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12 Best CD rates today in December 2023

Lock in rates that are 3x higher than the national average regardless of whether the Federal rate falls.

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By

Steven Dashiell

Edited by

Holly Jennings

Reviewed by

Alexa Serrano Cruz

Updated

Certificates of deposit (CDs) rates currently have a national average of 0.23% to 1.85% APY, depending on the term. But you can find CD rates nearly three times higher at online banks. Without the overhead of a physical location, they can pass the savings onto you in the form of more competitive interest rates.

Top CD rates today by term

These are currently the top CD rates right now by both term and APY exclusively.

CD termHighest rateWhere to find itHow it compares
3 months5.66% APYTotalDirectBank3x higher than the national average at 1.62% APY
6 months5.76% APYTotalDirectBank4x higher than the national average at 1.43% APY
12 months5.65% APYTotalDirectBank3x higher than the national average at 1.85% APY
24 months5.60% APYNewtek Bank4x higher than the national average at 1.55% APY
36 months5.60% APYValley Direct4x higher than the national average at 1.39% APY
48 months4.80% APYFirst National Bank of America4x higher than the national average at 1.32% APY
60 months4.50% APYBread Savings3x higher than the national average at 1.39% APY
CD rate data provided by Finder, sourced on December 1, 2023. National Rates and Rate Cap data published on November 20, 2023.

12 best CD rates right now

The best CDs offer low minimum opening deposits and APYs higher than the national average.

Best for high rate

Bread Savings CDs

3.8
★★★★★

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Bread Savings offers an outstanding rate of 5.55% APY across its 5 terms. And its reasonable early withdrawal penalties mean you won’t face the rapacious fees some other banks charge if you need to withdraw from your account early. But compared to other banks that require $0 or $500 to open an account, you need at least $1,500 to open a Bread Savings CD.

Crescent Bank CDs

4.8
★★★★★

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Crescent Bank CD rates are impressive all around, ranging from 4.70% to 5.50%. But while most banks reserve their highest rates for their longest CD terms of around five years, Crescent Bank offers its highest APY on its shortest term of 12 months. But you’ll need to commit to locking away a minimum of $1,000 to open an account.

Partner terms and conditions
Online CD rates eligible for New Money only, funds must originate from a financial institution other than Crescent Bank.

First Internet Bank CDs

4.9
★★★★★

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First Internet Bank is one of the few banks that offer competitive interest rates for its lowest CD terms: from 4.18% to 5.35% with eight terms to choose from and commitments as short as three months. But its early withdrawal penalties fall in the middle of what other banks impose if you need to access your principal before your CD matures. For example, it charges 180 days’ interest on its 1-year CDs — the lowest penalty we’ve seen is 60 days, while the highest is 365 days.

Quontic Bank CD

5
★★★★★

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Quontic Bank consistently lands on our list for best CDs because of its strong APYs ranging from 4.3% to 5.3%, good mix of short and long term lengths, and $500 minimum deposit to start. But it imposes the harshest early withdrawal penalties we’ve seen so far if you need to cash out your CD before the term ends. If the penalty is more than your accrued interest, you may lose part of your principal. For instance, you’ll incur a 180-day penalty on its 6-month term, a year penalty on its 1-year term and a two-year penalty on its 5-year term.

Barclays Online CDs

4.5
★★★★★

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Barclays has a $0 minimum deposit and an exceptional APY across all six of its CD terms, ranging from 4.45% to 5.50% APY. This is a rarity among CDs on the market, as most banks tend to offer higher rates only on their longer-term products.

Barclays also sets itself apart with its early withdrawal penalties across all its CDs, which are significantly kinder than many competitors. The only downside is that you’ll need to lock away your cash for at least one year — other banks offer CD terms as short as three months

Alliant Credit Union CDs

4.8
★★★★★

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Alliant Credit Union offers a modest six terms backed by strong APYs ranging from 4.30% to 5.30%. Alliant also imposes no upper limit on how much you can deposit into your account. Where it especially shines is its generous early withdrawal penalty. Your fee equals the number of days your CD is open with a maximum penalty amount.

For example, Alliant’s 1-year CDs have an early withdrawal penalty of up to 90 days’ worth of interest. So if you withdraw your principal at 45 days, you’ll just pay the interest you’ve accrued so far. That means you’ll never lose your principal. This is head-and-shoulders kinder and more flexible than most banks that charge a flat penalty, and if the early withdrawal fee is more than the interest you’ve earned, you would actually lose money to get your cash out early.

But you’ll need to be an Alliant Credit Union member and fulfill the $1,000 minimum deposit requirement to open an account.

TAB Bank CDs

4.4
★★★★★

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TAB Bank's eight CD term options have a healthy range from six months to five years and range in APY from 4.00% to 5.27% Its early withdrawal penalties are also on the lower end of the market. But you’ll need to lock away at least $1,000, which is higher than the required deposit for many of the other accounts on our list.

Synchrony Bank CD

5
★★★★★

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Synchrony couples strong APYs ranging from 2.25% to 5.50%, all with a 15-day higher rate guarantee. That means Synchrony will increase your rate to the current APY on the day it receives your deposit if it falls within 15 calendar days of when you opened your account. Plus, there’s no minimum opening deposit.

Ally High Yield CDs

4
★★★★★

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Ally is all about attractive interest rates across its seven terms, with APYs ranging from 3.00% to 5.15% Its CDs are also backed by a 10-day best rate guarantee, which means you’ll automatically get the higher rate within 10 days of your account opening with no funding conditions. This interest rate guarantee also applies to CD renewals, and if you renew your CD, Ally also boosts your APY by 0.05%.

And while you can’t make partial withdrawals to your account, its early withdrawal penalties are some of the lowest in the market.

Marcus by Goldman Sachs High-yield CD

4.5
★★★★★

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Marcus CDs offer a selection of eight terms, all with terrific APYs ranging from 4.00% to 5.30% and a 10-day CD rate guarantee. It also has a low $500 minimum deposit to open the account. But Marcus doesn’t allow partial withdrawals, which means that in addition to an early withdrawal penalty, it may close your account.

Capital One 360 CD

5
★★★★★

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Capital One 360 has some of the highest interest rates in the industry for a major bank, ranging from 4.10% to across its ten terms. Plus, there is no minimum deposit required to open the account. The icing on the cake is its 10-day rate lock guarantee, which automatically bumps your rate if it increases within 10 calendar days of your application date.

First National Bank of America Online CDs

4.5
★★★★★

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First National Bank of America is a strong choice for competitive interest rates on long-term CDs. While most banks have a maximum CD term of 60 months, First National Bank of America offers terms of up to 84 months, and the rates on these terms range from 4.55% to 5.15%. Plus, its $1,000 opening deposit is on par with other banks. But you’ll need to look elsewhere for CD terms of less than one year.

Best CD rates by term

Best 3-month CD rates

BankAPYMinimum deposit
Ponce Bank CD through Raisin5.40%$1
Alliant Credit Union CDs4.50%$1,000
First Internet Bank4.18%$1,000
EverBank4.00%$1,000

Best 6-month CD rates

BankAPYMinimum deposit
Bask Bank CD5.55%$1,000
TAB Bank CDs5.27%$1,000
Synchrony5.25%$0
First Internet Bank5.22%$1,000

Best 1-year CD rates

BankAPYMinimum deposit
Forbright Bank5.65%$1,000
Bask Bank CD5.60%$1,000
Bread Savings5.55%$1,500
Western Alliance Bank through Raisin5.51%$1

Best 5-year CD rates

BankAPYMinimum deposit
First National Bank of America4.75%$1,000
Crescent Bank4.70%$1,000
First Internet Bank4.59%$1,000
Bread Savings4.5%$1,500

Methodology

Finder’s banking experts analyze CDs from more than 65 institutions to choose our best picks. We look at accounts that meet the following criteria.

  • For our best overall highest CD rates list, we calculate the average of each bank’s 1-, 3- and 5-year terms when comparing APYs. The resulting average must be above 4% APY. For our best rates by term, we look at the highest rates.
  • Minimum opening deposits must be no more than $1,500
  • No membership requirements, unless it’s easy to join
  • Must be available in most states

What is a CD and how does it work?

A CD is a type of savings account with a fixed APY and term length. Once you open the account, you’re guaranteed to earn the advertised APY on your deposit regardless of market changes for the entire term. The tradeoff for this guarantee is you can’t access your funds before the end of the term length without incurring a penalty fee. Any interest earned through your CD account is considered taxable income.

A CD’s interest rate is determined by the bank but is affected by the Federal Reserve’s Federal Funds Rate. As the funds rate increases or decreases, so will the CD’s rate.

Can a CD help me beat inflation?

Not quite. A CD’s APY is locked in for the set term length. During a period of inflation, interest rates rise over time, which increases APYs. If you lock in a CD at 2% APY but inflation causes interest rates to rise to well over 3%, you’re losing potential interest on that CD. However, the opposite is true as well: When interest rates fall during a recession, your CD continues earning the higher interest rate.

Are CD rates going up?

Yes, CD rates have steadily increased since last year as the Federal Reserve continues to raise interest rates. Currently, the national rate for a 12-month CD is 1.85%, up from just 0.13% APY at the beginning of 2020, reflecting a significant increase of 1.63%, and making opening a CD worth it.

Top CD rates vs. the national average

Rates have increased significantly this year. Compare standard CD interest rates according to the FDIC to the best CD rates our experts have spotted.

TermFDIC’s national averageHighest rates we’ve seen
3 months 1.62%5.66%
6 months 1.43%5.76%
1 year 1.85%5.65%
3 years 1.39%5.60%
5 years 1.39%4.75%

Compare CD rates by term

Name Product 6-month APY Minimum deposit to open
CIT Bank Term CDs
Finder Rating: 3.5 / 5: ★★★★★
CIT Bank Term CDs
5.00%
$1,000
Lock up to a 5% APY with a 6-month CD from CIT Bank, a division of First Citizens Bank with 125 years of experience. $1,000 minimum to open. FDIC insured.
Go to site
More Info
Ponce Bank CD through Raisin
Finder Rating: 4.9 / 5: ★★★★★
Ponce Bank CD through Raisin
4.00%
$1
Snag the highest APYs on the market for the shortest CD terms via Raisin. FDIC insured.
Go to site
More Info
Quontic Bank CD
Finder Rating: 5 / 5: ★★★★★
Quontic Bank CD
5.05%
$500
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less. Member FDIC.
Go to site
More Info
Discover CDs
Finder Rating: 3.8 / 5: ★★★★★
Discover CDs
3.40%
$2,500
Start saving with $2,500 and enjoy flexible terms from 3 months to 10 years with no account fees. FDIC insured
Go to site
More Info
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Name Product 1-year APY Minimum deposit to open
Bread Savings CDs
Finder Rating: 3.8 / 5: ★★★★★
Bread Savings CDs
5.55%
$1,500
With a $1,500 minimum deposit, you'll receive competitive interest rates and no hidden fees with this CD. FDIC insured.
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More Info
Crescent Bank CDs
Finder Rating: 4.8 / 5: ★★★★★
Crescent Bank CDs
5.50%
$1,000
Earn competitive rates up to 5.50% APY (annual percentage yield) on terms ranging from 1 to 5 years. Pay $0 maintenance fees. Member FDIC.
Go to site
Western Alliance Bank 12 months CDs through Raisin
Finder Rating: 4.7 / 5: ★★★★★
Western Alliance Bank 12 months CDs through Raisin
5.51%
$1
Get 5.51% APY on a 12 month CD, and earn an APY that’s higher than the national average. Pay no fees and just a $1 minimum deposit. FDIC insured.
Go to site
Quontic Bank CD
Finder Rating: 5 / 5: ★★★★★
Quontic Bank CD
5.30%
$500
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less. Member FDIC.
Go to site
More Info
Discover CDs
Finder Rating: 3.8 / 5: ★★★★★
Discover CDs
5.20%
$2,500
Start saving with $2,500 and enjoy flexible terms from 3 months to 10 years with no account fees. FDIC insured
Go to site
More Info
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Name Product 5-year APY Minimum deposit to open
Bread Savings CDs
Bread Savings CDs
4.50%
$1,500
With a $1,500 minimum deposit, you'll receive competitive interest rates and no hidden fees with this CD. FDIC insured.
Go to site
More Info
Crescent Bank CDs
Crescent Bank CDs
4.70%
$1,000
Earn competitive rates up to 5.50% APY (annual percentage yield) on terms ranging from 1 to 5 years. Pay $0 maintenance fees. Member FDIC.
Go to site
Quontic Bank CD
Quontic Bank CD
4.30%
$500
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less. Member FDIC.
Go to site
More Info
Discover CDs
Discover CDs
4.00%
$2,500
Start saving with $2,500 and enjoy flexible terms from 3 months to 10 years with no account fees. FDIC insured
Go to site
More Info
State Exchange Bank CD through Raisin
State Exchange Bank CD through Raisin
1.71%
$1
Locally-owned independent community bank. Member FDIC No fees.
Go to site
More Info
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How to find the best CDs

A CD allows you to lock away an investment for months to years in exchange for a higher interest rate than you’d find on an everyday savings account. If you’re looking for the best rates, online banks and fintechs tend to offer the highest rates.

And keep in mind that typically, the longer the term length on a CD, the higher the APY. Since CD terms can range from a few months to more than a year, you’ll want to create a savings plan before you can find the ideal CD for your needs.

1. Decide your savings goals.

As a general rule, CDs offer greater savings the longer you agree to tie up your deposit. You may find that a CD with a 5-year term earns more than a 6-month term CD. This makes CDs great for turning a modest investment into a profit over a short to medium length of time. However, a short-term CD can still prove useful, depending on your savings goal. Here are two examples of ideal savings goals appropriate for each type of term length.

  • Short-term CDs (3-12 months): Upcoming birthday gift, next year’s rent, small vacation
  • Long-term CDs (13-60 months): College tuition, large vacation, home upgrades, graduation gift

While your CD is open, you won’t have easy access to those funds. If you think you’ll need access to those funds, a savings account or a less restrictive CD might prove a better alternative than a standard CD:

  • No-penalty CDs. Some banks offer CDs that don’t charge fees for withdrawing money early, though interest rates might be lower than standard CDs.
  • High-yield savings accounts. Go for a savings account with a high APY if you want more access to your money, but keep in mind that your rate isn’t fixed like a CD.

2. Compare APYs for your preferred term.

Check APYs from a variety of banks, making sure to use the same term length across banks as you compare. The main features to compare include:

  • APY
  • How often your savings compound
  • Bank account transfer options
  • FDIC or NCUA insured

What else should I know?

Most CDs charge fees if you take your money out of the account earlier than the end of the term. Fees can vary widely by the bank, but examples of typical withdrawal penalty fees include:

  • Six-month CDs: 90 days’ interest
  • One-year CDs: 180 days’ interest
  • Three- to five-year CDs: 365 days’ interest

Upon CD maturity, you usually have a grace period to renew your CD or to cash out. These range from 7 to 21 days, with the average at 10 days.

Benefits and drawbacks of CDs

Pros

  • Higher rates than savings accounts. CDs offer higher interest rates than you’d find with standard savings accounts. The current national average for savings accounts is just 0.46%, while the national average for a 12-month CD is 1.85% APY.
  • Fixed interest rates. Your rate is locked for the remainder of the term rather than wavering with the market.
  • Variety of terms available. Most banks offer terms from six months to five years, giving you the flexibility to choose what works best for you.

Cons

  • Money locked up. You won’t have access to the money in your CD until it’s finished maturing.
  • Not affected by rising rates. If rates go up after you’ve already set up your CD, that account won’t benefit from the new APY.
  • Penalties for early withdrawals. Unless you choose a no-penalty CD, standard CDs charge fees if you take your money out earlier than the end of the term.
  • Maximum deposit amount. Some CDs cap you on how much you can deposit into your account. Your money is only FDIC-insured up to $250,000.
A photo of Alexa Serrano Cruz, CAMS

Expert tip: Reduce your risk with a no-penalty CD or CD laddering.

While fixed rates are a benefit to opening a CD, it’s also a drawback if you open it before federal rates rise. If this happens, your money is locked in a term with a lower rate. If you’re set on opening a CD, look at no-penalty CDs, which let you withdraw your money penalty free. Another approach is to try CD laddering, a type of strategy where you place equal amounts of money in varying CD term lengths. This gives you more frequent access to your invested money and helps avoid the risks of changing interest rates.

— Alexa Serrano Cruz, CAMS, Senior Editor, Personal Finance.

Types of CDs

Aside from standard CDs, there are five types of CDs available.

  1. No-penalty CDs. As the name suggests, these CDs don’t charge a penalty for early withdrawal. But they tend to have lower APYs than standard CDs.
  2. Bump-up CDs. These CDs allow for a one-time “bump” to your CD’s interest rate if the market rises after you opened your account.
  3. Jumbo CDs. A jumbo CD requires a high minimum deposit to open and offer fewer terms compared to standard CDs. Some jumbo CD minimum deposits can start as high as $100,000.
  4. IRA CDs. An IRA CD is a type of CD that you can fund through an existing IRA account or as a new IRA account. These terms can reach as high as 10 years, and they offer the same tax benefits found on a traditional IRA account.
  5. Brokerage CDs. A brokerage CD is a type of CD purchased through a brokerage firm. Brokered CDs may have larger APYs or more flexible term lengths than a CD purchased through a bank.

4 alternatives

If opening a CD doesn’t work with your financial strategy, consider these alternative ways to save.

  1. High-yield savings accounts. Open a high-yield savings account if you don’t want to risk locking your money away.
  2. Money market savings accounts. These accounts are similar to savings accounts, though they come with check-writing privileges and ATM cards.
  3. Investment accounts. Creating an investment account can result in great savings, though over a much longer time than a CD or savings account. There’s also much more risk associated with investment accounts compared to savings accounts or CDs, and they’re not FDIC-insured.
  4. Bonds. An asset similar to stocks, bonds represent a loan to investors with a fixed interest rate, in which you earn the interest. There are corporate bonds, government bonds and municipal bonds to check out.
  1. National Rates and Rate Caps, Federal Deposit Insurance Corporation, 2023

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