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The best certificate of deposit (CD) rates help your money grow in a stable, FDIC-insured environment. And don't tell your savings account, but CD rates are often competitive with the best savings account rates.
However, there is a trade-off: To get these great CD interest rates, you have to agree not to withdraw your money for a certain amount of time. Keep reading to compare the best CD rates and get answers to your top CD questions.
Short on time? Here are a few of our favorite CDs:
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 5.00% | Term: 1 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.40% | Term: 1.5 Year | Min. Deposit: $2,500 | |
APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | ||
Member FDIC.
| APY: 4.50% | Term: 1 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 5.15% | Term: 6 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.60% | Term: 1.5 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.65% | Term: 2 Year | Min. Deposit: $1,500 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.90% | Term: 1.5 Year | Min. Deposit: $1,000 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.95% | Term: 6 Months | Min. Deposit: $500 | |
| APY: 5.15% | Term: 1 Year | Min. Deposit: $2,500 |
|
Ready to get started, but not sure how to compare CD rates? Here are some of the things to keep an eye out for:
APY = Annual Percentage Yield
Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's web site for the most up-to-date rates.
6 Mo. APY | 9 Mo. APY | 10 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|---|
4.25% | 4.25% | 5.10% | 4.80% | 4.45% | 4.00% | 4.00% | 3.95% | 3.90% |
APY = Annual Percentage Yield
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. The only common CD term missing is a six-month CD -- in fact, there's no CD term less than one year, but those interested in building longer-term CD ladders will find plenty to like here.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.00% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
APY = Annual Percentage Yield
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
---|---|---|---|---|---|---|---|---|---|---|---|
2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
APY = Annual Percentage Yield
Western Alliance offers some of the highest APYs we've seen across short-term CDs, low $1 minimums, and relatively low withdrawal penalties without any additional fees. But you will need to look elsewhere for terms longer than one year.
3 Mo. APY | 5 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY |
---|---|---|---|---|
5.26% | 5.30% | 5.23% | 5.15% | 5.05% |
APY = Annual Percentage Yield
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a four-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
APY = Annual Percentage Yield
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|
5.15% | 4.90% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 6 Yr. APY |
---|---|---|---|---|---|---|---|---|
4.80% | 4.90% | 4.90% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
APY = Annual Percentage Yield
Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.
3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
3.00% | 4.40% | 4.45% | 4.65% | 4.45% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
APY = Annual Percentage Yield
The rates on Prime Alliance Bank's CDs are decent enough, but you can find better. However, the relatively low $500 minimum deposit makes these more available to the everyday saver -- or someone looking to build a CD ladder.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.95% | 4.95% | 4.75% | 4.50% | 4.25% | 4.00% | 4.00% |
APY = Annual Percentage Yield
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of their CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|
5.00% | 5.15% | 5.00% | 4.50% | 4.30% | 4.00% |
As of March 2024, CD rates are at their highest level in several years. The Federal Reserve increased the benchmark federal funds rate sharply from 2022 through 2023, and while CD rates aren't directly linked to the federal funds rate, they tend to move in the same direction.
You might also notice that shorter term (six-24 month) CD rates are generally higher than long-term CD rates right now. Historically, the opposite is typically the case. The short explanation is that shorter-term CD rates are more dependent on the current interest rate environment, while longer-term CD rates tend to reflect future expectations for interest rates. Since benchmark rates are widely expected to fall in 2024 and 2025, we're seeing this figured into the rates paid on longer-term CDs.
To be perfectly clear, nobody can predict future CD rates with accuracy. They tend to move in the same direction as benchmark interest rates like the federal funds rate, but they aren't directly linked and banks have some discretion to set their own rates.
Having said that, the most recent projection from the policymakers at the Federal Reserve is for three 0.25% cuts to the federal funds rate in 2024 and several more in 2025. If this were to happen, it would likely put downward pressure on CD rates. In short, while nobody knows for sure, CD rates are likely to fall between now and the end of 2024.
A certificate of deposit (CD) is a type of FDIC-insured deposit account offered by many banks and credit unions that usually has a fixed interest rate over a certain number of months or years. CD interest rates are often higher than what you find with most savings accounts, but they carry the stipulation that you must not touch the money until the CD term is over. If you withdraw the funds early, you pay a penalty, though some banks allow a CD loan (a loan secured by the money you already have in your CD).
You deposit a certain amount of money into a high-yield CD and agree not to touch it for the length of the CD term in exchange for a high rate of interest that's usually locked in for the full term. Your bank pays that interest monthly or quarterly, and when the CD term is up, you may withdraw the funds and spend them, place them in a savings account, or put them in another high-interest CD.
Withdrawing your funds before the CD term ends results in a penalty -- usually several months' worth of interest. The earlier you withdraw the funds, the larger your penalty will be.
CDs are appealing if you're trying to earn a high APY on your savings, but the fact that you cannot touch your money for a set amount of time can be too constraining for some people. If you don't think a high-yield CD is a great fit for you, perhaps one of these accounts would work better.
High-yield savings accounts offer interest rates that are comparable to the highest CD rates. Plus, savings accounts have fewer restrictions on what you can do with your money. You're able to put money in, transfer it to a checking account, or withdraw it almost whenever you want (though withdrawals are often limited to six a month, per Regulation D).
Below are some examples of high-yield savings accounts.
Money market accounts are a hybrid of checking and savings accounts. They offer interest rates similar to high-yield savings accounts and certificate of deposit rates. In addition, money market accounts often give you a debit card and check-writing capabilities. That means, with a money market account, you can directly withdraw funds from your account at your convenience.
This might be a better option than a high-yield savings account or a CD if you anticipate needing to take money directly out of your account.
You can find our top picks on our Best Money Market Accounts page.
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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When you're looking for the best CD rates today, don't forget to consider these things:
The CD's term is the length of time you agree to not touch your money. It can range from one month on the short end to six years or more on the long end. Most range from six months to five years. You'll often find the longer the CD term, the higher the interest rate.
While some of the highest CD rates have no minimum deposit, others may require a few hundred to a few thousand dollars. Some jumbo CDs may have five-figure minimum deposit requirements.
Most CDs add the interest you earn to your account balance, but some give you the option to have your interest paid directly to you. If you go this route, you can reap some of the benefits of your high-yield CD immediately. But bear in mind that if you leave the money in your account instead, you can earn interest on your interest, which leads to more money overall.
CD accounts offered by banks should carry FDIC insurance so your money is protected up to $250,000 per person per account. NCUA does the same thing for share certificates offered by credit unions. Most high-yield CDs will have the appropriate insurance, but it pays to be sure.
Step-up and bump-up CDs occasionally raise your rates. If you're interested in one of these, pay attention to how often you or the bank can increase the rate when you compare CD rates.
Some CDs are callable, which means the bank can call it back from you at some point and reissue you a new CD, possibly at a lower rate.
TIP
Some banks automatically enroll you in a new CD of the same term length unless you specify that you want to do something different. It's usually a bad idea to let your bank open a new CD for you. Watch out for this and make sure you tell your bank what you want to do with your money instead.
Online banks overwhelmingly offer the best CD interest rates when compared to larger brick-and-mortar traditional banks. In fact, some of our favorite online banks' current CD rates are multiple times higher than what you'd find with a national bank.
We've rarely seen a reason to invest in CDs with a brick-and-mortar national bank, especially when online banks offer the same FDIC insurance protection. CD interest rates at online banks tend to be higher.
If looking to compare CD rates, we suggest reviewing some of the current rates on CDs at the following financial institutions:
CDs can be smart choices for savers who won't need access to their cash anytime soon and want to lock in a high yield for a certain amount of time. A CD can be a better choice than a savings account for money you won't need anytime soon, as savings account yields can fluctuate significantly over time, while CD yields are guaranteed for the entire term.
Conversely, CDs are generally not a good idea for money that you might need in the near future. Most CDs assess a penalty if you decide to withdraw money before the maturity date, and they generally don't allow partial withdrawals.
Like any financial product, there are advantages and disadvantages when it comes to putting money into a CD. Before deciding if a CD is a good idea for you, it's important to make sure the pros outweigh the cons, so here are lists of each.
Amy Sabin, CEPA®
Managing Director & Wealth Advisor with The Sabin Group at Steward Partners
Amy previously she worked for Bear Stearns and remained with them through the acquisition by JP Morgan. She holds 4 investment licenses, an AAMS degree and the Certified Exit Planning Advisor CEPA® certification.
CD’s are suitable for investors that:
A CD stands for a “certificate of deposit” and are issued primarily by banks. They are financial instruments that pay either a fixed, variable or stepped up coupon. The most common CDs are those with a fixed coupon. The interest on a CD can be paid daily, monthly, quarterly or even annually. In the United States, CD’s are nearly always insured by the FDIC which is the Federal Deposit Insurance Corporation which is an agency of the federal government. CDs are used as an investment to offer security and a return of principal and the stated interest rate.
Nobody knows for certain if CD rates will increase. CD rates are determined by the bank or financial institution issuing the instrument and typically have a very tight correlation to the US bond market and the corresponding yield that is closest to the maturity of the CD.
CD laddering is the method of buying CD’s with consistent, staggering maturities. For example, if you would like to invest $1mm in a CD ladder, you could invest $200k in a CD that matures in 1 yr, another $200k that matures in 2 years, a third $200k that matures in 3 years, etc.
Rita-Soledad Fernández Paulino
CEO of Wealth Para Todos
Rita-Soledad Fernández Paulino is the founder and CEO of Wealth Para Todos, a financial coaching and education platform dedicated to removing barriers to financial security for marginalized communities.
CDs are a great option for people who have already have at least 3 months of expenses in a high-yield savings account for an emergency fund, no debt with an interest rate above 9%, investment accounts funded for retirement, and who are saving for an upcoming expense that they don't plan to purchase for more than a year. People who meet this criteria will want to compare CD rates with HYSA rates and Series I Bond rates to ensure they get the highest interest rate possible.
A Certificate of Deposit (CD) is a type of savings account that requires you to keep your money in there for a certain period of time in exchange for a guaranteed rate of return. CDs are a great way to earn some extra cash while you sleep without having to worry about the value of your savings ever going down (like you may do when investing in the stock market.) Depending on the CD's interest rates, they could potentially protect your short-term savings from losing its purchasing power due to inflation.
CD rates are impacted by the federal funds rates. When the Federal Reserve expects banks to have more cash reserves, banks try to incentivize people to save more. Since federal chairman Jerome Powell has expressed another upcoming federal fund rate hike, we can probably expect for CD rates to increase a little more.
CD laddering consists of opening multiple CDs at different times in order to have access to your money at different times. Instead of taking a lump sum of money and opening one CD, you decide to split that lump sum into multiple CDs opened at different time periods or with different term lengths so you can have access to your money potentially sooner.
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
See our full Ratings Methodology here.
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
Using a CD for an emergency fund is safer than putting it in the stock market. However, it's not as flexible as a savings account. If you withdraw money from a CD before the term is over, you will have to pay an early withdrawal penalty. Typically, it amounts to several months of interest earned, depending on the bank and the CD's term.
Other options for an emergency fund are a savings account, high-yield savings account, or a money market account.
If you invest $10,000 in a 1-year CD at a 5.00% APY, it would make $500. The amount you will earn depends on your CD rate. To calculate this yourself, multiply the amount you plan to deposit by the APY that the CD offers.
A good CD rate in 2024 is about 4.50% or higher for a 1-year term. Some of the best CDs offer an APY of 5.00% or more on 1-year CDs. Rates like these are much higher than the national average, and you can normally only find them at online banks.
Yes. CD deposits are covered by FDIC insurance, which insures depositors for up to $250,000 per person per bank. In the event of a bank's insolvency, this insurance would kick in and cover any lost funds up to that amount.
Your CD rate is typically fixed for the term of the CD, unlike savings accounts, where your rate will adjust over time. Specialty CDs like bump-ups have rates that can adjust during the CD term.
Our Banking Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.