Best CD Rate Accounts May 2024 (2024)

29 min Read

Best CD Rate Accounts May 2024 (1) Written by Caitlyn Moorhead

Best CD Rate Accounts May 2024 (2) Edited by Melanie Grafil

CDs, also known as certificates of deposit, are a great way to capitalize on your savings potential with traditional or online banks. Like a standard savings account, they are a safe investment established through a bank or credit union, but generally, CDs have higher interest rates allowing you to make more on your return and reach your short-term or long-term savings goals faster.

To determine the Best CD Accounts available on the market, GOBankingRates analyzed banks based on several factors, including:

  • Total assets
  • Number of branch locations
  • Minimum deposit amount needed to open a CD
  • 1-year CD annual percentage yield (APY)
  • 60-month CD APY
  • Mobile app ratings

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GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

Best CD Rate Accounts May 2024 (3)

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Compare the Best CD Rate Accounts

Account

Best For

12-Month CD APY

60-Month CD APY

Min. Deposit

Learn More

Ally Bank

4.8

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for Renewal Bonus Rates

$0

Read Full Review

Barclays Bank

4.3

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for Range of Competitive Rates

$0

Read Full Review

BMO Alto

4.8

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for High Long-Term APYs

$0

Read Full Review

Capital One

4.7

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for Big Bank With High APYs

$0

Read Full Review

Discover® Bank

4.6

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for Website Transparency

$2,500

Read Full Review

EverBank

4.8

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for 9-Month Rate

$1,000

Read Full Review

LendingClub Bank

4.9

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for High Interest Rates

$2,500

Read Full Review

Marcus by Goldman Sachs

4.6

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for Short-Term Rates

$500

Read Full Review

Synchrony Bank

4.8

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for 15-Month CDs

$0

Read Full Review

Zions Bancorporation

4.2

GOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

Best for 1-Year CDs

$1,000

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GOBankingRates Best CD Rate Accounts

Best CD Rate Accounts May 2024 (8)

Best for rENEWAL BONUS RATES

Ally Bank

Best CD Rate Accounts May 2024 (9)

4.8

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$0

WHY WE LIKE ALLY BANK

On the website for Ally Bank’s high-yield CD account, the slogan reads, “Saving your money is great. Growing it is even better” — and with high APYs across terms, we think this CD will help customers plant the seeds toward long-term growth.

We like the flexibility of these high-yield CDs, with terms ranging from three months to five years. The Raise Your Rate CD comes in two- and four-year terms, with an option to increase your rate once during a two-year term and twice during the four-year term. There’s no minimum balance to open an account, making this high-yield CD accessible for more customers than other banks. Better yet, Ally Bank doesn’t charge maintenance fees for your CDs, giving it another advantage.

PROS & CONS

Pros

  • Rewards for renewing
  • No fees

Cons

  • No branches

WHO IT’S BEST FOR

Ally’s CD accounts offer competitive rates for all terms over three months, so it’s a great option for those who might want to open CDs with various time frames and maturity dates. It also bumps up your rate if you renew, so those who envision a longer-term relationship will be attracted to Ally’s products, and even get a bonus for their loyalty.

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Best CD Rate Accounts May 2024 (10)

Best for a range of COMPETITIVE Rates

Barclays Bank

Best CD Rate Accounts May 2024 (11)

4.3

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$0

WHY WE LIKE BARCLAYS BANK

It’s rare to find CD options that have both high rates and no minimum deposit requirements. This is only one of the reasons we like Barclays Bank and its CD account offerings. It has a variety of term lengths and a range of above-average APYs.

Barclays Bank is not only competitive for CDs with other banks and credit unions but also other online-only financial institutions. We like it for its high-yield options, but be aware it does not offer the same products as other competitors, such as checking accounts. Though it may not be a one-stop shop for banking, it’s a good choice to earn more on your savings.

PROS & CONS

Pros

  • Competitive top-to-bottom rates
  • No minimum deposit

Cons

  • Doesn’t offer checking account

WHO IT’S BEST FOR

The CDs offered by Barclays are generous no matter what length of term you’re looking for, so those open to various ranges will benefit from considering these options. It’s good to know you can switch or open other savings products to fit your ever-evolving timelines and finances.

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Best CD Rate Accounts May 2024 (12)

Best for high long-term apys

BMO Alto

Best CD Rate Accounts May 2024 (13)

4.8

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$0

WHY WE LIKE BMO ALTO

There’s a nearly endless list of great things to like about BMO Alto’s high-yield online CDs, which receive top honors from GOBankingRates as some of the Best CD Accounts of 2024.

Customers who bank with BMO Alto enjoy no minimum balance when opening a CD and pay $0 in a minimum opening deposit with interest paid monthly. Customers may select the fixed term that suits their needs the most. Pick from six available fixed terms, ranging from six months to 60 months.

PROS & CONS

Pros

  • Higher APYs
  • No minimum balance

Cons

  • No support from BMO branches

WHO IT’S BEST FOR

BMO Alto CDs are a solid choice for those looking for top interest rates and no balance requirements. When you’re making long-term financial plans, higher APYs help your money work for you.

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Best CD Rate Accounts May 2024 (14)

Best for BIG BANK WITH HIGH APY

Capital One

Best CD Rate Accounts May 2024 (15)

4.7

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$0

WHY WE LIKE CAPITAL ONE

Capital One may be a younger bank than many of its competitors, but its ambitious, forward-thinking approach makes its online 360 CD account a solid bet for consumers who are just as future-minded.

The Capital One online 360 CD comes with a range of competitive annual percentage yields. Customers enjoy the security of knowing that all 360 CD balances are insured up to the FDIC’s allowable limits. The performance of your CD isn’t linked to market variability, which is frankly enough peace of mind to make Capital One a safer bet to house your online CD. Why take risks with the money you want to use for that down payment, college fund or new car when Capital One offers you greater security?

Capital one interest rates accurate as of May 9, 2024. See website for all current rates.

PROS & CONS

Pros

  • Great rates for larger bank
  • No minimum balance

Cons

  • Some online competitors offer higher rates

WHO IT’S BEST FOR

Those who want competitive CD rates from a larger bank will appreciate Capital One’s suite of CDs. While many customers will opt to open accounts online, there is the option to open the CD in person at a branch if you want to.

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Best CD Rate Accounts May 2024 (16)

Best for WEBSITE TRANSPARENCY

Discover® Bank, Member FDIC

Best CD Rate Accounts May 2024 (17)

4.6

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$2,500

WHY WE LIKE DISCOVER BANK

Discover Bank offers CD accounts for a wide range of terms, spanning from three months to 10 years. The APYs vary depending on the term length — the 12-month CD, in particular, boasts an impressive APY.

With so many term options available, it’s likely that Discover Bank has a CD option that works for your individual timeline. It is worth noting, however, that the minimum balance requirement is among the highest among the winners in the Best CD Accounts category, so it’s not ideal for those looking to invest lower amounts.

PROS & CONS

Pros

  • Many term length options

Cons

  • $2,500 minimum to open

WHO IT’S BEST FOR

With 12 different terms to choose from, Discover Bank will appeal to those looking for a variety of options when selecting CDs — and those who are willing to deposit a sizable chunk of money. You want your financial institute to be as transparent as possible and Discover Bank’s website offers this comfort.

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Best CD Rate Accounts May 2024 (18)

Best for 9-month rate

EverBank

Best CD Rate Accounts May 2024 (19)

4.8

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$1,000

WHY WE LIKE EVERBANK

With 10 different term lengths to choose from, EverBank offers a CD option that will fit anyone’s timeline. APYs are competitive, though not the highest in the category, while the minimum deposit required also falls in the middle of the pack.

Standout features include no monthly maintenance fees, a 20-day advanced maturity alert, automatic renewal at maturity and an interest withdrawal option at opening.

If you’re looking for a CD option that fits your timing needs, EverBank will likely have you covered, which is why it’s a winner in this category.

PROS & CONS

Pros

  • High rates, especially for shorter terms
  • Variety of options

Cons

  • $1,000 minimum to open

WHO IT’S BEST FOR

Those who have at least $1,000 to deposit into a CD will likely take a hard look at the high rates at EverBank. If you don’t want to commit to a whole year, the 9-month CD is definitely worth considering.

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Best CD Rate Accounts May 2024 (20)

Best for HIGH INTEREST RATES

LendingClub Bank

Best CD Rate Accounts May 2024 (21)

4.9

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$2,500

WHY WE LIKE LENDINGCLUB BANK

It’s hard to compete with LendingClub Bank’s CD rates, so if you have been debating opening an account, now is the time. We like these CDs as there are no monthly fees and a variety of terms to choose from, which range from six months to five years.

Though there is a high opening deposit requirement when you open a CD, each term length option offers competitive rates to help your savings earn more. LendingClub Bank CDs always remain competitive, which means you can achieve your financial goals faster.

PROS & CONS

Pros

  • High APY

Cons

  • High minimum deposit

WHO IT’S BEST FOR

Those looking to park larger sums in a CD and expecting higher interest rates will find appeal in LendingClub’s CDs. It’s a better option to let your money earn more for you when it can.

READ FULL REVIEW
Best CD Rate Accounts May 2024 (22)

Best for Short-term rates

Marcus by Goldman Sachs, Member FDIC

Best CD Rate Accounts May 2024 (23)

4.6

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

as of Apr. 23, 2024

60-Month CD APY

as of May 20, 2024

Minimum Deposit

$500

WHY WE LIKE MARCUS BY GOLDMAN SACHS

With a variety of CD options, such as high-yield, no-penalty and rate bump, it is no wonder we like Marcus by Goldman Sachs for its CD accounts. You can find the right financial fit for you, as the term lengths range from six months to six years.

Whether you want to lock in a rate for longer or still have access your money without risking early withdrawal penalties, Marcus by Goldman Sachs has the right account for you.Its returns on shorter-term CDs are especially attractive and will benefit investors who need access to their money sooner rather than later.

PROS & CONS

Pros

  • High short-term APY

Cons

  • Lower long-term rates

WHO IT’S BEST FOR

The CD options from Marcus by Goldman Sachs will appeal to those looking for big returns on short-term products. These options are friendlier for you if you want to be able to access your money sooner.

READ FULL REVIEW
Best CD Rate Accounts May 2024 (24)

Best for 15-month cd

Synchrony Bank

Best CD Rate Accounts May 2024 (25)

4.8

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$0

WHY WE LIKE SYNCHRONY BANK

Synchrony Bank’s CDs appeal to people with a lower risk tolerance who want to earn a predictable, comfortable rate on their money without fear of market whims.

Its 12-month CD, like all of its CDs, has no minimum balance requirement, and you can even request a rate increase. The bank’s variety of CDs make Synchrony an excellent choice for putting your money where it can earn in a safe and stable way.

PROS & CONS

Pros

  • Great rates on mid-term CDs

Cons

  • No checking account option with bank

WHO IT’S BEST FOR

If you’re looking for generous returns on your money you’ll find some very appealing options at Synchrony. Even terms that are less than two years offer great rates, specifically the 15-month CD.

READ FULL REVIEW
Best CD Rate Accounts May 2024 (26)

Best for 1-year cd

Zions Bancorporation, N.A.

Best CD Rate Accounts May 2024 (27)

4.1

ReviewGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

12-Month CD APY

60-Month CD APY

Minimum Deposit

$1,000

WHY WE LIKE ZIONS BANCORPORATION

Zions Bancorporation stands out with its variety of accounts and multiple awards from GOBankingRates in 2024. Its CD offerings are rated as some of the best around, with high APYs and a minimum deposit of just $1,000.

CDs come in terms from 30 days to five years, making them a flexible savings solution whether you’re putting money away for a vacation or to buy a home. Zions Bank also offers an IRA CD that may be tax-deferred, which is a product you won’t find everywhere.

PROS & CONS

Pros

  • High 1-year CD APY
  • IRA CDs offered

Cons

  • $1,000 minimum deposit

WHO IT’S BEST FOR

This Utah-based bank will appeal to regional customers looking for great CD rates, as well as to those comfortable with online banking who want to snag some high returns for various CD terms. For example, the 1-year CD offers a higher rate with a shorter-term commitment.

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Research Methodology

To determine rankings, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) 12-month CD APY; (5) 60-month CD APY, and (6) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) weighed 0.5 times, factor (3) weighed 2 times, and factors (4) and (5) weighed 4 times. All data is up to date as of May 20, 2024; rates and fees are subject to change.

What To Know About CDs

When opening a CD, you’ll determine the length of the fixed “term” that will be established — usually from three months to a number of years — and the money will be locked in for that period of time. In return, CDs offer a fixed, higher interest rate than a typical savings account, allowing a higher yield on your money.

How CD Accounts Work

A certificate of deposit, or CD, is one kind of savings account offered by banks and credit unions that offers a safe and easy way to invest and make a return on your money. Unlike traditional savings, however, it’s not a liquid account that you can easily withdraw money from when you might need it. To earn the higher interest rate, you need to leave your CD account untouched for the entirety of the term length, until it reaches maturity.

Fees and Minimums

Though fees and minimums will vary by financial institution, for the most part, CDs don’t come with monthly service fees. However, you need to wait for the account to mature. If you try to take money out before the account’s term length has been reached, you could incur an early withdrawal penalty. Most CDs do have a minimum deposit requirement to open an account.

Why You Should Open a CD Account

Not only is a CD a low-risk savings tool and investment strategy, but it is also best for those who want to increase the amount they earn in interest while keeping their money stored away without touching it. It’s a good way to get a bit more bang for your buck if you are comfortable not having access to those funds until the CD has matured.

How To Open a CD Account

Once you have decided on the right CD account for you based on the CD terms, you can open an account quite easily. Here is what you’ll need to do:

  1. Make sure you have two forms of identification, such as your driver’s license or passport.
  2. Present personal information and required documents, such as your name, address, birthday and Social Security number.
  3. Decide if you want the interest disbursed at the end of the term or regularly.
  4. Fund the account with your opening deposit.

Pros and Cons of CDs

Though CDs do have many benefits, there are some drawbacks to opening this type of savings account. Here are some key takeaways.

Pros

  • Higher interest rates: One of the big benefits of a CD is that it allows a higher interest rate than a traditional savings account, as a payoff for locking your money in for the specific term. Depending on the length of CD you choose, this APY could be 4% or higher.
  • Better saving capability: Because the money initially deposited into a CD cannot be touched during the remainder of its term, it prevents you from being able to make withdrawals, which would otherwise cut into your ability to save the money. When you don’t have access to the funds, they can continue to grow. This is also a great option when you have a specific financial goal or a future expense you want to prepare for.
  • Guaranteed rates: Timing is everything with CDs. If you choose to open this type of account during times of inflation, when interest rates are high, you’ll be able to lock that same rate in over the course of the term, even if inflation subsides and interest rates come down.

Cons

  • No access to the funds: Though CDs have their perks, one of the big drawbacks is that you cannot touch the money until the term is complete, or you’ll incur a penalty for an early withdrawal. When you open a CD, you lock the money in the account, and this could be for a substantial amount of time, up to several years. There are some options, like liquid CDs, that do have flexibility, so you can access the money originally deposited, but these accounts don’t have the high interest rates of the traditional options.
  • Rates are locked in: As mentioned, timing is everything with CDs. If you are savvy and open an account during times of inflation when interest rates are high, you’ll be able to secure an ideal APY. But, if you open a CD when rates have leveled out, you won’t be able to take advantage of higher interest if those rates jump up over the course of the term.
  • Earning potential: While CDs earn interest at a higher rate than a regular savings account, there are other investment options that have even greater yields, such as securities and stocks. However, CDs are generally a safer, less volatile investment.

Types of CDs

Under the umbrella of certificates of deposit, there are a number to choose from, all offering their own terms and advantages:

  • Traditional: This is the standard CD method, where you contribute a particular dollar amount that stays locked in the account for a predetermined amount of time. It’s ideal if you know what you want to contribute ahead of time and won’t need to take early withdrawals. It also offers the highest interest rate of the various forms of CDs.
  • No penalty: Also known as a liquid CD, this option does have more flexibility, allowing for withdrawals before the maturation date of the savings plan without a penalty. However, the financial institution may still impose a waiting period before you take out money. Also, they might not let you take out a percentage but rather mandate you have to take out the full amount, which means you won’t be able to earn on the original deposit. The interest rate for a no-penalty CD will be a bit lower than a traditional CD.
  • Bump-up: The advantage of this type of CD is that you are allowed to ask the bank to raise your interest rate during the term. This can be useful if you think interest rates will rise during the months or years you have specified for the CD, such as during a period of high inflation. Choosing this option may provide the chance to get more interest over time, but it also means a lower interest rate at the start of the term.

How To Choose a CD Account

The terms of a CD are the length of time you commit to keep your funds in the account. When you open a CD, you’ll choose the “term,” or length of time you are locking in the money before it’s vested. Typical CDs offer 3-month and 6-month terms, as well as terms of one, three and five years.

Be aware that you do not have access to the money in your CD account until the account reaches maturity. This means you can’t withdraw funds earlier than the term length without incurring early withdrawal penalties.

Alternatives to CD Accounts

There are several factors to compare when choosing whether a CD or another bank account is best suited for you.

CDs vs. Traditional Savings Accounts

The main difference between savings accounts and certificates of deposit, or CDs, is the amount of access you have to the funds in the account. Where standard savings accounts allow you immediate access to your account balance, when you put your money in a CD, you agree to the CD term, which is the time your CD will take to mature.

Withdrawing funds from a CD before maturity can result in early withdrawal penalties. CDs do tend to earn more interest, so these accounts are better for those who can leave their money in the account for an extended time period without touching it.

CDs vs. High-Yield Savings Accounts

High-yield savings accounts allow account holders to earn significant interest on their balance and are good to grow an emergency fund. CDs, though they operate similarly, are better to possibly save for a large purchase down the line, as you can’t access the funds until the CD has matured.

CDs vs. Money Market Accounts

A CD differs from a money market account in that the money market account has checking account features, such as the ability to write check or link a debit card. A CD is a time-deposit account, and a money market account isn’t, so it generally pays less than a CD. This is because a CD requires you to keep your balance in the account for a set period of time. This is known as the CD term.

CDs vs. Bonds

CDs and bonds are both considered safe-haven investments that yield higher returns than a standard savings account. However, when interest rates are high, as they currently are, CDs may be a better option, which also works in the reverse — bonds are preferable when interest rates are low. Interest rates impact which of these will be the higher-paying investment.

CDs and Taxes

Anytime you earn money, you should always be aware of the tax implications. Here are some answers to frequently asked questions about CDs and taxes.

Are You Taxed When a CD Matures?

Short-term CD income, typically 12-month terms or less, is taxed at maturity. This can be used to defer taxable income from year to year. Keep this in mind when you are trying to figure out your annual income. Income from CDs with terms over 12 months is taxed as it accrues.

Are CDs Taxed at the End of a Term?

The interest you earn with a CD is considered taxable interest as defined by the IRS. If you earn any amount over $10 during the term of your CD, you’ll receive a Copy B of Form 1099-INT or Form 1099-OID that you’ll need to report when you file your tax return.

Does Cashing a CD Count as Income?

If you cash a CD when it reaches maturity, it is taxed on the interest you’ve earned. However, if you cash out before the account reaches maturity, you need to report the interest accrued to that point as taxable income. You can deduct any penalty charged by the bank, and the return of the principle is a nontaxable return of capital.

CD Rates and the Federal Reserve

Though a savings account typically has a variable rate, a CD account has a fixed interest rate, which means the rate won’t fluctuate with the Fed rate of the Federal Reserve. If you have not opened a CD account yet, be aware that the already rising rates are predicted to continue to increase in 2024.

When the Federal Reserve raises rates, it affects everything from national averages to individual account rate increases. It is often good to lock in a solid fixed APY when you see one.

Caitlyn Moorhead and Nicole Spector contributed to the reporting for this article.

Recap of Winners

  • Ally Bank – Best for Renewal Bonus Rates
  • Barclays Bank Delaware – Best for Range of Competitive Rates
  • BMO Alto – Best for High Long-Term APYs
  • Capital One – Best for Big Bank With High APYs
  • Discover Bank – Best for Website Transparency
  • EverBank – Best for 9-Month Rate
  • LendingClub Bank – Best for High Interest Rates
  • Marcus by Goldman Sachs – Best for Short-Term Rates
  • Synchrony Bank – Best for 15-Month CDs
  • Zions Bancorporation – Best for 1-Year CDs

FAQ

Although the basic idea behind a CD account can be simple to understand, there are still many common questions surrounding them. Here are the answers to some of the most frequently asked questions regarding CD accounts.

  • Where can I earn 5% on a CD?
    • Though rates will vary throughout the year and by location, here are several banks where you can currently get locked into a 5% APY or higher on your CD:
      • Barclays Bank
      • BMO Alto
      • Capital One
      • EverBank
      • LendingClub Bank
      • Marcus by Goldman Sachs
      • Synchrony Bank
  • Are CDs a safe investment?
    • Generally, yes. Like regular savings accounts that you open at a bank or credit union, CDs are protected under the provisions of the government-led Federal Deposit Insurance Corporation or National Credit Union Administration, as long as you don't exceed the insured amount, which is $250,000 per person, per bank. And because the CD is a straightforward investment, rather than investing in stock market shares, there is less risk involved.
  • Is it worth putting money in a CD right now?
    • Now is a great time to take advantage of the increased interest potential with a CD. However, one of the biggest disadvantages of a CD is that your money is locked until the term of the CD is over. So if you invested $1,000 and chose a three-year CD, you will not be able to withdraw any of the original $1,000 until that three-year term is over without incurring a financial penalty.
  • Can you get 6% on a CD?
    • Generally, no. You can find 6% CD rates at a few banks or financial institutions, but chances are, those rates are only available on CDs with maturities of 12 months or less. Interest rates for CDs tend to fluctuate between 0%-5% based on the health of the economy.
  • What is considered a good CD rate?
    • Though rates do fluctuate depending on your account and bank, in general, anything over 4.50% APY is considered above average.
  • Can you lose money on a CD?
    • No, you cannot lose money on a CD – as long as you don't touch the funds until after the CD has matured. If you make an early withdrawal, the penalties could eat into the interest you have earned.
  • What is CD laddering?
    • A CD ladder is a strategy, advised by financial experts, to open multiple CDs at once and stagger the terms and deposits so that you can have access to some of the money sooner and avoid getting stuck in one long-term CD if interest rates begin to rise. So, rather than investing $3,000 in one long-term CD, you might choose to put $1,000 in a six-month CD, $1,000 in a one-year CD and $1,000 in a three-year CD to capitalize on investments while also having access to vested money sooner.
  • How much does a $10,000 CD make in a year?
    • What you make in interest on a $10,000 CD a year depends on the APY the account earns. For example, if you earn an APY of 6%, you would earn $600 interest.

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Best CD Rate Accounts May 2024 (2024)

FAQs

What are CD rates expected to do in 2024? ›

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

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.

Can you get 6% on a CD? ›

It'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.

Who is offering a 5% CD rate? ›

Highest current CD rates (overall)
Institution nameAPYMinimum opening deposit
Morgan Stanley5.05%$5,000
LendingClub Bank5.00%Contact institution for details
Newtek Bank5.00%$2,500
My eBanc5.00%$5,000
31 more rows

Should I lock in a CD now or wait? ›

Waiting to open a CD could mean missing out on some stellar rates. Now, you can lock in high rates on both short-term and long-term CDs, and you can score some serious interest just by opting to deposit a larger lump sum into your CD.

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.

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 best CD rate for $100,000? ›

For those who have a large sum to deposit, today's best jumbo CD rate from a nationally available institution is 5.51% APY, offered by My eBanc for 6 months. Most jumbo CDs require a minimum deposit of $100,000, though some jumbos—including My eBanc's—can be opened with $50,000.

Who is paying the highest CD rates 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%). You can see the full list of the highest-paying CDs here.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
RBL Bank8.000.50
AU Small Finance Bank8.000.50
Induslnd Bank7.990.26-0.50
IDFC First Bank7.900.50
16 more rows

What is considered a good 6-month CD rate right now? ›

Compare the best 6-month CDs
INSTITUTIONSTAR RATINGAPY ON 6-MONTH CDs
Popular Direct certificates of deposit4.815.30%
Marcus by Goldman Sachs High-Yield certificates of deposit4.805.10%
Bask Bank Certificates of Deposit4.765.35%
Synchrony Bank certificates of deposit4.754.80%
7 more rows

How many CDs can you have at one bank? ›

There is no limit to how many certificates of deposit (CDs) you can have. In fact, holding multiple CDs can provide a steady stream of ongoing returns. CDs offer a low-risk way to invest. After opening and funding the account, your money will earn interest for the duration of the CD's maturity period.

Are interest rates expected to go down in 2024? ›

The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. However, recent economic developments have led some forecasters to believe that rates will remain elevated at around 7% for the remainder of this year.

Will CD rates go up in 2025? ›

CD rates should remain fairly attractive in 2025

While we don't know exactly when the first of those rate cuts will happen, the Fed has signaled that it's looking to cut rates in 2024. Because of this, the CD rates savers are seeing today may not be available come 2025.

What is the money market prediction for 2024? ›

The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts. At the end of 2024, the top-yielding nationally available money market account and savings account are projected to be at 4.45 percent APY.

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