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According to Bankrate’s CD rate forecast, 2024 will be a good year for CD investors. Some cuts to the Federal Reserve’s key benchmark rate are expected to happen during the year, and yields on competitive CDs would likely fluctuate with it. Even with cuts, that key rate is expected to remain at its highest level since 2007.
What this means for CDs is that you’ll likely still be able to find high yields in 2024. Committing money to a CD at a fixed high rate means you’d continue to earn that same rate even if we were to enter a falling-rate environment and going rates on new CDs go down.
Bankrate monitors the top CD rates every weekday, and you’ll find today’s in the table below. The table also shows national average CD rates and the amount you can earn in CDs of various terms.
- Today's highest yielding CD earns a 5.66 percent APY and has a one-year term.
- Top APYs for several CD terms have declined slightly over the past month.
- The best rates are more than triple the national average yields, so it pays to shop around.
Today’s CD rates by term
|Institution offering top APY
|National average APY
|Estimated earnings on $5,000 with top APY
|* Note: Annual percentage yields (APYs) shown are as of Jan. 2, 2024. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 6-month and 9-month CD terms due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.
|CIBC Bank USA
|Alliant Credit Union
|First Internet Bank of Indiana
|First Internet Bank of Indiana
Should I open a CD in 2024?
The year 2024 will be a good year for CD investors, says Greg McBride, CFA, Bankrate chief financial analyst. “Savers have another good year where their returns shine with inflation expected to decline further.”
Locking in a high fixed APY on a CD now ensures you’ll continue to earn that yield even if going CD rates start to drop. Shop around for the best rates, since there’s a significant difference between the interest of a high-yield CD versus one that just earns the national average — or less.
What happened with average CD rates in 2023?
National average CD yields rose steadily in 2023, as the Federal Reserve hiked interest rates four times during the year. (In all, national averages began increasing after the Fed started hiking rates in March 2022. It also raised rates seven times in 2022.)
How to find the best CD rates
You’ll often find the best CD rates from online-only banks, such as Synchrony Bank, which don’t have the overhead costs of running branches — and which also may offer competitive rates to draw customers away from traditional brick-and-mortar banks. Credit unions, such as Alliant Credit Union, also commonly offer high rates because their profits go back to members. Yields can vary significantly among banks, so it pays to shop around for the best CD rates.
A CD is a deposit account that earns a fixed rate of return in exchange for locking in your funds for the entire term. CD terms often range from three months to five years, although it’s possible to find ones with terms shorter or longer than that. A CD can be a good place to stash money for savings goals, such as a down payment on a house or a new car. When choosing the best CD term, consider when you’ll need access to the money.
Because a CD typically comes with an early withdrawal penalty, it’s best to only put money into a CD that you won’t need in the meantime for living expenses or emergencies. Money you may need sooner is best kept in a liquid account, such as a high-yield savings account, which provides access to your funds anytime.
Both CDs and share certificates are deposit accounts where your money typically grows at a fixed rate for a set amount of time. The main difference between the two is in the name: CDs are offered from banks, whereas share certificates are offered from credit unions. What’s more, CD earnings are referred to as interest, while share certificate earnings are called dividends. And because credit unions are not-for-profit, their profits are distributed among members (essentially shareholders in the credit union) in the form of dividends. Dividends act the same as yields on CDs, however some credit unions may offer higher rates or lower fees as a result of sharing profits.
CDs and share certificates are insured through banks and credit unions, respectively, that are federally insured. For example, banks are insured by the Federal Deposit Insurance Corp. (FDIC), whereas credit unions are insured through the National Credit Union Administration (NCUA). Under such federally insured banks and credit unions, CDs and share certificates are each insured for up to $250,000 per depositor, per insured bank, for each account ownership category.
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.