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The best certificate of deposit (CD) rates help your money grow in a stable, FDIC-insured environment. Plus, CD rates are often competitive with the best savings account rates.
However, there is a trade-off: To get these great CD interest rates, you have to agree not to withdraw your money for a certain amount of time. Keep reading to compare the best CD rates.
Short on time? Here are a few of our favorite CDs:
We pride ourselves on being able to confidently say that these CDs are chosen by personal finance experts that operate independently of our Partnerships team, meaning the picks on this page are not and never have been influenced by advertising deals.
Our Ratings team:
APY = Annual Percentage Yield
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.85% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
APY = Annual Percentage Yield
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
---|---|---|---|---|---|---|---|---|---|---|---|
2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
APY = Annual Percentage Yield
Western Alliance Bank offers some of the highest APYs we've seen across short-term CDs through the Raisin platform. Its CDs have low $1 minimums, and relatively low withdrawal penalties without any additional fees. But you will need to look elsewhere for terms longer than one year.
3 Mo. APY | 5 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY |
---|---|---|---|---|
5.21% | 5.16% | 5.13% | 5.10% | 5.05% |
APY = Annual Percentage Yield
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a 4-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
APY = Annual Percentage Yield
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of its CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
6 Mo. APY | 10 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
5.00% | 5.20% | 4.20% | 5.00% | 4.50% | 4.30% | 4.00% |
APY = Annual Percentage Yield
Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's website for the most up-to-date rates.
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|
4.25% | 4.25% | 5.00% | 4.45% | 4.00% | 4.00% | 3.95% | 3.90% |
APY = Annual Percentage Yield
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|---|
4.80% | 5.10% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Savers have the potential to create effective CD ladders through Marcus, as it provides competitive rates through the most common CD terms. The minimum deposit is $500 and withdrawal penalties are moderate compared with competitive banks.
6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 6 Yr. APY |
---|---|---|---|---|---|---|---|---|
5.10% | 5.00% | 5.00% | 4.60% | 4.20% | 4.15% | 4.05% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|
5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
APY = Annual Percentage Yield
Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.
3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 3 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
3.00% | 4.40% | 4.25% | 4.50% | 4.25% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
APY = Annual Percentage Yield
The rates on Prime Alliance Bank's CDs are decent enough, but you can find better. However, the relatively low $500 minimum deposit makes these more available to the everyday saver -- or someone looking to build a CD ladder.
6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
---|---|---|---|---|---|---|
4.95% | 4.95% | 4.75% | 4.50% | 4.25% | 4.00% | 4.00% |
Here are some of the things to keep an eye out for:
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 5.00% | Term: 1 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.40% | Term: 1.5 Year | Min. Deposit: $2,500 | |
APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | ||
Member FDIC.
| APY: 4.50% | Term: 1 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.20% | Term: 1 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.80% | Term: 6 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.60% | Term: 1.5 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.65% | Term: 2 Year | Min. Deposit: $1,500 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.90% | Term: 1.5 Year | Min. Deposit: $1,000 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.95% | Term: 6 Months | Min. Deposit: $500 |
CDs can be smart choices for savers who won't need access to their cash anytime soon and want to lock in a high yield for a certain amount of time. A CD can be a better choice than a savings account in this case, as savings account yields fluctuate over time while CD yields are guaranteed for the entire term.
Conversely, CDs are generally not a good idea for money you might need before the term ends. Most CDs assess a penalty if you decide to withdraw money before the maturity date, and they generally don't allow partial withdrawals.
As of June 2024, CD rates remain close to their highest level in several years. The Federal Reserve increased the benchmark federal funds rate 11 times from March 2022 through July 2023 to slow inflation. While CD rates aren't directly linked to this rate, they tend to move in the same direction.
But the federal funds rate has held steady since then. Some banks have already begun gradually reducing their CD rates, though we may see bigger drops later in the year.
For now, short-term CD rates -- those with terms between six and 24 months -- remain higher than long-term CD rates. This isn't typical. Short-term CD rates are generally more dependent on the current interest rate environment while long-term CDs reflect future expectations. When the expected rate cuts ramp up, we will likely see a return to the traditional pattern where long-term CDs offer better rates.
To be clear, nobody can predict future CD rates with accuracy. They tend to move in the same direction as benchmark interest rates like the federal funds rate. But they aren't directly linked and banks have some discretion to set their own rates.
Having said that, the most recent projection from the policymakers at the Federal Reserve is for one possible 25 basis point (0.25%) cut during the latter half of 2024. If this were to happen, it would likely put downward pressure on CD rates. In short, while nobody knows for sure, CD rates may fall between now and the end of 2024, but the drop probably won't be substantial.
You deposit a certain amount of money into a high-yield CD and agree not to touch it for the length of the CD term in exchange for a high rate of interest that's usually locked in for the full term.
Your bank pays that interest monthly or quarterly. When the CD term is up, you may withdraw the funds and spend them, place them in a savings account, or put them in another high-interest CD.
Withdrawing your funds before the CD term ends results in a penalty -- usually several months' worth of interest. The earlier you withdraw the funds, the larger your penalty will be.
CDs are appealing if you're trying to earn a high APY on your savings, but being unable to touch your money for a set amount of time can be too constraining for some people. If you don't think a high-yield CD is a great fit for you, perhaps one of these accounts would work better.
High-yield savings accounts offer interest rates that are comparable to the highest CD rates. Plus, savings accounts have fewer restrictions on what you can do with your money. You're able to put money in, transfer it to a checking account, or withdraw it almost whenever you want (though withdrawals are often limited to six a month, per Regulation D).
Money market accounts are a hybrid of checking and savings accounts. They offer interest rates similar to high-yield savings accounts and certificate of deposit rates. In addition, money market accounts often give you a debit card and check-writing capabilities. That means, with a money market account, you can directly withdraw funds from your account at your convenience.
This might be a better option than a high-yield savings account or a CD if you anticipate needing to take money directly out of your account.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
At The Motley Fool Ascent, certificates of deposit (CDs) are rated on a scale of one to five stars, primarily focusing on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
Learn more about how The Motley Fool Ascent rates bank accounts.
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Jenius Bank, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, My Banking Direct, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, NexBank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
Using a CD for an emergency fund is safer than putting it in the stock market. However, it's not as flexible as a savings account. If you withdraw money from a CD before the term is over, you will have to pay an early withdrawal penalty. Typically, it amounts to several months of interest earned, depending on the bank and the CD's term.
Other options for an emergency fund are a savings account, high-yield savings account, or a money market account.
If you invest $10,000 in a 1-year CD at a 4.50% APY, it would make $450. The amount you will earn depends on your CD rate. To calculate this yourself, multiply the amount you plan to deposit by the APY that the CD offers.
A good CD rate in 2024 is about 4.50% or higher for a 1-year term. Some of the best CDs offer an APY of 5.00% or more on 1-year CDs. Rates like these are much higher than the national average, and you can normally only find them at online banks.
Yes. CD deposits are covered by FDIC insurance, which insures depositors for up to $250,000 per person per bank. In the event of a bank's insolvency, this insurance would kick in and cover any lost funds up to that amount.
Your CD rate is typically fixed for the term of the CD, unlike savings accounts, where your rate will adjust over time. Specialty CDs like bump-ups have rates that can adjust during the CD term.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.