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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.
Today’s best interest rates on CDs (certificates of deposit) are as high as 5.37%. Rates vary by term and often fluctuate, and they are expected to fall as the Federal Reserve lowers interest rates.
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 11, 2024.
A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you’ll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can’t touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before it reaches maturity.
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 4.96%. 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%, the same as last week at this time.
Today’s 1-Year CD Rates
The highest interest rate currently available on a one-year 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’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 1.90%, up from 1.89% 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
Within the last week, the highest rate on a three-year CD has been 4.65%, 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 4.25%, down from 4.31% one week ago. APYs are averaging 1.59%, the same as this time last week.
The longer the term, the higher 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 early. 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 1.90%, 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 To Open a CD
CDs are a relatively simple savings tool: You open an account with a deposit (your principal), let your money sit for a predetermined period of months or years while you enjoy the magic of compounding interest.
Many CDs (as well as share certificates offered by credit unions) require a minimum deposit (typically less than $10,000 unless it’s a jumbo CD) to open your account. Some financial institutions allow you to fund an account with as little as a penny.
But banks and credit unions typically won’t allow you to add to your deposit once the term begins and the clock starts ticking. And they’re serious about not letting you crack open your CD or share certificate too soon. Early withdrawal penalties can be so tough they’ll eat into your principal, not just take back some of your interest.
Are CD Rates Worth It?
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 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.
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.
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.