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You can earn 4.55% and up on your money with today’s best CDs. Take a look at the top rates and typical yields being offered on CDs of various durations.
Related: Compare the Best CD Rates
Highest CD Rates
Current 6-Month CD Rates
If you’re interested in a shorter-term CD, today’s best six-month CD rate is 4.88%. That’s a decline from a week ago, when the top rate was 4.97%. The current average APY for a six-month CD is 1.93%, up from 1.92% last week at this time.
APY provides a more accurate picture of the yearly interest you’ll earn with a CD because it takes into account compound interest. That’s the interest you earn not only on your deposit (or principal) but also on the interest in the account.
Current 9-Month CD Rates
Nine-month CDs today are being offered at an average APY of 2.64%, up from 2.61% a week ago.
Current 1-Year CD Rates
The highest interest rate currently being offered on a 12-month CD—one of the most popular CD terms—is 5.25%. If you find a one-year CD with a rate in that vicinity, you’ve found 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 2.51%, the same as a week ago.
Current 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 4.55% APY. The top rate last week at this time was a similar 4.55%. Two-year CDs now have an average APY of 2.52%. That’s the same as last week at this time.
Current 3-Year CD Rates
CDs with longer terms tend to have some of the most attractive interest rates and APYs—if you’re willing to keep your money locked away for years.
The average APY on a three-year CD is now 2.71%, the same as a week ago.
Current 5-Year CD Rates
APYs are averaging 2.81%, 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.
Related: CD Interest Rates Forecast: How Good Will They Get?
Are CDs a Good Deal?
CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They’re one of the safest places to put your money.
Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected.
The FDIC provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the NCUA insures your money up to the same limit.
Do CDs Cost Anything?
There are no one-time or recurring costs associated with CDs, but you may pay a penalty fee in the form of reduced interest if you withdraw from your CD before it matures. You are required to deposit a minimum amount of cash when you open a CD, but get all of that money back—plus interest—at the end of the CD’s term.
