Rates for certificates of deposit are still holding steady for most banks. But a few are still pushing rates higher for select terms. Right now one-year CDs are the sweet spot to stash cash and earn the highest yield.
If you’re willing to lock up your money for this long, you can find rates around 5.25%, slightly higher than shorter and longer terms between 4% and 4.50%. Experts believe CD rates will stay this high for a while.
It’s hard to say when rates might start to dip. But now it’s best to align your CD term with the time frame for your financial goals. And if you need more flexibility, there are still other ways to leverage today’s high CD rates, such as a CD ladder and specialty CDs.
Best CD rates
| Bank or credit union | 6-month | 1-year | 3-year | 5-year |
| Alliant Credit Union | 4.75% | 5.25% | 4.45% | 4.35% |
| America First FCU | 5.30% | 5.25% | 4.25% | 4.00% |
| BMO Alto | 5.20% | 5.50% | 4.50% | 4.50% |
| CommunityWide Federal Credit Union | 5.25% | 5.50% | 4.60% | 4.00% |
| First Internet Bank of Indiana | 5.22% | 5.35% | 4.75% | 4.59% |
| MYSB Direct | 5.36% | 5.41% | 4.91% | 4.66% |
| Quontic | 5.05% | 5.30% | 4.40% | 4.30% |
| Rising Bank | 5.25% | 5.60% | 3.85% | N/A |
Best CD rates by bank
Alliant offers different types of checking and savings accounts — including options for teens and kids. We like that the credit union lets you open as many as 19 savings accounts and track your financial goals online. And you’ll get up to $20 reimbursed for out-of-network ATM surcharges.
However, you’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.
- High-yield and jumbo CDs.
- IRA CDs are also available for retirement.
- Terms range from three months to five years.
- Early withdrawal penalties range from seven days to three months of interest.
Alliant offers different types of checking and savings accounts — including options for teens and kids. We like that the credit union lets you open as many as 19 savings accounts and track your financial goals online. And you’ll get up to $20 reimbursed for out-of-network ATM surcharges.
However, you’ll need to meet certain account eligibility requirements to open an account, but it’s still available nationwide. You can open an account online or by calling 800-328-1935.
- High-yield and jumbo CDs.
- IRA CDs are also available for retirement.
- Terms range from three months to five years.
- Early withdrawal penalties range from seven days to three months of interest.
America First Credit Union
America First has share certificates — a credit union’s version of a certificate of deposit — ranging from three months up to five years, with higher rates for promotional terms. It also offers bump-up share certificates and a one-year flexible share certificate that gives you access to your money for the first five calendar days of each quarter, penalty-free. You’ll have more terms to choose from if you go with a traditional, high-yielding share certificate, though.
The credit union requires a minimum $500 deposit. We like that you can open an account online or at a physical branch, as long as you meet eligibility requirements.
- High-yield and bump-up share certificates available.
- Flexible share certificates available for you to access all of your money quarterly.
- Terms range from three months to five years.
- Interest schedule and early withdrawal penalties unclear.
America First has share certificates — a credit union’s version of a certificate of deposit — ranging from three months up to five years, with higher rates for promotional terms. It also offers bump-up share certificates and a one-year flexible share certificate that gives you access to your money for the first five calendar days of each quarter, penalty-free. You’ll have more terms to choose from if you go with a traditional, high-yielding share certificate, though.
The credit union requires a minimum $500 deposit. We like that you can open an account online or at a physical branch, as long as you meet eligibility requirements.
- High-yield and bump-up share certificates available.
- Flexible share certificates available for you to access all of your money quarterly.
- Terms range from three months to five years.
- Interest schedule and early withdrawal penalties unclear.
BMO Alto is the online arm of BMO, offering competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.
However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use the BMO Alto website. Since BMO Alto is separate from BMO bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for help.
- Only high-yield CDs available.
- No minimum balance required.
- No mobile app available.
- Interest paid monthly.
BMO Alto is the online arm of BMO, offering competitive CD rates with no minimum deposit requirements and terms ranging from six months to five years. BMO Alto pays interest on CDs monthly.
However, BMO Alto doesn’t offer specialty CDs or a designated mobile app to manage your account. Instead, you’ll need to use the BMO Alto website. Since BMO Alto is separate from BMO bank, you can’t get help with your account at a physical location, but you can call 855-266-8100 for help.
- Only high-yield CDs available.
- No minimum balance required.
- No mobile app available.
- Interest paid monthly.
CommunityWide Federal Credit Union
CommunityWide Federal Credit Union offers high-yield share certificates ranging from six months to five years, and there’s a minimum deposit of $1,000. But unlike other banks and credit unions, your share certificate won’t automatically roll into a new share certificate after it matures. Your interest is credited monthly and can be paid into your share certificate or rolled into the bank account of your choosing. We like that CommunityWide will try to match share certificate rates if you find better rates elsewhere. You’ll need to meet eligibility requirements to open an account and when you do, a one-time $4.95 processing fee will be charged to open a debit card and you can only use a debit card for funding.
- Only high-yield share certificates available.
- $1,000 minimum deposit and a $4.95 processing fee are required.
- CommunityWide may match better rates.
- Certificates do not automatically renew.
First Internet Bank of Indiana
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but it has a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly. First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest — which is on par for long-term CDs.
- Offers only high-yield CDs.
- Terms range from three months to five years.
- Early withdrawal penalties range from 60 to 360 days.
First Internet Bank of Indiana offers high-yield CD terms ranging from three months up to five years. The rates are competitive, but it has a minimum deposit requirement of $1,000. You can open an account online or via the mobile app, and interest compounds daily and credits monthly. First Internet Bank of Indiana doesn’t offer specialty CDs, however, and its early withdrawal penalty for high-yield CDs is up to 360 days of interest — which is on par for long-term CDs.
- Offers only high-yield CDs.
- Terms range from three months to five years.
- Early withdrawal penalties range from 60 to 360 days.
Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit — $1,500 and $100 respectively. CDs come with a few free services that are common amongst banks, but worth noting — including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
- Only high-yield CDs available.
- Terms range from one to five years.
- Early withdrawal penalties range from three months to one year of interest.
Bread Savings offers CDs and high-yield savings accounts, but both require a minimum deposit — $1,500 and $100 respectively. CDs come with a few free services that are common amongst banks, but worth noting — including incoming wire transfers, monthly maintenance and ACH transfers. Bread Savings is an online bank but can be reached at 833-755-4354.
- Only high-yield CDs available.
- Terms range from one to five years.
- Early withdrawal penalties range from three months to one year of interest.
Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees — including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.
Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.
- Only high-yield CDs available.
- Terms range from six months to five years.
- CDs cannot exceed $1,000,000.
- Early withdrawal penalties range from three to six months of interest.
Capital One offers several savings options that don’t require a minimum deposit or monthly maintenance fees — including high-yield and kids savings accounts. Checking accounts are also available. Compared to other interest-earning checking accounts, the APY is slightly lower for Capital One’s 360 checking account, but you won’t be charged for overdraft protection. And we like the convenience of depositing cash at CVS stores.
Aside from deposit accounts, Capital One offers CreditWise to manage your credit using the Capital One app. You can open an account at a Capital One branch near you or online.
- Only high-yield CDs available.
- Terms range from six months to five years.
- CDs cannot exceed $1,000,000.
- Early withdrawal penalties range from three to six months of interest.
CFG Bank offers money markets, CDs and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG also charges a few fees that are more than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10 depending on the account.
Branches are available in Maryland — which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
- Only high-yield CDs are available.
- Terms range from one to five years.
- Requires a $500 minimum deposit.
- CDs cannot exceed $500,000.
- Early withdrawal penalty of seven days of interest within six days of account opening.
CFG Bank offers money markets, CDs and savings accounts with competitive rates. Several checking accounts are also available with access to over 2,000 ATMs. CFG also charges a few fees that are more than other banks, such as a $37 overdraft fee and a monthly maintenance fee between $2 and $10 depending on the account.
Branches are available in Maryland — which can be a downside if you need in-person help and you’re not close by. However, you can manage your account online, via the mobile app or by phone at 410-823-0500.
- Only high-yield CDs are available.
- Terms range from one to five years.
- Requires a $500 minimum deposit.
- CDs cannot exceed $500,000.
- Early withdrawal penalty of seven days of interest within six days of account opening.
Quontic offers several checking accounts to let you earn cash rewards, interest or bitcoin on your balance. You can also open a high-yield savings, money market and CD account. We like that the deposit accounts don’t have any overdraft or monthly maintenance fees. And Quontic’s Pay Ring lets you make transactions using a wearable.
To reach Quontic, you can have a live chat or share your phone number with the bank for a phone call. Quontic’s mobile app is also available for help and managing your accounts.
- Only high-yield CDs available.
- Terms range from one to five years.
- Early withdrawal penalties vary by term.
Quontic offers several checking accounts to let you earn cash rewards, interest or bitcoin on your balance. You can also open a high-yield savings, money market and CD account. We like that the deposit accounts don’t have any overdraft or monthly maintenance fees. And Quontic’s Pay Ring lets you make transactions using a wearable.
To reach Quontic, you can have a live chat or share your phone number with the bank for a phone call. Quontic’s mobile app is also available for help and managing your accounts.
- Only high-yield CDs available.
- Terms range from one to five years.
- Early withdrawal penalties vary by term.
This week’s average CD rates
Below is a look at the average CD rates by term based on those tracked by the Federal Deposit Insurance Corp. and those tracked by CNET. The FDIC includes rates from major national banks, which are historically lower than online-only banks.
Though it’s unusual, short-term CDs have higher APYs than most long-term CDs right now. That means you can earn a decent return for locking up your money for a short time, and you’ll have access to your funds sooner.
Since APYs are linked to the yield you’ll earn for a year, terms that are shorter than 12 months will have lower returns.
| Type | 6-month | 1-year | 3-year | 5-year |
| FDIC-tracked | 1.36% | 1.76% | 1.38% | 1.38% |
| CNET-tracked | 4.72% | 5.25% | 4.31% | 4.09% |
It’s always a good idea to shop around and compare rates before opening a CD to get the best offer that meets your financial needs.
What experts are saying about CDs
The main question for savers is whether high CD rates will stick around much longer. At some point, the Fed is going to stop raising interest rates and eventually lower them, said Delyanne Barros, founder of The Money Coach. “What’s good about that is that you’re locking in these high interest rates right now for that period of time,” she said. But you shouldn’t expect rates to move drastically in the next few months.
“Between now and the end of 2024, I don’t see a huge increase or decrease in either direction,” said Bernadette Joy, founder of Crush Your Money Goals.
Joy doesn’t think you should postpone investing in a CD, because even if interest rates go up a bit in the next few months, there won’t be a significant difference in your earnings.
The Fed rate pause is uncharted territory, but the Fed predicts higher interest rates through 2026, said Sokunbi. Even though there’s a chance that the federal funds rate will go up again before the end of the year, most experts don’t expect banks to raise savings rates much higher.
Still, in today’s rate environment, CDs work well for many financial goals, such as a car you plan to buy in a year or a vacation in five years.
For example, Rita-Soledad Fernández Paulino, who goes by Soledad, a personal finance coach and founder of Wealth Para Todos, plans to buy a house in the future, and while comparing rates, she found a 10-month CD that offers a 5% return. Originally, she had her money for a down payment spread out across Series I bonds, the stock market and a high-yield savings account offering around 4% APY.
Soledad then moved the funds from her high-yield savings account to the CD to earn a bigger return. The key question of her financial strategy is: ”Where could I get the most money as I’m waiting to purchase a house?”
Joy is currently saving for her next real estate investment and is earning interest with a CD, like Soledad. She put her money into a 12-month CD earning a bit over 4%, then witnessed rates go even higher after the latest Federal Reserve interest rate hike. Joy said high-yield CDs are a great option for anyone who is nervous about what’s happening in the economy and “needs to save up some cash right now with very little risk.”
Once the Fed signals that rates may start to drop, experts recommend jumping on long-term CDs. “If you are concerned about falling interest rates, a long-term CD could be a great way to maximize returns by securing a high rate,” said Bola Sokunbi, founder of Clever Girl Finance.
Regardless of your investing strategy, CDs can ensure a percentage of your money is invested at a guaranteed interest rate, said Sokunbi. That can help hedge the overall risk of a portfolio with other investment types, like cash or stock, she added.
Barros recommends making sure you won’t need the money sooner than expected or else you’ll be stuck paying an early withdrawal penalty.
How to choose a CD
When you’re ready to open a CD, here are a few factors to consider:
- Term: Think about how long you can leave the money deposited in a CD account. If you’ll need access to your funds, consider a high-yield savings account with more liquidity, a shorter CD term or a no-penalty CD to avoid paying a withdrawal penalty if you need the money before the term ends.
- APY: Look for the highest yield available for the term you’ve selected. Online-only banks and credit unions usually offer the best rates, but if a minimum deposit is required, make sure you’re comfortable with the amount or choose another bank that doesn’t have that requirement.
- Type: There are many types of CDs that still give you a guaranteed rate of return while offering more flexibility than a standard CD. But some CD types have lower APYs and limited terms to choose from. Consider your financial goals and various CD options to determine what’s best for your money.
- Early withdrawal penalty: Unless you choose a no-penalty CD, most banks charge an early withdrawal penalty if you need to pull money from your CD before the term ends. This is usually a period’s worth of interest, depending on the term and the bank. If you’re worried about not having access to your funds, consider another savings option or a bank with a lower early withdrawal penalty.
- Minimum deposit: CDs allow only a one-time initial deposit, and some banks require a minimum amount to open an account. If this is a problem, consider an account with a lower (or no) deposit requirement.
What to know about CDs
What is a CD?
A CD is a low-risk way to earn a guaranteed return on your savings. CDs are considered safe investments because they’re typically insured by either the Federal Deposit Insurance Corporation or the National Credit Union Administration for up to $250,000 per person, per account.
A CD has a fixed interest rate for a specific term, or period of time. You can open a CD at a bank with a one-time deposit, and you’ll receive your principal plus interest when the term ends. If you take money out before the term ends, you’ll usually pay an early withdrawal penalty, which is a period’s worth of interest, depending on the bank.
That’s why it’s important to take into account your unique financial needs. Joy weighs two factors when investing in a CD: liquidity and yield. She measures when she’ll need access to her cash versus how much return she’ll get for the term.
What a CD is best for
CDs are a good option if you want to put aside money for your children, save for a future expense or even for a “rainy day” fund separate from your emergency fund. (We recommend storing your emergency fund in an account you can easily access that earns interest, like a high-yield savings account, instead of a CD.)
“For someone looking for a conservative way to earn higher than average interest on their savings, [a CD] could be a good approach,” said Sokunbi. “Especially for funds tied to short-term goals that fit into the timeline of whatever CD they select.”
CDs are also great for investors who want a guaranteed interest rate with little hassle and low risk. Unlike investments in stocks and bonds, CDs aren’t volatile. And unlike the variable rates you’ll get with checking or savings accounts, However, it’s important to keep in mind that because CDs are low risk compared to stocks, you may not earn the same high returns that come with riskier investments, added Sokunbi.
To help decide if a CD is the best place for your financial goals, categorize your plans into months and years. Any money you plan to use within six months should be in a high-yield savings account, Joy said. If you already have money saved for a future expense and don’t plan to use it for a while, whether that’s in six months or six years, consider putting the money in a CD.
If you’re fine with a much longer-term investment and a little more risk, you might consider stocks. According to Barros, the stock market outperforms long-term CDs, so it’s a good investment option with greater return potential for money you won’t need for 10 years.
Specialty CD options to consider
Several types of CDs offer more flexibility than a standard CD. For example, an add-on CD lets you add funds after your initial deposit, while a bump-up or step-up CD will give you a higher yield if rates go up. A no-penalty CD allows you to withdraw your money without incurring an early withdrawal penalty.
No-penalty CDs
If there’s a chance you’ll need access to the money in your CD before the term ends, a no-penalty CD is a good option. No-penalty CDs typically offer lower yields than traditional CDs because you can take your funds out before maturity, said Chelsea Ransom-Cooper, managing partner and financial planning director at Zenith Wealth Partners. If you’re looking for flexibility and a better return, another option would be a money market account, Ransom-Cooper added. Here’s a look at rates for no-penalty CDs.
| Bank | APY | Term |
| Ally | 4.55% | 11 months |
| Synchrony | 4.50% | 11 months |
| Marcus by Goldman Sachs | 4.60% | 13 months |
Bump-up CDs
A bump-up CD allows you to take advantage of a higher rate for your CD term if one becomes available after you open your account, but the APY still may be lower than a standard CD.
The advantages of a bump-up CD are determined by the rate environment. If you think rates might go up and don’t want to be stuck locking in a low APY, this could be a fail-safe technique. But because inflation is starting to recede and interest rate hikes might be coming to an end soon, you should evaluate if this kind of account makes sense for you. Here’s a look at the best bump-up CDs.
| Bank | APY | Term |
| Ally | 4.00% | 24 or 48 months |
| Marcus by Goldman Sachs | 4.35% | 20 months |
| Rising Bank | 4.90%, 4.40% or 4.35% | 18, 26 or 36 months |
| Synchrony | 4.00% | 24 months |
Read more: Types of Certificates of Deposit
What is a CD ladder?
Since CDs require you to lock up your money for a set period, you may be reluctant to set aside all your funds for the long term. A CD ladder can give you more flexibility. By depositing your money into multiple CDs with varying terms, you’ll get access to some of your funds as each CD term expires. Then you can decide how you want to use that portion of the money and if you want to reinvest it into a longer-term CD.
Short-term CDs of one year or less have higher rates than most long-term CDs. In order to do the CD ladder approach, it’s worth distributing some of your money over longer terms. Here’s an example of how a CD ladder can work with a six-, nine- and 12-month CD if you deposit $1,000 into each account:
| CD Term | Amount deposited | APY | Return | Balance at maturity |
| 6-month | $1,000 | 4.72% | $23.33 | $1,023.33 |
| 9-month | $1,000 | 4.76% | $35.49 | $1,035.49 |
| 12-month | $1,000 | 5.25% | $52.20 | $1,052.20 |
Although you could earn more interest by investing all your money into the 12-month CD, this strategy helps you get some of your funds back sooner. That means if rates increase, you can access some of your money and reinvest it into a higher APY account, while still earning a good return on your initial CD deposits.
Pros and cons of CDs
Pros
-
Fixed APY: CDs offer a guaranteed rate of return for your term, regardless of the rate environment.
-
FDIC- or NCUA-insured: Your deposit and interest are protected for up to $250,000 per person and account category in case of bank failure.
-
Several CD options: Most banks offer several types of CDs and terms to choose from.
-
CD ladder: You can open several CDs at different term lengths to take advantage of rates and maintain flexibility.
Cons
-
Early withdrawal penalty: If you withdraw funds before the CD term matures, you’ll typically pay a few weeks or months of interest.
-
Less flexibility: You won’t be able to withdraw and deposit funds regularly compared with other savings options, like high-yield savings and money market accounts.
-
Risk of a lower return: If rates go up, you’re locked into a lower APY, unless you have a bump-up CD.
How to open a CD
Here’s a step-by-step guide to help you open a CD.
- Compare banks and rates: You can open a CD at your local physical branch or online. Most retail banks and credit unions also offer CDs or share certificates, as do online-only banks. Make sure the bank or credit union you choose is FDIC- or NCUA-insured to protect your funds. All the banks we track above are FDIC- or NCUA-insured.
- Choose the CD type and term: When you’re ready to open an account, you’ll choose the CD type and term you want. Be sure to compare rates and look at all options based on your financial savings goals.
- Complete an application: Just like with a checking or savings account, you’ll fill out an application with your personal information, including your name, birth date, Social Security number and address.
- Fund your account: When opening a CD, you’ll need your one-time deposit. You won’t be able to make any additional contributions, so you should only open the CD when you have the funds available.
After you’ve set up your account, you’ll begin earning interest. When your CD matures at the end of the term, you can withdraw your funds or reinvest them into another CD at the current rate.
FAQs
Choosing between a CD, money market or high-yield savings account will depend on your financial goal, time frame and liquidity needs. For instance, if you’re starting from scratch, you may choose a high-yield savings account to build up your savings. If you plan to have a high balance but need debit card access, you might go with a money market account. If you already have the funds and you won’t need the money for a while, a CD is a good option.
Because early withdrawal penalties vary depending on the bank and CD term, there isn’t a standard way to calculate early withdrawal fees. Most early withdrawal penalties will equal the amount of a loss of interest or dividends for a certain period of time. A longer CD term will generally have a greater penalty for early withdrawal.
If you need access to your funds before the CD matures, some banks require you to withdraw the entire amount of the account, while others charge a penalty only on the amount of a partial withdrawal. If the early withdrawal penalty exceeds the interest you’ve earned, you’ll lose money on your principal investment.
Many banks tie the APY that CDs earn to the federal funds rate established by the Federal Reserve. The federal funds rate is the rate banks use to lend and borrow money. The rates on CDs can rise and fall based on actions taken by the Fed to regulate the health of the economy. For instance, the sequence of Fed rate hikes to counter inflation over the last period has caused APYs to increase. If the Fed decides to decrease rates, savings rates will likely start a downward trend.
You typically won’t lose money with a CD, as long as you keep your funds invested until the CD term ends. If you withdraw money from your CD early, you’ll often pay an early withdrawal fee that’s equal to a certain amount of interest. In some cases, this fee could cut into your principal — the amount you initially deposited — if the fee is greater than the interest you accrued.
A CD at an FDIC- or NCUA- insured bank also protects your deposit for up to $250,000 per person, per account category, in case of a bank failure or loss. However, the value of a brokered CD purchased through an investment firm or brokerage can fluctuate and isn’t always protected by federal insurance.
You should leave your money untouched in a CD until the term you’ve chosen ends. Then, you can renew it for the same period of time, choose another CD term or bank altogether or withdraw your funds for something else.
If you don’t withdraw your money when the term ends, some CDs are set up to automatically renew, but you might get locked into a lower interest rate. CDs generally offer a grace period of a few days so you can decide to withdraw the money or renew the CD. It’s a good idea to have a plan for your funds once the CD term ends.
Our CD methodology
CNET reviews CD rates based on the latest APY information from issuer websites. We evaluated CD rates from more than 50 banks, credit unions and financial companies. We selected the CDs with the highest APY for five-year terms from among the organizations we surveyed and considered rates for shorter terms if five-year terms were identical or unavailable. All information is reviewed by experts for accuracy.
CNET regularly tracks banks that offer high-yielding CDs. The current banks included in our weekly CD averages include: Alliant Credit Union, Ally Bank, American Express National Bank, Barclays, Bask Bank, Bread Savings, Capital One, CFG Bank, CIT, Fulbright, Marcus by Goldman Sachs, MYSB Direct, Quontic, Rising Bank, Synchrony, EverBank, Popular Bank, First Internet Bank of Indiana, America First Federal Credit Union, CommunityWide Federal Credit Union, Discover, Bethpage, BMO Alto, Limelight Bank, First National Bank of America, Connexus Credit Union.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
