Certificate of deposit (CD) rates have been on the rise ever since the Federal Reserve began hiking interest rates in spring of 2022. Yields remain high, so it’s a good time for savers to consider a CD.

If you’re on the hunt for the top-earning CD that’s widely available, you’ll find it from Forbright Bank. This nine-month CD earns a 5.75 percent annual percentage yield (APY) and requires a $1,000 minimum deposit.

Not far behind is a one-year CD from Popular Direct, which earns a 5.67 percent APY. This one, however, requires a more significant minimum deposit of $10,000.

The guide below lists average rates and competitive ones for various terms, as well as how to find a CD with the best rate.

Key takeaways

  • The top-paying CD earns an APY of 5.75 percent and has a nine-month term.
  • Competitive banks pay yields around three times greater than national averages.
  • The Fed said it would hold rates steady on Nov. 1, while not ruling out a future rate hike.

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 1.50%
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. 13, 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 are 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.

Featured CD of the day

Connexus Credit Union currently offers a 17-month Special Certificate that earns an APY of 5.41 percent — and accounts with balances over $100,000 earn a higher APY of 5.56 percent. The credit union offers five additional certificate terms ranging from one year to five years. A minimum opening deposit of $5,000 is required. Also offered are checking and savings accounts, as well as a money market account.

When is a CD a good idea?

A CD can be a good option when you find one with a competitive rate and if you can afford to keep your money locked in the account for the entire term of the CD. Most CDs charge an early withdrawal penalty for taking out the money before the maturity date. An upside to such a penalty structure is you’ll be less tempted to withdraw the money early and use it for impulse purchases.

A CD is a good idea for cash needs at a specific point in the future, as a way to generate income, or to reduce risk in a portfolio. In each case, you must be willing to leave the principal untapped for the term of the CD to realize the full benefit. — Greg McBride | Chief financial analyst at Bankrate

CD FAQs

  • A CD is a deposit account that earns a fixed rate of return in exchange for locking in your funds for its 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.

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.