Best CD Rates Right Now: A Comprehensive Guide (2024)

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Best CD Rates by Term

Many of the best CD rates are offered by credit unions right now. But don't worry — anyone is eligible to join these credit unions and open CDs.

Compare Bank and Credit Union CD Rates

The best banks and credit unions for CDs offer a high rate on certificates of deposit with good perks and low minimum opening deposits.

Our top picks for CDs are protected by federal insurance. Bear in mind money is safe at a federally insured financial institution. When a financial institution is FDIC- or NCUA-insured, up to $250,000 per depositor, per account category is secure in a bank account.

Here are the best CD rates as picked by Business Insider editors in 2024.

California Coast Credit Union Celebration Certificate

California Coast Credit Union currently offers a limited-time 5-month Celebration Certificate offering a whopping 9.50% APY CD rate. That's several percentage points higher than other CDs that are currently being offered. It also requires a low minimum deposit of $500.

However, the criteria you need to meet in order to open the certificate are steep. First of all, you can only put a maximum of $3,000 in the CD. Second of all, the money in the CD has to be new, which means it can't have previously been in a California Coast Credit Union account. You'll also need some sort of other account with California Coast Credit Union to get the high APY. You can have an active checking account (meaning it has one transaction a month), a new money market account with a minimum balance of $5,000, a new regular certificate with a minimum balance of $5,000, a new IRA certificate with a minimum balance of $5,000, or a new funded consumer loan that isn't either a credit card or a share-secured or certificate-secured loan.

You also need to be a member of California Coast Credit Union. Membership is limited to people who live or work in San Diego or Riverside counties, to people in select employee groups, and to people who live with a member.

Term options: California Coast Credit Union has terms ranging from 3 months to 5 years, as well as a 5-month celebration certificate, an 8-month liquid certificate, and an 18-month bump rate certificate.

Penalties: California Coast Credit Union certificates have the following early withdrawal penalties:

• 90 days interest for terms of 6 months or less
• 180 days interest for terms from more than 6 months to 24 months
• 365 days interest for terms of more than 24 months

Climate First Bank 6 Month No Penalty CD

Climate First Bank currently offers the highest rate on a no-penalty CD for its 6-month no-penalty CD. However, it also offers two other no-penalty CDs that also have strong rates. Climate First Bank might be a good choice for you if you're looking for an environmentally friendly bank offering a no-penalty CD with a low minimum opening deposit of $500.

Climate First Bank doesn't offer any CDs with term lengths over 25 months, so if you're interested in a long-term CD, Climate First Bank might not be the choice for you.

Term options: Climate First Bank has terms ranging from 6 months to 25 months.

Penalties: None

TotalDirectBank 3 Month CD and TotalDirectBank 6 Month CD

A TotalDirectBank CD may be appealing if you're searching for a 3-month or 6-month term available nationwide.

TotalDirectBank CDs have a steep minimum opening deposit of $25,000 and a maximum deposit of $1 million. TotalDirectBank is the online-only division of the City National Bank of Florida. The online division doesn't operate in Florida, Puerto Rico, Somoa, Guam, the Northern Mariana Islands, or the U.S. Virgin Islands.

Term options: TotalDirectBank has terms ranging from 3 months to 5 years.

Penalties: The following early withdrawal penalties may apply to TotalDirectBank CDs:

• 30 days of interest for terms between 30 days and up to 6 months
• 90 days of interest for terms above 6 months and up to 1 year
• 180 days of interest for terms over 1 year

State Bank of Texas 1 Year CD Special

State Bank of Texas currently has the highest rate on a 1-year CD. The CD charges low early withdrawal penalties.

The bank also offers personal checking and money market accounts, so if you're interested in opening all of those types of accounts with one bank, the State Bank of Texas might be a good choice for you.

This CD has a very high minimum opening deposit of $50,000. Almost all of our other CD picks have a lower minimum opening deposit, so if you want to put less in your CD, you might want to consider one of our other choices. In addition, this CD does not compound interest, which means you'll be earning less than if you went with a CD that does.

Term options: State Bank of Texas only offers 12-month CD terms.

Penalties: The early withdrawal penalty is 60 days of interest.

Credit Human 18 Month Share Certificate

You may like a Credit Human Share Certificate if you'd prefer a credit union over a bank. Credit Human offers an especially high interest rate on its 18-month term. You'll need a minimum of $500 to open a CD, which is less than what many other institutions require.

To open a Credit Human Share Certificate, you'll have to qualify for membership. You may join from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.

Term options: Credit Human has share certificate terms ranging from three months to 10 years.

Penalties: Credit Human Share Certificates have the following early withdrawal penalties:

• 90 days of interest for terms of 3 months
• 180 days of interest for terms of 6 months
• 270 days of interest for terms of 12 months
• 365 days of interest for terms of 36 months
• 730 days of interest for terms of 60 months
• 1,095 days of interest for terms of 84 to 120 months

Crescent Bank 2 Year CD

Crescent Bank currently offers the best rate for a 2-year CD. It also offers a strong 3-year CD, so if you're interested in opening multiple long-term CDs, Crescent Bank might be a good choice for you. Crescent Bank might also be interesting if you live in Louisiana and want to bank in-person; the bank has three branches, all in the New Orleans area. If you don't live in Louisiana, Crescent Bank still works as an online bank.

Crescent Bank doesn't offer any CDs with term lengths under one year, so if you're interested in opening a shorter-term CD, you're better off looking elsewhere.

Term Options: Crescent Bank has CD terms ranging from 1 year to 5 years.

Penalties: Crescent Bank CDs have the following early withdrawal penalties:

• 90 days of interest for terms of 1 year
• 180 days of interest for terms of 18 months or more

Crescent Bank Review

DollarSavingsDirect 3 Year CD

DollarSavingsDirect, an online division of Emigrant Bank, currently offers the best 3-year CD rate. If you're interested in a CD with a non-traditional term length, DollarSavingsDirect could be a good choice for you. In addition to many standard term lengths, DollarSavingsDirect also offers a 16-month CD.

Unlike many banks, DollarSavingsDirect doesn't offer 4-year terms. If you're interested in opening CDs with those term lengths, DollarSavingsDirect might not be the ideal choice for you.

Term options: DollarSavingsDirect offers CD term lengths ranging from 6 months to 5 years.

Penalties: The following early withdrawal penalties may apply to DollarSavingsDirect:

• 90 days interest for CD terms less than 1 year
• 180 days interest for CD terms 1 year or more

BMO Alto High Yield CD

BMO Alto is the online-only division of BMO Bank, and its accounts are available nationwide. BMO Alto offers competitive interest rates, especially on 4-year and 5-year terms. BMO Alto is one of the few financial institutions that has a minimum opening deposit of $0.

BMO Alto doesn't have a mobile banking app. If you do most of your banking from your phone, another bank might be a better choice for you.

Term options: Terms range from 6 months to 5 years.

Penalties:BMO Alto chargesthe following early withdrawal penalties on CDs:

• 90 days of interest for terms of 11 months or less
• 180 days of interest for terms of 12 months to 23 months
• 270 days of interest for terms of 24 months to 35 months
• 365 days of interest for terms of 36 months to 47 months
• 545 days of interest for terms of 48 months or more

BMO Alto Savings and CD Accounts

Compare CD Rates by Term

Below, you'll find our picks for the best CD rates right now. There isn't one particular CD that will work for everyone, but we combed through offerings at around a dozen national banks to find the strongest options available right now.

Best 3-Month CD Rates

Best 6-Month CD Rates

Best 1-Year CD Rates

Best 18-Month CD Rates

Best 2-Year CD Rates

Best 3-Year CD Rates

Best 4-Year CD Rates

Best 5-Year CD Rates

Best No-Penalty CD Rates

Best Rates for No Opening Deposit

Best Rates for Other CD Terms

Types of Certificates of Deposit

Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.

No-Penalty CDs

Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

6-Month CDs

The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term.

These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.

1-Year CDs

The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors.

A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.

2-Year CDs

The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

3-Year CDs

The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

5-Year CDs

The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

Jumbo CDs

A jumbo CD is a type of CD with a much higher minimum opening deposit than the average traditional CD. In exchange, jumbo CDs usually offers better rates than you would find with traditional CDs. If you have a lot of money to put in a CD, jumbo CDs might be a good choice for you.

Bump-Up CDs

Bump-up CDs are a type of CD that lets you raise your CD rate once during the term length if your financial institution's rates go up. These are also sometimes called bump-rate CDs or raise-your-rate CDs. Some banks and credit unions let you raise your rate more than once, so if that's something you're interested in, you should check with your financial institution before you open the CD.

Step-Up CDs

Step-up CDs are similar to bump-up CDs, in that their special features center around raising the interest rate you get on your CD. However, step-up CD rates are locked in when you open the CD; you'll know exactly when your rate will raise, and by how much, when you open the CD.

For example, an 18-month step-up CD might start at 1% APY, or annual percentage yield, raise to 1.5% APY after 6 months, and raise to 2% APY after a year. These rate raises aren't dependent on market fluctuations like bump-up CDs are.

Factors to Consider Beyond Just the Rate

Minimum Deposit Requirements

If you have a limited amount of money to put in a CD, you'll want to check what the minimum opening deposit is for the CD. A minimum opening deposit of $1,000 is fairly standard, but you can find CDs that permit a deposit of $0 upfront. If you're looking to open a much larger CD, jumbo CDsusually have minimum opening deposits that are far higher than those for standard CDs.

Early Withdrawal Penalties

If you aren't sure whether you can keep money in a CD for its entire term length, you'll want to check what early withdrawal penalties your CD charges. This generally takes the form of deducting a certain amount of interest from your account, such as 90 days' interest for a 6-month CD. A compound interest calculator can help you figure out exactly how much this is for your CD.

If you want to be able to withdraw money without incurring these penalties, you'll probably want to go for a no-penalty CD. No-penalty CDs let you withdraw your money without penalty in exchange for generally slightly lower interest rates.

Account Fees

Some bank accounts come with monthly service fees, which will automatically deduct a small fee from your account each month. Luckily, you generally don't have to worry about these for CDs; they're more commonly found on checking accounts, money market accounts, and traditional savings accounts. However, you should always check before opening a CD to make sure there aren't any fees associated with the account.

Bank/Credit Union Reputation

It's important to make sure the financial institution you open a CD with is trustworthy and safe. Before opening a CD with a bank or credit union, check their BBB page, see if they've been involved in any recent lawsuits, and research whether they've had any recent data breaches.

Why You Should Trust Us: Experts' Advice on Choosing the Best CD

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best CDs to use for your money. You can read their insights at the bottom of this post.

Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)

What makes a CD good or not good?

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

"You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it's monthly or quarterly."

How should someone choose a CD term length?

Roger Ma, certified financial planner with lifelaidout® and author of "Work Your Money, Not Your Life":

"I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective."

Mykail James, CFEI:

"I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, certified financial planner and vice president of coaching strategy at OfColor:

"So I guess we'll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account."

Sophia Acevedo, certified educator in personal finance, banking editor, Business Insider:

"Generally, I think a high-yield savings account or money market account could be good options for an emergency fund or short-term savings goals. A high-yield savings account offers a higher interest rate than traditional savings accounts at brick-and-mortar banks. Meanwhile, money market accounts might be worth considering if you want more account accessibility — several offer paper checks, ATM cards, or debit cards. CDs could be worthwhile if you don't need access to some of your money, since they have a fixed interest rate for a specific term."

Methodology: How We Chose the Best CDs

At Business Insider, we aim to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high Annual Percentage Yield (APY), for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

We reviewed CD offerings from banks and credit unions using our CD methodology. All banks included on our list are FDIC-insured and do not impose monthly maintenance fees on CDs, while credit union CDs offer insurance through NCUA.

In the event two banks offered the same APY on a CD product, we considered factors like the minimum deposit requirements and early withdrawal penalties.

Best CD FAQs