Morsa Images/ Getty Images; Illustration by Austin Courregé/Bankrate
A certificate of deposit (CD) is a time deposit account. A bank agrees to pay interest at a certain rate if savers deposit their cash for a set term, or period of time.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current national average annual percentage yields (APYs) for this week, according to Bankrate’s most recent survey:
- 1-year CD yield: 1.74 percent APY
- 3-year CD yield: 1.41 percent APY
- 5-year CD yield: 1.42 percent APY
The national average rate for one-year and five-year CDs started to increase in February 2022, driven in part by rising Treasury yields and expectations of Federal Reserve rate increases in 2022. Since February 2023, the one-year CD average has been higher than the five-year CD average.
The Fed raised rates seven times in 2022, in March, May, June, July, September, November and December. It also raised rates in February 2023, March 2023, May 2023 and July 2023.
These are the first rate increases since 2018, and inflation remains high.
Latest average CD APYs: 3-month trend
Bankrate monitors the national average rates on various CD terms, including:
| Date | 1-year CD | 3-year CD | 5-year CD |
|---|
| 04/08/2024 | 1.74% | 1.41% | 1.42% |
| 04/01/2024 | 1.73% | 1.41% | 1.41% |
| 03/25/2024 | 1.74% | 1.40% | 1.41% |
| 03/18/2024 | 1.73% | 1.42% | 1.43% |
| 03/11/2024 | 1.74% | 1.41% | 1.43% |
| 03/04/2024 | 1.72% | 1.41% | 1.43% |
| 02/26/2024 | 1.73% | 1.40% | 1.42% |
| 02/19/2024 | 1.73% | 1.40% | 1.41% |
| 02/12/2024 | 1.74% | 1.42% | 1.42% |
| 02/05/2024 | 1.74% | 1.41% | 1.43% |
| 01/29/2024 | 1.75% | 1.42% | 1.43% |
| 01/22/2024 | 1.75% | 1.41% | 1.43% |
| 01/15/2024 | 1.79% | 1.43% | 1.44% |
| 01/08/2024 | 1.73% | 1.42% | 1.43% |
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology that determines the national average CD rates. More than 500 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.
Compare CD rates by term for April 2024
Current 6-month CD rates
- Popular Direct — 5.30% APY
- TAB Bank — 5.27% APY
- America First Credit Union — 5.25% APY
- Vio Bank — 5.25% APY
- First Internet Bank of Indiana — 5.18% APY
See additional best 6-month CD rates.
Current 1-year CD rates
- CIBC Bank USA — 5.36% APY
- First Internet Bank of Indiana — 5.31% APY
- America First Credit Union — 5.30% APY
- TAB Bank — 5.27% APY
- Bread Savings — 5.25% APY
See additional best 1-year CD rates.
Current 3-year CD rates
- First Internet Bank of Indiana — 4.66% APY
- Popular Direct — 4.55% APY
- Quontic Bank — 4.40% APY
- America First Credit Union — 4.35% APY
- LendingClub Bank — 4.30% APY
See additional best 3-year CD rates.
Current 5-year CD rates
- First Internet Bank of Indiana — 4.55% APY
- SchoolsFirst Federal Credit Union — 4.35% APY
- Quontic Bank — 4.30% APY
- Popular Direct — 4.30% APY
- America First Credit Union — 4.20% APY
See additional best 5-year CD rates.
Note: Annual percentage yields (APYs) shown were updated between April 11-18. Bankrate’s editorial team validates this information regularly, typically weekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings. A listing may require new money.
Current CD rates FAQs
The Federal Reserve’s decisions on interest rates can affect CD rates.Once the central bank makes a decision to change the rate, competitive banks will generally move CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.For instance since March 2022, the one-year CD national average has mostly increased or stayed the same.
CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will likely influence CD rates.Competition among banks and credit unions will also influence the payout on their CDs, as well as whether or not the financial institution needs deposits. In general, online banks tend to pay higher rates than banks with branches. Changes in Treasury yields and economic conditions also influence CD rates.
Learn more to maximize your earnings
Best jumbo CD ratesEarn more on a larger deposit amountCaret RightCD rate forecast 2024Track how rates are trendingCaret RightBest high-yield savings ratesBenefit from high APYs and flexibilityCaret RightBankrate's best banks of 2024Find the ideal bank for youCaret Right
FAQs
Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on June 11. If the Fed rate drops, CD rates will likely follow suit, though it's up to each bank and credit union if and when that occurs.
Who is offering a 5% CD rate? ›
Highest current CD rates (overall)
| Institution name | APY | Term length |
|---|
| Raymond James Bank | 5.05% | 2 years |
| Bask Bank | 5.00% | 18 months |
| LendingClub Bank | 5.00% | 18 months |
| Newtek Bank | 5.00% | 18 months |
31 more rowsIt's possible to get a 6% certificate of deposit, but currently, they're only offered by credit unions, not banks. Pros of a 6% CD include locked-in interest rates and a relatively high rate of return.
Where can I get 7% interest on my money? ›
Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
Should I lock in a CD now or wait? ›
Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.
What are the interest rates predicted for 2024? ›
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This reflects an upward revision in Fannie's analysis: One month prior, the mortgage giant expected rates would fall to 6.4% by year-end, and just a few months ago, it forecasted rates would dip below 6% by the end of this year. All told, Fannie Mae predicts mortgage rates will average 7% in 2024 and 6.7% in 2025.
Can you get 7% on a CD? ›
Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.
What is the highest yielding CD right now? ›
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 Vast Bank (5.50%).
What is the CD rate for bank of Hope 2024? ›
*Promo Plus Certificate of Deposit: The Promotional APY (Annual Percentage Yield) of 5.35% for a term of 6 months, 5.25% for a term of 12 months are accurate as of 5/6/2024.
Where to put $10,000 for best interest? ›
A stocks and shares ISA is likely to be most suitable. That is unless you will turn 55 within 30 years, in which case a pension might be a better tax wrapper for you. If you're unsure about the time horizon, you could invest in both a pension and a stocks and shares ISA.
Top 20 Scheduled Banks offering Best FD Rates
| Banks | Highest FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
|---|
| RBL Bank | 8.00 | 0.50 |
| AU Small Finance Bank | 8.00 | 0.50 |
| Induslnd Bank | 7.99 | 0.26-0.50 |
| IDFC First Bank | 7.90 | 0.50 |
16 more rowsWhere can I get 10 percent return on investment?
- Invest in stock for the long haul. ...
- Invest in stocks for the short term. ...
- Real estate. ...
- Investing in fine art. ...
- Starting your own business. ...
- Investing in wine. ...
- Peer-to-peer lending. ...
- Invest in REITs.
The Top CDs for Locking Your Rate Until 2025 to 2027
| Best 1-Year CDs - Mature Early 2025 | APY | Minimum |
|---|
| Pelican State Credit Union | 5.27% | $ 500 |
| XCEL Federal Credit Union | 5.25% | $ 500 |
| Credit Human | 5.20% | $ 500 |
| Lafayette Federal Credit Union | 5.20% | $ 500 |
20 more rowsFeb 28, 2024
New Outlook On Monetary Policy
The median projection for the benchmark federal funds rate is 5.1% by the end of 2024, implying just over one quarter-point cut. Through 2025, the FOMC now expects five total cuts, down from six in March, which would leave the federal funds rate at 4.1% by the end of next year.
What is the best CD rate for $100,000? ›
Best Jumbo CD Rates for June 2024
| BEST NATIONAL JUMBO CDs | | |
|---|
| CD Bank | 5.20% APY | $100,000 |
| Luana Savings Bank | 4.42% APY | $100,000 |
| All In Credit Union | 4.13% APY | $100,000 |
| Best non-Jumbo option: TotalDirectBank | 5.51% APY | $25,000 |
46 more rowsThe FOMC approved a plan in December to cut interest rates three times in 2024, with an expected rate cut of 0.25% each time. Further rate cuts in 2025 and 2026 would bring the federal funds rate even lower.
