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Key Takeaways
- Today’s highest CD rate is 5.39% for a 3-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.
As of today, the best interest rates on CDs—certificates of deposit—pay up to 5.39%, based on certificate term lengths. Here’s an overview of how CD rates are changing, followed by a guide to the current top CD rates across different terms.
Related: Compare the Best CD Rates
Highest CD Rates Today
CD Rates Today
| TERM | HIGHEST APY | AVERAGE APY |
|---|---|---|
3 Months | 5.39% | 1.30% |
6 Months | 5.37% | 1.83% |
1-Year CD (12 M) | 5.37% | 1.99% |
2-Year CD (24 M) | 4.89% | 1.72% |
3-Year CD (36 M) | 4.72% | 1.63% |
5-Year CD (60 M) | 4.65% | 1.62% |
Jumbo CD | 5.37% | 1.86% |
Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of July 31, 2024.
A CD is a savings account with a fixed interest rate and a maturity period, which is what makes them time deposit accounts. When you open a CD, you agree to lock up your deposit without touching it until the CD’s term is up, whether that’s in six months or five years. Your patience is rewarded with interest that’s usually better than what you’d earn from a regular savings account.
Withdraw money from a CD before “maturity”—when it reaches the end of its term—and you can be slapped with stiff penalties. For example, you can lose up to six months’ worth of interest if you make an early withdrawal from a one-year CD.
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 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 1.30%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.30% 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 5.37%. That’s unchanged from a week ago. The current average APY for a six-month CD is 1.83%, 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 factors in compound interest. That’s the interest you earn not only on your deposit (or principal) but also on the interest itself.
Today’s 1-Year CD Rates
The highest interest rate currently being offered on a 12-month CD—one of the most popular CD terms—is 5.37%. If you land a 12-month CD with a rate in that neighborhood, 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 1.99%, 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 4.89%. The top rate last week at this time was a similar 4.89%. Two-year CDs now have an average APY of 1.72%. 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 away for years.
Today’s highest rate on a three-year CD is 4.72%, 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 4.72%.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.65%, the same as one week ago. APYs are averaging 1.62%, 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 5.37% for a 6-month term. The average APY for this category of CD is currently 1.86%, compared to 1.73% 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.
Build a CD Ladder
Want to earn higher yield, but wary of keeping your money chained up for years? A CD ladder can help you earn good returns and make your investment feel more liquid.
You build a ladder by investing your money in multiple CDs with terms of different lengths. You might buy a one-year CD, a two-year CD, a three-year CD, a four-year CD and a five-year CD. As each of the shorter-term CDs matures, you replace it with a new five-year CD.
Follow this plan, and in a few years you’ll have one better-yielding five-year CD maturing each year. If you’re ever having a bad year, you could take some of the cash from the expiring CD and use it to pay bills instead of pouring it all into a fresh CD.
You must comparison shop to track down the best CD rates. Banks and credit unions compete by offering alluring yields to land your business, so shopping around is a must before you purchase any bank CD or credit union share certificate.
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.
