Savings rates on high-yield savings accounts and CDs began rising in March 2022, when the Fed started hiking interest rates in an attempt to combat high inflation. But as inflation slowed and the central bank paused its rate-hiking campaign, rates on savings accounts began to slip. And officials now estimate one quarter-point cut for the year.
However, many top-earning accounts still offer 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 still 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%. However, you'll want to act fast. When the Fed cuts rates later this year, savings rates will also fall.
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.
Best 3-month CD rates
Short-term CDs, 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 are likely to get a similar, or even higher, APY when opening a high-yield savings account or money market account.
With these more flexible savings vehicles, you won’t have to wait long to withdraw funds from your account. But they can have a downside: it is easier to make impulse purchases with cash in a high-yield savings account than cash that is tied up in a CD.
Total Direct Bank
APY: 5.51%
Minimum deposit: $25,000
Bask Bank
APY: 5.53%
Minimum deposit: $1,000
Dow Credit Union
APY: 5.30%
Minimum deposit: $500
Banesco USA
APY: 5.25%
Minimum deposit: $1,500
Merrick Bank
APY: 5.25%
Minimum deposit: $25,000
Popular Direct
APY: 5.25%
Minimum deposit: $10,000
Merchants Bank of Indiana
APY: 5.25%
Minimum deposit: $1,000
Best 6-month CD rates
Total Direct Bank
APY: 5.51%
Minimum deposit: $25,000
DR Bank
APY: 5.50%
Minimum deposit: $500
Eagle Bank
APY: 5.40%
Minimum deposit: $1,000
INOVA Federal Credit Union
APY: 5.35%
Minimum deposit: $200
Newtek Bank
APY: 5.35%
Minimum deposit: $2,500
Bask Bank
APY: 5.35%
Minimum deposit: $1,000
Vast Bank
APY: 5.25%
Minimum deposit: $2,500
Popular Direct
APY: 5.35%
Minimum deposit: $10,000
Merrick Bank
APY: 5.35%
Minimum deposit: $25,000
Best 1-year CD rates
CDs are good options for particular savings goals, like future purchases or events. For example, if you want to 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, so putting your cash in a 1-year CD account will help you maximize your savings with little effort. 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 to, 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. With this strategy 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.
Paramount Bank
APY: 5.55% (11 months)
Minimum Deposit: $1,000
USAlliance Financial
APY: 5.40%
Minimum Deposit: $500
CFG Bank
APY: 5.36%
Minimum Deposit: $500
NexBank
APY: 5.40%
Minimum Deposit: $25,000
TotalDirectBank
APY: 5.35%
Minimum Deposit: $25,000
First Internet Bank
APY: 5.26%
Minimum Deposit: $1,000
Prime Alliance Bank
APY: 5.30%
Minimum Deposit: $500
Bread Financial
APY: 5.25%
Minimum Deposit: $1,500
Popular Direct
APY: 5.30%
Minimum Deposit: $10,000
Best 2-year CD rates
USAlliance Financial
APY: 5.10%
Minimum Deposit: $500
ableBanking
APY: 4.95%
Minimum Deposit: $5,000
Crescent Bank
APY: 4.90%
Minimum Deposit: $1,000
MYSB Direct
APY: 4.85%
Minimum Deposit: $500
My eBanc
APY: 4.85%
Minimum Deposit: $5,000
Lafayette Federal Credit Union
APY: 4.78%
Minimum Deposit: $500
First Internet Bank
APY: 4.76%
Minimum Deposit: $1,000
First National Bank of America
APY: 4.75%
Minimum Deposit: $1,000
Luana Savings Bank
APY: 4.70%
Minimum Deposit: $2,000
TAB Bank
APY: 4.70%
Minimum Deposit: $1,000
Best 3-year CD rates
See Kiplinger's full list of top earning 3-year CDs.
DollarSavingsDirect
APY: 5.00%
Minimum Balance: $1,000
Dow Credit Union
APY: 4.81%
Minimum Balance: $500
Crescent Bank
APY: 4.80%
Minimum Balance: $1,000
Workers Credit Union
APY: 4.75%
Minimum Balance: $500
MYSB Direct
APY: 4.70%
Minimum Balance: $500
Seattle Bank
APY: 4.65%
Minimum Balance: $1,000
Credit Human
APY: 4.65%
Minimum Balance: $500
First Internet Bank
APY: 4.61%
Minimum Balance: $1,000
Best 4-year CD rates
BMO Alto
APY: 4.70%
Minimum Balance: $0
Credit Human
APY: 4.65%
Minimum Balance: $500
Seattle Bank
APY: 4.55%
Minimum Balance: $1,000
First National Bank of America
APY: 4.50%
Minimum Balance: $1,000
Dow Credit Union
APY: 4.50%
Minimum Balance: $500
The Federal Savings Bank
APY: 4.55%
Minimum Balance: $5,000
First Internet Bank
APY: 4.45%
Minimum Balance: $1,000
Department of Commerce Federal Credit Union
APY: 4.35%
Minimum Balance: $500
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.
Grow Financial Federal Credit Union
APY: 4.75%
Minimum Balance: $500
First Internet Bank
APY: 4.50%
Minimum Balance: $1,000
First National Bank of America
APY: 4.50%
Minimum Balance: $1,000
BMO Alto
APY: 4.80%
Minimum Balance: $0
Pima Federal Credit Union
APY: 4.50%
Minimum Balance: $250
Dow Credit Union
APY: 4.50%
Minimum Balance: $500
Seattle Bank
APY: 4.50%
Minimum Balance: $1,000
Bottom line
At their latest meeting, the Federal Reserve once again decided to hold the federal funds rate steady. This seventh consecutive pause in rate hikes means the federal funds rate, a key bank lending rate, remains at a target range of 5.25% to 5.5%, the highest in 23 years. And because at least one rate cut is expected later this year, rates on savings accounts will drop even further.
For this reason, now's a great time to lock in CD rates while they're still high. Just make sure you won't need access to your cash before the CD's maturity date, or you'll offset any earnings by paying the early withdrawal fee.
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