The Best CD Rates in Utah for 2025

The selection of banks in Utah presents both opportunities and challenges for individuals seeking strong certificate of deposit (CD) rates. We've conducted an in-depth survey to identify and recommend the best CD options available from local Utah banks.

The Best CD Rates in Utah

State Bank of Southern Utah

State Bank of Southern Utah offers a comprehensive range of CDs with maturity terms ranging from 1 month to 5 years. Additionally, the interest rates are extremely competitive such that they are more attractive than many CD rates found at popular online banks. The minimum opening deposit for State Bank of Southern Utah CDs is $500.

Central Bank

Central Bank provides strong CD rates across its range of CDs from 60 days to 5 years. The bank runs promotions where special CD rates are very attractive. The minimum opening deposit for Central Bank CDs is $500.

Bank of Utah

Bank of Utah offers strong CD rates on a majority of their available terms of 30 days to 5 years. Moreover, many of these CDs can be opened online. The minimum opening deposit for Bank of Utah 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 Utah, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Utah (based on FDIC June 2024 data) with more than 10 locations in the state--includes coverage and availability in major cities including Salt Lake City, West Valley City, Provo, West Jordan, and Orem.

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?

A certificate of deposit (CD) is a time-bound savings instrument offered by banks and credit unions. When you open a CD, you agree to leave your money deposited for a fixed period—called the maturity term—in exchange for a guaranteed interest rate. This differs from traditional savings accounts because CDs restrict access to funds until maturity, while savings accounts allow withdrawals at any time (with potential fees).

CDs are designed for savers who want predictable returns and prioritize safety over liquidity. The trade-off is clear: locking your money away guarantees higher interest rates than typical savings accounts, but accessing it early triggers penalties. Terms range from a few months to several years, with longer terms usually offering better rates.

How to Pick a Certificate of Deposit

Choosing the right CD requires evaluating multiple factors to balance returns and accessibility. Here’s what to consider:

Interest rate

Importance: Higher interest rates mean greater earnings over time. Compare rates from different institutions before committing.

Example: A $10,000 deposit in a 2-year CD at 4% APY earns $832 in total interest.

Factors Influencing Rates: Banks set rates based on the federal funds rate. Online banks often offer higher rates due to lower overhead costs.

Maturity term

• Short-term CDs (e.g., 3–6 months): Lower interest rates but higher liquidity for near-term goals like emergency funds or tax payments.
• Long-term CDs (e.g., 5 years): Higher rates for long-term savings, such as college tuition or retirement. However, your money is tied up longer.

Minimum opening deposit

Requirements vary: Some banks demand $1,000 to open a CD, while others allow as little as $1. Online CDs frequently have lower thresholds compared to traditional institutions.

Early withdrawal penalty

• Consequences: Withdrawing funds before maturity incurs penalties, typically equivalent to 3–6 months of interest.
• Exceptions: A few “no-penalty” CDs allow withdrawals without fees but usually offer lower rates.

Flexibility options

• Bump-Up CD: This lets you request a higher rate if the bank raises its rates during your term.
• Liquid CDs: Allow partial withdrawals without penalties, though they often have lower APYs.

Compared to Online CDs Available Nationwide

Online banks provide significant advantages over traditional brick-and-mortar institutions:

• Higher Interest Rates: Fewer physical branches mean online banks can allocate more funds toward competitive rates.
• Lower Minimum Deposits: Many online CDs require only $1 to open—ideal for small savers or testing the waters with CDs.
• Accessibility: Manage your account anytime via mobile apps or websites.

FDIC Insurance

All CDs at FDIC-insured banks are protected up to $250,000 per depositor, per institution, and per account ownership category. For example:

If you have two separate CDs totaling $300,000 at the same bank, only $250,000 is insured. The remaining $50,000 risks loss if the bank fails.

FAQs

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

Upon maturity, CDs typically auto-renew with the same term and current rates unless you:

• Withdraw funds.
• Roll over into a new CD with updated terms.

What is a CD ladder?

A CD ladder involves spreading deposits across multiple CDs with staggered maturity dates. This balances liquidity and higher returns by avoiding locking all funds into a single long-term CD.

How is interest accrued in a CD?

Interest compounds based on the bank’s policy (e.g., daily or monthly). At maturity, total earnings are added to your principal.

How are interest earnings in CDs taxed?

• Federal Taxes: Interest is taxable as ordinary income in the year it’s earned.
• State/Local Taxes: May vary; check with your tax advisor for specifics.