Top CD rates today: Nov. 28, 2023 — Rates up to 5.75%
Certificate of deposit (CD) yields remain high, following 11 rate hikes by the Federal Reserve since the spring of 2022.
The highest-earning CD today is offered from Forbright Bank, with a nine-month term and an annual percentage yield (APY) of 5.75 percent. A $1,000 minimum deposit is required.
A similar rate is offered on a one-year CD from Popular Direct, which earns a 5.67 percent APY — although it requires a much higher minimum deposit of $10,000.
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 highest yield on a CD today is 5.75 percent APY on a nine-month term.
It's not difficult to find CDs that pay rates many times higher than national averages. Such rates are commonly found from online-only banks.
APYs greater than 5 percent can be found on CD terms ranging up to three years, while top four- and five-year CDs offer yields above 4 percent.
Today’s CD rates by term
CD term | Highest APY | Institution offering top APY | National average APY |
|---|---|---|---|
5.55% | NA | ||
5.75% | Forbright Bank | NA | |
5.67% | Popular Direct | 1.74% | |
5.50% | Popular Direct | NA | |
5.30% | Popular Direct | 1.50% | |
5.00% | Popular Direct | 1.41% | |
4.75% | 1.46% | ||
4.75% | Bread Savings | 1.45% |
* Note: Annual percentage yields (APYs) shown are as of Nov. 28, 2023. APYs for some products may vary by region.
N/A: Not available; Bankrate doesn’t track national averages for the 6-month and 9-month CD terms due to limited available data.
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.
Keep in mind:A benefit of a CD's fixed rate of return is you can determine up front what its value will be when its term ends.
How CD rates are trending this year
The yields on many CDs have been increasing steadily, as the Federal Reserve has hiked rates 11 times so far since March 2022. When the Fed increases rates, competitive banks follow suit by raising yields on their CDs and savings accounts. These banks could raise their rates again soon if the Fed decides to lift rates at its next meeting on December 13, although it may choose to forgo a rate hike.
What is a CD’s early withdrawal penalty?
An early withdrawal penalty is usually charged if you end up needing access to the funds in your CD before its term is up. The amount of an early withdrawal penalty varies based on the bank and the CD’s term. Capital One, for instance, charges an early withdrawal penalty equal to three months’ worth of interest for CDs with terms of one year or shorter, and six months’ worth of interest for terms greater than a year.
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.
