Top CD rates today: May 28, 2024 | Most Terms Earn 5% Or Higher (2024)

CDs

Top CD rates today: May 28, 2024 | Most Terms Earn 5% Or Higher (1)

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Key takeaways

  • Today's highest CD rate across terms is 5.36% APY, offered for a one-year term.
  • Top APYs for many CD terms have declined slightly in recent months since peaking late in 2023.
  • Competitive CDs are earning at least three times the national average rates, for most terms.

Many savers who expect the Federal Reserve to lower interest rates this year are locking in a fixed yield now on a certificate of deposit (CD). Opening a CD now ensures you’ll reap the benefit of a high annual percentage yield (APY) for the entire length of the CD’s term.

As we enter the final week of May, top rates hold steady on the nine CD terms Bankrate monitors for this page. Various banks that operate entirely (or primarily) online continue to offer the highest APYs, which are 5 percent or higher on terms of up to 18 months. Top rates on longer terms of up to five years remain slightly lower.

The table below shows top CD rates for the most common terms, as well as national averages and the amount you can earn in interest with a $5,000 deposit.

Today's best CD rates by term

CD termInstitution offering top APYHighest APYNational average APYEstimated earnings on $5,000 with top APY
3-monthPopular Direct5.30%1.23%$65
6-monthPopular Direct5.30%1.72%$131
9-monthForbright Bank5.30%N/A$197
1-yearCIBC Bank USA5.36%1.80%$268
18-monthTAB Bank5.00%1.84%$380
2-yearTAB Bank4.80%1.53%$492
3-yearFirst Internet Bank of Indiana4.61%1.42%$724
4-yearFirst Internet Bank of Indiana4.45%1.50%$951
5-yearFirst Internet Bank of Indiana4.50%1.42%$1,231

Note: Annual percentage yields (APYs) shown are as of May 28, 2024. APYs for some products may vary by region.

N/A: Not available; Bankrate doesn’t track national averages for the 9-month CD term due to limited available data. Estimated earnings are based on the highest APYs and assume interest is compounded annually.

Is a certificate of deposit safe?

If you’re considering opening a CD with a bank, be sure it’s covered by Federal Deposit Insurance Corp. (FDIC). Likewise, if it’s from a credit union, make sure it has National Credit Union Administration (NCUA) insurance. This deposit insurance guarantees your money is safe were the financial institution to fail, as long as the money is within the limits and guidelines.

What the current rate environment means for CDs

In 2022 and 2023, the Federal Reserve raised its benchmark interest rate a total of 11 times, bringing its current target range to a 23-year high of 5.25-5.50 percent. However, the Fed has left rates unchanged for six straight meetings, due to inflation not slowing as quickly as it has in the past.

Yields on competitive savings accounts and CDs tend to move in lockstep with the Fed’s interest rate moves. As such, many banks increase their yields when the Fed raises rates, and they lower yields when the federal funds rate drops. While the Fed has held rates steady since July 2023, top CD APYs ended up peaking in late 2023 and have since been decreasing gradually.

Is it still a good time to open a CD? “Even though CD yields have pulled back a bit, you’re still able to lock in yields that are well in excess of inflation and do so for multiple years,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “The declines will likely accelerate as we get closer to the Fed beginning to cut interest rates, so there is no sense in waiting.”

CD FAQs

Research 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.

Top CD rates today: May 28, 2024 | Most Terms Earn 5% Or Higher (2024)

FAQs

Top CD rates today: May 28, 2024 | Most Terms Earn 5% Or Higher? ›

CD rate forecast: 2024

The Fed kept its rate the same after its fourth meeting of 2024 on June 11-12. Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on June 11.

Where are CD rates headed in 2024? ›

CD rate forecast: 2024

The Fed kept its rate the same after its fourth meeting of 2024 on June 11-12. Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on June 11.

Can you get 6% on a CD? ›

It's possible to get a 6% certificate of deposit, but currently, they're only offered by credit unions, not banks. Pros of a 6% CD include locked-in interest rates and a relatively high rate of return.

Who is paying the highest CD rates right now near? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and Vast Bank (5.50%).

Where can I get 7% interest on my money? ›

Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

Can I put 100k in a CD? ›

What is a jumbo CD? A jumbo CD is similar to a regular CD, but it requires a higher minimum deposit. While a typical CD might require a minimum of $1,000 to open, a jumbo CD usually requires a minimum of around $100,000. Because of the high minimum deposit requirement, jumbo CDs don't make sense for a lot of investors.

Should I open a CD right now? ›

CD rates are at a 3-year high—but waiting longer to buy could be a gamble. CD rates have risen steadily over the past 12 months alongside the Fed's rate increases. Interest rates on certificates of deposits (CDs) have been increasing substantially since 2022—in lock-step with the Fed's rate hikes.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Do you pay taxes on CDs? ›

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

What is the highest CD rate at Capital One? ›

Capital One's 12 and 18-month CDs have the highest annual percentage yields (APYs), 5.00% and 4.45%. The bank regularly offers promotional CDs with higher rates. Currently, a 10-month CD offers 5.10% APY. Capital One yields are more competitive than many big banks, though several online banks offer similar rates.

How high will interest rates go in 2024? ›

NAR: Rates Will Decline to 6.5% The National Association of Realtors expects mortgage rates will average 6.8% in the first quarter of 2024, rising to 7.1% in the second quarter, according to its latest Quarterly U.S. Economic Forecast.

What is the interest rate forecast for the next 5 years? ›

New Outlook On Monetary Policy

The median projection for the benchmark federal funds rate is 5.1% by the end of 2024, implying just over one quarter-point cut. Through 2025, the FOMC now expects five total cuts, down from six in March, which would leave the federal funds rate at 4.1% by the end of next year.

Is now a good time to buy CDs? ›

If you're in a position to save in today's higher interest rate environment, investments like CDs could help accelerate your savings. CD rates have skyrocketed since 2022: 1-year CD rates have increased more than twelve-fold, with 3-year and 5-year CDs up nearly six-fold and five-fold, respectively.

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