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Yields on certificates of deposit (CDs) remain high, following 11 rate hikes by the Federal Reserve since the spring of 2022.
The top widely available option is currently a nine-month CD from Forbright Bank, which earns a 5.75 percent annual percentage yield (APY) and requires a $1,000 minimum deposit. Putting $5,000 into this CD would earn you around $214 in interest by the time the term ends.
A one-year CD from Popular Direct earns a similar APY of 5.67 percent, although it requires a more substantial minimum deposit of $10,000. Opening the CD with that minimum amount would earn you around $567 in interest by the end of the one-year term.
The guide below lists average rates and competitive ones for various terms, as well as how to find a CD with the best rate.
- The highest widely available APY is currently 5.75 percent on a nine-month term.
- CDs with the best rates often earn around triple the national averages.
- Overall, national average APYs have been rising. For instance, the average one-year CD earns a 1.75 percent APY, whereas four months ago this average APY was 1.56 percent.
Today’s CD rates by term
|Highest APY||Institution offering top APY||National average APY|
|6-month CD||5.55%||Bask Bank||N/A|
|9-month CD||5.75%||Forbright Bank||N/A|
|1-year CD||5.67%||Popular Direct||1.75%|
|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. 20, 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.
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 CDs of the day
For a CD that doesn’t come with an early withdrawal penalty, consider Marcus by Goldman Sachs, which offers no-penalty CDs in terms of seven, 11 and 13 months. Of these three, the 13-month option earns the highest APY, of 4.6 percent. (The seven-month and 11-month options earn APYs of 0.45 percent and 0.35 percent, respectively.)
Marcus’ no-penalty CDs allow you to withdraw your entire balance starting seven days after you’ve funded them, without incurring any penalty. Marcus also offers a variety of standard CDs and a rate bump CD with terms ranging from six months to six years. All CDs require a $500 minimum opening deposit.
What is a no-penalty CD?
Like standard CDs, no-penalty CDs typically earn a fixed APY over a set period of time — although unlike regular CDs, no-penalty CDs don’t charge an early withdrawal penalty if you take out the funds before the term ends. The trade-off for this perk you’ll often earn a lower APY than you would with a CD that has an early withdrawal penalty.
Early withdrawal penalties vary among banks and CDs, although they generally amount to a certain number of days’ or months’ worth of interest. For instance, Ally Bank charges 60 days of interest for early withdrawal from a one-year CD, 90 days of interest for a three-year CD and 150 days of interest for a five-year CD. Bank of America charges 90 days of interest for early withdrawal from CDs with terms of 90 days up to 12 months, 180 days of interest for a three-year CD and 365 days of interest for a five-year CD.
FAQs about CDs
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.