Skip to Main Content

Best CD rates for December 2023 (Up to 5.75%)

Updated December 01, 2023

Certificates of deposit (CDs) can be an ideal account to allocate some of your savings, especially if you’re looking for a fixed APY.

Page preview:

Show me:

Best CD rates from top banks

Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision. Here are Bankrate's top picks for banks with the best CD rates:

Limelight Bank

Limelight Bank_logo
Rating: 4.4 stars out of 5
4.4

Overview

Four terms of CDs are offered from Limelight Bank ranging from six months to three years, although no terms are available to match customers’ long-term savings needs. Limelight’s four CDs earn either high rates or ones well above national averages. The minimum $1,000 deposit required is less than many banks impose, although some savers may find it to be too steep.
Invest Rate
4.50% – 5.75% APY
Loan
$1,000 minimum deposit
Calendar
6 months - 3 years

Synchrony Bank

Synchrony Bank_logo
Rating: 4.9 stars out of 5
4.9

Overview

Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs.
Invest Rate
4.00% – 5.65% APY
Loan
$0 minimum deposit
Calendar
6 months - 5 years

Bread Savings

Bread Savings_logo
Rating: 4.3 stars out of 5
4.3

Overview

Bread Savings is an online bank formerly known as Comenity Direct. Bread Savings offers five terms of CDs. They range from a one-year CD to a five-year CD.
Invest Rate
4.50% – 5.55% APY
Loan
$1,500 minimum deposit
Calendar
1 year - 5 years

Barclays Bank

Barclays Bank_logo
Rating: 4.8 stars out of 5
4.8

Overview

Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. ​​Barclays offers nine terms of CDs ranging from three months to five years.
Invest Rate
4.45% – 5.50% APY
Loan
$0 minimum deposit
Calendar
1 year - 5 years

Citizens Access

Citizens Access_logo
Rating: 4.2 stars out of 5
4.2

Overview

Citizens Access offers five terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one-year to five-years.
Invest Rate
3.30% – 5.50% APY
Loan
$5,000 minimum deposit
Calendar
1 year - 5 years

CFG Community Bank

CFG Community Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

CFG Bank is a regional bank that maintains branches in Maryland, although some of its accounts can be opened online. CFG offers four terms of CDs, all of which pay top-notch rates. What’s more, they require a comparatively low minimum deposit of $500.
Invest Rate
4.25% – 5.35% APY
Loan
$500 minimum deposit
Calendar
1 year - 5 years

First Internet Bank of Indiana

First Internet Bank of Indiana_logo
Rating: 4.6 stars out of 5
4.6

Overview

First Internet Bank of Indiana is an online bank that serves all 50 states. It offers eight CD terms that range from three months to five years, all of which pay highly competitive rates. CDs require a minimum opening deposit of $1,000, which is lower than what some other banks require but could still be too high for some customers.
Invest Rate
4.18% – 5.35% APY
Loan
$1,000 minimum deposit
Calendar
3 months - 5 years

America First Credit Union

America First Credit Union_logo
Rating: 4.2 stars out of 5
4.2

Overview

America First Credit Union offers a wide range of CD terms between three and 60 months, and all earn rates that are highly competitive. Also offered are specialty CDs such as a bump-rate CD and a flexible CD. All CDs require a manageable minimum opening deposit.
Invest Rate
4.20% – 5.30% APY
Loan
$500 minimum deposit
Calendar
3 months - 5 years

Marcus by Goldman Sachs

Marcus by Goldman Sachs_logo
Rating: 4.9 stars out of 5
4.9

Overview

Marcus by Goldman Sachs offers a competitive yield on its CDs. It offers a variety of CD terms and CD types. Its regular CD terms range from a six-month CD to a six-year CD.

In addition to its nine terms of regular CDs, it also offers three no-penalty CDs and a rate-bump CD.

All of these CDs have a $500 minimum deposit requirement.
Invest Rate
4.10% – 5.30% APY
Loan
$500 minimum deposit
Calendar
6 months - 5 years

Discover Bank

Discover Bank_logo
Rating: 4.3 stars out of 5
4.3

Overview

Discover Bank offers 12 terms of CDs. They range from a three-month CD to a 10-year CD. You’ll need at least $2,500 to open one of these CDs.
Invest Rate
2.00% – 5.20% APY
Loan
$2,500 minimum deposit
Calendar
3 months - 5 years

Recent news on CD rates

At its last meeting on Nov. 1, the Federal Reserve kept interest rates steady in order to further assess the strength of the U.S. economy. The Fed’s Federal Open Market Committee kept its key benchmark, the federal funds rate (which determines how much banks borrow and lend their reserves to each other overnight), at a target range of 5.25 to 5.5 percent. 

Although it’s a bad time to borrow money at these rates, it’s a great time to save as interest rates on savings accounts are at their highest in 22 years. And even though rates remain steady, now is still a good time to consider long-term CDs after the the Fed raised rates 11 times since March 2022.

The Fed’s next meeting to determine whether to raise or lower interest rates is scheduled for Dec. 13. It’s unlikely that the Fed will change rates at that meeting.

“If the Federal Reserve is done raising interest rates, then CD yields have peaked. Whether your time horizon is measured in months or years, think about locking in current CD yields."

Greg McBride, CFA, Bankrate chief financial analyst

Where are CD rates headed in 2024?

CDs are likely to maintain their current levels in January 2024. But CD rates could decrease if the Fed indicates it will start lowering interest rates.

Currently, shorter-term CDs – with terms of six months to 18 months – generally have higher yields than longer-term CDs. But those longer-term CD yields could be peaking soon, if they haven’t already. So locking one in now could be a good decision for long-term money that you want to keep safe in an FDIC-insured bank.

However, most CDs have significant early withdrawal penalties, so consider these when deciding on an account and term.

National average interest rates for CDs

The national average of CD interest rates suggests that shorter term CDs have higher yields than longer-term CDs. With the Fed having raised rates 11 times since March 2022, what goes up might eventually come down. So, getting a long-term CD now could make sense if the Fed lowers rates in the future.

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average.

Here are the current average rates as of Dec. 1, 2023, according to Bankrate's most recent survey of institutions:

CD term CD national average APY
1 year 1.74%
2 year 1.47%
3 year 1.38%
4 year 1.46%
5 year 1.43%
Note: Average APYs are shown. See the table at the top of the page for APY comparisons.

Current promotional CD rates

Some banks have promotional CD rates.There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Even some of the largest banks might have some featured CD rates. 

Bank name CD product APY Available until*
U.S. Bank 13-month CD 4.80% APY N/A
Ally Bank 14-month CD 5.10% APY March 20, 2024
Amerant Bank 15-month CD 5.35% APY** Jan. 15, 2024

*It’s possible for these offers to end sooner.

** Only for residents of Florida and Texas.

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The promotional offers are as of Dec. 1, 2023

Top CD rates today by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term. (Note: Annual percentage yields (APYs) shown are as of Nov. 20 and Nov. 26, and may vary by region for some products.)

Caret Down
Institution APY Min. deposit
Boeing Employees' Credit Union 5.60% APY $500
Popular Direct 5.10% APY $10,000
America First Credit Union 4.50% APY $500
Institution APY Min. deposit
Bask Bank 5.55% APY $1,000
Popular Direct 5.55% APY $10,000
Bank5 Connect 5.50% APY $500
Institution APY Min. deposit
Limelight Bank 5.75% APY $1,000
Popular Direct 5.67% APY $10,000
CIBC Bank USA 5.66% APY $1,000
Institution APY Min. deposit
Popular Direct 5.00% APY $10,000
Bread Savings 4.90% APY $1,500
First Internet Bank of Indiana 4.75% APY $1,000
Institution APY Min. deposit
Popular Direct 4.70% APY $10,000
SchoolsFirst Federal Credit Union 4.60% APY $500
First Internet Bank of Indiana 4.59% APY $1,000

How to choose the best CD for you

CDs are a good option for longer-term goals or for money that you’re comfortable locking away for a set period of time. Follow the steps below to choose the right CD strategy for you:

  1. Determine what the money will be earmarked for. Money you may need in the near future, such as for an emergency fund or short-term goals, usually works better in a liquid account such as a high-yield savings account or money market account. A no-penalty CD may also be a good place for money you might need access to before the CD matures. 
  2. Figure out when you’ll need the money in the CD and pick a term that aligns with your savings goals. Terms can range from just a few months to several years.
  3. Decide whether you prefer a fixed or variable APY. (If you think the Fed has raised rates so many times that rates will decrease in the future, you might want a CD with a fixed APY instead of a savings account with a variable APY.) 
  4. Shop around and compare rates. Research banks and credit unions to find the best rates as well as a minimum opening deposit that’s in line with the amount you plan to put in the CD. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer a competitive yield.
  5. Open the CD and deposit the funds into the account.

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Caret Down

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.

If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up. 

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty. 

A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

What is a CD and how does it work?

A CD is a type of account offered by banks and credit unions that earns interest on your money for a set period of time. CDs typically pay a fixed rate of return for the duration of the term. 

Sometimes, longer CD terms will earn higher interest rates than shorter terms. No matter the term length, withdrawing your money before the term ends will likely result in an early withdrawal penalty.

Who should get a CD?

Savers looking for a low-risk place to earn a guaranteed rate of return should consider getting a CD. They can be a good choice for short- to medium-term goals, such as saving for a new car or for a down payment on a home.

A CD is worth considering for the following people:

Invest Rate
Low-risk investors

For a person looking to make a purchase in a set number of years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Clock Wait
Time specific goal-setters

For a person looking to make a purchase in a set number of months or years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Lock Secure
Impulse spenders

A CD can help keep you from spending your money on a whim, thanks to its early withdrawal penalty.

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

Pros

  • Checkmark

    Some CDs earn a higher APY than money market accounts or savings accounts.

  • Checkmark

    CDs are a good place to store funds that you don’t want to be able to dip into too easily.

  • Checkmark

    CDs can help you separate money for financial goals or future expenses.

  • Checkmark

    Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.

  • Checkmark

    A CD can diversify your savings plan with a guaranteed rate.

  • Checkmark

    Your principal remains intact if you keep your money in a CD for the full term.

Cons

  • CDs tie up your money for a potentially long period of time.

  • Many CDs have early withdrawal penalties.

  • Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.

  • You could potentially earn better rates of return in the stock market or by investing in other securities.

Alternatives to CDs

CDs vs. traditional savings accounts

Savings and money market accounts are more liquid than CDs, meaning the funds you keep in those types of accounts are easier to access without penalties or limitations. This makes savings accounts better for your emergency fund. You could withdraw the savings you’ve placed in a CD, but be prepared to pay a penalty if you take the money out before the CD’s maturity date (unless you’ve purchased a no-penalty CD).

CDs vs. high-yield savings accounts

These days, it’s common enough for banks to offer one-year CDs that pay better APYs than their high-yield savings accounts.

The differences between CDs and high-yield savings accounts are: 

  • A high-yield savings account is a liquid account that allows you to withdraw money without a fee, whereas a CD usually imposes an early withdrawal penalty. (A savings account may charge a fee if you exceed a certain number of withdrawals during a monthly statement cycle. It’s also possible for a savings account to have an early closeout fee.)
  • High-yield savings accounts generally have variable APYs, while CDs usually have fixed APYs.

CDs vs. money market accounts

The gap between interest rates tied to CDs and savings accounts has narrowed. But CDs are more likely to pay a higher yield than savings accounts or money market accounts.

CDs and money market accounts are deposit products that share some key similarities. Commonly offered by banks and credit unions, both are considered safe as long as they’re held with federally insured institutions. Savers opening a CD or money market account might have to meet higher minimum deposit requirements than they would with a savings account.

Money market accounts offer more liquidity than CDs, though, often providing the ability to write a limited number of checks each month directly out of the account — and some also come with a debit card. These liquidity features aren't something you'll find with CDs.

In exchange for less liquidity, however, CDs typically offer a higher interest rate than money market accounts.

CDs vs. bonds

Investors have a lot to consider when deciding between CDs and bonds. CDs from federally insured financial institutions are covered by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Share Insurance Fund (NCUSIF) for credit unions.

CDs typically pay a fixed interest rate, so you know how much you’re earning up front. You’re also guaranteed to receive the same interest rate for the entire term and receive your full principal amount back, as long as you don’t make any premature withdrawals. 

On the other hand, bonds offer more flexibility and the chance to earn a higher yield. A bond is a loan you make to a government or a corporation to receive some interest. You can sell a bond before it matures without getting hit with an early withdrawal penalty, and you may get back more or less than your original investment if interest rates have moved. With municipal bonds, the interest you earn is often exempt from taxes.

There are many different types of bonds, and some are riskier than others. Bonds aren’t protected by FDIC or NCUSIF insurance like CDs are, and the value of your bonds will fluctuate based on what’s happening with interest rates. If interest rates are rising, the price of your bonds will likely fall and vice versa.

How are CDs taxed?

Yes, you will be taxed on the interest earned on a CD that contains non-qualified money –– money that you already paid income tax on. However, if the money is in a traditional IRA CD, you will pay taxes when the money is withdrawn. This is because traditional IRAs are tax-deferred accounts.

In some cases, you can deduct your CD on your taxes. Talk to your tax adviser about any tax situations you have. 

If you’re eligible to contribute to a traditional IRA CD, you may qualify for either a full deduction up to your contribution limit or a partial deduction. 

Factors that determine whether you’re eligible for an IRA deduction include your modified adjusted gross income, your marital status and whether you’re covered by a retirement plan at work.

Interest earned from CDs is an example of taxable interest, according to the Internal Revenue Service. When you earn $10 or more in interest, you should receive Copy B of Form 1099-INT or Form 1099-OID. Even if you don’t receive a 1099, all taxable and tax-exempt interest must be reported on your federal income tax return. Also, interest may be called dividends.

An exception to this would be, for instance, if the funds were rolled over from a 401(k) into a traditional IRA CD and those funds have never been taxed. If you’re withdrawing from a traditional IRA CD in that situation, the money that you withdraw will count as income.

How to build a CD ladder

CD laddering is a method to stagger the maturity dates on your CDs. This investment strategy involves buying multiple CDs at once that mature at different dates. It’s a way to spread out when the money becomes available and to keep from having all of your money stuck in a long-term CD if rates rise.

When longer CD terms earn higher rates of return, you can grow your savings and earn as much interest as possible by building a CD ladder. In doing so, you would buy several CDs at the same time that have different term lengths. This gives you the chance to invest in longer-term CDs with higher yields as well as short-term CDs that will free up some of your money sooner.

CD laddering can also shield you from interest rate changes that could otherwise hurt you. If rates are rising, you’ll be able to take advantage of higher yields the next time one of your laddered CDs matures. On the other hand, if interest rates are falling, you’ll be glad you locked up your savings when the bank was paying more favorable yields.

Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising rate environment so you can more quickly take advantage of higher rates. Conversely, committing to CDs with longer terms makes more sense when rates are decreasing because it enables you to continue earning higher CD yields than the market currently offers.

CD FAQs

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched many banks and at least twice a month go to bank websites to make sure readers stay up to date on the latest rates and bank products.

We select banks that have high annual percentage yields (APYs) and that are popular and broadly available, and we include some of the largest banks.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.
 
Clock Wait
47
years of industry expertise
Cd Rates
3K+
deposit rates tracked
Circle Check
Daily
APY verification
Bank Search
100+
banks reviewed