Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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.
Currently, the best interest rates on CDs (certificates of deposit) are as high as 5.39%. Rates vary by term and often fluctuate. Below, you’ll find a summary of how CD rates are leaning—plus a guide to the best rates across CDs of various lengths.
Related: Compare the Best CD Rates
Highest CD Rates Today
CD Rates Today
CD Rates Today
| TERM | HIGHEST APY | AVERAGE APY |
|---|---|---|
3 Months | 5.39% | 1.29% |
6 Months | 5.27% | 1.82% |
1-Year CD (12 M) | 5.37% | 1.97% |
2-Year CD (24 M) | 5.12% | 1.72% |
3-Year CD (36 M) | 4.72% | 1.63% |
5-Year CD (60 M) | 4.65% | 1.62% |
Jumbo CD | 5.40% | 1.85% |
Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of July 10, 2024.
A CD is similar to a savings account, but the interest rate is fixed—not variable. The other major difference is that you’ll typically only earn interest on a CD account if you refrain from withdrawing funds during the term. That term could range from a few weeks to several years, depending on the CD you choose.
If you withdraw money from your CD before it “matures” (reaches the end of its term), you’ll likely get hit with steep penalties in the form of reduced interest. For instance, you may forfeit six months’ worth of interest if you withdraw money from a one-year CD before 12 months are up.
If you’re interested in accruing the maximum amount of interest possible, consider long-term CDs, which historically have the highest APYs. But again, long-term CDs are only an option if you’re willing to stash away some cash you won’t be able to touch for years.
Generally, CDs with longer terms carry more severe withdrawal penalties than short-term CDs. For instance, it’s not uncommon to lose a full year’s worth of interest if you transfer funds out of a five-year CD account before the term is over. Therefore, it’s crucial to familiarize yourself with the CD issuer’s penalties before you open your account.
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 1.29%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.29% 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 5.27%. That’s an increase from a week ago, when the top rate was 5.26%. The current average APY for a six-month CD is 1.82%, the same as last week at this time.
APY provides a more accurate calculation of the yearly 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 find a 12-month CD with a rate in that neighborhood, 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 1.97%, 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 5.12%. The top rate last week at this time was a similar 5.12%. 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 up 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%. 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 5.40% for a 6-month term. The average APY for this category of CD is currently 1.85%, compared to 1.70% 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?
Build a CD Ladder
If you want to earn great returns without sacrificing access to your hard-earned cash, a CD ladder might be just what you’re looking for. This simple savings strategy involves spreading your funds across several CDs instead of putting all of your eggs in one basket.
Say you have $5,000 to invest in CDs. Rather than putting that entire amount in a single, high-yield CD, consider putting $1,000 in five CDs with terms ranging from one to five years. As each CD reaches maturity, reinvest the funds into a new five-year CD. If you manage to do this for five years, you’ll then have one, high-yield CD maturing every 12 months.
If you experience financial difficulties during any particular year, you can withdraw your funds from the maturing CD instead of starting a new one. This degree of flexibility can give you peace of mind by providing a steady flow of maturing CDs.
To ensure you get the best CD rates, compare offers from leading banks and credit unions. The current CD landscape is highly competitive, so it’s worth taking time to research your options. Once you identify the financial institution that best suits your needs, start a ladder by splitting your money across several CDs.
Do CDs Cost Anything?
You must fork over funds to open a CD account, but you get all of that money back—plus interest—when the CD reaches maturity. You won’t have to worry about any one-time or recurring fees, but you may sacrifice some of all of the interest you’ve earned if you withdraw from a CD before its term is over.
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.
