Key Takeaways
- Today’s highest CD rate is 5.39% for a 3-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.
As of today, the best interest rates on CDs—certificates of deposit—pay up to 5.39%, based on certificate term lengths. Here’s an overview of how CD rates are changing, followed by a guide to the current top CD rates across different terms.
Highest CD Rates Today
CD Rates Today
TERM HIGHEST APY AVERAGE APY
3 Months
5.39%
1.29%
6 Months
5.27%
1.82%
1-Year CD (12 M)
5.37%
1.97%
2-Year CD (24 M)
5.12%
1.72%
3-Year CD (36 M)
4.72%
1.63%
5-Year CD (60 M)
4.65%
1.62%
Jumbo CD
5.40%
1.85%
A CD is a type of savings account that pays a fixed interest rate for a fixed amount of time. When you open a CD account, you agree not to touch your deposit until the CD’s term ends. That could be in six months, one year or five years, depending on the term you’ve chosen. If you follow through, you’ll be rewarded with an amount of interest that’s typically greater than what you’d earn from a standard savings account.
If you withdraw money from your CD account before it “matures” (when it reaches the end of its term), you’ll likely face stiff penalties that may negate some or all of the interest you’d earn. For instance, you could sacrifice up to six months’ worth of interest if you withdraw funds from a one-year CD before it matures.
If you’re looking to earn as much interest as possible, consider opening a longer-term CD. These CDs generally offer the highest interest rates, but they require you to stash your cash for several years.
Early withdrawal penalties typically scale according to the length of the CD term. That means you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before its maturity. That’s why it’s critical to research any potential penalties prior to making 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 1.29%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.29% on average.
Today’s 6-Month CD Rates
If you’d prefer a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.27%. That’s up from 5.26% a week ago. The current average APY for a six-month CD is 1.82%, steady with last week at this time.
APY provides a more accurate calculation of the annual interest you’ll earn with a CD because it takes into account compound interest. That’s the interest you earn not only on your deposit (or principal) but also on the interest itself.
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 12-month 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 1.97%, 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 5.12%. The top rate last week at this time was a similar 5.12%. Two-year CDs now have an average APY of 1.72%. That’s the same as last week at this time.
Today’s 3-Year CD Rates
CDs with longer terms often have some of the most attractive interest rates and APYs—if you’re willing to keep your money locked up for years.
Today’s highest rate on a three-year CD is 4.72%, so you’ll want to shop around for that rate or something near it. Last week at this time, the best rate on a three-year CD was 4.75%.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.65%. APYs are averaging 1.62%, 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 5.40% for a 6-month term. The average APY for this category of CD is currently 1.85%, compared to 1.70% 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
How To Open a CD
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 accruing. 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 can not only take back your interest and then, but also start eating into your principal.
Best CD Rates Offered by Banks in July 2024
CD rates are rarely the exact same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it’s convenient or join a new bank to take advantage of higher rates. To find the right CD, look at the specific term you’re interested in with a few different banks.
Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example, Chase Bank CD rates currently range from 0.01% to 4.75% while Discover Bank CD Rates currently range from 2.00% to 4.70%, Bank of America CD Rates currently range from 0.03% to 4.00% and Marcus By Goldman Sachs CD Rates currently range from 3.90% to 5.15%.
Other top CD rates by banks include:
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.
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