Like many Americans eager to improve their personal finances in the new year, you may have already sketched out some financial resolutions for 2024, such as boosting your savings. The good news is that it’s a resolution you can easily cross off your list now as yields on several certificates of deposit (CDs) are still well above 5 percent. CDs that offer competitive annual percentage yields (APYs) can be a smart way to supercharge your savings, as you can lock in an attractive yield now while rates remain higher than they’ve been in decades.

APYs on CDs and savings accounts have risen steadily over the past two years as a result of the Federal Reserve hiking interest rates, which it has done 11 times since spring of 2022. A CD usually guarantees the same rate throughout its term, so you’ll benefit from maintaining a high yield when interest rates fall.

Currently, the highest CD APY is 5.66 percent for a one-year term, and APYs of 5 percent or above are offered on CD terms of up to two years. Bankrate’s table below shows you the top rate and national average for many popular terms.

Key takeaways

  • The top CD APY is 5.66% on a one-year term from CIBC Bank USA, followed by 5.60% on a nine-month term from Forbright Bank.
  • In addition to choosing a CD based on APY, consider the minimum deposit requirement.
  • Rates can vary widely among CDs, with top rates that are triple those of national averages.

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
Note: Annual percentage yields (APYs) shown are as of Jan. 5, 2023. 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.
6-month Bank5 Connect 5.50% N/A $136
9-month Forbright Bank 5.60% N/A $209
1-year CIBC Bank USA 5.66% 1.74% $283
18-month Alliant Credit Union 5.30% 1.72% $403
2-year TAB Bank 5.00% 1.50% $513
3-year First Internet Bank of Indiana 4.75% 1.40% $747
4-year First Internet Bank of Indiana 4.54% 1.46% $972
5-year SchoolsFirst FCU 4.60% 1.41% $1,261

How we find the best CD rates

Bankrate regularly surveys around 70 widely available financial institutions, which includes both brick-and-mortar and online-only banks and credit unions. The table above shows today’s top widely available APY for each term. All the CDs included are insured by either the Federal Deposit Insurance Corp. (FDIC) for banks, or the National Credit Union Association (NCUA) for credit unions.

Where can I find the best CD rates in 2024?

High CD rates are often found at online-only banks, such as Ally Bank and Quontic Bank. Online-only banks often pay attractive rates to help bring customers over from established big banks that pay lower-than-average yields. In addition, you’ll often find high APYs at credit unions, such as Pentagon Federal Credit Union, because their profits go back to members. Don’t settle for lackluster yields when the best CD rates are more than triple the national averages.

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.)

CD FAQs

  • 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.

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.