Best CD rates of December 2024 (Up to 5.25%)

Written by
Matthew Goldberg
Edited by
Marc Wojno
Reviewed by
Greg McBride, CFA
Edited by
Marc Wojno
Reviewed by
Greg McBride, CFA

Updated Dec. 1, 2024

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Opening a certificate of deposit (CD) allows you to lock in an attractive fixed rate and earn higher returns compared to traditional savings accounts, while providing FDIC or NCUA insurance protection and guaranteed growth for a set period of time. Currently, the best CD rates range from 4.30 percent APY to 5.25 percent APY. This top rate is offered by Langley Federal Credit Union for a 10-month term, and is roughly three times higher than the national average of 1.68 percent on a one-year CD. Before opening a certificate of deposit, be sure to read expert advice and tips below to ensure a financially safe decision.

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Current 1 year CD trends
Bankrate Partner average
4.34% APY
National average
1.68% APY

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Best CD rates from top banks for December 2024

Note: Annual percentage yields (APYs) shown were updated between Nov. 27 and Dec. 3. All other information is current as of Dec. 1. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Quontic Bank_logo

Quontic Bank

4.0 Bankrate CD score

  • Annual percentage yield

    3.00% – 4.50%

  • Min. deposit to open

    $500

  • Term

    3 months - 5 years

Why Quontic Bank?

Quontic Bank offers six terms of CDs, ranging from three months to five years, that require $500 to open. The rates for all six terms are very competitive.

Popular Direct_logo

Popular Direct

4.0 Bankrate CD score

  • Annual percentage yield

    4.15% – 4.50%

  • Min. deposit to open

    $10,000

  • Term

    6 months - 5 years

Why Popular Direct?

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 130-year-old financial services company. Popular Direct was previously known as Banco Popular North America. Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

America First Credit Union_logo

America First Credit Union

4.9 Bankrate CD score

  • Annual percentage yield

    4.15% – 4.45%

  • Min. deposit to open

    $500

  • Term

    1 year - 5 years

Why America First Credit Union?

America First Credit Union offers a wide range of CD terms between three and 60 months, and all earn rates that are highly competitive. Also offered are specialty CDs such as a bump-rate CD and a flexible CD. All CDs require a manageable minimum opening deposit.

Vio Bank_logo

Vio Bank

4.1 Bankrate CD score

  • Annual percentage yield

    2.75% – 4.30%

  • Min. deposit to open

    $500

  • Term

    6 months - 5 years

Why Vio Bank?

Vio Bank offers traditional CDs with terms ranging from six months to 10 years, an extensive variety compared to some other banks. The minimum deposit for each account is relatively low at $500. CDs automatically renew once they mature following a 10 day grace period. Yields are competitive for all CDs, but Vio’s highest APYs are for CDs with terms of three years or less.

Barclays Bank_logo

Barclays Bank

4.9 Bankrate CD score

  • Annual percentage yield

    3.00% – 4.25%

  • Min. deposit to open

    $0

  • Term

    1 year - 5 years

Why Barclays Bank?

Barclays is an online bank popular for its credit cards, but it also offers CDs and an online savings account. ​​Barclays offers seven terms of CDs ranging from six months to five years.

Citizens Access_logo

Citizens Access

4.2 Bankrate CD score

  • Annual percentage yield

    3.00% – 4.25%

  • Min. deposit to open

    $5,000

  • Term

    1 year - 5 years

Why Citizens Access?

Citizens Access offers six terms of CDs that all require at least a $5,000 deposit. Citizens’ CD terms range from one-year to five-years.

Marcus by Goldman Sachs_logo

Marcus by Goldman Sachs

4.5 Bankrate CD score

  • Annual percentage yield

    3.60% – 4.10%

  • Min. deposit to open

    $500

  • Term

    6 months - 5 years

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs offers a competitive yield on its CDs. It offers a variety of CD terms and CD types. Its regular CD terms range from a six-month CD to a six-year CD. In addition to its nine terms of regular CDs, it also offers three no-penalty CDs and a rate-bump CD. All of these CDs have a $500 minimum deposit requirement.

Sallie Mae Bank_logo

Sallie Mae Bank

3.9 Bankrate CD score

  • Annual percentage yield

    3.60% – 4.00%

  • Min. deposit to open

    $2,500

  • Term

    6 months - 5 years

Why Sallie Mae Bank?

Sallie Mae Bank offers 11 terms of CDs, a savings account, money market account and private student loans. It offers a competitive yield on its deposit products. Established in 2005, Sallie Mae Bank is headquartered in Salt Lake City. In 2014, Sallie Mae became a stand-alone consumer banking business.

Capital One_logo

Capital One

4.5 Bankrate CD score

  • Annual percentage yield

    3.50% – 3.90%

  • Min. deposit to open

    $0

  • Term

    6 months - 5 years

Why Capital One?

Capital One offers CDs with terms as short as six months or as long as five years. These CDs have no minimum opening deposit and the bank offers competitive yields.

Synchrony Bank_logo

Synchrony Bank

4.5 Bankrate CD score

  • Annual percentage yield

    0.25% – 3.80%

  • Min. deposit to open

    $0

  • Term

    3 months - 4 years

Why Synchrony Bank?

Synchrony Bank offers many regular CDs ranging from three months to five years. It also added a no-penalty CD and a bump-up CD earlier this year. Synchrony Bank also offers IRA CDs.

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on CD rates

Officials cut interest rates by a quarter-percentage point, or 25 basis points, at the Federal Reserve’s rate-setting meeting on Nov. 7, lowering the target range for the Fed’s key benchmark interest rate to 4.5-4.75 percent. This marks the second consecutive Fed meeting during which a rate cut took place, with a half-percentage-point cut taking place in September.

These two rate cuts have come after the Fed hiked its key benchmark rate 11 times in 2022 and 2023 to combat high inflation. For over a year, the federal funds rate remained at a level not seen since 2001. CD rates have been decreasing gradually throughout 2024, as banks anticipated Fed rate cuts amidst cooling inflation and signs of a weakening job market.

Even when factoring in recent rate decreases, competitive CD rates are still around three times greater than the national average CD rates. What’s more, high-yielding CD rates continue to outpace the rate of inflation.

When looking for a CD, seek a competitive interest rate, a term length that works for you, and FDIC or NCUA insurance coverage. Also familiarize yourself with early withdrawal penalties to avoid potentially losing money.

National average interest rates for CDs

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average. Here are the current average rates as of Dec. 4, according to Bankrate's most recent survey of institutions:

CD term CD national average APY
1 year 1.68%
2 year 1.45%
3 year 1.35%
4 year 1.44%
5 year 1.34%

What our industry experts are saying

Taylor Kovar

CFP, founder and CEO of 11 Financial

Fed rate cuts typically have a direct impact on CD rates. When the Federal Reserve lowers interest rates, banks often respond by reducing the rates they offer on CDs. This means that if you’re looking to invest in a CD, it’s essential to lock in rates before any anticipated cuts, as the returns on new CDs may decrease following a rate reduction. As for where CD rates will trend in the remainder of 2024, I expect them to stabilize or even slightly decline if the Fed continues to lower rates to stimulate the economy. However, competition among banks could also drive rates up as they seek to attract deposits. It's crucial for consumers to keep an eye on economic indicators and bank offers, as rates can vary significantly based on market conditions and individual bank strategies.

Mark Hamrick

Bankrate senior economic analyst

Some financial firms have already begun lowering their savings rates in anticipation of the Federal Reserve’s action. Let’s be clear on one issue that will continue for the foreseeable future. The difference between the average yield and the highest yields on CDs is considerable. That’s a factor now of about two times or more. So, why settle for an average yield when you can do better than that? You couldn’t leave money on the table if it were sitting in front of you, right? Opting for saving in the first place, along with higher yields, is key.

Christopher Stroup

CFP, founder and president of Silicon Beach Financial

Products such as CDs and high-yield savings accounts will be influenced by the Fed's rate cut decision as their yields tend to move upwards (or downwards) in lock-step with the direction that the Fed moves interest rates. It's important to know that you won't experience this potential yield reduction until your existing CD matures. If you've already locked in the current rate, you have some short-term protection from lower yields while carrying out your current term. If you find yourself wanting to open a CD account, now might be the best time to do it before interest rates move downwards.

Current promotional CD rates

Some banks have promotional CD rates, even some of the largest banks. There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Bank name CD product APY Available until*
NBKC Bank 7-month CD 4.75% APY N/A
Wells Fargo 4-month CD 4.25% APY N/A
Bank of America 7-month CD 4.05% APY N/A
U.S. Bank 5-month CD 4.00% APY N/A
Wells Fargo 7-month CD 4.00% APY N/A
PenFed Credit Union 15-month CD 3.65% APY N/A

*It’s possible for these offers to end sooner.

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The CD may renew for a different term. The promotional offers are as of Nov. 27.

Compare top CD rates today by term

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term.

Caret Down Icon
Institution APY Min. deposit
Quontic Bank 4.50% APY $500
Bank of America 4.00% APY $1,000
EverBank 3.95% APY $1,000
Institution APY Min. deposit
Bank5 Connect 4.50% APY $500
Popular Direct 4.50% APY $10,000
Bask Bank 4.45% APY $1,000
Institution APY Min. deposit
Popular Direct 4.50% APY $10,000
America First Credit Union 4.45% APY $500
First Internet Bank of Indiana 4.42% APY $1,000
Institution APY Min. deposit
Popular Direct 4.25% APY $10,000
SchoolsFirst Federal Credit Union 4.20% APY $500
America First Credit Union 4.15% APY $500
Institution APY Min. deposit
SchoolsFirst Federal Credit Union 4.35% APY $500
America First Credit Union 4.25% APY $500
Popular Direct 4.25% APY $10,000

Note: Annual percentage yields (APYs) shown were updated between Nov. 27 and Dec. 3. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

How to choose the best CD for you

The top three things to look for when choosing a CD are:

Learn more: What is a CD?

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

Caret Down Icon

Traditional CDs are the most common type of CD, and they earn a fixed APY for the entire term. These CDs usually don’t allow you to add more funds after your opening deposit, and they also tend to have strict early withdrawal penalties.

If you withdraw from a CD before it matures, the penalty is usually equal to the amount of interest earned during a certain period of time. For instance, a bank may impose a penalty of 90 days of simple interest on a one-year CD if you withdraw from that CD before the year is up. 

When this CD makes sense: Traditional CDs are a good choice if you know exactly when you’ll need the money and there’s no chance of needing it before the term is up. They’re often good for CD ladders or other CD investing strategies in which timing is important.

Most CDs charge you a penalty for accessing the funds before the term is up. However, some banks offer no-penalty CDs — also known as liquid CDs — which allow you to withdraw the money early without being charged a penalty. 

A bank may require that you wait at least some time after opening a no-penalty CD — generally around six or seven days — before you’re able to withdraw from the CD, and some banks don’t allow for partial withdrawals. No-penalty CD rates tend to be lower than regular CD rates, but they can be better than some high-yield savings account or money market account rates.

When this CD makes sense: Consider a no-penalty CD if you don’t plan to withdraw the money before the CD matures, but you want to keep some flexibility in case you need access to the funds. As a result, you’re willing to give up a little return for added liquidity.

Bump-up CDs enable you to request an increase in your rate during the CD term under certain conditions. Banks that offer this CD usually allow just one bump-up per term. For example, you may open a three-year CD at a given rate, and the bank offers an additional half-point rate increase when you’re one year into the term. With a bump-up CD, you can request a rate increase for the remainder of the term. Like no-penalty CDs, bump-up CDs often pay lower rates than traditional CDs.

When this CD makes sense: A bump-up CD could be a good option if rates are expected to rise significantly during the term of the CD. Otherwise, you’re likely accepting a lower rate for limited potential upside.

Who should get a CD?

A CD is useful when you want to earn a consistent, fixed yield on your lump sum of cash over the term of your savings account, especially if interest rates are declining. It also encourages you to be disciplined in leaving your money untouched as it earns interest because a CD is a time deposit account and imposes an early withdrawal penalty if you withdraw your funds before the CD matures.

A good time to open a CD is when you have a lump sum of money that you want to sock away for a specific period of time in the hopes of consistently growing interest. Also, it’s worth opening a CD when you know you have a specific timeframe in mind when you think you’ll need this money. A six-month CD, for example, could be a good place to put your money aside for an insurance premium that’s due in eight months.

Learn more: How to build a CD ladder

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

Pros

  • Checkmark Icon

    Some CDs earn a higher APY than money market accounts or savings accounts.

  • Checkmark Icon

    CDs are a good place to store funds that you don’t want to be able to dip into too easily.

  • Checkmark Icon

    CDs can help you separate money for financial goals or future expenses.

  • Checkmark Icon

    Deposit insurance covers accounts at FDIC banks and NCUA credit unions up to at least $250,000.

  • Checkmark Icon

    A CD can diversify your savings plan with a guaranteed rate.

  • Checkmark Icon

    Your principal remains intact if you keep your money in a CD for the full term.

Cons

  • CDs tie up your money for a potentially long period of time.

  • Many CDs have early withdrawal penalties.

  • Money committed to a CD could end up earning a lackluster yield if rates rise substantially. The early withdrawal penalty may negate any benefit of switching to a higher-yielding CD, however.

  • You could potentially earn better rates of return in the stock market or by investing in other securities.

Alternatives to CDs

Traditional savings account

This account typically earns a low yield that’s usually at or below the national average.

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High-yield savings account

This account tends to earn a yield currently of about seven times higher than the national average. At online-only banks, these accounts often won’t have monthly service fees or minimum balance requirements.

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Money market account

This is an interest-bearing account available at both banks and credit unions which is similar to a savings account, but also offers some checking account features.

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Short-term bond funds

These funds, be they exchange-traded funds (ETFs) or mutual funds, typically invest in government and corporate bonds. Short-term bond funds typically have durations of one to three and a half years, according to Fidelity.

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CD FAQs

Research methodology

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.

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Daily CD rate trends

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