Top CD rates today: Dec. 11, 2023 — Lock in a fixed APY while rates are high

One benefit of putting your money into a fixed-yield certificate of deposit (CD) is you’re guaranteed to receive the same yield for the CD’s entire term, even if the going rates for new CDs start to drop. While the annual percentage yields (APYs) on many CDs rise after the Federal Reserve hikes interest rates, there’s a high chance the Fed will hold rates steady when it meets this week.

“CD yields are unlikely to improve further if the Federal Reserve is indeed done raising interest rates, so now is an opportune time to lock in,” says Greg McBride, CFA, Bankrate chief financial analyst. “CD yields have been the best seen in 15 years and those fixed yields will look even better after you’ve locked in and see both interest rates and inflation decline.”

CD rates may have hit their peak, which makes now a great time for savers to lock in high APYs. The guide below lists average rates and competitive ones for various terms, as well as how to find a CD with the best rate. A CD calculator also comes in handy in determining how much interest the account will earn by the time its term ends.

Key takeaways

• The top-earning CD today is a nine-month option that earns 5.75 percent APY.

• The most competitive one-year CD isn't far behind, with a yield of 5.67 percent APY.

• National averages are just a fraction of the highest rates offered, so it's worth shopping around.

Today’s CD rates by term

High-yield CDs with lower minimum deposit requirements

Popular Direct is currently offering the highest rates for many widely available CDs, and it requires a minimum deposit of $10,000. If you’re looking to open a CD with less money than that, you have some other high-earning options:

• A six-month CD from Bank5 Connect earns 5.5 percent APY, with a minimum deposit of $500. (A caveat on the online application is you need to reside outside of Massachusetts and Rhode Island.)

• A nine-month CD from Synchrony Bank earns 5.5 percent APY, and this option requires no minimum deposit amount.

• A one-year CD from CIBC Bank USA earns 5.66 percent APY, which is just 0.01 percent less than the highest-earner for this term — and it requires a $1,000 minimum deposit.

• A two-year CD from Sallie Mae Bank offers a 5.25 percent APY and requires a $2,500 minimum deposit.

• A three-year CD from Bread Savings pays a 4.5 percent APY, with a minimum deposit requirement of $1,500.

• A four-year CD from First Internet Bank of Indiana (an online-only bank that serves all 50 states) earns 4.54 percent APY and requires a minimum deposit of $1,000.

• A five-year CD from Barclays Bank earns 4.5 percent APY and has no minimum deposit requirement.

What’s happened with average CD rates in 2023?

National average CD yields have risen steadily in 2023, as the Federal Reserve has hiked interest rates four times this year. (In all, national averages began increasing after the Fed started hiking rates in March 2022. It raised rates seven times last year.)

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.

CD FAQs

• 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.