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Key Takeaways
- Today’s highest CD rate is 5.37% for a 12-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—range as high as 5.37% today, which is far higher than CD rates were a few years ago. Here’s an overview of the best CD rates for you.
Highest CD Rates Today by Term
CD Rates Today
Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of December 5, 2024.
A CD is a kind of savings account with a fixed interest rate for a given term. You can access your principal and interest payments once the CD term expires; if you withdraw money before that time, you’ll incur an early withdrawal penalty. Traditionally, the longer a CD term, the higher the yield, but that dynamic hasn’t held in recent years. Make sure you select a CD that matches up with when you’ll need the money.
Average CD Rates
Today’s 3-Month CD Rates
Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.31%, but the highest rate is 5.00%. Last week, three-month CDs earned an average of 1.31%.
Today’s 6-Month CD Rates
If you’re interested in a short-term CD with high yields, consider a six-month CD. The best rate today is 5.25%. The current average APY for a six-month CD is 1.85%, down from 1.86% last week at this time
Today’s 1-Year CD Rates
The highest interest rate currently available 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 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 1.90%, the same as a week ago.
Today’s 2-Year CD Rates
If you can hold out for two years, 2-year CDs today are being offered at interest rates as high as 4.52%. The top rate last week at this time was a similar 4.52%.
Two-year CDs now have an average APY of 1.67%, the same as last week at this time.
Today’s 3-Year CD Rates
Today’s highest rate on a three-year CD is 4.65%, 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 4.65%.
Today’s 5-Year CD Rates
On a five-year CD, the highest rate today is 4.31%, the same as one week ago. APYs are averaging 1.59%, the same as this time last week.
If you opt for a five-year CD, make sure you’re aware of 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 before it matures.
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 1.91%, compared to 1.83% 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
Related: CD Interest Rates Forecast: How Good Will They Get?
Best CD Rates Offered by Banks in December 2024
CD rates are rarely the same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it’s convenient or join a new bank to take advantage of higher rates.
To find the right CD, look at the specific term you’re interested in with a few different banks.
Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example:
Other top CD rates by banks include:
How CDs Work
You “purchase” a CD from a financial institution by opening an account with a lump-sum deposit, which is your principal. Many CDs and share certificates (accounts similar to bank CDs but offered by credit unions) have minimum deposits you must meet, which typically range from a few hundred to several thousand dollars.
Once you deposit your principal, the clock starts on your timed investment, and you begin earning interest. The bank or credit union will provide you with regular statements showing how much you’re earning. You may accrue interest daily, monthly or quarterly.
Try not to tap your CD before the term ends. Early withdrawal penalties can be so severe that they negate your interest and then start eating into your principal.
Are CD Rates Worth It?
If you want the best interest rate on your savings, CDs are usually your best bet, outpacing even the best high-yield savings accounts and best money market accounts. You will have to do without the money for as long as the term lasts; otherwise you’ll owe an early withdrawal penalty.
Even still, you may not be that impressed since potential investments, such as stocks, tend to outperform CDs over the long haul. Why settle?
The issue is that stocks, and even bonds, are much more volatile than CDs. Stocks crashed nearly 20% in 2022, while bonds dropped 13%. Imagine a fifth of your savings going “poof” over the course of a year. Not a happy thought, is it?
CDs and stocks perform different roles in your overall financial plan. CDs are a depot for a portion of your savings you don’t need immediately, while stocks provide solid long-term returns. You don’t want to risk cash you’re depending on.
The Federal Deposit Insurance Corp. 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 National Credit Union Administration insures your money up to the same limit.
CD rates generally fluctuate the most following the Federal Reserve’s decisions to raise, lower or maintain the federal funds rate. The federal funds rate is the rate at which banks lend money to each other overnight. The Fed makes decisions about the funds rate eight times per year when the Federal Open Market Committee (FOMC) meets.
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.
Frequently Asked Questions (FAQs)
How do you build a CD ladder?
You build a CD ladder by saving your money in multiple CDs with cascading term lengths. For instance, 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 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.
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.
CDs usually come with zero fees, meaning your money won’t be nibbled at by the monthly maintenance fees that are typical with many savings, checking and money market accounts.
You will likely be charged an early withdrawal penalty if you end your CD term early. Make sure you won’t need access to your cash in the meantime.