Since last year, savings rates on both high yield savings accounts and CDs have been continually rising, with rates on many top-earning accounts offering APYs of over 4% and 5%. Typically, long-term CDs offer higher rates than short-term CDs, but the market is currently experiencing what is known as an “inverted yield curve,” meaning you’ll earn more from a 1-year CD compared to a 5-year CD.
This is great news; you can now invest your cash in a CD with a high rate of return, without having to keep it locked up for an overly long period of time. Rates on long-term CDs are still high though, so if you are looking for a longer-term investment option, you’ll be able to score rates of over 4%. And rates could even go up further.
Here are some of the best CD rates available now, sorted by term length. Plus use our tool, in partnership with Bankrate, which automatically updates the rates ensuring you get the most up-to-date CD rates available.
CD rates have been rising in tune with higher interest rates. In an attempt to slow high inflation, the Federal Reserve has raised interest rates at 11 out of 12 policy-setting meetings since March 2022. At their latest meeting in July, the Fed raised the federal funds rate, a key overnight bank lending rate, by a quarter of a percentage point to a target range of 5.25% to 5.5%, the highest it's been since 2001.
Officials predict at least one more rate hike before the year is through, as "inflation remains elevated." In their official statement, the Federal Reserve stated they were "strongly committed to returning inflation to its 2 percent objective." Therefore, if the Fed continues to raise interest rates, rates on savings accounts could be pushed slightly higher.
Best 3-month CD rates
Short term CD's, like 3-month or 6-month CDs, can be good options for individuals who don’t want to commit to having their cash tied up for long periods of time. However, it’s important to compare rates across accounts to be sure you’re getting the best return on your cash. For instance, you’ll likely be able to get a similar, or even higher, APY when opening a high-yield savings account or money market account. And with these types of savings vehicles, you won’t have to wait any time at all to withdraw funds from your account. But this can have a downside: it’ll be easier to make impulse purchases with cash in a high yield savings account than cash that’s tied up in a CD. You may also opt for a short-term CD if you predict falling interest rates. Since the APY of a CD account is fixed, your savings won’t be affected.
Western Alliance Bank
APY: 5.21%
Minimum deposit: $1
Freedom Bank
APY: 5.10%
Minimum deposit: $1
Ponce Bank
APY: 5.40%
Minimum deposit: $1
America First Federal Credit Union
APY: 4.50%
Minimum deposit: $500
Total Direct Bank
APY: 5.36%
Minimum deposit: $25,000
Brilliant Bank
APY: 5.10%
Minimum deposit: $1,000
Santa Clara County Federal Credit Union
APY: 4.58%
Minimum deposit: $500
Popular Direct
APY: 4.75%
Minimum deposit: $10,000
Best 6-month CD rates
Total Direct Bank
APY: 5.56%
Minimum deposit: $25,000
NASA Federal Credit Union
APY: 4.80%
Minimum deposit: $1,000
Bellco Credit Union
APY: 4.75%
Minimum deposit: $500
Popular Direct
APY: 5.35%
Minimum deposit: $10,000
First Internet Bank
APY: 5.22%
Minimum deposit: $1,000
Western Alliance Bank
APY: 5.41%
Minimum deposit: $1
Oklahoma State Bank
APY: 5.40%
Minimum deposit: $1
Best 1-year CD rates
CDs are good options for particular savings goals, like future purchases or events. For example, if you know you’ll purchase a new vehicle in three years, then keeping your cash in a 3-year CD makes sense. Or maybe you’re saving for next year’s vacation, in which case putting your cash in a 1-year CD account will help you maximize your savings with little effort. Just remember: you won’t be able to access your cash once it’s put into a CD account (unless you opt for a no-penalty CD account). For this reason, cash you’ll need access too, like savings in an emergency fund should be saved elsewhere.
You may also want to open a number of CDs with varying maturity dates if you’re building a CD ladder. This is where you stagger, or ladder, maturities so that some are always coming due in the near future. For example, if you have $10,000 to invest, you could split it equally into five “rungs,” putting $2,000 into CDs with maturity dates a year apart. So, $2,000 in a 1-year CD, $2,000 in a 2-year CD and so on. When each CD matures, you’ll invest your cash, plus any earned interest, into another 5-year CD. You’ll then be left with five 5-year CDs, with one maturing each year, providing a consistent cash flow.
See Kiplinger's full list of top earning 1-year CD rates.
BrioDirect
APY: 5.35%
Minimum Deposit: $500
USAlliance Financial
APY: 5.20%
Minimum Deposit: $500
CIBC Bank USA
APY: 5.36%
Minimum Deposit: $1,000
Popular Direct
APY: 5.55%
Minimum Deposit: $10,000
Bread Financial
APY: 5.50%
Minimum Deposit: $1,500
Forbright
APY: 5.65%
Minimum Deposit: $1,000
Western Alliance Bank
APY: 5.51%
Minimum Deposit: $1
Pacific Western Bank
APY: 5.50%
Minimum Deposit: $1
Best 2-year CD rates
Bread Financial
APY: 5.00%
Minimum Deposit: $1,500
Delta Community Credit Union
APY: 4.50%
Minimum Deposit: $1,000
Crescent Bank
APY: 5.00%
Minimum Deposit: $1,000
First Internet Bank
APY: 4.85%
Minimum Deposit: $1,000
Popular Direct
APY: 4.90%
Minimum Deposit: $10,000
Connexus Credit Union
APY: 5.01%
Minimum Deposit: $1
Best 3-year CD rates
See Kiplinger's full list of top earning 3-year CDs.
U.S. Senate Federal Credit Union
APY: 5.23%
Minimum Balance: $1,000
Hughes Federal Credit Union
APY: 4.86%
Minimum Balance: $1,000
Quorum Federal Credit Union
APY: 4.85%
Minimum Balance: $1,000
Crescent Bank
APY: 4.75%
Minimum Balance: $1,000
Lafayette Federal Credit Union
APY: 4.84%
Minimum Balance: $500
Best 4-year CD rates
ECFU Financial
APY: 4.75%
Minimum Balance: $500
First Internet Bank
APY: 4.54%
Minimum Balance: $1,00
Bread Savings
APY: 4.50%
Minimum Balance: $1,500
Popular Direct
APY: 4.30%
Minimum Balance: $10,000
The State Exchange Bank
APY: 4.50%
Minimum Balance: $1
Best 5-year CD rates
A major benefit of opening a long-term CD is that you’ll be able to lock in rates while they’re high. Unlike rates on high yield savings accounts, which vary with the market, rates on CDs are locked-in when you open the account. For this reason, if you open a 5-year CD and then savings rates drop shortly after, your APY won’t be affected. The downside, however, is that your cash will be tied up for many years. If you needed to access this cash, the withdrawal fee could offset a good portion of any interest earned.
See Kiplinger's full list of top earning 5-year CDs.
Lafayette Federal Credit Union
APY: 4.42%
Minimum Balance: $500
ECFU Financial
APY: 4.75%
Minimum Balance: $500
Department of Commerce Federal Credit Union
APY: 4.61%
Minimum Balance: $500
MYSB Direct
APY: 4.66%
Minimum Balance: $500
First National Bank of America
APY: 4.65%
Minimum Balance: $1,000
Popular Direct
APY: 4.65%
Minimum Balance: $10,000
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