CDs
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Karen Bennett
Written by
Marc Wojno
Edited by
Apr 08, 2024 / 5 min read
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Key takeaways
- Today's top CD rate across terms is 5.31% APY offered on a one-year term.
- You'll find APYs of 5% or higher on many CD terms.
- Competitive CDs are earning at least three times the national average rates.
A certificate of deposit (CD) can be a useful tool for meeting your savings goals. Whether you’re saving to buy a house, a new car or your dream vacation, a CD allows you to calculate up front exactly how much interest you’ll have earned when the term is up. This is thanks to a CD’s fixed annual percentage yield (APY).
As we enter the second week of April, the leading APY across CD terms is 5.31 percent, which is available on a one-year term from First Internet Bank of Indiana. A minimum deposit of $1,000 is required. Last week, the highest overall CD rate dropped slightly from 5.35 percent APY, when BrioDirect lowered its one-year CD rate. In the current rate environment, you’ll find that many shorter terms are earning higher yields than longer ones.
Bankrate monitors CD rates every weekday, and today’s top rates are listed in the table below, along with national average rates and the amount you’ll earn with $5,000 in a high-yield CD.
Today's best CD rates by term
| CD term | Institution offering top APY | Highest APY | National average APY | Estimated earnings on $5,000 with top APY |
|---|---|---|---|---|
| 3-month | America First Credit Union | 5.25% | 1.27% | $64 |
| 6-month | Popular Direct | 5.30% | 1.68% | $131 |
| 9-month | Forbright Bank | 5.30% | N/A | $197 |
| 1-year | First Internet Bank of Indiana | 5.31% | 1.73% | $266 |
| 18-month | First Internet Bank of Indiana | 5.04% | 1.79% | $383 |
| 2-year | First Internet Bank of Indiana | 4.82% | 1.51% | $494 |
| 3-year | First Internet Bank of Indiana | 4.66% | 1.41% | $732 |
| 4-year | First Internet Bank of Indiana | 4.50% | 1.47% | $963 |
| 5-year | First Internet Bank of Indiana | 4.55% | 1.41% | $1,246 |
Note: Annual percentage yields (APYs) shown are as of April 8, 2024. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.
What is a no-penalty CD?
Like standard CDs, no-penalty CDs typically earn a fixed APY over a set period of time — although unlike regular CDs, no-penalty CDs don’t charge an early withdrawal penalty if you take out the funds before the term ends. The trade-off for this perk is that you’ll often earn a lower APY than you would with a CD that has an early withdrawal penalty. For instance, Ally Bank offers a no-penalty CD, with a term of 11 months, that currently earns 4 percent APY. For comparison, Ally's standard one-year CD earns 4.50 percent APY.
How CD rates have trended from 2022 to 2024
National average CD yields rose steadily in 2023, as the Federal Reserve continued to hike interest rates at the fastest pace since the 1980s. In all, Fed officials increased rates 11 times between 2022 and 2023, bringing the federal funds rate to its current target range of 5.25-5.50 percent. Along with these rate hikes, average CD APYs rose to the highest they’d been in many years, with APYs on some competitive CDs climbing as high as 7 percent.
This year is expected to be a banner one for CD savers. Greg McBride, CFA, Bankrate’s chief financial analyst, predicts two Fed rate cuts in 2024, yet he says CD yields will continue to top inflation. “Savers have another good year in which their returns will shine, with inflation expected to decline further,” he says.
McBride also stresses the importance of shopping around for the highest APY. “Top-yielding offers are still going to deliver a notable advantage [over lower-yielding ones],” he adds.
CD FAQs
Methodology
Bankrate calculates and reports the national average APYs for various CD terms. Factored into national average rates are the competitive APYs commonly offered by online banks, along with the very low rates often found at large brick-and-mortar banks.
In June 2023, Bankrate updated its methodology that determines the national average CD rates. For the process, more than 500 banks and credit unions are now surveyed each week 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.
