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Best CD Rates of June 2024

Last Updated: June 26, 2024
The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

That said, some of the highest-paying CDs may be difficult to qualify for, their high rates may only apply to small amounts of money or there may be other hoops to jump through. So we’ve put together a list of the best CD rates from our top-rated banks, credit unions and other financial institutions – all of which are accessible to a large number of people.

Written By: Laurie Sepulveda
Written By: Laurie Sepulveda Senior Content Writer

Laurie Sepulveda is a Senior Content Writer who specializes in writing about personal finance. She’s lived, taught and written about personal finance for over a decade. Laurie lives in North Carolina with her family and spends her free time playing Wordle and dreaming about travel.
Edited By: Andrew Dunn
Edited By: Andrew Dunn Senior Editor

Andrew Dunn is a veteran journalist with more than a decade of experience in the business and finance arena. Before joining our team, Andrew was a reporter and editor at North Carolina news organizations including The Charlotte Observer and the StarNews in Wilmington. In those roles, his work was cited numerous times by the North Carolina Press Association and the Society of Business Editors and Writers. Andrew completed the business journalism certificate program from the University of North Carolina at Chapel Hill.
Brandon Renfro, CFP, Ph.D.
Reviewed By: Brandon Renfro
Brandon Renfro, CFP, Ph.D.
Reviewed By: Brandon Renfro Reviewer

Brandon Renfro, Ph.D., CFP, is a financial planner with Belonging Wealth Management in Longview, Tex., and formerly served as a finance professor. He specializes in retirement income planning.

CD Rates From Our Top-Rated Banks

Use the filters below to find the best offers for you on the right.

Rating Methodology
All banks we review receive a star rating from 0 to 5. CDs shown below are from banks with the highest star ratings.
  • Alliant Credit Union
    Our Score 4.2
    APY 5.15%
    Min. Deposit $1,000
    Term Length 1 Year

    Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.

    Alliant Highlights

    Alliant Credit Union offers some of the highest APYs on our list, including traditional standard and jumbo CDs. The jumbo CDs, which require a deposit of $75,000 or more, offer a slightly higher APY of 0.05%. Alliant does require a minimum deposit of $1,000 to set up a new CD.

    Next
  • BMO Alto
    Our Score 4.3
    APY 5.15%
    Min. Deposit $0
    Term Length 6 Months

    BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.

    BMO Alto Highlights

    BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.

    Compare Rates
  • Visit Marcus.com
    Our Score 4.5
    APY 5.10%
    Min. Deposit $500
    Term Length 6 Months

    Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.

    Marcus by Goldman Sachs Highlights

    Marcus by Goldman Sachs is an online bank that offers no-penalty, traditional fixed-rate and rate-bump CDs with competitive APYs and a minimum deposit of just $500. It has a 13-month no-penalty CD offered at an attractive 4.70% APY as well as nine-month and one-year CDs near 5.00%.

    Compare Rates From multiple lenders via MyBankTracker
  • BMO Alto
    Our Score 4.3
    APY 5.05%
    Min. Deposit $0
    Term Length 1 Year

    BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.

    BMO Alto Highlights

    BMO Alto, an online-only bank, offers six traditional CD options. Its five-year CD offers one of the highest APYs on our list for that term (4.50%), and there is no minimum deposit requirement to set up a CD. The bank gives you 10 days to fund your account and offers to increase your APY if rates go up during that time. Oddly, BMO Alto does not offer a mobile app, so you’ll have to do all of your banking on the internet.

    Compare Rates
  • Visit Quontic.com
    Our Score 4.5
    APY 5.05%
    Min. Deposit $500
    Term Length 6 Months

    Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.

    Quontic Highlights

    Quontic Bank offers five fixed-rate CDs with terms ranging from six months to five years, with its highest APY (5.05%) reserved for its 6-month CD. Its minimum deposit is only $500 and you’ll start earning interest on your CD the same day you initiate a transfer of your money. Quontic also has fast, U.S.-based customer service team that answers right away if you run into any problems setting up your account.

    Compare Rates From multiple lenders via MyBankTracker
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Our Key Takeaways
  • CDs are a safe investment, especially for savings you may need in the short-to-medium term.
  • CDs lock in your interest rate for the duration of the certificate, so if rates drop, your interest rate will stay fixed until your CD matures. That’s unlike high-yield savings accounts, where rates can rapidly rise or drop.
  • With rates at near record highs and likely to drop later in the year, now may be the time to lock in interest rates on a longer-term CD, pros tell us.

Best CD Rates From Top Banks

Our Top Pick
Pros
Transparent about CD rates and required balance tiers
Offers some of the highest CD rates available
No minimum deposit requirements on CDs
Has a no-penalty CD and a bump-up CD
Cons
Difficult to reach a customer service agent, according to our experience
No physical branch locations
No checking account option

We opened a nine-month CD with Synchrony Bank in February of 2024 to give you a first-hand look at the application process. Our experience with Synchrony Bank was positive overall, starting with the fact that the provider was transparent about its APYs and related balance tiers during sign-up. Other highlights include:

  • Seamless account integrations, such as the ability to set up recurring deposits
  • Option to transfer CD interest payments to an external account or a Synchrony money market or high-yield-savings account
  • Accessible application process with checkbox for those without phone numbers due to hearing or speech disabilities

However, Synchrony fell short in a couple of areas when we opened our CD. The main thing we noted was difficulty with customer service in these areas:

  • Difficulty finding the customer service phone number followed by completing seven voice prompts to reach a live agent
  • For chat, must request a live agent
  • Unable to connect with Synchrony’s budgeting tool

We found Synchrony Bank to be a transparent and user-friendly online bank with several savings products such as a high-yield savings account (HYSA), a money market account and a wide range of CD terms – many with APYs between 4% and 5%.

We liked the seamlessness of Synchrony’s online platform, which allows you to transfer interest payments from your CD account to another internal or external account. We also liked that Synchrony CDs have no minimum balance requirements.

Our Score 4.6
APY Range 0.25% – 5.15%
Terms 3 Months – 5 Years
Min. Deposit None
Visit Synchrony.com Compare Rates
Best Online Experience
Pros
Loyalty APY increase (an additional 0.05%) when you renew an Ally CD
Bump-up CD allows you to increase your rate if rates rise during your term
No-penalty CD offers a competitive 4.00% APY and the ability to withdraw your money during the 11-month term with no charge
Cons
No APYs over 5.00%
No physical branch locations

Our research team opened a six-month CD and a three-month CD to test Ally’s CD application process. Ally Bank has several helpful features that stand out, including:

  • A series of FAQ articles available within the application
  • Convenient customer support options, including chat and phone, with estimated wait times posted
  • A 0.05% loyalty bonus that’s automatically added to your interest rate when you renew a CD term

We also encountered the following drawbacks when opening an Ally CD:

  • Required a picture of our Social Security card during the application process, which none of the other banks we tested did
  • Because our tester already had an Ally account, the process to open a CD only took a few minutes. But if you don’t have an existing account, Ally warns it can take up to five to seven days for Ally to review an application.

We chose Ally for its history of high APYs and solid customer service. The online bank offers many ways to save, including several high-yield CDs, bump-up CDs and a no-penalty CD that allows you to withdraw your money as soon as seven days after you fund the account. We were also impressed with Ally’s best-rate guarantee that automatically increases the APY on your CD if rates rise within 10 days of opening your account. We found Ally’s customer service and user experience top-notch, even while its security measures slowed down our application process.

Our Score 4.6
APY Range 3.00% – 4.50%
Terms 3 Months – 5 Years
Min. Deposit None
Read our comprehensive review Compare Rates
Fastest Customer Service
Pros
Earn interest the day you initiate a money transfer into the account
Easy, fast and secure account setup
Fast U.S.-based customer service with no prompts
Cons
No physical branch locations
No specialty CDs
Third-party verification may reject your application if you’ve recently moved

Three MarketWatch Guides team members attempted to open CDs with Quontic Bank, and two were rejected via email. When we reached out to a Quontic customer service representative, the rep said that rejections are common because the bank uses a third-party system for verification. 

She added that two common causes are the use of virtual private networks (VPNs) and recent address changes. The two Guides team members had moved within the last 14 months, which could have been a factor in the approval process.

We were able to open a six-month CD and fund it with $500. It was easy to set up an account with the bank, which we created in just nine clicks. We particularly liked:

  • You start earning interest the day you initiate your transfer, not the day your transfer is received.
  • To reach a customer service agent, you input your number into the website and within seconds you’re connected to a U.S.-based agent – no phone prompts or account numbers are required.
  • Seamless integration with budgeting apps

The biggest issue our team faced with Quontic was the rejected CD applications. We reached out to Quontic’s corporate team to comment on our experience and received the following response: “Given Quontic is a digital-only bank, we take a strong approach to identifying someone’s digital identity and there is always a possibility that someone triggers false positives for a decline. We use a third-party platform in which we leverage best practices for an approval/denial workflow. There can be many reasons in which an applicant could be declined. Due to fraud prevention reasons, we do not disclose the exact reason for the denial. However, we continue to meet and exceed industry benchmarks for approval rates so we feel comfortable that our workflow is configured as appropriately as possible.”

While Quontic is a newer online bank, we like its high APYs for certificates of deposit, one of which tops 5.00%. And it was a breeze to set up our Quontic account, once one of our researchers was able to get past the bank’s third-party verification system and have an application approved. 

When it comes to CDs, we like Quontic’s simple but thorough offerings. Quontic offers six traditional fixed-rate options with terms ranging from three months to five years. All terms have high APYs that beat national averages and a minimum deposit requirement of only $500.

Quontic is also the only bank on our list that’s a certified Community Development Financial Institution, meaning its mission is to support economically disadvantaged communities through access to financial products such as mortgages.

Our Score 4.5
APY Range 4.30% – 5.05%
Terms 3 Months – 5 Years
Min. Deposit $500
Visit Quontic.com Compare Rates
Best for No-Penalty CDs
Pros
A competitive APY on three no-penalty CDs terms (7, 11, or 13 months)
Allows depositors to withdraw the accrued interest on CDs each month without penalty
Allows unlimited deposits within the first 30 days of a high-yield or rate-bump CD’s term
Lets you select what to do when your CD matures up to one year before the date
Cons
No physical branch locations
Lack of a checking account means it might not be a good choice for someone looking to keep all their money at one bank
Can take two or three days for an external account to be verified manually

We opened a 14-month CD with $500 to gather insights into the application process and digital platform experience. We liked Marcus by Goldman Sachs for its flexibility and streamlined features, some include:

  • Gives you 30 days after account opening to add additional money (except for no-penalty CDs)
  • Lets you add a joint account holder up to three business days after you open your account
  • Option to open multiple CD and savings accounts at the same time
  • Tips and FAQs on screen provide helpful information during the application process
  • Guarantees the highest rate it offers for your CD within 10 days of account opening if you make the minimum deposit

Here are the areas we highlighted for improvement:

  • Limited visibility of promotional CD options on parts of the website
  • Manual process for verifying an external account with small test deposits took two days

We found Marcus, an online bank backed by finance giant Goldman Sachs, to be flexible and user-friendly, although we did have to do a separate Google search to find the best rate on its one-year CD. The bank offers three types of CDs — no penalty, traditional fixed-rate and rate-bump — all with competitive rates and terms ranging from six months to six years.

Marcus has a referral offer for its current online HYSA customers: If you refer a new customer who opens a savings or CD account, you’ll receive a 1% boost on your CD or savings account rate for three months. Depending on which CD you own, this could temporarily push your rate to one of the highest available at any bank.

Our Score 4.5
APY Range 3.90% – 5.10%
Terms 6 Months – 6 Years
Min. Deposit $500
Visit Marcus.com Compare Rates
Best for Military Families
Pros
Some of the top rates available for select terms
A wider range of CD term lengths than many banks
Doesn’t require a larger deposit amount to get the best rates
Cons
Low APYs on terms under nine months
Minimum opening deposits of $1,000 for fixed- and adjustable-rate CDs
Membership is restricted to current and former military members and USAA members’ spouses and children

We opened a 182-day USAA CD with $1,000 to show you the process from a customer’s point of view. Our experience was fairly seamless, and we found the company to be user-friendly. Highlights include:

  • Easy to transfer money from existing USAA accounts
  • Detailed guidance on CD types during the application process
  • Pre-application checklist displaying the required documentation and information needed
  • Lower minimum deposits for variable-rate CDs

It’s also important to note this limitation with USAA Bank:

  • Exclusively available to military members, veterans and their spouses and children

USAA is well-known for its affordable insurance and wide variety of banking products, which are accessible only to members of the military and their families. We loved how USAA educated us on different types of CDs while we were setting up our account. USAA has over a dozen CD terms, though the most notable are the 182-day term at 4.90% APY and its nine-month term at 4.75% APY. If you qualify for membership with USAA, it’s easy to add a CD to an existing checking or savings account. 

While USAA offers four adjustable-rate CDs and two variable-rate CDs, the current APY of 0.01% is so low we don’t recommend them. All three types of CDs have early withdrawal penalties.

Our Score 4.5
APY Range 0.05% – 4.90%
Terms 3 Months – 7 Years
Min. Deposit $1,000
Visit USAA.com Compare Rates
Best Long-Term CDs
Pros
Rare seven- and 10-year long-term CDs offered at 3.75% APY, abnormally high for this time frame
APY, interest rate and maturity date are clearly displayed on a user dashboard
Offers live customer service via phone 24/7
Cons
$2,500 minimum deposit on CDs, which is higher than many competitors’ requirements
Steep early withdrawal penalties, especially on longer-term CDs

We opened a six-month Discover CD with $2,500 to give you a first-hand look into the process. We like Discover for its transparency on its account options, and we took note of the following:

  • APY and CD account details are clearly displayed on the brand’s website
  • Included a CAPTCHA anti-bot verification step in the application for security

Here are the areas where we think Discover could improve its customer experience:

  • Lengthy 19-step application process, including inquiries about paperless statements and using money internationally
  • Deposit not available for five days
  • No chat option for customer support

We like Discover because its CD terms range from three months to 10 years — the longest range among our picks. While Discover’s CD rates aren’t as high as some other banks, it may be a convenient option for existing Discover customers.

We didn’t love the lengthy application process, but the bank did offer many security features like multiple verification codes and CAPTCHA. We also liked the transparency of Discover’s account dashboard, which clearly displays our CD’s interest rate and maturity – a feature we didn’t find with most other banks.

Our Score 4.4
APY Range 2.00% – 4.70%
Terms 3 Months – 10 Years
Min. Deposit $2,500
See Rates
Best for Small Investments
Pros
Has one of the highest rates offered for a five-year CD
No minimum opening deposit
Fund your account within 10 days and if rates rise, you’ll get the higher rate
Cons
No mobile banking app
Only allows CD funding through a BMO Alto bank account or an automated clearing house transfer from an external bank account
Only offers savings accounts and CDs – no checking accounts, credit cards or loans

For a personal look into the BMO account process, we opened a $2,500 CD with a six-month term. Here’s what we liked about becoming a BMO Alto account holder:

  • Gives you the higher APY if the offered rate increases between when you open your account and fund your CD
  • Convenient option to save the application and finish it later
  • Two options for linking an external account to fund your CD
  • Lets you cancel online instead of requiring you to call

Since the bank doesn’t offer a mobile app, we tested its online banking platform. There were several technical glitches we had to work through:

  • Asked for location during the application process
  • Aggressive account timeout mechanisms, leading to unintended logouts
  • Error when linking bank accounts forced us to link manually

We liked BMO Alto, an online-only subsidiary of BMO Financial Group, for its competitive CD rates on longer-term CDs with no minimum deposit. And while it doesn’t offer a mobile app, it was easy to set up our account on its website, which is also accessible via mobile. Customer service is available via phone 24/7.

BMO Alto is limited to savings accounts and CDs, though, so if you want a one-stop financial institution, this isn’t it.

Our Score 4.3
APY Range 4.60% – 5.15%
Terms 6 Months – 5 Years
Min. Deposit None
Visit Alto.BMO.com Compare Rates
Best CD Ladders
Pros
5% APYs on shorter-term CDs
No minimum balance requirements for CDs or the savings account
No penalty for withdrawing interest earned on a CD before its maturity date
Cons
Only offers savings and CD accounts
Has just seven CD term lengths
Live customer support only available from 8 a.m. to 8 p.m. EST

We opened a one-year CD and funded it with $500 for a hands-on look at Barclays’ application process. It was efficient:

  • Had the fewest number of steps in its application process among the top 10 CDs we reviewed
  • Option to set up two-factor authentication for additional security

However, we had some challenges with Barclays:

  • One of only two accounts we tested that didn’t provide instant approval, instead making us wait for email confirmation and manual account review
  • Prompted us to reset our password during the initial login, which was confusing
  • Linked external account didn’t show up as an option for transferring money
  • Phone system required us to enter a Social Security number to speak with an agent, unlike other banks

Our review team reached out to Barclays for comment on our experience with opening a CD and received the following response:

“We strive to provide a simple and easy experience for our customers. The majority of our customers are pleased with their online experience and savings rates that are roughly five times the national average.”

It was quick and easy to set up an account with Barclays, requiring just eight clicks to complete the process. Rates for all Barclays online CDs are competitive, and there are no minimum opening deposit requirements. Barclays also gives you a little longer than other banks to fund your CD — up to 14 days.

Our Score 4.3
APY Range 3.50% – 5.00%
Terms 6 Months – 5 Years
Min. Deposit None
See Rates
Top Credit Union Pick
Pros
Very high rates on CDs: 5.20% for a 1-year term
Large selection of traditional fixed-rate certificates, plus retirement CD options
24/7 customer service by phone
Cons
$1,000 minimum deposit for non-jumbo CDs
Membership requirements to join the credit union
Interest on CDs compounded monthly rather than daily

We opened a three-month CD with $1,000 to share our personal experience with Alliant. Alliant had several features we liked, including one that made it stand out from the nine other banks we opened CD accounts with:

  • Instant funding from an external account, which took days with other CD providers we used
  • Security measures such as naming the devices you log in with and automatically logging out after 10 minutes of inactivity
  • Exceptional customer service that directly links you with an agent — no prompts

While you do need to join the credit union to be a customer, you can first apply for a CD, and if the application is approved, Alliant will automatically set up the membership for you. To maintain your membership, you must keep a $5 balance in your Alliant savings account. Alliant funds this initial deposit for you.

We thought Alliant could improve in some areas:

  • Difficult to find the chat option for customer support
  • CDs renew automatically and may renew at a lower rate

Credit unions typically offer more favorable rates than traditional brick-and-mortar banks, and Alliant is no exception. It calls its CDs certificates, and top certificate rates are above 5%. If you invest in a jumbo certificate for $75,000 or more, you’ll earn an extra 0.05% APY for some term lengths. Otherwise, the minimum deposit to open a regular Alliant CD is $1,000.

Alliant also offers an array of tax-exempt certificates, including three types of IRA certificates: Traditional, Roth and Simplified Employee Pension (SEP).

We found Alliant’s customer service to be top-notch. After we called their customer service number, an agent answered our call directly. While Alliant is a credit union and membership is required, they make it easy to join by automatically setting up an account for you after your certificate application is approved.

Our Score 4.2
APY Range 4.00% – 5.20%
Terms 3 Months – 5 Years
Min. Deposit $1,000
See Rates
Best for Large Investments
Pros
Offers a competitive 5.00% APY for one-year CDs
Allows you to create a CD ladder within one simple online application
Ample customer service hours with live phone support seven days a week
Cons
The $5,000 minimum opening deposit for CDs is higher than the amount required by most online banks
Only allows deposit accounts to be funded via online bank transfer or mailed checks

We opened a Citizens Access one-year CD with a $5,000 deposit in February 2024 to test the overall user experience. Here’s what we liked:

  • User-friendly interface, making it easy to see the number of steps in the application process and a timeline
  • Helpful FAQs to guide you along the account creation process
  • Combines several questions on each screen and provides clear confirmations for each step

Certain aspects of our experience with Citizens Access, however, were not as positive:

  • Waited on hold for eight minutes to speak with a representative
  • Deposit took five days to reach the account

We like that Citizens Access, an online-only division of Citizens Bank, offers a straightforward application process and ample FAQs if you run into an issue. Since it doesn’t have physical branches to maintain, Citizens Access is able to offer high rates with no monthly fees on its savings products. The one-year CD is a standout at 5.00% APY.

The minimum deposit to open a Citizens Access CD is $5,000, so it’s best for savers who have more to invest.

Our Score 4.2
APY Range 0.05% – 5.00%
Terms 11 Months – 5 Years
Min. Deposit $5,000
Visit CitizensAccess.com
In the News

Fed Rates Remain Steady

The Federal Reserve announced on June 12, as expected, that interest rates will remain at a 23-year high, but offered a prediction they’ll likely cut those rates one time before the end of the year. This is a change from the three cuts the Fed predicted at the beginning of the year. The Fed’s next meeting is scheduled for July 30-31.

This may be good news for those investing in a certificate of deposit (CD) for the time being, as financial institutions likely won’t change rates much until the Fed does.

“Given the Fed still seems hesitant about reducing rates, we shouldn’t expect CD rates to fall significantly, but rather they should fall gradually in step with Fed rate cuts,” said Robert Frick, corporate Economist at Navy Federal Credit Union. “Longer-term rates are tougher to predict, but given the Fed is still looking to keep rates higher for longer, long-term rates are likely to remain elevated. The safest strategy remains laddering CD lengths.”

Top CD Rates by Term

Depending on your financial goals, the term length of a CD is an important factor to consider as APYs vary based on the duration of the term. Plus, you typically pay a penalty to withdraw your money before the term is up, so consider whether you can keep your money locked up for the duration of the term you choose. In our latest MarketWatch Guides team CD survey, over 78% of people chose their term based on interest rate, while 28% based their decision on when they’d need their money.

Common CD terms range from three months to five years. The following CDs assume a $10,000 deposit and are accurate as of June 30, 2024. Rate data is sourced by Curinos, a provider of retail banking research that collects deposit pricing data from more than 3,600 financial institutions. These products may have stricter requirements than our picks above – see the institution’s website for more details.

Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
Shoreham Bank 5.50% daily $138.44
HomeTown Bank 5.43% monthly $136.37
Bask Bank 5.35% monthly $134.35
FirstBank Florida 5.30% daily $133.37
Banesco USA 5.25% monthly $131.83
Read more with our review of the best 3-month CD rates.
Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
HAB Bank 5.48% daily $277.77
Neighborhood National Bank 5.43% daily $275.20
EagleBank 5.40% daily $273.66
HomeTown Bank 5.38% monthly $272.03
CoastalStates Bank 5.37% daily $272.12
Read more with our review of the best 6-month CD rates.
Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
Nano Banc 6.00% monthly $616.78
Merchants Bank of Indiana 5.92% daily $609.82
EagleBank 5.44% daily $559.03
Neighborhood National Bank 5.43% daily $557.97
CIBC USA 5.36% quarterly $546.87
Read more with our review of the best 1-year CD rates.
Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
Merchants Bank of Indiana 5.92% daily $1,256.83
Guaranty Bank of Delhi 5.37% annually $1,102.84
Ridgewood Savings Bank 5.14% daily $1,082.62
Raymond James Bank 5.00% daily $1,051.63
HarborOne Bank 5.00% daily $1,051.63

Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
Merchants Bank of Indiana 5.92% daily $1,943.30
Dollar Savings Direct 5.00% daily $1,618.22
Crescent Bank 4.80% quarterly $1,538.95
Alliance Bank Central Texas 4.73% quarterly $1,515.02
Newtown Savings Bank 4.75% daily $1,531.42

Read more with our review of the best 3-year CD rates.

Institution APY Compounding Frequency Interest Earned (On a $10,000 Investment)
BMO Alto 4.80% daily $2,712.29
Raymond James Bank 4.55% daily $2,554.40
First National Bank of America 4.50% quarterly $2,507.51
First Internet Bank 4.50% monthly $2,517.96
Seattle Bank 4.50% daily $2,523.05

Read more with our review of the best 5-year CD rates.

Is Now the Right Time to Buy a CD?

In our survey of Americans who have used a CD within the past five years, over half of the respondents told us they opened a CD in either 2023 or 2024. High interest rates were the main reason why people opened a CD, and 40% of respondents reported earning a rate between 4% and 6%.

The last time CD rates reached 5% was December 2007. From 2008 to early 2023, rates averaged at 0.94% and only briefly surpassed 2%. The chart to the right shows average 3-month CD rates over the past 20 years. 

Over the past year, the top CD rates offered by the online banks and credit unions we track have remained steady but have taken a slight dip in recent weeks. Now may be an opportune time to open an account and maximize your savings before rates likely fall later in 2024.

While the Federal Reserve has indicated that interest rate cuts are coming in 2024, no cuts have been made yet. Federal Reserve Chair Jerome Powell told a House Financial Services Committee in early March that the Federal Reserve would likely cut interest rates but is keeping a keen eye on inflation before making any decisions. So far this year, the Reserve has held rates between 5.25% and 5.50%.

We spoke to Preston Caldwell, chief U.S. economist at Morningstar Research Services, on the future outlook for CDs. He expects the federal funds rate to drop from its current range of 5.25% to 5.5% to 3.75% to 4% by the end of the year. When that happens, he expects short-term CDs to see a similar dip of around 1.5%.

Michael Collins, CFA

Founder of WinCap Financial

“Some of the language in [the Federal Reserve’s most recent] statement indicated that the economy is in a strong place, but progress on inflation has stalled in recent months. The Fed’s message could be summarized in that they will cut rates when the data warrants. Thus far cuts have not been warranted. 

I would expect rate changes on long- and-short term CD’s to be minimal after [the] announcement, but once we have a hint that cuts are closer to the horizon we would expect short term rates to fall first.”

Lawrence Sprung, CFP

Author of Financial Planning Made Personal and Founder of Mitlin Financial

“Short-term and longer-term CD rates should see little to no change.… If you feel rates are going to be heading lower in the near to mid-term it may make sense to lock in for today’s rates for longer.  With the Fed decision [in early May], you have a little while to make this assessment for your situation.”

How to Choose the Best CD

There are four primary factors to keep in mind when choosing a CD. They are the interest rate, term length, early withdrawal penalty and insurance coverage.

Annual Percentage Rate (APY)

The annual percentage yield (APY) measures the total return on your savings, taking into account both interest rate and compounding frequency. The higher your APY, the more your money will earn over the life of the CD. The APYs offered on CDs vary greatly based on the length of the CD. Right now, short-term CDs offer much higher rates than longer-term CDs (4% to 5.5% for 3-month CDs compared to 4% to 4.5% for 5-year CDs). If you find a CD at or above this range from a reputable bank, you can be fairly certain you’re getting a good deal.

Term Length

CDs are time-based deposit accounts, and most CDs require you to keep your money in the account for a set period of time. Common CD term lengths range from three months to five years. Shorter-term CDs often offer higher APYs, but you run the risk of rates being lower when you need to renew them. Longer-term CDs have lower rates, but offer you a guaranteed return for longer. A CD ladder may be able to give you the best of both worlds, splitting your savings between multiple CDs of different term lengths.

Early Withdrawal Penalty

Most CDs come with early withdrawal penalties if you take money out of the account before your CD term ends. In most cases, this penalty is imposed as a certain number of days’ worth of interest. The best CDs typically charge you 30 days worth of interest, while other banks may charge as much as 180 days or more. Some banks allow you to withdraw the interest you’ve earned on your account without penalty. If you think you might need access to cash during your CD term, make sure to look for this feature.

Minimum Deposit

Most banks require you to start your account at a minimum dollar amount. Others may tier their APYs, offering higher rates to people with larger deposits. The best CDs have low ($500 or less) or no minimum deposit requirement. On the other side of the range, some banks may require $100,000 or more to earn their best rate.

Types of CDs

The first way to maximize your CD’s potential is to consider the type you need. Here’s a quick breakdown of how they differ.

Traditional CD

Traditional CDs have a fixed APY for the entire term and don’t generally allow you to withdraw your principal until they have matured. They typically offer higher APYs than a savings account and are best for those seeking a predictable, guaranteed return.

Bump-Up CD

Bump-up CDs allow you to get a higher rate if the available rate rises during your CD’s term. Bump-up CDs provide flexibility in case rates increase before your CD matures. They are best for investors who expect rates to increase.

No-Penalty CD

No-penalty CDs don’t charge a penalty if you withdraw the principal before your CD matures. No-penalty CDs allow for early withdrawal with no costs or fees. These CDs are best for those who may need access to their funds before the CD matures.

CD Calculator

Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. But those higher rates can add up significantly over time, especially as you earn compound interest. The calculator below can help you see how much your CD will earn over its lifetime.

Calculate Interest Earned on Your CD

Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. Enter your deposit, CD term and annual percentage yield (APY) to see what you would earn on a certificate of deposit.

CD INFORMATION

YOUR ENDING BALANCE

$1,025

Total Interest Earned

$25

Initial Balance

$1,000

Pros and Cons of CDs

Pros
  • A fixed interest rate means you lock in your APY for the entire length of the term.
  • CDs can keep you from spending your savings by limiting access to your money until the CD matures.
  • CDs are considered very safe investments for money you need in the short or medium term and are insured by the FDIC or NCUA for up to $250,000.
Cons
  • CDs limit access to your money during the term of the CD unless you take an early withdrawal penalty.
  • You can’t usually add money to a CD after you’ve funded your account.
  • If interest rates rise, you’ll miss out — your CD rate will stay the same.

What Are CD Alternatives?

While CDs are a reliable way to earn money on cash investments, there are several alternatives. CDs may offer higher interest rates than traditional savings accounts or money market accounts, and can be less risky than bonds, but their downside is less liquidity.

Type of Investment

Time deposits where you deposit your money for a set term in exchange for a fixed interest rate

APY

Offer higher APYs than HYSAs or MMAs but lower than some bonds

Risk

Extremely safe as the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor

Accessibility

Limited access until CD maturity unless you pay an Early Withdrawal Penalty

Type of Investment

Savings accounts that offer higher variable interest rates than regular savings accounts, usually offered by online banks or other financial institutions with low overhead

APY

Lower APYs than CDs or bonds but higher rates than a regular savings account

Risk

Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor

Accessibility

Full accessibility — withdraw your money any time and for any reason (although some banks may limit the number of withdrawals you make per month)

Type of Investment

Savings accounts that work more like checking accounts, offering higher variable interest rates than regular savings accounts with check writing capabilities

APY

APYs similar to HYSAs, higher than regular checking or savings accounts but lower than CDs or bonds

Risk

Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor

Accessibility

Full accessibility — withdraw your money at any time and write checks or pay bills out of your account (although some banks may limit monthly transactions)

Type of Investment

Debt securities, short term loans you provide to a company or municipality in exchange for a fixed interest rate paid back over a specific term

APY

Offer the most competitive APYs — the riskiest bonds generally offer the highest interest rates

Risk

Slightly riskier as companies could default and you’d lose your principal and the promised interest (but U.S. Treasury bonds are considered very safe investments)

Accessibility

Some accessibility — you could sell your bond on the secondary market if you needed your money sooner

CDs High-Yield Savings Accounts Money Market Accounts Bonds
Type of Investment Time deposits where you deposit your money for a set term in exchange for a fixed interest rate Savings accounts that offer higher variable interest rates than regular savings accounts, usually offered by online banks or other financial institutions with low overhead Savings accounts that work more like checking accounts, offering higher variable interest rates than regular savings accounts with check writing capabilities Debt securities, short term loans you provide to a company or municipality in exchange for a fixed interest rate paid back over a specific term
APY Offer higher APYs than HYSAs or MMAs but lower than some bonds Lower APYs than CDs or bonds but higher rates than a regular savings account APYs similar to HYSAs, higher than regular checking or savings accounts but lower than CDs or bonds Offer the most competitive APYs — the riskiest bonds generally offer the highest interest rates
Risk Extremely safe as the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor Very safe — the vast majority are insured by the FDIC or NCUA up to $250,000 per depositor Slightly riskier as companies could default and you’d lose your principal and the promised interest (but U.S. Treasury bonds are considered very safe investments)
Accessibility Limited access until CD maturity unless you pay an Early Withdrawal Penalty Full accessibility — withdraw your money any time and for any reason (although some banks may limit the number of withdrawals you make per month) Full accessibility — withdraw your money at any time and write checks or pay bills out of your account (although some banks may limit monthly transactions) Some accessibility — you could sell your bond on the secondary market if you needed your money sooner

Common Questions About CDs

Online banks have some of the highest-paying CD rates right now, reaching 5.30% APY or more. There are some smaller credit unions offering higher rates, but these typically have membership requirements and geographic restrictions.

The top rates are now just under 6.00%. These are typically offered by a handful of credit unions that may have membership restrictions. However, because CD rates can rise and fall based on economic conditions, CDs paying 6.00% APY could be more common if interest rates increase.

The best CD rates for $100,000 are above 5.50% APY and tend to come from credit unions (though these usually have membership restrictions) or online banks. For larger sums such as $100,000, it may be more lucrative to open a CD that compounds interest daily rather than monthly, even if the APY is slightly lower.

High-risk investors may not find CDs attractive since their guaranteed payouts mean they often have lower rates of return than other types of investments. But variable-rate CDs may satisfy those looking for more risk since their interest rates can change when benchmark rates go up or down.

Bump-up CDs also allow for some risk since they often have lower APYs than some fixed-rate CDs but allow you to request a higher rate at least once during the CD’s term if the bank raises rates for new account holders. Additionally, you might consider a brokered CD that comes with a higher risk and higher APYs.

Our Methodology

For our list of the best CD rates, we selected the highest-scoring financial institutions in our review of CDs. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit, a variety of CD product and term options and competitive yields on six-month CDs and one-, two- and three-year terms. Read our full methodology.

*Annual Percentage Yield. Rates accurate as of June 26, 2024.

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