Since last year, savings rates on high yield savings accounts and CDs have been continually rising, with rates on many top-earning accounts offering APYs of over 4% and 5%. Typically, long-term CDs offer higher rates than short-term CDs, but the market is currently experiencing what is known as an “inverted yield curve,” meaning you’ll earn more from a 1-year CD compared to a 5-year CD.
This is great news; you can now invest your cash in a CD with a high rate of return, without having to keep it locked up for an overly long period of time. Rates on long-term CDs are still high though, so if you are looking for a longer-term investment option, you’ll be able to score rates of over 4%. And rates could even go up further.
Here are some of the best CD rates available now, sorted by term length. Plus use our tool, in partnership with Bankrate, which automatically updates the rates ensuring you get the most up-to-date CD rates available.
CD rates have been rising in tune with higher interest rates. In an attempt to slow high inflation, the Federal Reserve has raised interest rates 11 times since March 2022. At their latest meeting the Federal Reserve decided to once again keep the federal funds rate steady. This fourth consecutive pause in rate hikes means the federal funds rate, a key bank lending rate, will remain at a target range of 5.25% to 5.5%, the highest it’s been in 23 years. And rate cuts are expected later this year, meaning rates on savings accounts could also drop throughout 2024.
Best 3-month CD rates
Short term CD's, like 3-month or 6-month CDs, can be good options for individuals who don’t want to commit to having their cash tied up for long periods of time. However, it’s important to compare rates across accounts to be sure you’re getting the best return on your cash. For instance, you’ll likely be able to get a similar, or even higher, APY when opening a high-yield savings account or money market account. And with these types of savings vehicles, you won’t have to wait any time at all to withdraw funds from your account. But this can have a downside: it’ll be easier to make impulse purchases with cash in a high yield savings account than cash that’s tied up in a CD. You may also opt for a short-term CD if you predict falling interest rates. Since the APY of a CD account is fixed, your savings won’t be affected.
Total Direct Bank
APY: 5.42%
Minimum deposit: $25,000
Dow Credit Union
APY: 5.30%
Minimum deposit: $500
Banesco USA
APY: 5.30%
Minimum deposit: $1,500
Merrick Bank
APY: 5.25%
Minimum deposit: $25,000
Middlesex Savings Bank
APY: 5.15%
Minimum deposit: $250
All In Credit Union
APY: 4.49%
Minimum deposit: $1,000
Brilliant Bank
APY: 5.10%
Minimum deposit: $1,000
Best 6-month CD rates
Eagle Bank
APY: 5.60%
Minimum deposit: $1,000
Newtek Bank
APY: 5.55%
Minimum deposit: $2,500
Coastal States Bank
APY: 5.37%
Minimum deposit: $1,000
Vast Bank
APY: 5.50%
Minimum deposit: $2,500
My Banking Direct
APY: 5.50% (5 months)
Minimum deposit: $2,500
Superior Choice Credit Union
APY: 5.25%
Minimum deposit: $500
Home Savings Bank
APY: 5.35%
Minimum deposit: $5,000
Total Direct Bank
APY: 5.45%
Minimum deposit: $25,000
Popular Direct
APY: 5.30%
Minimum deposit: $10,000
Best 1-year CD rates
CDs are good options for particular savings goals, like future purchases or events. For example, if you know you’ll purchase a new vehicle in three years, then keeping your cash in a 3-year CD makes sense. Or maybe you’re saving for next year’s vacation, in which case putting your cash in a 1-year CD account will help you maximize your savings with little effort. Just remember: you won’t be able to access your cash once it’s put into a CD account (unless you opt for a no-penalty CD account). For this reason, cash you’ll need access too, like savings in an emergency fund should be saved elsewhere.
You may also want to open a number of CDs with varying maturity dates if you’re building a CD ladder. This is where you stagger, or ladder, maturities so that some are always coming due in the near future. For example, if you have $10,000 to invest, you could split it equally into five “rungs,” putting $2,000 into CDs with maturity dates a year apart. So, $2,000 in a 1-year CD, $2,000 in a 2-year CD and so on. When each CD matures, you’ll invest your cash, plus any earned interest, into another 5-year CD. You’ll then be left with five 5-year CDs, with one maturing each year, providing a consistent cash flow.
See Kiplinger's full list of top earning 1-year CD rates.
Apple Federal Credit Union
APY: 5.40%
Minimum Deposit: $500
CFG Bank
APY: 5.31%
Minimum Deposit: $500
Expedition Credit Union
APY: 5.40%
Minimum Deposit: $2,500
NexBank
APY: 5.40%
Minimum Deposit: $25,000
TotalDirectBank
APY: 5.35%
Minimum Deposit: $25,000
First Internet Bank
APY: 5.31%
Minimum Deposit: $1,000
Prime Alliance Bank
APY: 5.30%
Minimum Deposit: $500
Bread Financial
APY: 5.25%
Minimum Deposit: $1,500
Popular Direct
APY: 5.15%
Minimum Deposit: $10,000
Best 2-year CD rates
Pelican State Credit Union
APY: 5.00%
Minimum Deposit: $500
My eBanc
APY: 4.85%
Minimum Deposit: $5,000
Lafayette Federal Credit Union
APY: 4.78%
Minimum Deposit: $500
First Internet Bank
APY: 4.82%
Minimum Deposit: $1,000
Luana Savings Bank
APY: 4.81%
Minimum Deposit: $2,000
TAB Bank
APY: 4.80%
Minimum Deposit: $1,000
First National Bank of America
APY: 4.80%
Minimum Deposit: $1,000
Best 3-year CD rates
See Kiplinger's full list of top earning 3-year CDs.
Transportation Federal Credit Union
APY: 5.00%
Minimum Balance: $1,000
DollarSavingsDirect
APY: 5.00%
Minimum Balance: $1,000
Hughes Federal Credit Union
APY: 4.86%
Minimum Balance: $1,000
Dow Credit Union
APY: 4.81%
Minimum Balance: $500
Luana Savings Bank
APY: 4.70%
Minimum Balance: $2,000
Credit Human
APY: 4.70%
Minimum Balance: $500
Pelican State Credit Union
APY: 4.23%
Minimum Balance: $500
First Internet Bank
APY: 4.66%
Minimum Balance: $1,000
Seattle Bank
APY: 4.65%
Minimum Balance: $1,000
Popular Direct
APY: 4.55%
Minimum Balance: $10,000
Best 4-year CD rates
Credit Human
APY: 4.70%
Minimum Balance: $500
Seattle Bank
APY: 4.55%
Minimum Balance: $1,000
First National Bank of America
APY: 4.55%
Minimum Balance: $1,000
Department of Commerce Federal Credit Union
APY: 4.35%
Minimum Balance: $500
BMO Alto
APY: 4.50%
Minimum Balance: $0
Dow Credit Union
APY: 4.50%
Minimum Balance: $500
First Internet Bank
APY: 4.50%
Minimum Balance: $1,000
Best 5-year CD rates
A major benefit of opening a long-term CD is that you’ll be able to lock in rates while they’re high. Unlike rates on high yield savings accounts, which vary with the market, rates on CDs are locked-in when you open the account. For this reason, if you open a 5-year CD and then savings rates drop shortly after, your APY won’t be affected. The downside, however, is that your cash will be tied up for many years. If you needed to access this cash, the withdrawal fee could offset a good portion of any interest earned.
See Kiplinger's full list of top earning 5-year CDs.
First Internet Bank
APY: 4.55%
Minimum Balance: $1,000
First National Bank of America
APY: 4.55%
Minimum Balance: $1,000
BMO Alto
APY: 4.50%
Minimum Balance: $0
Pima Federal Credit Union
APY: 4.50%
Minimum Balance: $250
Dow Credit Union
APY: 4.50%
Minimum Balance: $500
Seattle Bank
APY: 4.50%
Minimum Balance: $1,000
CoVantage Credit Union
APY: 4.35%
Minimum Balance: $1,000
Colorado Federal Savings Bank
APY: 4.35%
Minimum Balance: $5,000
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