As we enter the second week of January, rates on certificates of deposit (CDs) continue to hold steady. The highest overall annual percentage yield (APY) remains 5.66 percent on a one-year term, followed by a 5.6 percent APY on a nine-month term. In all, you’ll find top APYs of 5 percent or higher on terms of up to two years, while highest-paying CDs between three and five years are earning rates between 4.54 and 4.75 percent APY.

Unlike savings accounts (whose rates are variable and can fluctuate based, in part, on interest rate changes set by the Federal Reserve), a CD typically earns a fixed interest rate throughout its entire term. If you have some cash that you’re willing to lock away for a while, securing it in a CD with a high interest rate now will help maximize your earning potential should rates begin to fall.

Bankrate’s table below provides the top rate and the national average for many popular terms. It also shows how much you can earn in interest with a $5,000 deposit for each term.

Key takeaways

  • The top CD APY remains 5.66% on a one-year term, followed by 5.60% on a nine-month term.
  • Although some top rates have recently come down, overall rates remain historically high.
  • Putting $5,000 in the top-earning, one-year CD will earn $283 in interest, compared with $87 in a one-year CD that earns the national average APY of 1.73 percent.

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. 8, 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% 1.73% $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 much does a CD earn in a year?

Our table above shows how much you’ll earn by depositing $5,000 in CDs of various terms. But what if you want to invest more? How much can you earn from more money saved in a CD? Here’s approximately how much you’d earn by depositing various amounts of money in a one-year CD that earns the top APY of 5.66 percent:

  • $5,000 deposit: earn $283 in interest
  • $10,000 deposit: earn $566 in interest
  • $15,000 deposit: earn $849 in interest
  • $20,000 deposit: earn $1,132 in interest

Thanks to compound interest, investing in a longer-term CD can earn you significantly more in interest. By way of comparison, here’s the approximate amount of interest you’d earn by depositing various amounts of money in a five-year CD that earns the current top APY of 4.6 percent:

  • $5,000 deposit: earn $1,261 in interest
  • $10,000 deposit: earn $2,522 in interest
  • $15,000 deposit: earn $3,782 in interest
  • $20,000 deposit: earn $5,043 in interest

You can use Bankrate’s CD calculator to calculate the interest you’ll earn on a CD by entering the deposit amount, term length and APY.

CD rates in 2022 through 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].”

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.