Top CD rates today: June 17, 2024 | Most Terms Earn 5% or Higher (2024)

CDs

Top CD rates today: June 17, 2024 | Most Terms Earn 5% or Higher (1)

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict,this post may contain references to products from our partners. Here's an explanation for .

Key takeaways

  • Today's highest CD rate across terms is 5.36% APY, offered on a one-year term.
  • In addition to choosing a CD based on APY, be sure to pick a term that suits your financial goals.
  • Highest CD rates on most terms are at least triple the national averages.

Opening a fixed-rate certificate of deposit (CD) with a term of at least one year, today, should give you peace of mind that your savings will continue to earn the same annual percentage yield (APY) should rates begin to retreat later this year. APYs on competitive CDs have been high as of late because they follow the federal funds rate, which is currently at a range of 5.25-5.50 percent — the highest it has been since early 2001. But with the Federal Reserve expected to lower rates later this year, CD APYs could eventually drop, in turn.

Today's highest APY across CD terms among banks we monitor is 5.36 percent, and it’s offered on a one-year term from CIBC Bank USA, requiring a $1,000 minimum deposit. NexBank recently introduced a promotional rate for its one-year term of 5.40 percent APY, with a minimum deposit of $25,000. You’ll find that many shorter terms are earning higher yields than longer ones in the current rate environment.

Check out Bankrate’s table below for the highest APY on CD terms from three months to five years, as well as how much $5,000 would earn for each term.

Today's top CD rates by term

CD termInstitution offering top APYHighest APYNational average APYEstimated earnings on $5,000 with top APY
3-monthPopular Direct5.25%1.24%$64
6-monthPopular Direct5.35%1.72%$132
9-monthForbright Bank5.30%N/A$197
1-yearCIBC Bank USA5.36%1.80%$268
18-monthLendingClub5.00%1.88%$380
2-yearFirst Internet Bank of Indiana4.76%1.54%$487
3-yearFirst Internet Bank of Indiana4.61%1.43%$724
4-yearFirst Internet Bank of Indiana4.45%1.49%$951
5-yearFirst Internet Bank of Indiana4.50%1.44%$1,231

Note: Annual percentage yields (APYs) shown are as of June 17, 2024. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

When is a CD a good idea?

You might decide to open a CD when rates are likely to start falling on deposit accounts. Thanks to its fixed interest rate, a competitive CD will continue to earn its high yield for the full term, even in a falling rate environment. Another benefit of the guaranteed rate is you’ll be able to calculate in advance how much interest the account will earn through the end of the term.

What the current rate environment means for CDs

In 2022 and 2023, the Federal Reserve raised its benchmark interest rate a total of 11 times, bringing its current target range to a 23-year high of 5.25-5.50 percent. However, the Fed has left rates unchanged for seven straight meetings, due to inflation not slowing as quickly as it has in the past.

Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. While the Fed has held rates steady since July 2023, top CD APYs ended up peaking in late 2023 and have since been decreasing gradually.

Is it still a good time to open a CD? “Even though CD yields have pulled back a bit, you’re still able to lock in yields that are well in excess of inflation and do so for multiple years,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “The declines will likely accelerate as we get closer to the Fed beginning to cut interest rates, so there is no sense in waiting.”

CD FAQs

Research methodology

Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.

In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.

Top CD rates today: June 17, 2024 | Most Terms Earn 5% or Higher (2024)

References

Top Articles
Latest Posts
Article information

Author: Manual Maggio

Last Updated:

Views: 5876

Rating: 4.9 / 5 (69 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Manual Maggio

Birthday: 1998-01-20

Address: 359 Kelvin Stream, Lake Eldonview, MT 33517-1242

Phone: +577037762465

Job: Product Hospitality Supervisor

Hobby: Gardening, Web surfing, Video gaming, Amateur radio, Flag Football, Reading, Table tennis

Introduction: My name is Manual Maggio, I am a thankful, tender, adventurous, delightful, fantastic, proud, graceful person who loves writing and wants to share my knowledge and understanding with you.