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Key Takeaways
- Today’s highest CD rate is 5.50% for a 6-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.
Today’s best interest rates on CDs—certificates of deposit—range as high as 5.50%, depending on the CD’s term. That’s far higher than CD rates were a few years ago. Here’s an overview of today’s best CD rates.
Related: Compare the Best CD Rates
Highest CD Rates Today
| CD Rates Today | ||
|---|---|---|
Term | Highest APY | Average APY |
3 Months | 5.39% | 1.25% |
6 Months | 5.50% | 1.76% |
1-Year CD (12 M) | 5.37% | 1.92% |
2-Year CD (24 M) | 5.03% | 1.69% |
3-Year CD (36 M) | 4.85% | 1.60% |
5-Year CD (60 M) | 4.60% | 1.60% |
Jumbo CD | 5.68% | 1.67% |
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 1.25%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.27% 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 5.50%. That’s unchanged from a week ago. The current average APY for a six-month CD is 1.76%, the same as last week at this time.
APY provides a more accurate portrait 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 in the account.
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 find a one-year CD with a rate in that vicinity, you’re getting 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 1.92%, 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 5.03%. The top rate last week at this time was a similar 5.03%. Two-year CDs now have an average APY of 1.69%. 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.
Within the last week, the highest rate on a three-year CD has been 5.00%, so you’ll want to shop around for that rate or something near it.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.60%. APYs are averaging 1.60%, 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 5.68% for a 6-month term. The average APY for this category of CD is currently 1.67%, compared to 1.68% 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
- Best 4-Year CD Rates
- Best 10-Year CD Rates
- Best 18-Month CD Rates
- Best Jumbo CD Rates
- Best IRA CD Rates
- Best No-Penalty CD Rates
Related: CD Interest Rates Forecast: How Good Will They Get?
How CDs Work
Opening a CD account requires a lump-sum deposit, which you can also think of as an investment. Many CDs and share certificates (the credit union equivalent of CDs) have minimum deposit requirements that must be met. That amount can range from a few hundred to several thousand dollars, depending on the institution.
Once your account is open, your principal begins occurring the fixed interest rate for the entirety of the term. Banks and credit unions generally send you paper or electronic statements displaying how much interest you’ve earned.’
Since the goal is to let your money grow, try not to even think about accessing it if you can help it. But if you do need to crack your CD open, be prepared to pay early withdrawal penalties in the form of interest earned. In rare cases, you may also lose a percentage of your principal to early withdrawal penalties.
Are CDs a Good Deal?
CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They’re one of the safest places to put your money.
Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected.
The FDIC provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the NCUA insures your money up to the same limit.
Traditional brick-and-mortar banks have far greater operating expenses than banks that only exist online. That’s why online banks are usually able to offer more attractive APYs on CDs—they have lower overhead costs, so they can afford to pay higher interest rates to customers.
Related: CD Interest Rates Forecast: How Good Will They Get?
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.
