We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The best CD rate from a nationally available institution is currently 5.55% APY, available from Newtek Bank for 6 months. That's more than three times the FDIC's national average rate of 1.52% on a 6-month term and is one of two dozen top-ranked offers you can find in our rankings below. Certificates of deposit (CDs) are fixed-interest accounts where you can deposit your money and then withdraw it later. While your money is in the CD, you can't touch it (unless you really need it). Once the term is up—usually a certain number of months or years—you get your money back plus interest. Depending on how much money you deposited, your interest earned could be a few hundred or a few thousand dollars. And since the interest is guaranteed, CDs are a safe investment that appeal to people in various financial situations. Since 2019, we've been tracking the CD rates of more than 200 nationally available banks and credit unions every weekday, putting the results in our daily ranking of the highest CD yields across every major term. Though we focus on the highest returns available, we also provide you with details on each CD's exact term, the minimum required deposit, and its early withdrawal penalty policy. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere. At the Fed's most recent meeting in March, the committee decided to hold rates steady—the fifth meeting in a row it has done so—but said again that it expects to cut rates later this year. The Fed's dot plot shows that Fed members believe there will be three rate cuts later this year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years. But now, the Fed’s holding pattern has caused CD rates to plateau. Once it appears the Fed is ready to make a rate cut, CD rates are expected to fall. In cases where more than one institution offers the same top rate, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum opening deposit, and if there's still a tie, we sort alphabetically by institution name. The CD rates listed below are current as of the previous business day. Investopedia collects thousands of CD rates from hundreds of banks and credit unions every weekday. When ranking CD rates, we look at factors like term, early withdrawal penalty, and minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best CD rates since 2019. The CDs we recommend must be available nationwide and these certificates typically pay three to five times as much as the national average—or even more. To be eligible for our rankings, each CD's minimum opening deposit requirement cannot exceed $25,000 and must be offered by an FDIC-insured bank or NCUA-insured credit union (which covers up to $250,000 per depositor). Pros 3-, 6-, and 12-month CDs all have rates of at least 5.35% Cons High minimum opening deposit TotalDirectBank can't conduct business in Florida Pros Highest APY available nationwide Cons No physical branches Pros Low minimum opening deposit Cons No physical branches outside of Virginia Pros Low minimum deposit Easy path to membership Cons Physical branches only in Kentucky and Tennessee Pros Low minimum deposit Cons Credit Human branches limited to locations in Texas, Louisiana, and North Carolina Pros Low minimum deposit requirement Cons No physical branches Pros Low minimum deposit Cons Half of $10 opening deposit is nonrefundable Pros Low minimum deposit Cons Credit Human branches limited to locations in Texas, Louisiana, and North Carolina *Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. But the fine print indicates that for deposits of $25,000, a 0.10% premium applies. Pros Can lock in the rate for up to seven years Minimal early withdrawal penalty relative to the term Cons Best rate requires $25,000 deposit Pros Low minimum opening deposit Cons 10 years is a long time to leave money in a CD A CD rate is an interest rate that shows what a bank or credit union will pay you for depositing your money with them for a certain time in a certificate of deposit (CD). For example, if the rate is 5.50% for a 1-year CD, the bank or credit union will pay you 5.50% in interest on your money for keeping it in the account, untouched, for 12 months. If you deposit $1,000 in that account and keep it there for 12 months, you will earn $55 at the end of the term. A certificate of deposit (CD) is similar to a bank deposit account. The difference is what you're agreeing to when you sign on the dotted line (even if that signature is now digital). A CD works by locking your deposit up for a set time. When time is up, the CD pays you the set interest rate you agreed to when you opened it. A CD locks you into four specific things: Once your CD is established and funded, the bank or credit union will set the terms and conditions like with most other deposit accounts. You'll get either monthly or quarterly statement periods, paper or electronic statements, and usually monthly or quarterly interest payments deposited to your CD balance, where the interest will compound. The money you put into a CD is insured like other deposit accounts—up to $250,000 per customer, per institution. You typically won't see big names like Chase, American Express, or Bank of America in our rankings of the best CD rates. We do research their rates, but they don't make our list simply because they don't pay enough. Extremely large banks typically don't need to attract customers and deposits in the way that smaller institutions do, so they don't need to use rates as a way to win business. In fact, some of the biggest banks pay interest rates very close to zero, but it depends and can change from month to month. Our best CD rates are based on careful research, and we update this article every day to give you the best CD rates available nationwide. If you invest $10,000 in a CD for one year, you could earn $540—that's based on the best 1-year CD rate offered right now (5.40% APY). CD rates can change, so locking in a high interest rate today could guarantee you the maximum earnings, especially if CD rates drop by next year. There are a few scenarios you may encounter or need to decide between when it comes to investing $10,000 in a CD. It'll depend on the rate and CD term you choose. Here are a few scenarios: If you're looking to save money for a certain amount of time and you want to make sure you don't touch it until you need it, then you should get a CD. If you're risk-averse and don't want to invest money in the stock market because there's no guarantee you'll see a return, then you should consider a CD. CDs offer a fixed rate of return that guarantees you earnings when the term is over. And right now, CD rates are high—over 4% and 5% in many cases—so you can earn a decent amount on your deposit. When asked in January what they would invest in if they had an extra $10,000,9% of Investopedia readerssaid they would open a CD, in fourth place behind individual stocks, ETFs, and stock index funds. That’s down from 11% in December. Online banks or credit unions tend to offer high CD rates because of the lower overhead costs. If you're worried about opening an online bank account, just do your research to ensure the institution comes with FDIC or NCUA insurance. It may also be an online arm of a larger, brick-and-mortar institution, which could give you peace of mind. Big banks like Bank of America, Chase, Capital One, Wells Fargo, American Express, and more offer CDs too, but they may not pay the highest CD rates. It's important to shop around and consider all financial institutions before choosing a CD. When choosing a CD, consider the following factors: Once you choose a CD, open the account, and deposit your money to start earning interest. I had two short-term savings goals, so I looked for a 6-month and a 1-year CD with a high APY that I could ladder. I checked out a few of the options on our list and decided to go with CIT Bank and Bread Savings, because applying for the CDs online was really easy, and they offered mobile apps—I’m one of those people who checks their financial accounts frequently, if not daily. I’d keep accounts with both of them (assuming the rates are good when the two terms end). If you withdraw money early from a CD, you'll likely have to pay an early withdrawal penalty. This is usually a certain number of months' worth of interest that you earned in the CD thus far. For example, if you had deposited $10,000 in a 12-month CD with a rate of 5.00%, and withdrew it early, you might have to pay three months' worth of the interest you had earned. So instead of cashing out $500 at the end of the CD term, you'd walk away with less interest earned, the exact amount depending on how early you withdrew the money. Now, not all CDs have early withdrawal penalties. Some no-penalty CDs are available and have more flexibility, However, they may also come with lower interest rates. Ranked below are the top 15 or more APYs on nationally available CDs with minimum deposits of no more than $25,000. In the case of ties, we rank them first by the shortest available term, then by the lowest minimum deposit, and finally by the smallest early withdrawal penalty. To open a CD, you'll need some personal information including, but not limited to: For example, you may need to provide a copy of your license or ID if you don't have an account with that institution already. When you have that info handy, fill out the application for your CD account: Once you've done all that, you should officially have a CD in your name, though check with the institution to ensure you've taken all the right steps. Smart CD investors have a specific tactic for hedging against rate changes over time and maximizing their return. It's called aCD ladderand it enables you to access the higher rates typically offered on 5-year CDs, but with the twist that a portion of your money becomes available every year, rather than every five years. Here's how to do it. Just like how the interest you earn on any money you have in savings, money market, and checking accounts is taxable as interest income at both the state and federal levels, the interest you earn on your money in a CD is too. Your CD earnings will be reported to the IRS in the year they were earned and posted to your account, so that's when they're taxable—even though you may not withdraw the funds for one or more years into the future. For example, if you have $1,000 in a 1-year CD with a 5.00% interest rate, you'll earn $50 in interest. You owe taxes on that $50, but not on the $1,000 principal you deposited at the start of the term. In February 2024, inflation was 3.2%, while the top rate offered across all CDs was over 5.50%. CD rates reached historic highs in 2023 as a result of the Fed's rate-hike policy to cool inflation, which had reached 9.1% in June 2022. CDs can help you combat inflation by paying you interest on your money, even though you may be paying more for goods and services. This will not always be the case, though. Interest rates are often increased to help combat high inflation. When inflation drops back to the standard 2% mark the Fed aims for each year, then interest rates may also drop back from their highs. Traditional savings accounts tend to offer a low interest rate. Banks or credit unions with no high-yield savings account options may only offer traditional savings accounts that pay 0.01% to 0.10%. While the national average for savings rates is 0.47%, according to the FDIC, many banks pay much less. For example, Wells Fargo's Way2Save account pays 0.01% APY and Chase offers just 0.01% with its Chase Savings account. When interest rates are high, the top CD rate can be up to 600x the rate you may be earning on your money in a traditional savings account. If you just aren't sold on committing your funds for a certain amount of time, or simply can't afford to because you may need the money in the near term, a high-yield savings account. You'll be free to withdraw and deposit funds as you like, though some institutions will limit how many withdrawals you can make each month. Some savings accounts may also require a minimum balance. If you're looking for other high-yield accounts, a money market account may serve your needs. Money market accounts offer the feature of allowing you to write checks on the account. They may also come with minimum deposit or balance requirements like savings accounts, and money market account rates can easily compete with savings account rates. You can always find the top nationally available rates in our daily rankings of the best high-yield savings accounts and best money market account rates. Both accounts have deposit insurance through the FDIC or NCUA. Some money market accounts come with debit cards, but money market accounts tend to act more like savings accounts. If you're interested in venturing out of the bank and into the world of bonds, you have numerous options. You could put cash savings into U.S. government I bonds, which are designed to track or beat the inflation rate. Or you could invest in U.S. Treasuries, in which you lend money to the U.S. government for a fixed amount of time. The Treasury notes with durations of four weeks to one year are called T-Bills. Another option is corporate and municipal bonds. Though it's difficult to research individual bonds on your own, you can easily invest in a bond mutual fund or bond exchange-traded fund which is diversified across a bundle of different bond issues. You can also enter and exit these funds at any time. If you have a brokerage account, you can also hold savings in the brokerage’s cash reserve account or their money market fund (not to be confused with the money market accounts offered by banks). Just be sure to research what rate you’ll earn because in many cases, these brokerage cash accounts pay far less than what you can earn by keeping your money in an outside CD, savings account, or money market account. Some brokerages may also offer brokered CDs, another option if you're already investing with a broker and want to open a CD. An annuity is a type of fixed-income investment provided by financial institutions. You can buy an annuity and pay into it with monthly payments or a lump sum. Then, in the future, you receive fixed monthly payments. Annuities are insurance contracts that can guarantee income. While they are similar to a CD in that the income is guaranteed as long as you follow the rules of the contract, they are not as short-term as CDs may be. Annuities are most often used in retirement planning. CDs can also be used for retirement planning, but they are usually bought and held for terms of 6 months to 5 years, rather than an annuity which could be owned for 20 years, or something similar. There may also be different withdrawal rules and limits, as well as tax consequences with annuities. Treasury bills are debt obligations backed by the U.S. government. They usually have maturities of one year or less. That timing is similar to CDs with shorter terms, but Treasury Bills may not offer the same level of return on the investment. Rates are comparable, ranging from 4.76% to 5.39% as of March 20, 2024, but they can fluctuate daily. CD rates can also change daily. The thing with T-bills is that you buy them at a discount and when they mature, you receive the full amount back, plus a little more. For example, you might buy a $1,000 T-bill for $950. When the bill matures, you will get $1,000, or $50 more than what you paid for it. This increase of $50 is the interest you earn. CDs are a little less complicated, where you put in a set amount, and then receive a fixed interest rate when it matures. The highest-paying CD right now is from Newtek Bank, which offers a rate of 5.55% APY on a 6-month CD with a minimum deposit of $2,500. That could change, though, as interest rates fluctuate daily and institutions can offer CDs with high interest rates for as long or as short of a time as they want. CDs are safe because they are usually offered by banks or credit unions which are insured by the FDIC or NCUA. This means your money at a bank or credit union, across all of your accounts (CDs, savings, and checking, etc.) is insured for up to $250,000. CDs also come with virtually no risk since the interest rate is usually fixed; you'll know what to returns to expect before even opening the CD. The top CD rates have changed over time, from around 1.35% in 2021, to over 5.50% by the start of 2024. This is because CD rates typically follow the trend of the fed funds rate. So when the fed funds rate is low, CD rates tend to be low. When the fed funds rate is high, CD rates tend to be high. To combat high inflation between 2021 and 2023, the Fed raised the fed funds rate. The Fed held rates steady and in March 2024, the best CD rates were between 4.60% and 5.55% APY. CD rates took off in 2023. In 2024, there's no sure answer as to what CD rates will do. CD rates are closely tied to the fed funds rate. In December 2023, the Federal Reserveheld interest rates steady, keeping it at a 22-year high for the third meeting in a row. The Fed's December 2023dot plot showed that no members of the rate-setting committee predict another rate increase in 2024. Instead, expectations are for three rate cuts in 2024, for a total drop of 0.75%. If those rate cuts happen, then CD rates will likely follow suit. Of course, nothing is certain. But in anticipation, CD rates softened more in 2024, and so there may be more rate drops this year. There are not usually fees associated with the CD that you want to open. However, you may be required to open a savings account at the institution before you can open the CD there. This could require a deposit of $5 or more. Additionally, some credit unions ask new members to make a charitable donation in order to sign up for an account, and this could cost up to $40. CD terms often range from 3 months to 10 years, so you can have your money in a CD for generally any length of time in between. Some CDs have terms of 8 or 9 months, others have 15-month terms, and there are 1-year, 2-year, 3-year, 4-year, 5-year, 6-year, 7-year, 8-year, and 10-year terms—though the longer terms may be offered by fewer banks or credit unions. Putting money into a CD right now may be a smart move if you're looking to earn a high interest rate on money you don't need. CD rates are over 5.00% for many terms right now, and locking up your money for six, 12, or even 24 months could help you in the long run if CD rates decline in the next year or two. A CD with a minimum deposit requirement of $100,000 or more is usually considered a jumbo CD. While the required minimum deposit is higher than traditional CDs, the interest rates on jumbos are not always higher. That means you could earn a higher interest rate by depositing $100,000 in a traditional CD instead of a jumbo CD. Just shop around to learn which CD is best for your money and situation. We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. FDIC. "National Rates and Rate Caps." TotalDirectBank. "About Us." Newtek Bank. "FAQ." NewtekOne. "We Do It Better." NewtekOne. "Get in Touch." Apple FCU. "About Us." Fortera Credit Union. "About Us." Credit Human. "Our History." DollarSavingsDirect. "Learn More." Pelican State Credit Union. "Who We Are." National Credit Union Administration. "Credit Union Details." Federal Deposit Insurance Corporation. “Your Insured Deposits.” National Credit Union Administration. “Share Insurance Fund Overview.” IRS. "Topic No. 403, Interest Received." Bureau of Labor Statistics. "Consumer Price Index - February 2024." Bureau of Labor Statistics. "Consumer Prices up 9.1 Percent Over the Year Ended June 2022, Largest Increase in 40 Years." FDIC. "National Rates and Rate Caps." U.S. Department of Treasury, TreasuryDirect. “Treasury Bills.” U.S. Department of the Treasury. "Daily Treasury Bill Rates." Federal Reserve Board. "Federal Reserve Issues FOMC Statement, Dec. 13, 2023." Federal Reserve Board. "Economic Projections From the Dec. 12-13 FOMC Meeting." Board of Governors of the Federal Reserve System. "Open Market Operations."In the News
BEST CD RATES MARCH 2024 Ranked by highest APY, then shortest term, then lowest minimum Best 3-Month CDs Rate Term Minimum TotalDirectBank 5.42% APY 3 months $25,000 Dow Credit Union 5.30% APY 3 months $500 Farmers Insurance Federal Credit Union 5.25% APY 3 months $1,000 For more options, see our in-depth 3-month CD rankings Best 6-Month CDs Rate Term Minimum Newtek Bank 5.55% APY 6 months $2,500 My Banking Direct 5.50% APY 5 months $2,500 Superior Choice Credit Union 5.50% APY 6 months $500 For more options, see our in-depth 6-month CD rankings Best 1-Year CDs Rate Term Minimum Apple Federal Credit Union 5.40% APY 12 months $500 CFG Bank 5.40% APY 12 months $500 USAlliance Financial 5.40% APY 12 months $500 For more options, see our in-depth 1-year CD rankings Best 18-Month CDs Rate Term Minimum Fortera Credit Union 5.35% APY 18 months $1,000 Technology Credit Union 5.25% APY 17 months $1,000 Farmers Insurance Federal Credit Union 5.25% APY 18 months $1,000 For more options, see our in-depth 18-month CD rankings Best 2-Year CDs Rate Term Minimum Credit Human 5.20% APY 18–23 months $500 Department of Commerce Federal Credit Union 5.12% APY 12–23 months $25,000 Pelican State Credit Union 5.00% APY 24 months $500 For more options, see our in-depth 2-year CD rankings Best 3-Year CDs Rate Term Minimum DollarSavingsDirect 5.00% APY 36 months $1,000 Transportation Federal Credit Union 5.00% APY 36 months $1,000 Hughes Federal Credit Union 4.86% APY 36 months $1,000 For more options, see our in-depth 3-year CD rankings Best 4-Year CDs Rate Term Minimum Pelican State Credit Union 4.80% APY 48 months $500 Credit Human 4.60% APY 36–59 months $500 Department of Commerce Federal Credit Union 4.60% APY 36–47 months $25,000 For more options, see our in-depth 4-year CD rankings Best 5-Year CDs Rate Term Minimum Credit Human 4.60% APY 36–59 months $500 Department of Commerce Federal Credit Union 4.60% APY 48–59 months $25,000 First Internet Bank 4.55% APY 60 months $1,000 For more options, see our in-depth 5-year CD rankings Best 6- to 9-Year CDs Rate Term Minimum Department of Commerce Federal Credit Union* 4.44% APY 5–7 years $25,000 First National Bank of America 4.35% APY 6 years $1,000 OnPath Federal Credit Union 4.35% APY 6 years $1,000 Luana Savings Bank 4.09% APY 6 years $2,000 KS State Bank 4.06% APY 7 years $500 Best 10-Year CDs Rate Term Minimum Apple Federal Credit Union 4.00% APY 10 years $500 Credit Human 4.00% APY 10 years $500 Discover Bank 3.75% APY 10 years $2,500 For more options, see our in-depth 10-year CD rankings Why You Can Trust Our Expert Recommendations for the Best CD Rates
Best 3-Month CD Rate: TotalDirectBank – 5.42% APY
Best 6-Month CD Rate: Newtek Bank – 5.55% APY*
Best 1-Year CD Rate: Apple Federal Credit Union – 5.40% APY
Best 18-Month CD Rate: Fortera Credit Union – 5.35% APY
Best 2-Year CD Rate: Credit Human – 5.20% APY
Best 3-Year CD Rate: DollarSavingsDirect – 5.00% APY
Best 4-Year CD Rate: Pelican State Credit Union – 4.80% APY
Best 5-Year CD Rate: Credit Human – 4.60% APY
Best 6- to 9-Year CD Rate: Department of Commerce Federal Credit Union*
Best 10-Year CD Rate: Apple Federal Credit Union – 4.00% APY
What Is a CD Rate?
How Does a CD Work?
Why You Might Not Recognize the Banks and Credit Unions in Our CD Rankings
How Much Does $10,000 Earn in a CD in One Year?
Deposit Amount APY Term Earnings $10,000 5.00% 3 months $98.53 $10,000 5.00% 1 year $500 $10,000 5.00% 3 years $1,248.64 Who Should Get a CD?
Fast Fact
Types of CDs
Note
Pros and Cons of CDs
Pros
Cons
How to Choose the Best CD for You
Christine DiGangi, Investopedia Product Reviews Team
What Happens if I Withdraw From a CD Early?
Compare the Best CD Rates
Institution Rate (APY) Term Minimum Deposit Early Withdrawal Penalty Newtek Bank 5.55% 6 months $2,500 3 months of interest My Banking Direct 5.50% 5 months $2,500 1 month of interest Superior Choice Credit Union 5.50% 6 months $500 6 months of interest Home Savings Bank 5.50% 6 months $5,000 3 months of interest Corporate America Family Credit Union 5.50% 7 months $1,000 2 months of interest Great River Federal Credit Union 5.48% 5 months $500 6 months of interest TotalDirectBank 5.45% 6 months $25,000 1 month of interest TotalDirectBank 5.42% 3 months $25,000 1 month of interest Genisys Credit Union 5.41% 9 months $500 3 months of interest MutualOne Bank 5.40% 9 months $25,000 3 months of interest Apple Federal Credit Union 5.40% 12 months $500 All earned interest (6 months maximum) CFG Bank 5.40% 12 months $500 6 months of interest USAlliance Financial 5.40% 12 months $500 6 months of interest Expedition Credit Union 5.40% 12 months $2,500 3 months of interest NexBank 5.40% 12 months $25,000 6 months of interest What You Need to Open a CD
How To Build a CD Ladder
How Are CDs Taxed?
CDs vs. Inflation
Alternatives to CDs
CDs vs. Traditional Savings Accounts
CDs vs. High-Yield Savings Accounts
CDs vs. Money Market Accounts
Note
CDs vs. Bonds
CDs vs. Brokerage Accounts
Note
CDs vs. Annuities
CDs vs. Treasury Bills
Frequently Asked Questions
Who Has the Highest CD Rate Right Now?
Are CDs Safe?
How Have CD Rates Changed Over Time?
Are Higher CD Rates Coming in 2024?
Are There Fees Associated With CDs?
How Long Can You Have Money in a CD?
Is It Worth Putting Money in a CD Right Now?
What Is Considered a Jumbo CD?
Financial Institutions We Reviewed
How We Find the Best CD Rates
Your Guide to CDs
FAQs
What bank is paying 5% on CDs? ›
Account Name | APY (Annual Percentage Yield) Accurate as of 4/16/2024 | Minimum Account Opening Balance |
---|---|---|
Alliant 1 Year CD | 5.15% | $1,000 |
Western Alliance Bank 3 Month CD | 5.26% | $1 |
Barclays 6 Month Online CD | 5.00% | $0 |
Freedom Bank 1 Year No Penalty CD | 4.85% | $1 |
You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.
Who is paying the highest CD rates right now? ›- Barclays Bank — 6 months - 5 years, 3.50% – 5.30% APY, no minimum deposit.
- America First Credit Union — 3 months - 5 years, 4.20% – 5.30% APY, $500 minimum deposit.
- Popular Direct — 3 months - 5 years, 4.30% – 5.30% APY, $10,000 minimum deposit.
The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.
Is there a 5% CD rate? ›The amount of money you can make with a 5% CD interest rate is dependent on three key factors: the amount you deposit, the length of your CD (also known as the term) and the lender you open the account with (as some may not charge any fees while others may charge exorbitant ones).
Where can I get 6% interest on my money? ›Digital Federal Credit Union has an account that pays over 6% APY, but you must meet membership requirements to get started. You also won't earn this high interest rate on your entire Digital FCU savings balance. Plenty of savings accounts are available around the U.S. and still offer great rates — over 5% APY.
Why you should put $15,000 into a 1-year CD now? ›With such high interest rates, the earnings on CDs are impressive. You'll earn $850.50 for a total of $15,850.50 after one year when you open a $15,000 1-year CD with Popular Direct when calculating the returns at current rates.
What bank is offering a 6% CD? ›Financial Partners Credit Union
The credit union is offering an 8-month CD special paying 6.00% APY to new members (one CD per new member only). The CD has a minimum opening deposit of $1,000 and a maximum opening deposit of $5,000.
INSTITUTION | STAR RATING | 6-MONTH APY |
---|---|---|
Bank5 Connect | 4.4 | 5.05% |
Sallie Mae Bank | 4.3 | 4.80% |
Synchrony Bank | 4.2 | 5.15% |
Marcus By Goldman Sachs | 4 | 4.80% |
BEST NATIONAL JUMBO CDs | ||
---|---|---|
CD Bank | 5.20% APY | $100,000 |
All In Credit Union | 4.54% APY | $100,000 |
Luana Savings Bank | 4.42% APY | $100,000 |
Best non-Jumbo option: MutualOne Bank | 5.65% APY | $500 |
Which bank gives 7% interest on savings account? ›
Currently, there are no savings accounts on the market that offer a 7% APY. It's much more common to find a savings rate of 4% to 5% right now.
Who has the highest 12 month CD rate today? ›- Sun East Federal Credit Union – 5.30% APY.
- Northpointe Bank – 5.30% APY.
- Prime Alliance Bank – 5.30% APY.
- Colorado Federal Savings Bank – 5.30% APY.
- Home Savings Bank – 5.30% APY.
- My eBanc – 5.30% APY.
- TAB Bank – 5.27% APY.
- Rising Bank – 5.26% APY.
Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on March 19. If the Fed rate drops, CD rates will likely follow suit, though it's up to each bank and credit union if and when that occurs.
What are the CD rates in March 2024? ›As of March 2024, average one-year CD rates are at 1.81%.
Should you lock in CD rates now? ›If you believe interest rates will stay elevated for the near future or need regular income, CD laddering may still make sense. If you're concerned about interest rates falling in the future and don't expect to need access to your funds, locking in today's high rates for the long-term may make more sense.
Who has the highest paying 5 year CD? ›- Bread Savings™️ CD: 4.15% APY.
- Alliant Credit Union Certificate: 4.00% APY.
- Ally Bank High Yield CD: 3.90% APY.
- Popular Direct CD: 4.30% APY.
- Synchrony Bank CD: 4.00% APY.
- Capital One 360 CD: 3.90% APY.
- Sallie Mae Bank CD: 4.00% APY.
- LendingClub CD: 4.00% APY.
Account Name | APY (Annual Percentage Yield) Accurate as of 4/15/2024 | Minimum Account Opening Balance |
---|---|---|
UFB Secure Savings | 5.25% | $0 |
EverBank Performance℠ Savings | 5.15% | $0 |
CIT Bank Platinum Savings | 5.05% (with $5,000 minimum balance) | $100 |
Wealthfront Cash Account | 5.00% | $1 |
Account | Term | APY |
---|---|---|
Standard Term CD | 28 – 89 days | 0.03% |
Standard Term CD | 90 – 179 days | 4.00% |
Standard Term CD | 6 – 120 months | 0.03% |
Flexible CD | 12 months | 3.51% |