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Top CD rates today: March 14, 2024 | 5.50% remains highest APY across terms

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Key takeaways

  • The current leading CD rate across terms is 5.50% APY on a three-month CD.
  • The highest APY on a five-year CD fell slightly today.
  • Top APYs for many CD terms have dipped in recent months since peaking late in 2023.
  • By contrast, national averages are only yielding around one-third of the highest rates.

Many savers who expect the Federal Reserve to lower interest rates this year are locking in a fixed yield now on a certificate of deposit (CD). When the Fed cuts rates, competitive banks often lower their CD rates, in turn. The Fed's next rate-setting meeting takes place next week, although it's widely expected to hold rates steady for now.

The top yield for a five-year CD has fallen today from 4.60 to 4.55 percent APY. Across all terms, the highest overall APY remains 5.50 percent. Currently, just three financial institutions are offering all of the highest-yielding CDs on terms from three months to five years.

Bankrate monitors the top and average rates every weekday, and you’ll find today’s top CD rates in the table below.

Today's best 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% 1.65% $131
9-month America First Credit Union 5.30% N/A $197
1-year Alliant Credit Union 5.40% 1.74% $270
18-month First Internet Bank of Indiana 5.04% 1.79% $383
2-year First Internet Bank of Indiana 4.82% 1.53% $494
3-year First Internet Bank of Indiana 4.66% 1.41% $732
4-year First Internet Bank of Indiana 4.50% 1.48% $963
5-year First Internet Bank of Indiana 4.55% 1.43% $1,246

Note: Annual percentage yields (APYs) shown are as of March 14, 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.

 

How to keep your money safe in a CD

If you’re considering opening a CD with a bank, be sure it’s covered by Federal Deposit Insurance Corp. (FDIC). Likewise, if it’s from a credit union, make sure it has National Credit Union Administration (NCUA) insurance. This deposit insurance guarantees your money is safe were the financial institution to fail, as long as the money is within the limits and guidelines.

CD rates from through 2023

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.