CDs

Top CD rates today: July 15, 2024 | Leaders offering over 5% APY

Written by

Sheiresa McRae Ngo

Edited by

Marc Wojno

Jul 15, 2024 / 5 min read

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Key takeaways

Today's highest CD rate across terms is 5.50% APY, offered on a 3-month CD.
You'll find APYs of 5% or better on many CD terms.
National averages are significantly lower than top rates, so it pays to shop around.

A certificate of deposit (CD) can be a useful tool for meeting your savings goals. Whether you’re saving to buy a house, a new car or your dream vacation, a CD allows you to calculate up front exactly how much interest you’ll have earned when the term is up. This is possible due to a CD’s fixed annual percentage yield (APY).

In anticipation of a Federal Reserve rate cut, many banks are starting to lower rates. Cooling inflation is setting the stage for a potential rate cut in the near future. Initially, three rate reductions were indicated in 2024, but now there are indications of just one rate cut this year.

Bankrate's Economic Indicator Survey revealed 88 percent of economists we polled still expect the Fed will cut interest rates at some point in 2024. Among that group, 53 percent predict a rate cut will happen in September.

Uncertainty in the rate landscape has been seen with CD rates. CIBC Bank, for example, adjusted its one-year rate from a high of 5.36 percent APY to 5.09 percent APY and then to 5.21 percent APY within just a few days.

Today's leading APY across CD terms among banks we monitor is 5.50 percent, which is available on a 3-month CD from Quontic Bank and requires a minimum deposit of $500. Many shorter terms are earning higher yields than longer ones in the current rate environment.

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 term	Institution offering top APY	Highest APY	National average APY	Estimated earnings on $5,000 with top APY
3-month	Quontic Bank	5.50%	1.23%	$67
6-month	Bask Bank	5.35%	1.72%	$132
9-month	America First Credit Union	5.25%	N/A	$196
1-year	Bask Bank	5.30%	1.79%	$265
18-month	Bask Bank	5.00%	1.91%	$380
2-year	First Internet Bank of Indiana	4.76%	1.53%	$487
3-year	First Internet Bank of Indiana	4.61%	1.42%	$724
4-year	First Internet Bank of Indiana	4.45%	1.48%	$951
5-year	First Internet Bank of Indiana	4.50%	1.41%	$1,231

Note: Annual percentage yields (APYs) shown are as of July 15, 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.

What is a no-penalty CD?

Like standard CDs, no-penalty CDs typically earn a fixed APY over a set period of time — although unlike regular CDs, no-penalty CDs don’t charge an early withdrawal penalty if you take out the funds before the term ends. The trade-off for this perk is that you’ll often earn a lower APY than you would with a CD that has an early withdrawal penalty.

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 seven 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

Whether you should invest in a CD depends on your own personal financial situation and goals. A CD offered at a federally insured bank or credit union can be a safe place to park your funds while earning a guaranteed APY. Many savers turn to CDs to lock in a high interest rate if they believe rates will start to decline soon.

A CD can help you earn interest on money you're saving for a planned purchase. For instance, if you want to buy a house in five years, putting money in a five-year CD can give you a fixed APY on those funds during that term. Likewise, if you plan to take your dream vacation in a couple of years, a two-year CD could be a good place to grow those funds. Avoid an early withdrawal penalty by only committing money to a CD that you won't need access to before the CD matures.
The IRS treats interest you earn from a CD as taxable income, whether you receive that money in cash or choose to reinvest it. For CDs with terms longer than one year, interest earned must be reported each year on your taxes, even if you don't cash in the CD until it matures.

An IRA CD is an individual retirement account for which your money is in a CD. Contributions to a traditional IRA may be tax deductible, and they're taxed when you withdraw the funds. Conversely, contributions to a Roth IRA cannot be deducted from your annual income, and they're not taxed when you withdraw the money. You should consult a tax adviser regarding these two IRA CD options before making a choice.
Many banks and credit unions offer savings accounts and CDs, and both accounts earn some interest. There are a couple of key differences, however: A savings account generally allows you to withdraw funds any time, while a CD typically charges a penalty if you take out the money before the term ends. This makes a savings account a better place for funds you might need for emergencies.

Another difference between the two is a savings account usually earns a variable APY that the bank can raise or lower at will, while a fixed-rate CD earns the same APY until it matures. As such, savers often choose to lock some funds in a CD when rates are likely to start falling, while many are apt to stick with a savings account if they believe rates will rise soon.

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.