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High CD rates for now
CD rates have started to dip and may continue to fall, especially if the Fed decides to drop its rate.
On this page
CD definition: What is a CD?
CD rates news
Current promotional CD rates
Best CD rates for June 2024
What to consider about the best CD rates
Pros and cons of certificates of deposit
How much does a $10,000 CD make in a year?
How to choose a CD
See CD rates by term and type
What is a no-penalty CD?
Best no-penalty CD rates
What happens if I withdraw from a CD early?
CD definition: What is a CD?
A certificate of deposit is a bank account that requires you to lock funds away for a fixed period of months or years in exchange for a fixed interest rate that can be higher than other bank accounts. These accounts are often referred to as CDs. Historically, CDs took the form of paper certificates, but nowadays, CDs are like other financial accounts that you can manage online. See more about what CDs are.
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CD rates news 2024
Competitive CD rates have started to dip gradually in 2024, according to NerdWallet analysis. Banks and credit unions have generally raised CD rates in the past two years to follow the direction of the Federal Reserve’s benchmark rate, which saw almost a dozen increases.
However, since late July 2023, the Fed has kept its rate steady and may drop its rate sometime this year. The right time for CDs ultimately depends on your savings goals, but if you’re in the market for them, consider taking advantage of high CD rates while they last. Learn more about where rates are headed in our CD rate forecast.
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Current promotional CD rates
The following promotional CD rates stand out based on NerdWallet’s data analysis in May 2024. Expiration dates for a promo are shown when available.
In general, promotional rates tend to be for irregular CD terms and featured on banking websites as a “promotional rate” or “CD special.” (For more details, see how promotional CD rates work.)
Name (click to see our review) | CD rate (or certificate rate) |
|---|---|
Bank of America: 7-month CD | 4.75% APY.* |
U.S. Bank: 7-month CD | Up to 4.75% APY (Varies by location). |
Wells Fargo: 7-month CD | 4.75% APY. |
NASA Federal Credit Union: 9-month Certificate | 5.35% APY. |
Synchrony Bank: 9-month CD | 5.10% APY. |
CIBC U.S.: 9-month CD | 5.11% APY. |
EverBank (formerly TIAA Bank): 9-month CD | 5.05% APY. |
NBKC Bank: 11-month CD | 5.00% APY. |
BMO: 13-month CD | 4.90% APY. |
Ally Bank: 14-month CD | 4.55% APY (expires 6/19/24). |
Service Credit Union: 15-month Certificate | 4.75% APY. |
NASA Federal Credit Union: 49-month Certificate | 4.40% APY. |
*Bank of America’s rate is based on a San Francisco ZIP code. Rates may vary by location. | |
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Best CD rates for June 2024
Alliant Credit Union: APYs: 5.15% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.
Bread Savings: APYs: 5.25% (1 year); 4.25% (3 years); 4.15% (5 years); Term range: 1 - 5 years; Minimum to open: $1,500.
Popular Direct: APYs: 5.15% (1 year); 4.50% (3 years); 4.30% (5 years); Term range: 3 months - 5 years; Minimum to open: $10,000.
Quontic Bank: APYs: 4.50% (1 year); 4.40% (3 years); 4.30% (5 years); Term range: 6 months - 5 years; Minimum to open: $500.
BMO Alto: APYs: 5.05% (1 year); 4.60% (3 years); 4.80% (5 years); Term range: 6 months - 5 years; Minimum to open: None.
TAB Bank: APYs: 5.15% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.
LendingClub Bank: APYs: 5.15% (1 year); 4.30% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.
EverBank: APYs: 4.80% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.
Marcus by Goldman Sachs: APYs: 5.00% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 6 months - 6 years; Minimum to open: $500.
Synchrony Bank: APYs: 4.80% (1 year); 4.15% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: None.
Sallie Mae Bank: APYs: 5.15% (1 year); 4.00% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $2,500.
Andrews Federal Credit Union: APYs: 5.00% (1 year); 4.10% (3 years); 3.90% (5 years); Term range: 6 months - 7 years; Minimum to open: $1,000.
NASA Federal Credit Union: APYs: 4.50% (1 year); 4.25% (3 years); 4.00% (5 years); Term range: 6 months - 5 years; Minimum to open: $1,000.
Capital One: APYs: 5.00% (1 year); 4.00% (3 years); 3.90% (5 years); Term range: 6 months - 5 years; Minimum to open: None.
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What to consider about the best CD rates
Rates on new CDs are slowly dropping. While rates aren’t likely to plummet by 1.00% APY (100 basis points) overnight, be careful about waiting too long to get CDs if you’re ready to get them.
Compare CD rates by the same or similar term lengths. CDs for one year, three years and five years are considered some of the most common terms, but you can also consider promotional CDs with irregular terms. Focus on the rough time frame you plan to put money away into a CD as you look at rates.
Some CDs have low or no minimum opening deposits. You can find CDs with no opening minimums, but unlike with regular savings accounts, you rarely can add money to a CD after the initial deposit. Focus on the fixed amount you want to save in a CD.
CDs occupy the cash investment portion of a portfolio, which is your overall collection of investments across different types of assets. Learn how asset allocation works.
Strategies for using multiple CDs may help avoid decision fatigue. If the pressure of choosing one CD is too much, you might consider a strategy to balance cash access with high yields. Opening multiple CDs with different terms in a CD ladder lets you redeem CDs over time while taking advantage of competitive short- and long-term CD rates.
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Pros and cons of certificates of deposit
Pros
Fixed rate once a CD is opened (or bought).
CDs can have the highest rates among types of bank accounts.
Federally insured, like other bank accounts.
Cons
Usually has a penalty to redeem early.
Usually unable to add money over time.
CD rates may not keep up with inflation and aren’t best for long-term investment growth.
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How much does a $10,000 CD make in a year?
The three main factors that impact CD earnings are the rate, the CD term and the CD deposit, or the starting amount you put into a CD. Unlike regular savings accounts, you don’t generally have the ability to add money to a CD after the initial deposit. Here’s a look at three scenarios including how much $10,000 in a CD can earn in a year. (Or use our CD calculator.)
Scenario 1: Different amounts, same one-year rate
Here’s what we get after one year if we put different amounts in CDs with the same rate:
Starting balance | 1-year CD APY | Interest earned |
|---|---|---|
$500. | 5.00%. | $25. |
$1,000. | 5.00%. | $50. |
$5,000. | 5.00%. | $250. |
$10,000. | 5.00%. | $500. |
Scenario 2: Same amounts, different one-year rate
Here’s what we get after one year if we put the same amount in CDs with different rates:
Starting balance | 1-year CD APY | Interest earned |
|---|---|---|
$10,000. | 3.00%. | $300. |
$10,000. | 4.00%. | $400. |
$10,000. | 5.00%. | $500. |
$10,000. | 5.30%. | $530. |
Scenario 3: Same amounts, different five-year rate
Here’s what we get after five years if we put the same amount in CDs with different rates:
Starting balance | 5-year CD APY | Interest earned (rounded to the nearest dollar) |
|---|---|---|
$10,000. | 3.00%. | $1,593. |
$10,000. | 4.00%. | $2,167. |
$10,000. | 5.00%. | $2,762. |
$10,000. | 5.30%. | $2,946. |
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How to choose a CD
Consider each part of a CD to help break down your decision:
CD term: Most terms at a bank or credit union range from three months to five years. Learn how to choose your CD term.
CD type: Some CDs have an unusual feature, such as a no-penalty CD that doesn’t charge for early withdrawals or a bump-up CD that allows for a rate increase during a term. High-yield CDs work like standard CDs but have the best rates and are often at online banks. See types of CDs.
CD rate: Once you’ve narrowed down the term and type of CD, you can compare banks and credit unions to find a competitive rate. You may decide to go with a bank you already have accounts at or choose a new institution, depending on whether convenience matters to you, but aiming for a high rate is ideal. See current CD rates.
CD deposit: The amount you put into a CD depends on your savings goals, but you want to have more funds than a CD’s opening minimum requirement. And, if you’re worried about a bank failing, keep less than the FDIC insurance limit of $250,000 in your accounts to keep your money protected. Learn how to choose your CD deposit.
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See CD rates by term and type
Compare the best rates for various CD terms and types:
Best CD rates overall.
Best 3-month CD rates.
Best 6-month CD rates.
Best 1-year CD rates.
Best 3-year CD rates.
Best 5-year CD rates.
Best no-penalty CD rates.
Best IRA CD rates.
How do CDs work?
Learn more about choosing CDs, understanding CD rates, and opening and closing CDs.
For choosing CDs:
CD calculator.
Are CDs worth it?
CDs vs. regular savings accounts.
CDs vs. money market accounts.
For understanding CD rates
Current CD rates.
Historical CD rates.
CD rates forecast.
What 2024 Fed rate increases mean for CDs.
For opening CDs
Opening a CD account in 5 steps.
What is a CD ladder?
How to invest in CDs: 3 strategies.
How much to put in CDs.
For closing CDs
When your CD matures: What to know.
CD early withdrawal penalty: What to know.
CD early withdrawal penalty calculator.
See CD rates by bank
Here’s a quick list of CD rates at traditional and online banks and a brokerage:
Ally Bank CD rates.
Bank of America® CD rates.
Capital One CD rates.
Chase CD rates.
Citibank CD rates.
Discover® Bank CD rates.
Fidelity CD rates.
Marcus CD rates.
Synchrony Bank CD rates.
Wells Fargo CD rates.
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What is a no-penalty CD?
A no-penalty CD is a type of CD that doesn’t have a penalty for withdrawing money before the term ends. It can be appealing if you want the traditionally higher yield of a CD, compared to regular savings accounts, but you might need the money sooner than you expect.
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Best no-penalty CD rates
If you withdraw money from a CD before the term ends, you generally pay a penalty of at least several months' worth of interest earned. But some providers have CDs without this early withdrawal penalty, though rates are slightly lower than other CD rates.
The following four banks offer no-penalty CDs (click each link to read the full review):
Ally Bank® (Member FDIC): 4.00% APY, 11 months, no minimum to open.
CIT Bank: 3.50% APY, 11 months, $1,000 minimum to open.
Marcus by Goldman Sachs: 4.70% APY, 13 months, $500 minimum to open.
Climate First Bank: 5.00% APY, 12 months, $500 minimum to open.
» See more details on our list of the best no-penalty CD rates
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What happens if I withdraw from a CD early?
Most CDs have an early withdrawal penalty that tends to range from several months' to a year's worth of interest earned, depending on the CD term length and the bank's policy. No-penalty CDs are the only type of CD that lets you withdraw money from a CD early without a fee. Learn more about different types of CDs.
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