Top CD Rates Today: Dozens of Offers Pay 5% or Better—for as Long as 3 Years (2024)

CD TermToday's Top National Bank RateToday's Top National Credit Union RateToday's Top National Jumbo Rate
3 months5.51% APY*5.30% APY5.20% APY
6 months5.55% APY5.75% APY*5.51% APY
1 year5.50% APY5.56% APY5.61% APY*
18 months5.13% APY5.45% APY5.65% APY*
2 years5.00% APY5.27% APY5.30% APY*
3 years5.00% APY5.10% APY5.20% APY*
4 years4.60% APY4.73% APY4.84% APY*
5 years4.61% APY4.60% APY4.63% APY*

Where Are CD Rates Headed This Year?

The Federal Reserve announced at its Jan. 31 meeting that it is maintaining rates at their current level, the fourth meeting in a row it's done so. To combat decades-high inflation, the Fed aggressively hiked interest rates between March 2022 and July 2023, raising the federal funds rate to its highest level in 22 years.

This in turn created historically favorable conditions for CD shoppers, as well as for anyone holding cash in ahigh-yield savingsormoney market account. Rates on CDs continued rising to a peak this fall, reaching their highest levels in two decades.

But with inflation cooling and the Fed in a holding pattern since July, many banks and credit unions have begun lowering their CD rates. And that's likely to continue after the latest Fed announcement. That's because the central bank's statement abandoned previous language about future rate hikes still being possible. It now appears clear the Fed's rate-hike campaign is finished.

This means we've entered a new phase, where the Fed committee is focused on deciding the right timing to pull the trigger on a first rate cut. But Fed Chair Jerome Powell stated that, though the economy has seen promising progress, inflation is still too high, and the committee therefore won't discuss implementing a rate cut until it feels assured inflation's downward trajectory is both sufficient and sustainable.

Economic data released since the Fed's meeting aren't helping on that front. First, January's employment report showed that new jobs and wage growth were much higher than expected. Then last week, the latest Consumer Price Index (CPI) data showed that inflation is proving more stubborn than hoped for. Both of these may prompt the Fed to keep rates high for longer than previously thought.

"This 'super-bad' inflation report for January, along with resilient first-quarter U.S. economic growth, has got to be concerning for the Fed and calls into question market forecasts for aggressive and early rate cuts this year," Scott Anderson, chief U.S. economist at BMO Capital Markets, wrote in a commentary.

The Fed's next rate decision will be announced on March 20. During his Jan. 31 press conference, Chair Powell indicated he doesn't predict a rate cut will come as soon as the first quarter, saying, "I don't think it's likely the committee will reach a level of confidence by the time of the March meeting."

In fact, last week's inflation report caused financial markets to push their forecasts for a first Fed rate cut further into the future, according to CME Group's FedWatch Tool. Last Monday, the majority expectation was for a first rate cut in May. Now it's not until the Fed's June meeting that a majority of traders are betting on a decrease.

What this means for CD rates is that they're likely to keep drifting lower, until it appears clear the Fed is ready to make a cut. But as soon as that seems to be in the cards, banks and credit unions will likely begin lowering rates more substantially.

Best High-Yield Savings Accounts for June 2024—Up to 5.55%

17 Best CD Rates for June 2024: Up to 6.00% APY

Best Money Market Account Rates for June 2024—Up to 5.35%

Note that the "top rates" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

Top CD Rates Today: Dozens of Offers Pay 5% or Better—for as Long as 3 Years (2024)


What bank is paying 5% on CDs? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
Citibank5.13%3 months
MYSB Direct5.10%18 months
Morgan Stanley5.00%18 months
Bask Bank5.00%18 months
31 more rows

Who is paying the highest CD rates right now? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

Can you get 6% on a CD? ›

Right now, the only financial institution offering a 6% CD is Financial Partners Credit Union. To become a member of the credit union, you must live, work or go to school in Orange County, San Diego County, Riverside County, Los Angeles County, the city of South San Francisco or the city of Alameda.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year2.61%$264.14
18 months2.22%$338.29
2 years2.08%$424.40
3 years1.95%$601.95
3 more rows
Jun 14, 2024

Should I lock in a CD now or wait? ›

Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of June 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

How much money do you make on a $5000 CD? ›

Today's top CD rates by term
CD termInstitution offering top APYEstimated earnings on $5,000 with top APY
6-monthPopular Direct$132
9-monthForbright Bank$197
1-yearCIBC Bank USA$268
5 more rows
3 days ago

Should I put a million dollars in a CD? ›

However, federally insured banks and credit unions only insure up to $250,000 per depositor per account ownership category. If you put more than this amount in a single CD, some of your money will be at risk. You can still safely invest more than $250,000 in CDs by opening accounts at multiple financial institutions.

Do you pay taxes on CDs? ›

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

What is a good amount of money to put in a CD? ›

While that amount will be different for everyone, you should keep a few things in mind. First, a minimum amount is usually required. Most CDs have a minimum deposit between $500 and $2,500, though some can be lower or higher than this range.

Where can I get 5% interest? ›

Best 5% interest savings accounts
Savings AccountAPY
Primis Savings Account5.07% APY
EverBank Performance℠ Savings5.05% APY
Salem Five Direct eOne Savings5.01% APY
CIT Bank Platinum Savings5.00% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000
19 more rows
3 days ago

What is bank of America paying on CDs right now? ›

Bank of America's current CD rates range from 0.03% APY for most fixed-term CDs to 5.00% APY for its seven-month featured CD. The bank also offers a one-year flexible CD with penalty-free access to your money at 4.00% APY.

How much will a 5 percent CD pay? ›

That all noted, here's how much you can expect to make with a 5% CD interest rate: $500 deposit: $25 for a total of $525 after 12 months. $1,000 deposit: $50 for a total of $1,050 after 12 months. $2,500 deposit: $125 for a total of $2,625 after 12 months.

What is the current CD rate at Citibank? ›

Citibank CD Rates vs. Other Top Banks
CD Term LengthCitibank CD APY*Discover CD APY*
1-year CD2.00% for balances below $100,000 3.00% for balances of $100,000 or more (fixed-rate CD) 0.05% (no-penalty CD)4.70%
2-year CD2.00%4.00%
3-year CD2.00%3.75%
5-year CD2.00%3.75%
2 more rows
2 days ago


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