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Key Takeaways
- Today’s highest CD rate is 5.50% for a 6-month CD.
- CD rates from online banks are commonly twice as high as the national average rates.
- CD ladders let you leverage high rates without locking up all of your money long-term.
The best interest rates on CDs (certificates of deposit) currently top out at 5.50%, depending on the term. Here’s a look at how CD rates are trending, along with an overview of the best rates for several different terms.
Related: Compare the Best CD Rates
Highest CD Rates Today
CD Rates Today
| Term | Highest APY | Average APY |
|---|---|---|
3 Months | 5.39% | 1.27% |
6 Months | 5.50% | 1.76% |
1-Year CD (12 M) | 5.37% | 1.92% |
2-Year CD (24 M) | 5.03% | 1.69% |
3-Year CD (36 M) | 5.00% | 1.60% |
5-Year CD (60 M) | 4.60% | 1.60% |
Jumbo CD | 5.68% | 1.68% |
Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of April 11, 2024.
A CD is a savings account with a fixed interest rate and a maturity period, which is what makes them time deposit accounts. When you open a CD, you agree to lock up your deposit without touching it until the CD’s term is up, whether that’s in six months or five years. Your patience is rewarded with interest that’s usually better than what you’d earn from a regular savings account.
Withdraw money from a CD before “maturity”—when it reaches the end of its term—and you can be slapped with stiff penalties. For example, you can lose up to six months’ worth of interest if you make an early withdrawal from a one-year CD.
The longer the term, the harsher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.
Today’s 3-Month CD Rates
For short-term savings goals, three-month CDs might make sense. The current average rate on a three-month CD sits at 1.27%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.28% on average.
Today’s 6-Month CD Rates
If you’d like a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.50%. That compares with 5.50% a week ago. The current average APY for a six-month CD is 1.76%, the same as last week at this time.
APY provides a more accurate calculation of the yearly interest you’ll earn with a CD because it factors in compound interest. That’s the interest you earn not only on your deposit (or principal) but also on the interest in the account.
Today’s 1-Year CD Rates
The highest interest rate currently being offered on a one-year CD—one of the most popular CD terms—is 5.37%. If you land a one-year CD with a rate in that vicinity, you’ve found a good deal. One week ago, the best rate was the same.
The average APY, or annual percentage yield, on a one-year CD is now 1.92%, the same as a week ago.
Today’s 2-Year CD Rates
If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 5.03%. The top rate last week at this time was 5.12%. Two-year CDs now have an average APY of 1.69%. That’s the same as last week at this time.
Today’s 3-Year CD Rates
CDs with longer terms tend to have some of the most attractive interest rates and APYs—if you’re willing to keep your money locked away for years.
Within the last week, the highest rate on a three-year CD has been 5.00%, so you’ll want to shop around for that rate or something near it.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.60%, the same as one week ago. APYs are averaging 1.60%, the same as this time last week.
The longer the term, the harsher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.
Today’s Jumbo CD Rates
The best rate on today’s jumbo CDs is 5.68% for a 6-month term. The average APY for this category of CD is currently 1.68%, compared to 1.68% last week
Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.
Other Top CD Rates By Term
- Best 4-Year CD Rates
- Best 10-Year CD Rates
- Best 18-Month CD Rates
- Best Jumbo CD Rates
- Best IRA CD Rates
- Best No-Penalty CD Rates
Related: CD Interest Rates Forecast: How Good Will They Get?
How CDs Work
You “purchase” a CD from a financial institution by opening an account with a lump-sum deposit, which becomes the CD’s principal. Many CDs and share certificates (accounts similar to bank CDs but offered by credit unions) have minimum deposits you have to meet, which typically range from a few hundred to several thousand dollars.
Once you deposit your principal, you start the clock on your timed investment and begin earning interest. The bank or credit union will provide you with regular statements showing how much interest you’re accumulating. You may accrue interest daily, monthly or quarterly.
Remember, you must avoid the temptation of tapping into your CD before the term ends. Early withdrawal penalties can be so severe that they take back your interest and then start eating into your principal.
Do CDs Cost Anything?
There are no one-time or recurring costs associated with CDs, but you may pay a penalty fee in the form of reduced interest if you withdraw from your CD before it matures. You are required to deposit a minimum amount of cash when you open a CD, but get all of that money back—plus interest—at the end of the CD’s term.
Methodology
Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.
