Morsa Images/ Getty Images; Illustration by Austin Courregé/Bankrate
A certificate of deposit (CD) is a time deposit account in which your money accrues interest at a fixed yield for a set period of time, or term. CD terms typically range from as short as a few months to as long as five years, or even longer. However, if you withdraw your funds before the CD’s term ends, you’ll likely be charged an early withdrawal penalty, which is typically some or all of the interest you’ve accrued.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current national average annual percentage yields (APYs) for this week, according to Bankrate’s most recent survey:
- 1-year CD yield: 1.78 percent APY
- 3-year CD yield: 1.41 percent APY
- 5-year CD yield: 1.42 percent APY
The national average rate for one-year and five-year CDs started to increase in February 2022, driven in part by rising Treasury yields and expectations of Federal Reserve rate increases. Since February 2023, the one-year CD average has been higher than the five-year CD average.
The Fed raised rates seven times in 2022, in March, May, June, July, September, November and December. It also raised rates in 2023, in the months of February, March, May and July.
These were the first rate increases since 2018, as the Fed sought to tame high inflation.
Latest average CD APYs: 3-month trend
Bankrate monitors the national average rates on various CD terms, including:
| Date | 1-year CD | 3-year CD | 5-year CD |
|---|
| 09/09/2024 | 1.78% | 1.41% | 1.42% |
| 09/02/2024 | 1.83% | 1.43% | 1.43% |
| 08/26/2024 | 1.81% | 1.42% | 1.43% |
| 08/19/2024 | 1.80% | 1.43% | 1.44% |
| 08/12/2024 | 1.83% | 1.45% | 1.45% |
| 08/05/2024 | 1.84% | 1.45% | 1.45% |
| 07/29/2024 | 1.81% | 1.44% | 1.44% |
| 07/22/2024 | 1.81% | 1.42% | 1.43% |
| 07/15/2024 | 1.81% | 1.42% | 1.43% |
| 07/08/2024 | 1.79% | 1.41% | 1.40% |
| 07/01/2024 | 1.81% | 1.43% | 1.43% |
| 06/24/2024 | 1.80% | 1.42% | 1.43% |
| 06/17/2024 | 1.79% | 1.42% | 1.43% |
| 06/10/2024 | 1.80% | 1.43% | 1.44% |
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology that determines the national average CD rates. More than 500 banks and credit unions are surveyed weekly 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.
Compare CD rates by term for September 2024
Current 6-month CD rates
- America First Credit Union — 5.15% APY
- Quontic Bank — 5.10% APY
- Bank5 Connect — 5.05% APY
- Bask Bank — 5.00% APY
- LendingClub Bank — 5.00% APY
See additional best 6-month CD rates.
Current 1-year CD rates
- CIBC Bank USA — 5.06% APY
- America First Credit Union — 5.00% APY
- Limelight Bank — 5.00% APY
- First Internet Bank of Indiana — 4.94% APY
- Bask Bank — 4.90% APY
See additional best 1-year CD rates.
Current 3-year CD rates
- LendingClub Bank — 4.30% APY
- First Internet Bank of Indiana — 4.29% APY
- America First Credit Union — 4.20% APY
- SchoolsFirst Federal Credit Union — 4.20% APY
- Synchrony Bank — 4.15% APY
See additional best 3-year CD rates.
Current 5-year CD rates
- SchoolsFirst Federal Credit Union — 4.35% APY
- First Internet Bank of Indiana — 4.19% APY
- Synchrony Bank — 4.00% APY
- America First Credit Union — 4.00% APY
- Marcus by Goldman Sachs — 4.00% APY
See additional best 5-year CD rates.
Note: Annual percentage yields (APYs) shown were updated between Sept. 12 and Sept. 19. Bankrate’s editorial team validates this information regularly, typically weekly. 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. A listing may require new money.
Current CD rates FAQs
The Federal Reserve’s decisions on interest rates can affect CD rates. Once the central bank makes a decision to change the rate, competitive banks will generally move CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.
CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will likely influence CD rates.Competition among banks and credit unions will also influence the payout on their CDs, as well as whether or not the financial institution needs deposits. In general, online banks tend to pay higher rates than banks with branches. Changes in Treasury yields and economic conditions also influence CD rates.
Learn more to maximize your earnings
Best jumbo CD rates Earn more on a larger deposit amount Caret Right What you should know about CDs right now See how rates are trending Caret Right Best high-yield savings rates Benefit from high APYs and flexibility Caret Right Bankrate's best banks of 2024 Find the ideal bank for you Caret Right
FAQs
CD Rates Forecast 2024
The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024. At its 2024 meetings, the FOMC held the federal funds rate steady at a target range of 5.25% and 5.50%.
What are CD rates expected to do in 2024? ›
CD Rates Forecast 2024
The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024. At its 2024 meetings, the FOMC held the federal funds rate steady at a target range of 5.25% and 5.50%.
Are there any 6% CDs? ›
Two credit unions have CDs paying 6% APY: Financial Partners Credit Union and Geismar Complex Federal Credit Union. To open a 6% APY CD, you may need to meet certain eligibility requirements. There are also banks and credit unions with CDs paying over 5% APY, which are available nationwide.
What is the best CD rate for $100,000 today? ›
Compare the Best Jumbo CD Rates
| Institution | Rate (APY) | Minimum Deposit |
|---|
| Credit One Bank | 5.15% | $100,000 |
| Third Federal Savings & Loan | 5.10% | $100,000 |
| Justice Federal Credit Union | 5.10% | $100,000 |
| Quorum Federal Credit Union | 5.10% | $100,000 |
12 more rowsHighest current CD rates (overall)
| Institution name | APY | Term length |
|---|
| CIBC USA | 5.06% | 12 months |
| Colorado Federal Savings Bank | 5.05% | 12 months |
| Popular Direct | 5.05% | 3 months |
| Morgan Stanley | 5.00% | 3 months |
31 more rowsYou should lock in a CD rate now if you think rates have peaked, but only if you can afford to tie up your money for the full term. It may be better to invest funds intended for a goal more than five years from now.
Where are interest rates headed in 2024? ›
• Fannie Mae: Rates Will Decline to 6.4%
The August Housing Forecast from Fannie Mae puts the average 30-year fixed rate at 6.4% by year-end, a slight decline from 6.6% in the third quarter. All told, the mortgage giant predicts mortgage rates will average 6.7% in 2024 and 6% in 2025.
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.
Who is paying the highest interest rates on CDs right now? ›
Best CD Rates Today
| Institution | Rate (APY) | Early Withdrawal Penalty |
|---|
| Vibrant Credit Union | 5.25% | All earned interest |
| Mountain America Credit Union | 5.25% | 3 months of interest |
| MutualOne Bank | 5.25% | 3 months of interest |
| Communitywide Federal Credit Union | 5.25% | Complex formula; refer to disclosures and exercise caution |
18 more rowsBenefits 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.
Higher interest rates
A $500 deposit into a CD with 5.5% APY would only grow to $527.50 over 12 months. But a $1,000 deposit would grow to $1,055, and a $5,000 deposit would increase to $5,275.00. That's almost $300 more earned simply by moving your money out of one account and into another.
Can you negotiate CD rates with banks? ›
Yes, you may be able to negotiate rates on jumbo CDs depending on how much you deposit, the term and the financial institution offering the CD. It doesn't hurt to attempt to negotiate a better interest rate for your jumbo CD.
Which bank gives 7% interest on savings accounts? ›
As of September 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions offer high-interest checking accounts: Landmark Credit Union Premium Checking with a 7.50% APY and OnPath Credit Union High Yield Checking with a 7.00% APY.
What will CD rates do in 2024? ›
Financial markets don't expect CD rates to go up in 2024. The Federal Open Market Committee (FOMC) is expected to issue a rate cut in the last half of 2024, which would likely lower CD interest rates.
What is the biggest negative of putting your money in a CD? ›
The cons of CDs
With a savings account, the money is easily accessible in case of a financial emergency or a change in spending priorities. With CDs, you typically can't withdraw the money whenever you want—at least not without paying a penalty.
What is considered a good 6 month CD rate right now? ›
Compare the Best 6-Month CDs
| Institution | Rate (APY) | Early Withdrawal Penalty |
|---|
| First Harvest Credit Union | 5.25% | 3 months of interest |
| Pacific National Bank | 5.25% | 7 days of interest if withdrawal is made within 6 days of opening account; otherwise 1 month of interest |
| Climate First Bank | 5.24% | None |
| ableBanking | 5.20% | 3 months of interest |
13 more rowsIn addition, it's more likely the Fed will begin lowering rates in 2024, with no further increases—in which case money market rates will begin to decline from their record highs.
Is it a good time to buy CDs? ›
If you're in a position to save in today's higher interest rate environment, investments like CDs could help accelerate your savings. CD rates have skyrocketed since 2022: 1-year CD rates have increased more than twelve-fold, with 3-year and 5-year CDs up nearly six-fold and five-fold, respectively.
What is the future Fed interest rate prediction? ›
The U.S. central bank will cut the federal funds rate by 25 basis points in September, November and December taking the range to 4.50%-4.75% by end-2024, according to 54% of those polled, 55 of 101.
Are CD prices increasing? ›
CD rates have increased dramatically in recent years, and rates remain high — for now. According to national averages from the Federal Deposit Insurance Corp. (FDIC), 3-month CDs in January 2022 paid 0.06%, with the number rising to 0.13% for 12-month CDs and 0.28% for 60-month CDs.
