November 13, 2024 – Forbes Advisor – Technologist

Today’s best interest rates on CDs (certificates of deposit) are as high as 5.37%. Rates vary by term and often fluctuate, and they are expected to fall as the Federal Reserve lowers interest rates.

Related: Compare the Best CD Rates

Highest CD Rates Today by Term

A CD is a particular type of savings account that pays a fixed interest rate for a set period of time. The benefit is that you’ll typically receive a better yield than what you could find from a high-yield savings account. The drawback is that you can’t touch the money before the CD matures without paying a withdrawal penalty. For instance, you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before it reaches maturity.

Today’s 3-Month CD Rates

Three-month CDs are a good option for short-term savings goals. The current average rate on a three-month CD sits at 1.33%, but the highest rate is 5.00%. Last week, three-month CDs earned an average of 1.33%.

Today’s 6-Month CD Rates

A six-month CD offers a nice blend of high yields and short-term time commitment, and the highest yield you can find is 5.37%. That compares with 5.37% a week ago. The current average APY for a six-month CD is 1.87%, down from 1.88% last week at this time

Today’s 1-Year CD Rates

The highest interest rate currently available on a one-year CD—one of the most popular CD terms—is 5.37%. If you find a one-year CD with a rate in that neighborhood, 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 1.91%, down from 1.92% a week ago.

Today’s 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 4.76%. The top rate last week at this time was a similar 4.76%.

Two-year CDs now have an average APY of 1.67%, the same as last week at this time.

Today’s 3-Year CD Rates

Today’s highest rate on a three-year CD is 4.65%, so you’ll want to shop around for that rate or something near it. Last week at this time, the best rate on a three-year CD was also 4.65%.

Today’s 5-Year CD Rates

On a five-year CD, the highest rate today is 4.31%. APYs are averaging 1.59%, the same as this time last week.

If you opt for a five-year CD, make sure you’re aware of 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 before it matures.

Today’s Jumbo CD Rates

The best rate on today’s jumbo CDs is 5.37% for a 6-month term. The average APY for this category of CD is currently 1.92%, compared to 1.81% last week.

Most jumbo CDs require a minimum deposit of $100,000—and some even require $250,000. However, there’s no universally agreed-upon definition regarding what qualifies as a “jumbo” CD. Some banks and credit unions slap the label “jumbo” on CDs you can open with $50,000, $25,000 or even less.

Other Top CD Rates by Term

Related: CD Interest Rates Forecast: How Good Will They Get?

Best CD Rates Offered by Banks in November 2024

CD rates are rarely the same between any two banks, so you should comparison shop when looking for a new account. You may decide to stick with your current bank because it’s convenient or join a new bank to take advantage of higher rates.

To find the right CD, look at the specific term you’re interested in with a few different banks.

Traditional, brick-and-mortar banks tend to offer lower CD rates, in general, than online banks without any branches. For example:

Other top CD rates by banks include:

How CDs Work

You “purchase” a CD from a financial institution by opening an account with a lump-sum deposit, which is your principal. Many CDs and share certificates (accounts similar to bank CDs but offered by credit unions) have minimum deposits you must meet, which typically range from a few hundred to several thousand dollars.

Once you deposit your principal, the clock starts on your timed investment, and you begin earning interest. The bank or credit union will provide you with regular statements showing how much you’re earning. You may accrue interest daily, monthly or quarterly.

Try not to tap your CD before the term ends. Early withdrawal penalties can be so severe that they negate your interest and then start eating into your principal.

Are CD Rates Worth It?

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.

“Traditional brick-and-mortar banks have far greater operating expenses than banks that only exist online. That’s why online banks are usually able to offer more attractive APYs on CDs—they have lower overhead costs, so they can afford to pay higher interest rates to customers.”

Related: CD Interest Rates Forecast: How Good Will They Get?

Methodology

Curinos determines the average rates for certificates of deposit (CDs) by focusing on specific CDs and excluding others. Certain types, such as promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs are not considered in the calculation.

Frequently Asked Questions (FAQs)