Best CD Rates For June 2024 - Up to 5.50% | Bankrate (2024)

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (1)Written by

Matthew Goldberg

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (2)Edited by

Marc Wojno

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (3)Reviewed by

Greg McBride, CFA

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (4)Edited by

Marc Wojno

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (5)Reviewed by

Greg McBride, CFA

Updated March 4, 2024

Certificates of deposit (CDs) can be an ideal account to allocate some of your savings, especially if you’re looking for a fixed APY. Bankrate’s list of top-yielding CD rates are much higher than today's national average yield of 1.82 percent for a one-year CD.

Bankrate provides you with timely news and rate information on top yielding CDs for some of the most popular, and largest, FDIC-insured banks and NCUA-insured credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.

Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision. Here are Bankrate's top picks for banks with the best CD rates.

  • Popular Direct — 3 months - 5 years, 4.25% – 5.35% APY, $10,000 minimum deposit
  • America First Credit Union — 3 months - 5 years, 4.20% – 5.25% APY, $500 minimum deposit
  • Vio Bank — 6 months - 5 years, 2.75% – 5.25% APY, $500 minimum deposit
  • Sallie Mae Bank — 6 months - 5 years, 4.00% – 5.15% APY, $2,500 minimum deposit
  • Synchrony Bank — 3 months - 5 years, 0.25% – 5.10% APY, no minimum deposit
  • Marcus by Goldman Sachs — 6 months - 5 years, 4.00% – 5.10% APY, $500 minimum deposit
  • Quontic Bank — 3 months - 5 years, 4.30% – 5.05% APY, $500 minimum deposit
  • Capital One — 6 months - 5 years, 3.90% – 5.00% APY, no minimum deposit
  • Barclays Bank — 6 months - 5 years, 3.50% – 5.00% APY, no minimum deposit
  • Citizens Access — 1 year - 5 years, 3.35% – 5.00% APY, $5,000 minimum deposit

Note: Annual percentage yields (APYs) shown are as of Mar. 6, 2024. All other information is current as of Mar. 4, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Page preview:

Table of contents

  • Best CD rates from top banks
  • Recent news on CD rates
  • Current promotional CD rates
  • Compare top CD rates today by term
  • How to choose the best CD for you
  • How does a certificate of deposit work?
  • Pros and cons of CDs
  • Alternatives to CDs
  • How to build a CD ladder
  • CD FAQs
  • Research methodology

Show me:

The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.

Certificate of Deposit (CD)

CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.

Checking account

Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.

Savings / Money Market Accounts (MMA)

Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.

Current 1 year CD trends

Bankrate Partner average

4.81% APY

National average

1.82% APY

The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 6/22/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.

On This Page

Best CD rates from top banks for June 2024

Note: Annual percentage yields (APYs) shown are as of Jun. 22, 2024. All other information is current as of Mar. 4, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Popular Direct

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (6)

Rating: 4 stars out of 5

4.0

Overview

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 120-year-old financial services company. Popular Direct was previously known as Banco Popular North America.

Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

Read Bankrate's Expert Popular Direct Review

4.25% – 5.35% APY

$10,000 minimum deposit

3 months - 5 years

America First Credit Union

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (7)

Rating: 5 stars out of 5

5.0

Overview

America First Credit Union offers a wide range of CD terms between three and 60 months, and all earn rates that are highly competitive. Also offered are specialty CDs such as a bump-rate CD and a flexible CD. All CDs require a manageable minimum opening deposit.

Read Bankrate's Expert America First Credit Union Review

4.20% – 5.25% APY

$500 minimum deposit

3 months - 5 years

Vio Bank

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (8)

Rating: 4.6 stars out of 5

4.6

Overview

Vio Bank offers traditional CDs with terms ranging from six months to 10 years, an extensive variety compared to some other banks. The minimum deposit for each account is relatively low at $500. CDs automatically renew once they mature following a ten day grace period. Yields are competitive for all CDs, but Vio’s highest APYs are for CDs with terms of three years or less.

Read Bankrate's Expert Vio Bank Review

2.75% – 5.25% APY

$500 minimum deposit

6 months - 5 years

Sallie Mae Bank

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (9)

Rating: 4.4 stars out of 5

4.4

Overview

Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account, credit cards and private student loans. It offers a competitive yield on its deposit products.

Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Read Bankrate's Expert Sallie Mae Bank Review

4.00% – 5.15% APY

$2,500 minimum deposit

6 months - 5 years

Synchrony Bank

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (10)

Rating: 4.9 stars out of 5

4.9

Overview

Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs.

Read Bankrate's Expert Synchrony Bank Review

0.25% – 5.10% APY

$0 minimum deposit

3 months - 5 years

Marcus by Goldman Sachs

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (11)

Rating: 4.9 stars out of 5

4.9

Overview

Marcus by Goldman Sachs offers a competitive yield on its CDs. It offers a variety of CD terms and CD types. Its regular CD terms range from a six-month CD to a six-year CD.

In addition to its nine terms of regular CDs, it also offers three no-penalty CDs and a rate-bump CD.

All of these CDs have a $500 minimum deposit requirement.

Read Bankrate's Expert Marcus by Goldman Sachs Review

4.00% – 5.10% APY

$500 minimum deposit

6 months - 5 years

Quontic Bank

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (12)

Rating: 4 stars out of 5

4.0

Overview

Quontic Bank offers five terms of CDs, ranging from six months to five years, that require $500 to open. The rates for all five terms are very competitive.

Read Bankrate's Expert Quontic Bank Review

4.30% – 5.05% APY

$500 minimum deposit

3 months - 5 years

Capital One

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (13)

Rating: 4.9 stars out of 5

4.9

Overview

Capital One offers CDs with terms as short as six months or as long as five years. These CDs have no minimum opening deposit. The bank offers competitive yields, and it doesn’t have a minimum balance requirement.

Read Bankrate's Expert Capital One Review

3.90% – 5.00% APY

$0 minimum deposit

6 months - 5 years

Barclays Bank

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (14)

Rating: 4.8 stars out of 5

4.8

Overview

Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. ​​Barclays offers nine terms of CDs ranging from three months to five years.

Read Bankrate's Expert Barclays Bank Review

3.50% – 5.00% APY

$0 minimum deposit

6 months - 5 years

Citizens Access

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (15)

Rating: 4.2 stars out of 5

4.2

Overview

Citizens Access offers five terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one-year to five-years.

Read Bankrate's Expert Citizens Access Review

3.35% – 5.00% APY

$5,000 minimum deposit

1 year - 5 years

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48years

of industry experience

3k

deposits rates tracked

120

banks reviewed

Recent news on CD rates

At its last meeting on Jan. 31, the Federal Reserve kept interest rates steady and projected there could be multiple rate cuts in 2024. The Fed’s Federal Open Market Committee kept its key benchmark, the federal funds rate (which determines how much banks borrow and lend their reserves to each other overnight), at a target range of 5.25 to 5.5 percent.

Although it’s a bad time to borrow money at these rates, it’s a great time to save as interest rates on savings accounts are at their highest in 22 years. And even though rates remain steady, now is still a good time to consider long-term CDs after the Fed raised rates 11 times since March 2022.

The Fed’s next scheduled announcement regarding interest rates is March 20.

CD yields have peaked. Whether your time horizon is measured in months or years, think about locking in current CD yields.— Greg McBride, CFA | Bankrate chief financial analyst

Where are CD rates headed in 2024?

CD rates are likely to maintain their current levels or slightly dip headed into March. Yields are likely to start decreasing months before the Fed begins lowering rates.

Currently, shorter-term CDs – with terms of six months to 18 months – generally have higher yields than longer-term CDs. But those longer-term CD yields could be peaking soon, if they haven’t already. So locking one in now could be a good decision for long-term money that you want to keep safe in an FDIC-insured bank.

However, most CDs have significant early withdrawal penalties, so consider these when deciding on an account and term.

National average interest rates for CDs

The national average of CD interest rates suggests that shorter term CDs have higher yields than longer-term CDs. With the Fed having raised rates 11 times since March 2022, what goes up might eventually come down. So, getting a long-term CD now could make sense if the Fed lowers rates in the future.

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average.

Here are the current average rates as of Jun. 22, 2024, according to Bankrate's most recent survey of institutions:

CD termCD national average APY
1 year1.82%
2 year1.54%
3 year1.43%
4 year1.5%
5 year1.46%

Current promotional CD rates

Some banks have promotional CD rates.There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Even some of the largest banks might have some featured CD rates.

Bank nameCD productAPYAvailable until*
U.S. Bank9-month CD5.00% APYN/A
Ally Bank14-month CD4.65% APYMarch 20, 2024
PenFed Credit Union15-month CD4.55% APYN/A
Wells Fargo7-month CD4.40% APYN/A

*It’s possible for these offers to end sooner.

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The promotional offers are as of Mar. 1, 2024.

Compare top CD rates today by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term.

InstitutionAPYMin. deposit
America First Credit Union 5.25% APY $500
Popular Direct 5.25% APY $10,000
First Internet Bank of Indiana 4.14% APY $1,000
InstitutionAPYMin. deposit
Bask Bank 5.35% APY $1,000
Popular Direct 5.35% APY $10,000
America First Credit Union 5.25% APY $500
InstitutionAPYMin. deposit
CIBC Bank USA 5.36% APY $1,000
Bask Bank 5.30% APY $1,000
Popular Direct 5.30% APY $10,000
InstitutionAPYMin. deposit
First Internet Bank of Indiana 4.61% APY $1,000
Popular Direct 4.50% APY $10,000
Quontic Bank 4.40% APY $500
InstitutionAPYMin. deposit
First Internet Bank of Indiana 4.50% APY $1,000
SchoolsFirst Federal Credit Union 4.35% APY $500
Quontic Bank 4.30% APY $500

Note: Annual percentage yields (APYs) shown are as of Jun. 22, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

How to choose the best CD for you

CDs are a good option for longer-term goals or for money that you’re comfortable locking away for a set period of time. Follow the steps below to choose the right CD strategy for you:

  1. Determine what the money will be earmarked for. Money you may need in the near future, such as for an emergency fund or short-term goals, usually works better in a liquid account such as a high-yield savings account or money market account. A no-penalty CD may also be a good place for money you might need access to before the CD matures.
  2. Figure out when you’ll need the money in the CD and pick a term that aligns with your savings goals. Terms can range from just a few months to several years.
  3. Decide whether you prefer a fixed or variable APY. (If you think the Fed has raised rates so many times that rates will decrease in the future, you might want a CD with a fixed APY instead of a savings account with a variable APY.)
  4. Shop around and compare rates. Research banks and credit unions to find the best rates as well as a minimum opening deposit that’s in line with the amount you plan to put in the CD. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer a competitive yield.

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.

If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up.

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty.

A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

How does a certificate of deposit work?

A CD is a type of account offered by banks and credit unions that generally earns a fixed APY for the CD’s term. Regular CDs also generally have early withdrawal penalties if you make a withdrawal before the CD term ends.

Who should get a CD?

Savers looking for a low-risk place to earn a guaranteed rate of return should consider getting a CD. They can be a good choice for short- to medium-term goals, such as saving for a new car or for a down payment on a home.

A CD is worth considering for the following people:

Low-risk investors

For a person looking to make a purchase in a set number of years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Time specific goal-setters

For a person looking to make a purchase in a set number of months or years, a CD could be a great option for earning a competitive rate of interest leading up to that time.

Impulse spenders

A CD can help keep you from spending your money on a whim, thanks to its early withdrawal penalty.

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

Pros

  • Some CDs earn a higher APY than money market accounts or savings accounts.

  • CDs are a good place to store funds that you don’t want to be able to dip into too easily.

  • CDs can help you separate money for financial goals or future expenses.

  • Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.

  • A CD can diversify your savings plan with a guaranteed rate.

  • Your principal remains intact if you keep your money in a CD for the full term.

Cons

  • CDs tie up your money for a potentially long period of time.

  • Many CDs have early withdrawal penalties.

  • Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.

  • You could potentially earn better rates of return in the stock market or by investing in other securities.

Alternatives to CDs

CDs vs. traditional savings accounts

Savings and money market accounts are more liquid than CDs, meaning the funds you keep in those types of accounts are easier to access without penalties or limitations. This makes savings accounts better for your emergency fund. You could withdraw the savings you’ve placed in a CD, but be prepared to pay a penalty if you take the money out before the CD’s maturity date (unless you’ve purchased a no-penalty CD).

CDs vs. high-yield savings accounts

CDs generally have an early withdrawal penalty if you withdraw your money before the CD matures. CDs generally have fixed APYs.

A high-yield savings account is a liquid account that allows you to withdraw money without a fee and savings accounts generally have variable APYs.

CDs vs. money market accounts

CDs have set terms and generally also have early withdrawal penalties if you withdraw your money before that term ends.

Money market accounts, like savings accounts, generally have variable APYs. But unlike most savings accounts, they might have check-writing privileges – which let you write checks from this account.

In exchange for less liquidity, however, CDs typically offer a higher interest rate than money market accounts.

CDs vs. bonds

CDs typically pay a fixed interest rate, so you know how much you’re earning up front. You’re also guaranteed to receive the same interest rate for the entire term and receive your full principal amount back, as long as you don’t make any premature withdrawals.

On the other hand, bonds offer more flexibility and the chance to earn a higher yield. A bond is a loan you make to a government or a corporation to receive some interest. You can sell a bond before it matures without getting hit with an early withdrawal penalty, and you may get back more or less than your original investment if interest rates have moved. With municipal bonds, the interest you earn is often exempt from taxes.

There are many different types of bonds, and some are riskier than others. Bonds aren’t protected by FDIC or NCUSIF insurance like CDs are, and the value of your bonds will fluctuate based on what’s happening with interest rates. If interest rates are rising, the price of your bonds will likely fall and vice versa.

How to build a CD ladder

CD laddering staggers the maturity dates on your CDs. This strategy involves buying multiple CDs at once that mature at different dates. It’s a way to spread out when the money becomes available and to keep from having all of your money stuck in a long-term CD if rates rise.

In the current rate environment, purchasing a 3-year CD now could potentially help you earn a yield that might not be available if the Fed lowers rates.

CD laddering can also shield you from interest rate changes that could otherwise hurt you. If rates are rising, you’ll be able to take advantage of higher yields the next time one of your laddered CDs matures. On the other hand, if interest rates are falling, you’ll be glad you locked up your savings when the bank was paying more favorable yields.

Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising rate environment so you can more quickly take advantage of higher rates. Conversely, committing to CDs with longer terms makes more sense when rates are decreasing because it enables you to continue earning higher CD yields than the market currently offers.

CD FAQs

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.

Best CD Rates For June 2024 - Up to 5.50% | Bankrate (2024)

References

Top Articles
Latest Posts
Article information

Author: Carlyn Walter

Last Updated:

Views: 5878

Rating: 5 / 5 (70 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Carlyn Walter

Birthday: 1996-01-03

Address: Suite 452 40815 Denyse Extensions, Sengermouth, OR 42374

Phone: +8501809515404

Job: Manufacturing Technician

Hobby: Table tennis, Archery, Vacation, Metal detecting, Yo-yoing, Crocheting, Creative writing

Introduction: My name is Carlyn Walter, I am a lively, glamorous, healthy, clean, powerful, calm, combative person who loves writing and wants to share my knowledge and understanding with you.