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Key Takeaways
- Today’s highest CD rate is 5.40% 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.
The best interest rates on CDs (certificates of deposit) currently top out at 5.40%, depending on the term. Here’s a look at how CD rates are trending, along with an overview of the best rates for several different terms.
Related: Compare the Best CD Rates
Highest CD Rates Today
| CD Rates Today | ||
|---|---|---|
Term | Highest APY | Average APY |
3 Months | 5.39% | 1.26% |
6 Months | 5.40% | 1.79% |
1-Year CD (12 M) | 5.37% | 1.96% |
2-Year CD (24 M) | 5.00% | 1.71% |
3-Year CD (36 M) | 4.75% | 1.62% |
5-Year CD (60 M) | 4.60% | 1.61% |
Jumbo CD | 5.40% | 1.70% |
Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of May 22, 2024.
A CD is similar to a savings account, but the interest rate is fixed—not variable. The other major difference is that you’ll typically only earn interest on a CD account if you refrain from withdrawing funds during the term. That term could range from a few weeks to several years, depending on the CD you choose.
If you withdraw money from your CD before it “matures” (reaches the end of its term), you’ll likely get hit with steep penalties in the form of reduced interest. For instance, you may forfeit six months’ worth of interest if you withdraw money from a one-year CD before 12 months are up.
If you’re interested in accruing the maximum amount of interest possible, consider long-term CDs, which historically have the highest APYs. But again, long-term CDs are only an option if you’re willing to stash away some cash you won’t be able to touch for years.
Generally, CDs with longer terms carry more severe withdrawal penalties than short-term CDs. For instance, it’s not uncommon to lose a full year’s worth of interest if you transfer funds out of a five-year CD account before the term is over. Therefore, it’s crucial to familiarize yourself with the CD issuer’s penalties before you open your account.
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 1.26%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.26% on average.
Today’s 6-Month CD Rates
If you’d like a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.40%. That’s unchanged from a week ago. The current average APY for a six-month CD is 1.79%, 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 factors in 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 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 1.96%, up from 1.95% 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 5.00%. The top rate last week at this time was a similar 5.00%. Two-year CDs now have an average APY of 1.71%, an increase from 1.70% last week.
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 4.75%, 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 also 4.75%.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.60%, the same as one week ago. APYs are averaging 1.61%, 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 1.70%, compared to 1.71% 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?
Best CD Rates Offered by Banks in May 2024
When looking for the best CD rates, try shopping around with both banks and credit unions. If you don’t have a strong preference for one or the other, you’ll probably find yourself leaning toward the highest rates. Credit unions are often more competitive than banks when it comes to CDs, but it’s important to always check for yourself, as this won’t always be the case.
To give you just one example, PenFed Credit Union’s CD Rates currently range from 3.00% to 4.00% while U.S. Bank CD Rates currently range from 0.05% to 0.25%.
Other top CD rates by banks include:
- PNC Bank CD Rates
- Citibank CD Rates
- Wells Fargo CD Rates
- Truist CD rates
- Ally Bank CD Rates
- Capital One 360 CD rates
Do CDs Cost Anything?
There are no one-time or recurring costs associated with CDs, but you may pay a penalty fee in the form of reduced interest if you withdraw from your CD before it matures. You are required to deposit a minimum amount of cash when you open a CD, but get all of that money back—plus interest—at the end of the CD’s term.
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.
