluate when selecting a CD:  

Interest rate  

The interest rate is one of the most important factors to consider when choosing a CD. Higher interest rates mean greater earnings over the term of the CD. It’s essential to compare rates from multiple banks, as they can vary significantly. Online banks often offer higher interest rates compared to traditional brick-and-mortar banks.  

Maturity term  

The term length of a CD determines how long your money will be locked in. Short-term CDs, such as those with terms of 6 months to 1 year, offer lower interest rates but provide quicker access to your funds. Long-term CDs, with terms of 3 to 5 years, typically offer higher interest rates but require you to commit your money for a longer period. Consider your financial goals and liquidity needs when selecting a term.  

Minimum opening deposit  

Banks often require a minimum deposit to open a CD. This amount can vary widely, from as low as $1 at some online banks to $1,000 or more at traditional banks. Make sure you choose a CD with a minimum deposit requirement that fits your budget.  

Early withdrawal penalty  

Withdrawing funds from a CD before it matures usually results in a penalty. This penalty can reduce your earnings or even eat into your principal. Be sure to understand the penalty terms before opening a CD, especially if you think you might need access to your money before the term ends.  

Flexibility options  

Some CDs offer features that provide additional flexibility. For example, a bump-up CD allows you to request a higher interest rate if rates rise during your term. Other CDs may allow you to make additional deposits during the term. These features can be beneficial if you want more control over your savings.  

Compared to Online CDs Available Nationwide  

When researching CDs, it’s important to consider online banks. Online CDs often come with higher interest rates and lower minimum deposit requirements compared to traditional banks. Many online banks offer CDs with no minimum deposit or require as little as $1 to open an account.  

Online banks can offer higher rates because they have lower overhead costs than brick-and-mortar banks. Additionally, online CDs are typically easy to open and manage through digital platforms. However, it’s important to ensure that the online bank is FDIC-insured to protect your funds.  

FDIC Insurance  

One of the key benefits of CDs is that they are typically FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per bank, for each account ownership category. This means that even if the bank fails, your money is protected up to the insured limit.  

Most banks, including online banks, are FDIC-insured. However, it’s always a good idea to verify the bank’s FDIC status before opening a CD. You can do this by checking the bank’s website or using the FDIC’s online tool.  

FAQs  

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

When a CD reaches maturity, you have several options. You can withdraw your funds, renew the CD for another term, or transfer the money to another account. Many banks automatically renew the CD if you don’t take action, so it’s important to review the terms and decide what’s best for your financial goals.  

What is a CD ladder?  

A CD ladder is a saving strategy that involves opening multiple CDs with different maturity terms. This approach allows you to take advantage of higher interest rates on long-term CDs while maintaining access to a portion of your funds as shorter-term CDs mature. 

How is interest accrued in a CD?  

Interest in a CD can be compounded daily, monthly, quarterly, or annually, depending on the bank’s terms. The interest is added to your account balance, and you earn interest on the new balance. At the end of the term, you receive the total amount, including the principal and accrued interest.  

How are interest earnings in CDs taxed?  

Interest earned on CDs is considered taxable income by the IRS. You will receive a Form 1099-INT from your bank at the end of the year, which reports the amount of interest you earned. This income must be included on your tax return.