Top CD rates today: Feb. 20, 2024 — Earn 5% or more for terms of up to 2 years
Key takeaways
Today's top CD rate is 5.55% APY on a one-year term, with the second highest rate of 5.50% APY on a three-month term.
The highest rates on three-, four- and five-year terms have inched up, ever so slightly.
The best rates are more than triple the national average yields, so it pays to shop around.
Opening a fixed-rate certificate of deposit (CD) with a term of at least one year today should give you peace of mind that your savings will continue to earn the same annual percentage yield (APY) should rates begin to retreat later this year. APYs on competitive CDs have been high as of late because they follow the federal funds rate, which is currently at 5.25-5.5 percent — the highest it has been since early 2001. But with the Federal Reserve expected to lower rates later this year, CD APYs could eventually drop, in turn.
“CD rates are impacted by Federal Reserve rate decisions,” says Sumeet Grover, senior vice president and chief digital & marketing officer at Alliant Credit Union. “As rates go up, CDs follow that trajectory.” Grover believes that now is a good time to open a CD. “If you’re looking for the stability of a set rate and can park some money for longer-term saving, rates are probably at the highest point they will be.”
Bankrate monitors top and average CD rates every weekday, and you’ll find today’s rates in the table below.
Today’s CD rates by term
CD term | Institution offering top APY | Highest APY | National average APY | Estimated earnings on $5,000 with top APY |
|---|---|---|---|---|
5.50% | 1.19% | $67 | ||
5.35% | 1.58% | $132 | ||
America First Credit Union | 5.30% | N/A | $197 | |
5.55% | 1.73% | $278* | ||
Alliant Credit Union | 5.15% | 1.73% | $391 | |
5.00% | 1.51% | $513 | ||
4.76% | 1.41% | $749 | ||
First Internet Bank of Indiana | 4.55% | 1.47% | $974 | |
First Internet Bank of Indiana | 4.61% | 1.42% | $1,264 |
Keep in mind: Best CD rates are commonly found at online-only banks, which may view attractive APYs as a way to bring in new customers.
Featured CD of the day
EverBank (formerly TIAA Bank) is offering a nine-month CD that earns a 5.25 percent APY, with a minimum opening deposit of $1,000. In total, Everbank offers CDs in 10 terms that range from three months to five years. It also offers savings, checking and money market accounts.
CD rates 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 5.25-5.5 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
Although Federal Reserve rate cuts are widely expected in 2024, and banks may lower deposit account rates as a result, CD yields are expected to remain strong and outpace inflation. Overall, average yields remain higher than they’ve been in years, while the top APYs on many terms are more than triple the national averages.
Opening a competitive CD now means you won’t be missing out on a high APY should rates start to fall later this year. Because a CD typically earns a fixed rate, you’ll continue to earn the same yield throughout its entire term, even if rates on new CDs start to drop.Before committing money to a CD, make sure you’re comfortable parting with the funds for the entire term; withdraw the funds early and you’ll likely be hit with an early withdrawal penalty. As such, a CD isn’t a good place for your emergency fund. Other factors to consider include:
Annual percentage yield, or APY: Not all banks are equal when it comes to APYs, so it pays to check out what various banks are offering. Online-only banks are known for paying high yields, so they’re a good place to start your search.
When you’ll need access to the money: CDs commonly come in terms between three months and five years, although you’ll sometimes be able to find terms as short as one month and as long as 10 years. Make sure you choose a term that corresponds with when you’ll want the money for a planned purchase or other investment.
Minimum deposit requirement: Some banks, such as Ally Bank and Synchrony Bank, don’t require any set minimum deposit, while others may require $1,000, $5,000 or even as much as $10,000. When shopping around, find a CD with a minimum deposit that aligns with your saving goals.
Federal deposit insurance: Before opening a CD, make sure the bank is insured by the Federal Deposit Insurance Corp. (FDIC). Likewise, if it’s a credit union, make sure it’s insured through the National Credit Union Administration (NCUA). This way, should the financial institution close its doors, your funds will be insured for up to $250,000 per depositor, per insured bank or credit union, for each account ownership category.
Your money is protected in a CD when it’s with a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured through the National Credit Union Administration (NCUA). When institutions are covered by this federal insurance, CDs and share certificates are each insured for up to $250,000 per depositor, per insured bank or credit union, for each account ownership category.
CDs typically require that you lock in your money for a set term, and taking out the money before the term ends usually results in an early withdrawal penalty. This penalty causes you to lose some of your interest — and possibly also some of your principal, which is the money you originally deposited in the account.
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.
Ways to take advantage of high CD rates CD rates are at historic highs CD interest rate forecast for 2024 Rates will outpace inflation
