Compare The Best CD Rates For March 25, 2024
When it comes to saving and growing your money, Certificate of Deposit (CD) rates are a popular long-term savings account to consider. If you’re looking for the best CD rates in March 2024, we’ve compiled a list of the top banks offering competitive rates.
The highest CD rates for March 2024 are
- Local Government Federal Credit Union — 18 months, 5.75% APY, $250 minimum deposit
- Robins Financial Credit Union— 7 months, 5.70% APY, $500minimum deposit
- Hughes Credit Union — 17 months, 5.65% APY, $99,000 minimum deposit
Remember that these rates are subject to change and may vary by region.
The following table compares the best CD rates today from 475 banks and credit unions, sorted from the highest APY to the lowest APY for 3-month, 6-month, 1-year, 2-year, and 5-year terms. You can also sort by term using the “Months” column.
Disclaimer: Interest rates change all the time. Our team updates this table daily. Please double-check with your bank or credit union!
What Has The Highest CD Rates Right Now?
As of March 25, 2024, the bank or credit union with the highest CD rate is 5.75% with Local Government Federal Credit Union. The minimum account opening deposit is $250.00.
Consider a fixed annuity if you seek a higher interest rate to grow your savings. The long-term savings account works almost identically to a certificate of deposit but has higher rates, liquidity, and grows tax-deferred.
The Best 3-Month CD Rates
The following banks and credit unions have the highest CD rates for three months.
| Best 3-Month CD Rates | Rate | Term | Minimum Deposit |
|---|---|---|---|
| Ponce Bank | 5.25% APY | 3 Months | $1.00 |
| Liberty Bank | 5.35% APY | 3 Months | $1.00 |
| Total Direct Bank | 5.42% APY | 3 Months | $25,000.00 |
The Best 6-Month CD Rates
The following banks and credit unions have the highest CD rates for six months.
| Best 6-Month CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| American Airlines Credit Union | 5.50% APY | 6 Months | $1,000.00 |
| My ebanc | 5.49% APY | 6 Months | $50,000.00 |
| Newtek Bank | 5.55% APY | 6 Months | $50,000.00 |
The Best 1-Year CD Rates
The following banks and credit unions have the highest CD rates for 12 months.
| Best 12-Month CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| US Alliance Financial | 5.40% APY | 12 Months | $500.00 |
| Broadway Bank | 5.60% APY | 12 Months | $500,000.00 |
| CFG Bank | 5.40% APY | 12 Months | $500.00 |
The Best 2-Year CD Rates
The following banks and credit unions have the highest CD rates for 24 months.
| Best 2-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Mountain Credit Union | 5.00% APY | 24 Months | $2,500.00 |
| Credit Human | 4.65% APY | 24 Months | $500.00 |
| EFCU Financial | 5.10% APY | 24 Months | $100,000.00 |
The Best 3-Year CD Rates
The following banks and credit unions have the highest CD rates for 36 months.
| Best 3-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Mountain Credit Union | 5.15% APY | 36 Months | $2,500.00 |
| Hughes Federal Credit Union | 4.97% APY | 36 Months | $99,000.00 |
| Lafayette Federal Credit Union | 4.68% APY | 36 Months | $100,000.00 |
The Best 4-Year CD Rates
The following banks and credit unions have the top CD rates for 48 months.
| Best 4-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Bread Savings | 4.15% APY | 48 Months | $1,500.00 |
| NexBank | 4.45% APY | 48 Months | $10,000.00 |
| Fedchoice Federal Credit Union | 4.35% APY | 48 Months | $50,000.00 |
The Best 5-Year CD Rates
The following banks and credit unions have the highest CD rates for 60 months.
| Best 5-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Quontic | 4.30% APY | 60 Months | $500.00 |
| Lafayette Federal Credit Union | 4.42% APY | 60 Months | $100,000.00 |
| Virginia Credit Union | 4.48% APY | 60 Months | $100,000.00 |
The Best 10-Year CD Rates
These credit unions and banks have the highest payouts on 10-year CDs.
| Best 10-Year CD Rates | Rate | Term | Minimum |
|---|---|---|---|
| Apple Federal Credit Union | 4.00% APY | 120 Months | $500.00 |
| Credit Human | 4.00% APY | 120 Months | $500.00 |
| Discover Bank®️ | 3.75% APY | 120 Months | $2,500 |
| EmigrantDirect.com | 2.75% APY | 120 Months | $1,000 |
| Redstone Federal Credit Union | 3.70% APY | 120 Months | $500.00 |
| Equitrust CD-Like Annuity | 5.60% APY | 10 Years | $10,000 |
Compare CD Accounts
Leverage this tool to assess and compare the growth potential of three distinct certificates of deposit. It will provide clear insight for making informed decisions about your financial growth.
CD Rates Forecast
As we look ahead, it’s important to consider the forecast for CD rates and the factors that may impact them. One significant influencer is the Federal Reserve and its decisions regarding interest rates.
CD rates are starting to decline due to anticipated interest rate cuts by the Federal Reserve. The pace of this decline will be determined by a combination of the actual cuts made by the Federal Reserve and various market conditions.
Monitoring the Federal Reserve’s decisions and their subsequent impact on CD rates is crucial for staying informed about the latest developments. Understanding these factors can help individuals make informed decisions regarding their savings and investment strategies.
| 2024 CD Rates Forecast | |
|---|---|
| Predicted Trend | Decline |
| Influencing Factors | Anticipated interest rate cuts by the Federal Reserve |
| Impact | Dependent on the actual cuts and market conditions |
| Recommendation | Monitor Federal Reserve decisions to stay informed |
Calculating CD Returns
Understanding how your CD’s returns are calculated is crucial for assessing its overall profitability. The two common methods used are simple interest and compound interest.
- With simple interest, the interest earned on your CD is calculated solely based on the principal amount and the agreed-upon interest rate. This means that the interest remains constant throughout the CD’s term.
- Compound interest, on the other hand, allows your investment to grow more significantly over time. With this method, the interest earned is added to the principal, creating a higher balance on which the subsequent interest calculations are based. As a result, compound interest provides the potential for greater returns compared to simple interest, especially for longer-term CDs.
How to Choose the Right CD
When it comes to choosing a certificate of deposit (CD) that aligns with your financial goals, there are several important factors to consider. By carefully evaluating these factors, you can make an informed decision and maximize your savings potential. Here are some key considerations:
Annual Percentage Yield (APY)
The APY is a critical factor to consider when choosing a CD. It represents the interest rate you will earn on your investment over the course of a year, including compound interest. Higher APYs generally translate to greater returns on your savings. Compare the APYs different banks offer and select the highest rate available to maximize your earnings.
Helpful Tool: APY Calculator
Minimum Deposit Requirements
Each bank sets its own minimum deposit requirement for CDs. You must ensure you meet the minimum deposit amount before opening an account. Some banks may have higher minimum deposit requirements than others, so consider your budget and choose a CD that aligns with your financial capabilities.
Early Withdrawal Penalties
CDs are designed for long-term investments, and withdrawing funds before maturity often incurs penalties. Familiarize yourself with the early withdrawal penalties associated with each CD option you’re considering. Evaluate how likely it is that you may need access to your funds before the CD’s term ends and choose an option with a reasonable penalty structure.
Term Length
The term length of a CD refers to the duration of the investment. Common terms range from 3 months to 5 years, with longer terms generally offering higher interest rates. Consider how long you can comfortably leave your money locked up in a CD without needing access. Selecting a term length that aligns with your financial goals and liquidity needs is crucial.
Comparing Fixed Rate and Variable rates.
| Feature/Aspect | Fixed-Rate CDs | Variable-Rate CDs |
|---|---|---|
| Interest Rate Stability | Guaranteed to stay the same throughout the term. | Fluctuates throughout the term, tied to benchmarks. |
| Return on Investment | Predictable return. | Potential for higher return if interest rates rise. |
| Risk Level | Low-risk. | Exposed to interest rate risk. |
| Flexibility | Limited; penalties for early withdrawal. | More flexibility; some offer penalty-free withdrawals. |
| Complexity | Straightforward and easy to understand. | Can be more complex due to fluctuating rates. |
| Potential Downsides | – Limited flexibility. – Might offer lower returns compared to other investments. | – Unpredictable returns. – Complexity in understanding. |
| Ideal For | Investors who want a guaranteed return and are risk-averse. | Investors willing to take on some risk for potentially higher returns. |
Types of CDs and Their Features
- Traditional CDs: The most common type, these have a fixed interest rate and a set term. You’ll face early withdrawal penalties if you take out money sooner than the maturity date.
- No-Penalty CDs: Perfect for those uncertain about locking away their money for extended periods. They allow you to withdraw money early without any early withdrawal penalty.
- Bump Up CDs: With these, if the CD rate today or in the future increases, you can request a ‘bump up’ to the higher rate.
- Step-Up CDs: The interest rate increases at set intervals, usually annually.
- Jumbo CDs: These require a higher minimum deposit but generally offer better CD rates than regular CDs.
- Brokered CDs: These are sold through brokers rather than banks; they offer high yields but might have different rules concerning early withdrawal.
- Add-On CDs: These allow additional deposits during the CD term without changing the maturity date.
Helpful Tool: CD Calculator
Helpful Tool: CD Ladder Calculator
Long-Term CD vs. Short-Term CD
| Feature/Aspect | Long-Term CDs | Short-Term CDs |
|---|---|---|
| Duration | Typically five years or more. | Six months to one year. |
| Interest Rates | Generally higher than short-term CDs. | Typically lower than long-term CDs. |
| Protection from Rate Fluctuations | Yes, offers protection from interest rate fluctuations for the entire term. | No, more exposed to rate fluctuations. |
| Access to Funds | Limited; might incur early withdrawal penalties. | More flexible; easier access to funds without long commitment. |
| Inflation Risk | Those wanting to lock in high rates for a longer period can commit funds without needing them. | Less exposure due to shorter duration. |
| Ideal For | More flexible; easier access to funds without a long commitment. | Those uncertain about their financial future or anticipating higher interest rates in the near future. |
Pros And Cons Of CDs
| Pros of CD Rates | Cons of CD Rates |
|---|---|
| Higher interest rates compared to traditional savings accounts | Limited flexibility with penalties for early withdrawal |
| Fixed interest rate provides stability and predictable returns | Might offer lower returns compared to other investments like stocks and annuities |
| FDIC insured up to $250,000 per account category, ensuring safety of funds | Interest rate risk with variable-rate CDs, returns can fluctuate |
| Various types of CDs available to suit different needs (e.g., No Penalty, Bump Up, Step-Up CDs) | Inflation risk, especially with long-term CDs, as the purchasing power of the interest earned may decrease over time |
Alternatives to CDs
Though CDs offer reliable returns, sometimes you might be looking for more liquidity or slightly different terms:
- High-Yield Savings Accounts: These are high-interest savings accounts.
- Money Market Accounts: They combine features of both checking and savings accounts, usually offering higher interest rates than traditional savings accounts but might have monthly fees.
- Fixed Annuities: These pay fixed interest rates, but they’re not FDIC-insured but rather insured by an insurance company. They also come with a more extended commitment period (up to 20 years).
Helpful Tool: Compare the alternatives to CD accounts
Next Steps
CDs are a fantastic way to grow your money securely. You can maximize your returns by understanding CD terms, rates, and the offerings of different financial institutions. Whether you’re looking for short-term CDs or specialty CDs or even exploring options beyond the traditional CD accounts, there’s an avenue for every investor. Remember, personal finance is about making informed decisions, so always stay updated with the current CD rates and trends. Happy investing!
Questions From Our Readers
What is a CD?
A CD is a savings account with a fixed interest rate and withdrawal date. Banks and credit unions offer it and typically have higher interest rates than regular savings accounts. Withdrawal before the maturity date incurs penalties. CDs are a low-risk way to save money with a guaranteed return.
What is the highest CD rate in history?
According to the Federal Reserve Bank of St. Louis data, the best bank CD rates were prevalent more than 30 years ago, with an 18.65% return on three-month CDs in 1980. Today, consumers can buy CDs above 5% but no longer achieve 6% rates.
Are CD rates forecasted to increase or decrease?
As of March 2024, interest rates are forecasted to decrease gradually over the next 12 months.
Are CDs safe?
Your CD is protected up to $250,000 when held at an FDIC-insured bank or an NCUSIF-insured credit union, whether with an online bank, a physical bank, or a credit union, as the U.S. government backs these accounts. Ensure you stay within the insurance limits for each account ownership category.
Are there fees associated with CDs?
CDs usually have penalties for early withdrawals, except for No-penalty CDs. However, even these might have penalties if funds are withdrawn within the first 6 to 7 days of opening.
What is considered a good CD rate?
A reasonable CD rate is influenced by your personal financial needs and how long you can lock up your money. Typically, longer terms offer better yields because banks value the certainty of holding your funds for a set duration. To ensure you’re getting a good deal, compare CD rates to national averages, noting that some banks offer rates exceeding 5 percent.
Is an online bank the best choice for a CD?
Due to their lower overhead costs, online banks often provide higher APYs than traditional brick-and-mortar banks. These savings are passed to customers at higher rates. Additionally, online banks might offer more competitive rates than local banks to attract and retain customers.
How long can you leave money on a CD?
CDs typically renew automatically, but if left unclaimed, they can be transferred to the government based on state laws. To prevent your CD from being considered abandoned, maintain regular contact with your bank and ensure they have your current mailing address.
Do CDs have beneficiaries?
Banks let you name a beneficiary for your CD, who will get your savings if you die. Experts recommend doing this. Without a named beneficiary, your CD savings will go through a court process called probate after your death.
Can you lose money in a CD?
Your money is safe if your CD is in an FDIC-insured bank or NCUA credit union and meets their guidelines. However, withdrawing early could cost you some interest or even part of the principal.
What happens if I withdraw from a CD early?
Early withdrawal from most CDs results in a penalty, typically a few months to a year of interest. Only no-penalty CDs allow fee-free early withdrawals. Explore various CD types for more information.
Who has the highest 12-month CD rate?
Broadway Bank offers 5.60% APY for 12 months.
What is the highest-paying CD rate right now?
Local Government Federal Credit Union offers 5.75% APY for 18 months.
What is the best CD rate for $100,000?
Eastman Credit Union offers one of the best CD interest rates today at 5.40% APY for 12 months.
Who has the best online CD rates?
Raisin offers the highest online bank CD rates.
Can you withdraw interest from CD without penalty?
In most cases, you cannot withdraw interest from a certificate of deposit (CD) without incurring a penalty. The penalty is typically a percentage of the interest earned or a certain number of days’ worth of interest. However, there are no-penalty CDs that earn less interest with more liquidity.
What are the different CD terms available?
CD terms can range from 3 months to 10 years or more. Each term offers different interest rates and potential returns. When choosing a CD term, consider your investment goals and time horizon.
What is a good cd rate?
Any APY above 4% is considered a good CD rate. Select a longer term because rates are only decreasing going forward.
What’s the minimum deposit for a CD?
The minimum deposits for a CD is $1.
Can I roll a CD that matured yesterday into another CD?
Yes, you can typically roll over a Certificate of Deposit (CD) that matured yesterday into another CD. Most financial institutions offer a grace period after a CD’s maturity, during which you can transfer the funds to a new CD. This grace period varies but is commonly around 7 to 10 days from the date of maturity. It’s important to act within this window to avoid automatic renewal or transfer of the funds to a different account type.
*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!
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