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10 best CD rates today for 2024

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

Certificates of deposit (CDs) rates currently have a national average of 0.23% to 1.84% 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.

Why trust Finder

  • 300+ banks and credit unions reviewed
  • 100+ CDs analyzed and rated by our team of experts
  • Evaluated under our unbiased rating system covering 8 categories
  • 20+ years of combined experience covering financial topics

We're big on editorial independence. That means our content, reviews and ratings are fair, accurate and trustworthy. We don't let advertisers or partners sway our opinions. Our financial experts put in the hard work, spending hours researching and analyzing hundreds of products based on data-driven methodologies to find the best accounts and providers for you. Explore our editorial guidelines to see how we work.

10 best CD rates right now

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

Best for high rate

First National Bank of America Online CDs

4.5
★★★★★

Finder score

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1-year APY4.26%
3-year APY3.90%
5-year APY3.83%
Minimum deposit to open$1,000

Quontic Bank CDs

5
★★★★★

Finder score

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1-year APY4.00%
3-year APY3.25%
5-year APY3.00%
Minimum deposit to open$500

Alliant Credit Union CDs

4.8
★★★★★

Finder score

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1-year APY4.10%
3-year APY3.65%
5-year APY3.65%
Minimum deposit to open$1,000

Bread Savings CDs

3.8
★★★★★

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1-year APY4.30%
3-year APY3.90%
5-year APY3.85%
Minimum deposit to open$1,500

TAB Bank CDs

4.4
★★★★★

Finder score

1-year APY4.25%
3-year APY3.60%
5-year APY3.25%
Minimum deposit to open$1,000

Synchrony Bank CDs

5
★★★★★

Finder score

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1-year APY4.00%
3-year APY3.75%
5-year APY4.00%
Minimum deposit to open$0

First Internet Bank CDs

4.9
★★★★★

Finder score

1-year APY4.42%
3-year APY3.77%
5-year APY3.67%
Minimum deposit to open$1,000

Marcus by Goldman Sachs High-Yield CDs

4.5
★★★★★

Finder score

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1-year APY4.10%
3-year APY3.65%
5-year APY3.60%
Minimum deposit to open$500

Ally High Yield CDs

4
★★★★★

Finder score

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1-year APY4.00%
3-year APY3.40%
5-year APY3.40%
Minimum deposit to open$0

Capital One 360 CDs

5
★★★★★

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1-year APY4.00%
3-year APY3.60%
5-year APY3.50%
Minimum deposit to open$0

Best CD rates by term

Best 3-month CD rates

BankAPYMinimum deposit
Ponce Bank CD through Raisin4.40%$1
Alliant Credit Union CDs3.10%$1,000
First Internet Bank3.72%$1,000
Bank of America Standard Term CD4.00%$1,000

Best 6-month CD rates

BankAPYMinimum deposit
Barclays Online CDs4.00%$0
Bask Bank CDs4.45%$1,000
First Internet Bank CDs4.35%$1,000
Marcus by Goldman Sachs High-Yield CDs4.1%$500

Best 1-year CD rates

BankAPYMinimum deposit
First National Bank of America Online CDs4.26%$1,000
First Internet Bank CDs4.42%$1,000
Alliant Credit Union4.10%$1,000
Quontic Bank CDs4%$500

Best 5-year CD rates

BankAPYMinimum deposit
First Internet Bank3.67%$1,000
First National Bank of America3.83%$1,000
Quontic Bank3.00%$500
Bread Savings3.85%$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 1.84%, up from just 0.13% APY at the beginning of 2020, reflecting a significant increase of 1.70%, 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 1.52%5.66%
6 months 1.68%5.76%
1 year 1.84%5.65%
3 years 1.35%5.60%
5 years 1.35%4.75%

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 0.43%, while the national average for a 12-month CD is 1.84% 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, Lead 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.
Alexa Serrano Cruz's headshot
Lead Editor, Personal Finance

Alexa Serrano Cruz is Deputy Editor at Forbes Advisor and was the lead editor at Finder, specializing in banking. As a personal finance expert, she helps Americans make informed decisions about their finances. Her expertise includes savings, budgeting, kids' banking, and more. Prior to joining Finder, Alexa worked as an editor in Miami and New York. Alexa is a certified anti-money laundering specialist and her personal finance expertise has earned recognition from reputable publications such as Nasdaq, Best Company, U.S. News & World Report, MSN, Yahoo, and Valuewalk. Alexa has also made notable appearances on platforms such as Winnie Sun TV, money podcasts like LifeBlood, and broadcast news publications like Fox News and NBC News. Alexa also served as an editor for ACAMS Today, a prominent publication dedicated to anti-financial crime detection and counter-terrorist financing. See full bio

Alexa's expertise
Alexa has written 17 Finder guides across topics including:
  • Personal finance
  • Kids' banking
  • Budgeting and saving
  • Anti-financial crime

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