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These days, top-yielding rates on widely available certificates of deposit (CDs) are reaching an annual percentage yield (APY) as high as 5.75 percent.
This 5.75 percent APY is offered from Forbright Bank on a nine-month CD and requires a minimum deposit of $1,000. Meanwhile, Popular Direct offers a similar rate of 5.67 percent on its one-year CD. This one requires a $10,000 minimum deposit. Top yields such as these are much higher than the national average APYs of major CD terms, which are all in the mid-to-upper 1 percent region.
Yields on competitive CDs have increased steadily since the Federal Reserve raised interest rates, which it has done 11 times since March 2022, in an effort to tamp down rising inflation. The guide below lists the top APYs and average rates for various terms, as well as how to find a CD with the best rate.
- The top-earning CD today pays a 5.75 percent APY and has a nine-month term.
- National average CD rates are significantly lower than top CD yields.
- APYs over 5 percent can currently be found on various CDs with terms of one to three years.
Today’s CD rates by term
|Highest APY||Institution offering top APY||National average APY|
|6-month CD||5.55%||Bask Bank||NA|
|9-month CD||5.75%||Forbright Bank||NA|
|1-year CD||5.67%||Popular Direct||1.74%|
|18-month CD||5.50%||Popular Direct||1.80%|
|2-year CD||5.30%||Popular Direct||1.51%|
|3-year CD||5.00%||Popular Direct||1.41%|
|4-year CD||4.75%||Bread Savings||1.46%|
|5-year CD||4.75%||Bread Savings||1.45%|
* Note: Annual percentage yields (APYs) shown are as of Nov. 10, 2023. APYs for some products may vary by region.
NA: Not available; Bankrate doesn’t track national averages for the 6-month and 9-month CD terms due to limited available data.
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.
Money tip: Online banks and some credit unions tend to offer the highest yields on CDs and other deposit accounts.
Featured CD of the day
Look to Live Oak Bank for a competitive one-year CD that pays a 5.4 percent APY. The minimum deposit required for this FDIC-insured account is $2,500. Live Oak offers a wide range of CDs with terms between three months and five years, some of which earn high rates. The bank also offers a savings account that earns a rate well above the national average rate for one-year CDs of 1.74 percent APY.
Why big banks pay low interest rates
Online-only banks often compete for new customers, so they increase their rates on CDs and savings accounts when the Fed raises interest rates. On the other hand, many big brick-and-mortar banks skimp on their rates since they’re not in need of more deposits. If your money is with such a bank, chances are you’re earning a paltry rate on your savings.
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.
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.