Top CD rates today: Jan. 4, 2024 — 5 terms earn APYs of 5% or more

Rates on certificates of deposit (CDs) rang in the new year at record highs. Today, the highest annual percentage yield (APY) you’ll find on a nationally available CD is 5.66 percent, which is offered on a one-year term.

Depositing $5,000 into a one-year CD that earns that APY will earn you around $283 in interest by the time the term ends. For comparison, depositing $5,000 into a high-yield savings account at the current top rate of 5.35 percent would earn you a similar amount of around $275 after a year. (Keep in mind, however, that savings account yields are variable, meaning a bank can change them anytime, whereas most CD rates are fixed for the entire term.)

Taking advantage now of a CD’s guaranteed APY can be your best bet if the going rates are expected to drop anytime soon. Bankrate monitors CD rates every weekday, and today’s top rates are listed in the table below.

Key takeaways

• Today's top CD rate is 5.66% APY on a one-year term, with the second highest rate of 5.60% on a nine-month term.

• Rates of at least 5% can be found on terms of up to two years.

• Top CD rates are at least triple the national averages.

Today’s CD rates by term

Who is offering a 5% CD rate?

Currently, yields of 5 percent or higher can be found on CDs with terms of up to two years. Financial Institutions that offer CDs of one or more terms that earn 5 percent APYs or greater include:

• Bank5 Connect

• Bread Savings

• CIBC Bank USA

• Forbright Bank

• Marcus by Goldman Sachs

• Pentagon Federal Credit Union

• Sallie Mae Bank

Where can I find the best CD rates in 2024?

High CD rates are often found at online-only banks, such as Ally Bank and Quontic Bank. Online-only banks often pay attractive rates to help bring customers over from established big banks that pay lower-than-average yields. In addition, you’ll often find high APYs at credit unions, such as Pentagon Federal Credit Union, because their profits go back to members. Don’t settle for lackluster yields when the best CD rates are more than triple the national averages.

What happened with average CD rates in 2023?

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

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. And because credit unions are not-for-profit, their profits are distributed among members (essentially shareholders in the credit union) in the form of dividends. Dividends act the same as yields on CDs, however some credit unions may offer higher rates or lower fees as a result of sharing profits.
  
  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.