Top CD rates today: Dec. 1, 2023 — Leaders offering more than 5%

Yields on certificates of deposit (CDs) remain high, following 11 rate hikes by the Federal Reserve since March of 2022.

The highest annual percentage yield (APY) on a widely available CD is currently 5.75 percent. This rate is offered from Forbright Bank on its nine-month term, as well as from Limelight Bank on its one-year term. Both of these CDs require a minimum deposit of $1,000.

Limelight now also offers the top yielding 18-month CD, with an APY of 5.6 percent. Bread Savings no longer offers the top yield for four- and five-year term CDs, after it lowered its rates. The new leader for those terms is Popular Direct, which offers 4.65 percent APY on its four-year CD and 4.7 percent APY on its five-year CD.

The guide below lists average rates and top-yielding APYs for various terms, as well as how to find a CD with the best rate.

Key takeaways

• Today's top CDs earn 5.75 percent APY on nine-month and one-year terms.

• Competitive CDs today earn rates that are several times higher than national averages.

• APYs over 5 percent can be found on various CDs with terms of six months to three years.

Today’s CD rates by term

How to find the best CD rates

You’ll often find the best CD rates from online-only banks, such as Synchrony Bank, which don’t have the overhead costs of running branches — and which also may offer competitive rates to draw customers away from traditional brick-and-mortar banks. Credit unions, such as Alliant Credit Union, also commonly offer high rates because their profits go back to members. Yields can vary significantly among banks, so it pays to shop around for the best CD rates.

Featured CD of the day

These days, LendingClub Bank offers a high APY of 5.55 percent on its one-year CD, so you can earn a competitive yield and be able to access your funds again relatively soon. The online-only bank offers six CD terms, all of which earn competitive rates. Early withdrawal penalties are 90 days of interest for terms of one year or less, while terms greater than a year have penalties of 180 days of interest.

What is a CD’s early withdrawal penalty?

Most CDs charge an early withdrawal penalty if you take the money out before the CD’s term has ended. The amount you’ll be charged for that varies based on the bank and the term length of the CD. Generally, the longer a CD’s term is, the bigger the penalty. One way to avoid this is to go with a no-penalty CD, although these typically earn lower rates than you’ll get from standard CDs.

FAQs about CDs

• How do CDs work?

  A CD is a deposit account that earns a fixed rate of return in exchange for locking in your funds for the entire term. CD terms often range from three months to five years, although it’s possible to find ones with terms shorter or longer than that. A CD can be a good place to stash money for savings goals, such as a down payment on a house or a new car. When choosing the best CD term, consider when you’ll need access to the money.

• Who should get a CD?

  Because a CD typically comes with an early withdrawal penalty, it’s best to only put money into a CD that you won’t need in the meantime for living expenses or emergencies. Money you may need sooner is best kept in a liquid account, such as a high-yield savings account, which provides access to your funds anytime.

• Why are CDs from credit unions called “share certificates”?

  Both CDs and share certificates are deposit accounts where your money typically grows at a fixed rate for a set amount of time. The main difference between the two is in the name: CDs are offered from banks, whereas share certificates are offered from credit unions. What’s more, CD earnings are referred to as interest, while share certificate earnings are called dividends.
  
  CDs and share certificates are insured through banks and credit unions, respectively, that are federally insured. For example, banks are insured by the Federal Deposit Insurance Corp. (FDIC), whereas credit unions are insured through the National Credit Union Administration (NCUA). Under such federally insured banks and credit unions, CDs and share certificates are each insured for up to $250,000 per depositor, per insured bank, for each account ownership category.

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.