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Top CD rates today: March 13, 2024 | APYs of 5% and higher

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Key takeaways

  • Today's leading CD rate across terms is 5.50% APY, offered on a three-month term.
  • Rates of at least 5% APY can be found on various CD terms.
  • Highest CD rates are at least triple the national averages.

Not all certificates of deposit (CDs) are created alike, especially when it comes to rates of return. A CD that earns a competitive annual percentage yield (APY) can earn you hundreds, if not thousands, more in interest than one that merely earns the national average APY. As such, it’s worth shopping around for the best rate before committing your funds to a CD.

Currently, the highest yield across CD terms is 5.5 percent. It's offered on a three-month term from America First Credit Union, requiring a $500 minimum deposit. You’ll find that many shorter terms are earning higher yields than longer ones in our current rate environment.

Bankrate’s table below shows the highest yields offered on widely available CDs, by term. It also lists national average CD rates and how much you’d earn for each term with a $5,000 investment.

Today's CD rates by term

CD term Institution offering top APY Highest APY National average APY Estimated earnings on $5,000 with top APY
3-month America First Credit Union 5.50% 1.28% $67
6-month America First Credit Union 5.30% 1.66% $131
9-month America First Credit Union 5.30% N/A $197
1-year Alliant Credit Union 5.40% 1.73% $270
18-month First Internet Bank of Indiana 5.04% 1.80% $383
2-year First Internet Bank of Indiana 4.82% 1.52% $494
3-year First Internet Bank of Indiana 4.66% 1.41% $732
4-year First Internet Bank of Indiana 4.50% 1.47% $963
5-year SchoolsFirst Federal Credit Union 4.60% 1.43% $1,261

Note: Annual percentage yields (APYs) shown are as of March 13, 2024. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

 

CDs vs. savings accounts

You can often find high yields these days on both CDs and savings accounts. A liquid savings account is the best place for money you may need in the near future to cover living expenses, emergencies, or other short-term financial needs. A CD is designed for money you can afford to leave untouched for the entire term because withdrawing the money early usually results in a penalty.

How CD rates have trended from 2022 to 2024

National average CD yields rose steadily in 2023, as the Federal Reserve continued to hike interest rates at the fastest pace since the 1980s. In all, Fed officials increased rates 11 times between 2022 and 2023, bringing the federal funds rate to its current target range of 5.25-5.5 percent. Along with these rate hikes, average CD APYs rose to the highest they’d been in many years, with APYs on some competitive CDs climbing as high as 7 percent.

This year is expected to be a banner one for CD savers. Greg McBride, CFA, Bankrate’s chief financial analyst, predicts two Fed rate cuts in 2024, yet he says CD yields will continue to top inflation. “Savers have another good year in which their returns will shine, with inflation expected to decline further,” he says.

McBride also stresses the importance of shopping around for the highest APY. “Top-yielding offers are still going to deliver a notable advantage [over lower-yielding ones],” he adds.

 

CD FAQs

Methodology

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.