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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.

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

Source: Curinos. Rates are based on a $25,000 minimum deposit. Data accurate as of July 2, 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 1.29%, but the highest rate is 5.39%. Last week, three-month CDs were earning 1.28% on average.

Today’s 6-Month CD Rates

If you’d prefer a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.26%. That’s down from 5.40% a week ago. The current average APY for a six-month CD is 1.82%, compared to 1.81% 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 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 1.97%, 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 a jump from 1.71% 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 4.75%, 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 4.75%.

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 5.40% for a 6-month term. The average APY for this category of CD is currently 1.84%, compared to 1.69% 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 July 2024

When looking for the best CD rates, try shopping around with both banks and credit unions. If you don’t have a strong preference for one or the other, you’ll probably find yourself leaning toward the highest rates. Credit unions are often more competitive than banks when it comes to CDs, but it’s important to always check for yourself, as this won’t always be the case.

To give you just one example, PenFed Credit Union’s CD Rates currently range from 3.00% to 4.00% while U.S. Bank CD Rates currently range from 0.05% to 0.25%.

Other top CD rates by banks include:

Do CDs Cost Anything?

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.

The big cost is—obviously—the deposit, particularly if there’s a minimum deposit you must meet. But as long as you don’t withdraw money from your CD before it matures, you’ll get to keep all of the interest you earn. That makes CDs a great fee-free way to grow your money.

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.

Categorized in:

CDs, Daily rates,

Last Update: July 3, 2024

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