Top CD rates today: Dec. 4, 2023 — Earn 5.75% for 9-month and 1-year CDs
Yields on various high-earning certificates of deposit (CDs) fluctuated a bit last week, with some new offerings taking over the top spot for several terms. Overall, yields on CDs remain high, after 11 rate hikes by the Federal Reserve since March of 2022, although we may see rates level off because various economists and market watchers feel another Fed rate hike is unlikely.
Two banks currently offer a CD with the highest annual percentage yield (APY) at 5.75 percent — a nine-month CD from Forbright Bank and a one-year CD from Limelight Bank. Both of these CDs require a minimum deposit of $1,000. (In determining the highest rates each day, Bankrate focuses on CDs that are widely available.)
Last week, Limelight also took over the top spot for its 18-month CD, which earns an APY of 5.6 percent. (Prior to that, Popular Direct offered the highest-earning 18-month CD.) Meanwhile, Popular Direct began offering the highest-earning four- and five-year CDs (earning 4.65 percent and 4.7 percent APYs, respectively).
The guide below lists average rates and competitive ones for various terms, as well as how to find a CD with the best rate.
Key takeaways
The top-earning CDs today earn 5.75 percent APY on a nine-month term and a one-year term.
Competitive CDs today earn rates that are several times higher than national averages.
Top CDs with terms of one to three years are earning APYs of more than 5 percent, while those with terms of four and five years are earning over 4 percent APY.
Today’s CD rates by term
CD term | Highest APY | Institution offering top APY | National average APY |
|---|---|---|---|
5.55% | N/A | ||
5.75% | Forbright Bank | N/A | |
5.75% | Limelight Bank | 1.74% | |
5.60% | Limelight Bank | 1.80% | |
5.30% | 1.47% | ||
5.00% | Popular Direct | 1.38% | |
4.65% | Popular Direct | 1.46% | |
4.70% | Popular Direct | 1.43% |
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.
“With the caveat that a CD is consistent with your investment goals, and that you can live without the money for the term of the CD, now is a great time to lock that in,” says Greg McBride, CFA, Bankrate chief financial analyst. “You’re unlikely to find a better time by waiting as CD yields are presumably at a peak with the Federal Reserve unlikely to raise interest rates further.”
Featured CD of the day
If you open a six-month CD with Chase Bank and have a linked Chase personal checking account, you can earn a relationship rate of 4 percent APY, which is well above the national average for CDs with that term. In all, Chase offers CD term lengths that range from one month to 10 years, although only certain relationship rates are above average. If you need access to the funds early, penalties range from 90 days’ to 365 days’ worth of interest, depending on the term length.
When is a 6-month CD a good idea?
A six-month CD, like the one featured above from Chase, can be a viable option to earn interest on funds you want access to in the near future. It can be a good place for money you plan to use for some planned home renovations, an upcoming vacation or the purchase of a car. Currently, some six-month CDs earn a higher APY than CDs with terms of two years and more.
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.
