Best 5-Year CD Rates of August 2024 | The Motley Fool (2024)

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Is now a good time to buy a 5-year CD? ›

Now, the national deposit rate for 5-year CDs is 1.43%, up from less than 0.50% in June 2022. Yet many banks are offering rates well above that—the best 5-year CDs have annual percentage yields (APYs) that exceed 4%, and some 1-year CDs are offering APYs well above 5%.

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What are the predictions for interest rates in 2024? ›

The July Housing Forecast from Fannie Mae puts the average 30-year fixed rate at 6.7% by year-end, a slight decline from an average of 6.8% in the third quarter. All told, the mortgage giant predicts mortgage rates will average 6.8% in 2024 and 6.4% in 2025.

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What is the current rate of return for a 5 year CD? ›

Compare the Best 5-Year CDs

Institution	Rate (APY)	Early Withdrawal Penalty
First National Bank of America	4.17% APY	18 months of interest
State Department Federal Credit Union	4.16%	12 months of interest
Fortera Credit Union	4.15%	6 months of interest
MYSB Direct	4.11%	All earned interest (3 months minimum)

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Can you get 7% on a CD? ›

While there aren't any financial institutions paying 7% on a CD right now, there are other banks and credit unions that pay high CD rates. Compare today's top CD and savings rates.

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What is the best CD rate for $100,000 today? ›

The best CD rate for $100,000 is around 4% to 5% APY and can be found with accounts on this list like Luana Savings Bank, Credit One Bank and Grow Financial Federal Credit Union.

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What bank is paying 5% on CDs? ›

Highest current CD rates (overall)

Institution name	APY	Minimum opening deposit
Popular Direct	5.05%	$10,000
TAB Bank	5.02%	$1,000
Bread Savings	5.00%	$1,500
Bask Bank	5.00%	$1,000

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Can I put 100k in a CD? ›

Credit unions may offer favorable rates as well. If you're investing $100,000 or more in a CD, look into jumbo CDs, which may pay higher rates than standard CDs.

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What is considered a good 6 month CD rate right now? ›

The national average CD rate on a 6-month term is 1.82% APY (Annual Percentage Yield), according to the FDIC. However, there are much higher interest rates on 6-month CDs right now. The best CD rate for a 6-month term is 5.20% APY available at EagleBank. We check rates daily to find the best rates for 6-month terms.

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Where can I get 6% interest on my money? ›

Benefits of 6% interest savings accounts

Currently, there's only two accounts that pay 6% APY — Digital Federal Credit Union's savings account and Boeing Employees' Credit Union's savings account — and they only pay 6.17% APY on a small portion of your balance.

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How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

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What is the best 5 year CD rate right now? ›

Best 5-Year CD Rates

Department of Commerce Federal Credit Union 5 Year Share CD: 4.34% APY.
Lafayette Federal Credit Union 5 Year Certificate: 4.32% APY.
First Internet Bank of Indiana 5 Year CD: 4.24% APY.
First National Bank of America 5 Year CD: 4.17% APY.
MYSB Direct 5 Year CD: 4.11% APY.

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What will happen to CD rates in 2025? ›

Sometimes it can make sense to lock in a long-term CD at a rate lower than a short-term CD. As of today, the Fed's Summary of Economic Projections estimates rates will decrease by about 1% in 2025 and another 1% in 2026.

What are CD rates going to do in the future? ›

CD rate forecast: 2024

The Fed kept its rate the same after its fifth meeting of 2024 on July 30-31. Projections suggest that we'll see no rate increases in 2024, and that the Fed will likely drop its rate for the first time this year in September, according to the CME FedWatch Tool on July 31.

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When was the last time CD rates were at 5%? ›

Over the last 20 years, average three-month CD rates have rarely climbed above the 5.00% mark. Current three-month CD rates are the highest we've seen since 5.15% in 2006 and 5.27% in 2007.