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Compare CD Interest Rates for 2024 & Earn Over 5% APR

Learn how to compare CDs and find the best one to suit your needs.

Short-term CDs

Bank APY Terms Min deposit
Mission Valley 5.25% 1 month $1
Banc of California 5.34% 3 months $1
Western Alliance 5.21% 3 months $1
Quontic 5.05% 6 months $500

Long-term CDs

Bank APY Terms Min deposit
Sallie Mae 5.00% 10 months $1
Blue FCU 4.70% 15 months $1
Sun Canyon 4.94% 11 months $1
Quontic 4.50% 1 year $500

What is a CD?

A certificate of deposit (CD) is a type of account provided by banks and credit unions that pays a fixed interest rate on the money held. When you open a CD, you commit to leaving your money in the account for a set period. If you withdraw funds before this period ends, you’ll typically incur a penalty fee from the bank.

How does a CD work?

When you open a CD, you deposit money into an account for a fixed term and commit not to withdraw any funds until the term concludes. In exchange, the bank offers you a fixed interest rate, often higher than that of a traditional savings account. CD terms usually span from three months to five years, with longer terms typically yielding higher rates but carrying larger early withdrawal penalties. Interest payments vary, with some CDs paying interest regularly while others pay it all at the end of the term.

What happens if I withdraw from a CD early?

An early withdrawal penalty often applies. For instance, you might need to forfeit three or six months interest.

Where can I earn 5% on a CD?

Several banks, such as Barclays, Quontic, Capital One, and Western Alliance are offering CDs with a 5% interest rate as of May 2024.

Are CDs a safe investment?

Yes, CDs are among the safest investment options. They are typically insured by the FDIC or NCUA, which cover up to $250,000 per account should the bank or credit union fail. Additionally, since you’re not investing in stocks, you don’t have to worry about potential losses during market downturns.

Are CDs taxable?

Yes, like other money you earn, you must pay taxes on all interest earned from a CD account.

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