| CD Type | Average APY | Highest APY Today |
| 3-month CD | 1.53% | 5.50% |
| 6-month CD | 2.47% | 5.55% |
| 1-year CD | 2.58% | 5.92% |
| 2-year CD | 2.07% | 5.92% |
| 3-year CD | 1.94% | 5.92% |
| 5-year CD | 1.90% | 4.60% |
Top CD Rates of May 24, 2024
Beat the national average for CD rates* with our featured partners below.
*Accurate as of April 2024. FDIC comparison represents an average of the $10,000 and $100,000 product tiers.
Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top banks and credit unions
130
Institutions MonitoredOur team reviewed more than 100 of the country’s largest and most prominent financial institutions, from big banks like Chase and Bank of America to credit unions like Navy Federal Credit Union and PenFed Credit Union.
688
Products StudiedTotal number of checking, saving, CDs, and money-market accounts that inform our review ratings.
719
Rates TrackedThe accounts with an annual percentage yield (APY) several times the national average rate receive the highest scores. Accounts with the lowest APY offering (under 1%) earn the least points.
10
Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Current CD Rates
An overview of the national average CD rates for select standard term lengths and data on each term’s basis point increase or decrease history is outlined below. A basis point is a financial measurement that indicates a change in interest rates. One basis point is equal to 1/100 of a percent, or .01%.
Additionally, the CD rates are reflected as annual percentage yields (APYs). An APY is the actual rate of return depositors will receive in one year, including compounded interest.
3 Month CD Rates Are Stable
A three-month CD may be a good option for depositors with short-term savings goals. The average APY on a three-month CD is 1.53%, which is the same as the average rate at the same time last week.
The best three-month APY today is significantly higher at 5.50%. At the current best rate, depositors will earn $134.75 in interest on a $10,000 investment.
6 Month CD Rates Are Up, +0.02
Another option for a CD that doesn’t require a long-term commitment is a six-month CD. The current average APY for a six-month CD is 2.47%, which is two basis points higher than the average rate at the same time last week.
The best six-month APY today is 5.55%. At the current best rate, depositors will earn $273.75 in interest on a $10,000 investment.
1-Year CD Rates Are Up, +0.02
One of the most popular CD term lengths is the one-year CD. The average APY for a one-year CD is 2.58%, which is two basis points higher than the average rate at the same time last week.
The best one-year CD APY today is 5.92%. At the current best rate, depositors will earn $592.00 in interest on a $10,000 investment.
2-Year CD Rates Are Stable
For those without cash needs in the next 24 months, a two-year CD can be a good option for savers looking to lock in a high rate for an extended period of time. The average APY for a two-year CD is 2.07%, which is the same as the average rate at the same time last week.
The best two-year CD APY today is 5.92%. At the current best rate, depositors will earn $1,219.05 in interest on a $10,000 investment.
3-Year CD Rates Are Stable
For depositors able to set money aside for several years, a three-month CD may be a good investment. The current average APY for a three-year CD is 1.94%, which is the same as the average rate at the same time last week.
The best three-year APY today is 5.92%. At the current best rate, depositors will earn $1,883.21 in interest on a $10,000 investment.
5-Year CD Rates Are Stable
Five-year CD rates are steady. The average APY on a five-year term is 1.90%, which is the same as the average rate at the same time last week.
The best five-year APY today is 4.60%. At the current best rate, depositors will earn $709.31 in interest on a $10,000 investment.
Before investing in a long-term CD, savers should thoroughly review the CD’s withdrawal penalty in case cash needs arise ahead of the 60-month maturity date. Penalties vary by financial institution and can result in forfeited interest earnings.
Factors That Affect CD Rates
CD rates change frequently based on the economic environment. Inflation, the federal funds rate and predictions of market movements over the term period of the CD all play into how rates move from week-to-week and month-to-month.
There are also several factors outside of macroeconomic trends that will impact CD rates. These include:
- Total CD amount: Banks sometimes offer premium interest rates for “jumbo CDs” and vary the interest rate based on the deposit amount.
- Where you live: CD rates occasionally differ by ZIP code.
- Your lender: Banks, credit unions and online lenders may offer slightly different rates.
How To Shop for the Best CD Rate and Terms
Below are some helpful tips in finding the best CD rate:
- Check for promotional rates: Several institutions offer better rates for non-standard term lengths such as five-month, seven-month, 11-month and 13-month terms. The best CDs generally have an interest rate that is three times the national average.
- Know your CD term period: CD terms can range from as little as three months to as long as 60 months. Depending on your term period, the rates offered on the CD can vary based on current and forecasted interest rates.
- Examine any fees or minimum deposits: Most CDs have early withdrawal fees and minimum deposits to earn the marketed APY. On the flipside, many institutions offer a grace period (usually one to two weeks) after opening an account so depositors can make withdrawals without paying a penalty fee.
Expert Forecast for CD Rates
Market rates on CDs rose dramatically once the Federal Reserve began increasing the federal funds rate in March 2022. We spoke with Rob Williams, managing director of wealth management at Charles Schwab, on what experts predict will happen to CD rates in 2024:
Rob Williams
Managing Director of Wealth Management at Charles Schwab
“Based on Fed statements, it appears more likely than not that short-term interest rates, including rates on cash investments like CDs, may fall in the next 12 months.”
Williams recommends that “investors using cash as an investment, not everyday spending, may want to extend into CDs with longer maturities to lock in yields now.”
More CD Resources
- CD calculator
- Types of CDs
- Historical CD rates
Methodology
Data for this report comes from Curinos, LLC. Curinos is the leading provider of data, technologies and insights for financial institutions. Read our full CD rate methodology here.
FAQ: Current CD Rates
Merchants Bank of Indiana has the highest paying CD right now. It offers a 5.92% APY on a 1-year CD with a deposit of $10,000.
As many traditional and online financial institutions currently offer APYs of 5% or higher on several term lengths, now is a good time to open a CD for some investors.
The highest available CD rates today are:
- 3-month CD: 5.50% APY
- 6-month CD: 5.55% APY
- 12-month CD: 5.92% APY
- 24-month CD: 5.92% APY
- 36-month CD: 5.92% APY
- 60-month CD: 4.60% APY
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
Allison HollinsEditor
Allison Hollins has worked as a writer, content strategist and publisher for more than a decade. In that time, she has contributed to national and regional publications covering travel and personal finance.
Rashawn MitchnerManaging Editor
RaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on things including travel, entertainment and household services.
