- The era of 5% APY on CDs is coming to an end following the Federal Reserve’s benchmark rate cut in mid-September. This marks the first decrease since March 2020.
- The best CD rates for six-month to one-year terms have fallen from around 5% to the mid-4% range in APY.
- The best longer-term CD rates have dropped from around 4% to the 3% range.
- When choosing the best CD, consider not only the rates but also factors like term length, minimum deposits and withdrawal rules.
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On This Page
- Key Takeaways
- Our top picks for the best CD rates
- A closer look at our top picks for CDs
- What is happening to CD rates today?
- Pros and cons of CDs
- Types of CDs
- How much can I earn with a CD?
- How to choose the best CD
- Compare high-yield CDs
- How to build a CD ladder
- How to open a CD account
- Alternatives to CDs
- FAQ: Best CD rates
- Related topics
On This Page
- Key Takeaways
- Our top picks for the best CD rates
- A closer look at our top picks for CDs
- What is happening to CD rates today?
- Pros and cons of CDs
- Types of CDs
- How much can I earn with a CD?
- How to choose the best CD
- Compare high-yield CDs
- How to build a CD ladder
- How to open a CD account
- Alternatives to CDs
- FAQ: Best CD rates
- Related topics
Best CD Rates for November 2024: Earn More Than 5% APY
Leigh Morgan - Personal Finance
+ 1 other
Reviewed By
Blake Esken - Los Angeles Times
A closer look at our top picks for CDs
Advertiser Disclosure
Barclays 6-month CD
LEARN MORE
FDIC insured
rates_last_updated
rates_last_updated
APY
4.50%
Term Length
6 months
Minimum Opening Deposit
$min_deposit
Why We Like It
Editor's take
The Barclays 6-month CD is a solid option for short-term savers looking for flexibility and growth. It offers a competitive interest rate without tying up your money for too long, and its daily compounding interest means your balance grows faster than with monthly or annual compounding. Additionally, there are no maintenance fees or minimum balance requirements, making it accessible to a wide range of savers.
As an online-only bank, Barclays doesn’t have physical branches. But if you’re comfortable managing your accounts online, this CD offers a good mix of convenience, growth, and easy access to your money.
PROS
- Competitive APY
- No minimum deposit required
- Initial deposit isn’t due until 14 days after account opening
- Insured by the FDIC
CONS
- Must maintain a balance that would earn at least 1 cent if you want the interest to post to your account
- Early-withdrawal penalty
- No physical branch locations
Sallie Mae 10-month CD
LEARN MORE
FDIC Insured
Rates rates_last_updated
Rates rates_last_updated
APY
3.95%
Term Length
10 months
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
The Sallie Mae Bank 10-month CD offers an APY of 5.10%. That’s almost three times higher than the national average for 10-month CDs.
With a minimum deposit requirement of only $1, this CD is accessible to nearly anyone who wants to save money to achieve a short-term financial goal. Daily compounding also helps your money earn interest faster in this CD account.
PROS
- Automatic renewal option
- Insured by the FDIC
- No monthly fees
- Competitive rates
CONS
- $2,500 minimum deposit
- No physical branches
- Fee for returned deposits
Gainbridge FastBreak Annuity
Backed by issuing insurance company
rates_last_updated
rates_last_updated
APY
disclosure
apy
Term Length
5 years
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
Gainbridge offers a FastBreak annuity product that operates somewhat like a CD. You can earn 6.00% APY with the three-year term and 6.15% APY on terms of five to 10 years. Unlike with a traditional CD, you can withdraw up to 10% of the value of your account each year without any penalties or giving up your high-yield APY.
PROS
- 6.15% APY
- Can withdraw up to 10% of your account without penalties in the first year
- Rates are locked in
- Terms range between three to 10 years
CONS
- Financially backed by insurance company rather than FDIC
- No short-term options
- Withdrawal penalties after the first year
Alliant 12-month CD
NCUA Insured
Rates rates_last_updated
Rates rates_last_updated
Minimum Opening Deposit
$ 0.00
APY
apy%
Term Length
12 months
Why We Like It
Editor's take
Alliant Credit Union offers both traditional and jumbo CDs with terms ranging from three months to five years.
With competitive interest rates ranging from 4% to 4.80% APY, Alliant Credit Union members can open a regular CD with a minimum deposit of $1,000 and $75,000 for jumbo CDs.
As a credit union, Alliant’s CDs are insured by the National Credit Union Administration (NCUA) for up to $250,000, ensuring that your funds are safe and secure.
PROS
- Competitive APY
- Range of CD terms
- NCUA insured
CONS
- Minimum opening deposit of $1,000 to $75,000
- Need to be a credit union member
- Interest compounded monthly, not daily
Quontic 6-month CD
LEARN MORE
FDIC Insured
Rates rates_last_updated
Rates rates_last_updated
APY
disclosure
4.45%
Term Length
6 months
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
As an online bank, Quontic is ideal for those who prefer the convenience of digitally managing their finances without needing to visit a physical branch to open a CD. We value Quontic’s transition from a community bank to an online institution, broadening its customer reach.
We also like that Quontic offers a ‘No Penalty CD’. This allows you to withdraw your funds early without penalties, thus offering extra flexibility if your needs change.”
PROS
- No monthly service fee
- Takes less than 3 minutes to open an account
- Innovative online tools
- Insured by the FDIC
- Accessible minimum deposit
CONS
- High early withdrawal penalty
- No physical branch locations
- Doesn’t accept cash deposits
Synchrony Bank 12-month CD
FDIC Insured
rates_last_updated
rates_last_updated
APY
disclosure
apy%
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
This 12-month CD has the highest APY among Synchrony’s CD options. It’s also competitive with many banks, making it a great choice if you want to grow your savings without a long-term commitment. With no minimum balance required, it’s open to anyone ready to set aside money for a year.
Interest compounds daily and is credited monthly, so your balance keeps growing steadily. You can’t add funds during the term, but there’s a 10-day grace period after maturity where you can renew, add more money, transfer or withdraw your funds. Just keep in mind that if you need to access your funds early, there’s a penalty of 90 days’ interest.
In short, if you’re looking for a secure, short-term savings option, the Synchrony 12-month CD offers an easy and rewarding way to build your savings.
PROS
- Highest APY among Synchrony CD options
- No minumum deposit
- Multiple CD terms available
CONS
- No physical branches
- Doesn’t accept cash deposits
Marcus 12-month CD
FDIC Insured
Rates rates_last_updated
Rates rates_last_updated
APY
disclosure
apy
Term Length
12 months
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
The Marcus by Goldman Sachs 12-month CD pays 4.20% and has an initial opening deposit requirement of $500. However, you can continue adding funds to the CD within the first 30 days after opening your account to fund it fully.
This is a good option for people who plan to add more money to their CD but can only meet the initial $500 minimum deposit requirement. This CD is also a solid choice if you are looking at creating a CD ladder.
PROS
- 24/7 customer contact center
- Multiple CD terms
- Online account management
- Insured by the FDIC
CONS
- Large minimum deposit requirement
- No ATMs or physical branches
- Lower-than-average rates on some CD terms
Western Alliance 5-month CD
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FDIC Insured
rates_last_updated
rates_last_updated
APY
3.85%
Term Length
5 months
Minimum Opening Deposit
min_deposit
Why We Like It
Editor's take
Western Alliance offers multiple CDs via the Raisin platform ranging from three-month to one-year CDs, making it easy to set up multiple savings accounts and access them all in one place. A Western Alliance CD may be right for you if you have or want to open multiple products on the Raisin platform.
We love that Western Alliance was ranked one of the top U.S. banks in 2022 and 2023 by American Banker and Bank Director. If you sign up for a CD, you gain access to competitive rates and flexible savings options, giving you a bit of a head start when it comes to meeting your financial goals.
PROS
- Low minimum deposit requirement
- Uses the Raisin platform for extra convenience
- Insured by the FDIC
CONS
- Longest term available is 12 months
- Account transfers take at least one business day
- No cash deposits or direct deposits allowed
What is happening to CD rates today?
CD rates are experiencing a decline. This trend follows the Federal Reserve’s decision in September to cut its benchmark interest rate for the first time since March 2020. The Fed lowered the target range for the federal funds rate by half a percentage point to between 4.75% and 5%. This move comes after nearly a dozen rate increases over the previous two years, which aimed to control inflation and stabilize the economy.
As a result of the Fed’s rate cut, consumers are starting to notice a drop in the previously high CD rates, especially those over 5% APY. If you’re thinking about investing in CDs, this change suggests that rates are likely to keep falling. To take advantage of the remaining high rates, it’s a good idea to lock in a CD now before they drop even more. Acting quickly can help you secure the best CD rates available right now.
When is the next Fed meeting?
The Federal Open Market Committee’s next meeting is on November 6-7, 2024. This is when they might decide to adjust the federal funds rate if deemed necessary.
Average CD rates today
| Term length | Average APY* |
|---|---|
| 1 month | 0.24% |
| 3 month | 1.55% |
| 6 month | 1.81% |
| 1 year | 1.88% |
| 2 year | 1.55% |
| 3 year | 1.43% |
| 4 year | 1.35% |
| 5 year | 1.42% |
*Average APY data is sourced from the FDIC, which last updated these figures on September 16, 2024.
Pros and cons of CDs
Pros
- Higher rates than standard savings accounts
- Relatively safe
- Fixed interest rates instead of variable rates
Cons
- Penalty for early withdrawals
- May require a minimum deposit
- Low returns when compared to stocks and bonds
- Less flexibility than traditional savings accounts
Types of CDs
Financial institutions offer the following types of CDs:
- Traditional CDs. A traditional CD comes with a standard interest rate and a penalty for early withdrawals.
- High-yield CDs. High-yield CDs have much higher APYs than traditional CDs. The higher your APY, the faster your money grows.
- Jumbo CDs. If you have a significant amount of money set aside, you may qualify for a jumbo CD. This type of CD is for consumers who can afford to make large minimum deposits.
- No-penalty CDs. No-penalty CDs allow you to withdraw from your CD account without incurring a penalty.
- IRA CDs. This type of CD allows you to use your retirement funds to purchase CDs from banks and credit unions.
- Add-on CDs. An add-on CD allows you to add more money to your account after you open it.
- Bump-up CDs. If you open a bump-up CD, you can request a rate bump during your CD term.
- Brokered CDs. Brokered CDs are certificates of deposit purchased through a brokerage.
How much can I earn with a CD?
To give you an idea of how much you could earn, we calculated the interest earned for CDs with various terms in the tables below. The APYs are based on the national average rates reported by the FDIC, and interest is compounded daily.
This first example shows how much you could earn with a $500 CD.
Earnings with a $500 CD at maturity
| CD term | Average APY* | Interest earned on $500 |
|---|---|---|
| 1 month | 0.24% | $0.10 |
| 3 months | 1.55% | $1.93 |
| 6 months | 1.81% | $4.50 |
| 1 year | 1.88% | $9.40 |
| 2 years | 1.55% | $15.62 |
| 3 years | 1.43% | $21.76 |
| 4 years | 1.35% | $27.55 |
| 5 years | 1.42% | $36.52 |
*Average APY data is sourced from the FDIC, which last updated these figures on September 16, 2024.
This next example shows how much you could earn with a $10,000 CD, which is a much larger investment.
Earnings with a $10,000 CD at maturity
| CD term | Average APY* | Interest earned on $10,000 |
|---|---|---|
| 1 month | 0.24% | $2.00 |
| 3 months | 1.55% | $38.53 |
| 6 months | 1.81% | $90.09 |
| 1 year | 1.88% | $188.00 |
| 2 years | 1.55% | $312.40 |
| 3 years | 1.43% | $435.16 |
| 4 years | 1.35% | $551.03 |
| 5 years | 1.42% | $730.45 |
*Average APY data is sourced from the FDIC, which last updated these figures on September 16, 2024.
The calculations shown above are just simple examples. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
To learn more about how much you could earn, try using our CD calculator.
How to choose the best CD
Consider the following factors when choosing a CD.
1
CD term
It’s important to choose a term that works with your finances. For example, if you’ll need money to pay tuition 12 months from now, it’s best to choose a three-month CD or a six-month CD.
2
CD rate
Look for the highest rate you can find, as the rate determines how much interest you earn on your account.
3
Minimum deposit
Not everyone has thousands of dollars available to deposit. If you’re just getting started with saving, look for a CD with a low minimum balance requirement.
4
Withdrawal allowances
In many cases, withdrawing money before your term ends results in a financial penalty. If you think you’ll need access to your funds before the end of your term, look for a penalty-free CD.
5
CD type
Before choosing a CD, think carefully about your needs. Make a decision based on how much money you have, how long you can afford to let it sit in a CD account and how much you want to earn.
6
Security
Insurance protects you if your bank fails. Therefore, it’s important to choose a CD insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
Compare high-yield CDs
Financial institution
APY
Term length
Minimum opening deposit
More details
apy
disclosure
5 years
min_deposit
Backed by issuing insurance company
rates_last_updated
rates_last_updated
apy%
12 months
$ 0.00
NCUA Insured
Rates rates_last_updated
Rates rates_last_updated
apy%
disclosure
12 months
min_deposit
FDIC Insured
rates_last_updated
rates_last_updated
apy
disclosure
12 months
min_deposit
FDIC Insured
Rates rates_last_updated
Rates rates_last_updated
How to build a CD ladder
A CD ladder is a group of CDs with different maturity dates.
For example, you may have six-month, 12-month, 24-month, 36-month and 60-month CDs. Building a CD ladder makes it easier to take advantage of high interest rates without blocking access to the majority of your funds.
Here’s how to build a CD ladder:
- Determine how much you have available to deposit.
- Split the total amount of money you have by the number of CDs you want to buy.
- Open multiple accounts with different term lengths.
- Decide whether to reinvest or withdraw your money when each term comes to an end.
How to open a CD account
Follow these steps to open a CD:
- Research your options.
- Select a financial institution.
- Fill out the application. Be prepared to provide proof of identity, such as a driver’s license or state-issued photo ID card.
- Make your deposit.
- Leave the money alone until your term ends.
Alternatives to CDs
Here are two alternatives to CDs.
High-yield savings account
A high-yield savings account is a savings account with a higher-than-average APY. Like CDs, high-yield savings accounts allow you to earn interest. The biggest difference is that you can withdraw funds at any time without facing a penalty.
Compare high-yield savings accounts.
Money market account
A money market account is like a mix of a checking account and a savings account. You earn interest on your money, but you can also use checks or a debit card to take out cash. CDs penalize you for taking out money early, which is a disadvantage when comparing CDs vs. money markets. For that reason, money market accounts are best if you are wanting the ability to withdraw your money at any time.
FAQ: Best CD rates
Where can I earn 5% on a CD?
As of November 2024, you can earn 5% APY or more on a CD at several financial institutions, including Alliant Credit Union and Valley Direct.
Where can I get 6% on a CD?
You may be able to find a CD with a 6% rate at a local credit union.
Where can I find 7% CDs?
No banks currently offer 7% CDs. Instead, you will need to turn to credit unions to find these rare interest rates.
How much does a $10,000 CD make in a year?
Investing in a $10,000 CD with a national average APY of 1.75% will earn you approximately $175 in interest over the one-year term.
How much does a $50,000 CD make in a year?
A $50,000 CD with a national average APY of 1.75% will earn you approximately $905 in interest over the one-year term.
What happens if I withdraw from a CD early?
In many cases, you have to pay an early-withdrawal penalty. For example, the bank may require you to forfeit six months’ worth of interest.
Are CDs taxable?
Yes, CDs are taxable. Interest earned on CDs is treated as ordinary income by the IRS, meaning you must declare the interest earned on CDs each year when you file your taxes.
Are CDs safe?
CDs are one of the safest savings options available, as they’re usually insured by the FDIC or the NCUA. Additionally, you’re not investing in stocks, so you don’t have to worry about losing money due to market downturns.
About the Author
Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.
In the last five years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.
In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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