When you buy something using links found on our site, we may earn a small affiliate commission. This content is reviewed & supervised by The Los Angeles Times Commerce Team.

Best CD Rates for June 2024: Earn More Than 5% APY

  • CDs are interest-bearing savings accounts where you deposit money for a fixed term and face penalties for withdrawing early.
  • They are good for cautious savers who don’t need immediate access to their funds.
  • Rates vary across different CD terms, with longer terms typically offering higher rates.
  • Choosing the best CD involves assessing factors like term length, rates, minimum deposits and withdrawal allowances. You can also employ strategies like CD laddering for optimal returns.
  • High CD rates are offered by various banks and credit unions. With Gainbridge, you can earn up to 6.15% APY for a 5- to 10-year investment term. Explore banks with shorter terms and high rates:

You never know when an unexpected expense might disrupt your financial stability. To safeguard against such surprises, it’s wise to prioritize saving money. Even a modest sum can provide a buffer during challenging times.

Certificates of deposit, better known as CDs, offer a straightforward savings solution. Here’s everything you need to know about CDs and why they could be a smart choice for you.

We’ll break down:

  • Which banks offer the best CD rates today
  • How to find the best CD rate
  • What you need to do to open a CD account

Our top picks for cd rates

Our top picks for banks with the best CDs


Why we like it

With Barclays, interest compounds daily, causing your balance to grow faster than it would with monthly or annual compounding. We love that Barclays makes it easy to transfer funds, doesn’t charge CD account fees and requires no minimum balance.

Barclays online CDs are ideal for consumers who are looking to save money without the hassle of visiting a brick-and-mortar bank.

An overview

APY range Terms Minimum deposit
3.75% to 5% 6 months to 5 years N/A

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ No minimum deposit required
✅ Competitive interest rates
✅ Initial deposit isn’t due until 14 days after account opening
✅ Insured by the FDIC
❌ Must maintain a balance that would earn at least 1 cent if you want the interest to post to your account
❌ Early-withdrawal penalty
❌ No physical branch locations


Capital One

Why we like it

If you deposit money into a 360 CD account, Capital One allows you to choose when the interest is paid out, giving you more control over your finances. Capital One CDs also have no minimum balance requirement, making them ideal for consumers who want to start saving despite having limited funds.

An overview

APY range Terms Minimum deposit
3.9% to 5.1% 6 months to 5 years N/A

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ Trusted name in banking
✅ Allows you to choose when you receive an interest payment
✅ Insured by the FDIC
❌ Early-withdrawal penalty
❌ Limited number of physical branches
❌ Below-average rates on longer CD terms


Why we like it

Many banks have terms ranging from six months to five years, but Marcus has a six-year option, giving you more flexibility. We also love that Marcus has customer service agents available 24/7 to answer your questions.

An overview

APY range Terms Minimum deposit
3.9% to 5.1% 6 months to 6 years $500

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ 24/7 customer contact center
✅ Multiple CD terms
✅ Online account management
✅ Insured by the FDIC
❌ $500 minimum deposit
❌ No ATMs or physical branches
❌ Lower-than-average rates on some CD terms


Why we like it

PenFed is a credit union, so it offers money market certificates rather than certificates of deposit. The only real difference is the name. Otherwise, the PenFed money market certificate works just like a CD at a traditional bank.

Although you won’t get the highest CD rates with PenFed, you will gain access to a credit union with an excellent reputation. This option is best for consumers who want to save money at a credit union rather than building a relationship with a regular bank.

An overview

APY range Terms Minimum deposit
3% to 4.2% 6 months to 6 years $1,000

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ Insured by the National Credit Union Administration (NCUA)
✅ Easy transfers to other PenFed accounts following CD maturity
✅ Online account management for your convenience
❌ $1,000 minimum deposit
❌ Early-withdrawal penalty
❌ Lower rates than some bank CDs offer


Why we like it

Quontic offers CDs with five possible terms, giving you plenty of flexibility. Because Quontic is an online bank, it’s a good fit for anyone who prefers to make online transfers rather than going to a brick-and-mortar bank to make an initial CD deposit.

We love that Quontic started out as a community bank and later changed to an online bank to meet the needs of more customers. 

An overview

APY range Terms Minimum deposit
4.3% to 5.05% 6 months to 5 years $500

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ Insured by the FDIC
✅ No monthly service fee
✅ Takes less than 3 minutes to open an account
❌ $500 minimum deposit
❌ No physical branches
❌ Doesn’t accept cash deposits


Sallie Mae

Why we like it

Sallie Mae offers some of the highest CD rates for accounts with short terms. The bank requires a minimum deposit of $2,500, so Sallie Mae CDs are best for consumers who already have some experience saving money and want to grow their balances even faster.

We love that Sallie Mae charges no monthly fees and offers automatic renewal for all CD accounts.

An overview

APY range Terms Minimum deposit
4.0% to 4.95% 6 months to 5 years $2,500

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ Automatic renewal option
✅ Insured by the FDIC
✅ No monthly fees
✅ Competitive rates
❌ $2,500 minimum deposit
❌ No physical branches
❌ Fee for returned deposits



Why we like it

Synchrony CDs have terms ranging from three months to 60 months, making it easier to reach your financial goals. A three-month CD may be a great fit for your needs if you want to earn interest on your savings but can’t afford to tie up your funds for more than a few months at a time. One reason we like Synchrony so much is that the bank offers multiple CD types.

An overview

APY range Terms Minimum deposit
0.25% to 5.10% 3 months to 5 years N/A

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ Competitive rates
✅ 3-month term available
✅ Multiple CD types
❌ Low APY on 3-month CDs
❌ No physical branches
❌ Doesn’t accept cash deposits

Western Alliance

Why we like it

Western Alliance offers multiple CDs via the Raisin platform ranging from three-month to one-year CDs, making it easy to set up multiple savings accounts and access them all in one place. A Western Alliance CD may be right for you if you have or want to open multiple products on the Raisin platform.

We love that Western Alliance was ranked one of the top U.S. banks in 2022 and 2023. If you sign up for a CD, you gain access to competitive rates and flexible savings options, giving you a bit of a head start when it comes to meeting your financial goals.

An overview

APY range Terms Minimum deposit
5.05% to 5.3% 3 to 12 months $1

*Figures are correct as of May 2024.

Pros and cons

Pros Cons
✅ One of the lowest minimum deposits available
✅ Extremely competitive interest rates
✅ Uses the Raisin platform for extra convenience
✅ Insured by the FDIC
❌ No terms longer than 12 months
❌ Account transfers take at least one business day
❌ No cash deposits or direct deposits allowed


What is a CD?

A CD is a type of interest-bearing savings account. Generally, you deposit money and earn a fixed interest rate. Every CD has a specific term, which is the length of time your money stays in the account. If you withdraw funds before the CD term ends, you typically have to pay an early-withdrawal penalty.

Who should get a CD?

CDs are ideal for consumers who want to earn interest on their savings without getting into risky investments. A CD may also be right for you if you don’t need immediate access to your funds.

What is a CD rate?

A CD rate is the interest rate a financial institution offers on a CD account. CD rates change based on market conditions. For example, it’s common for interest rates to decrease when inflation is low and increase when inflation is high.

What is happening to CD rates in 2024?

Although many analysts expected the Federal Reserve to slash rates due to lower inflation levels, the Federal Open Market Committee announced in May 2024 to maintain the federal funds target rate between 5.25% and 5.5%, where it has stood since July 2023.

As the year goes on, the Fed may reduce interest rates to increase consumer and business spending. If the Fed reduces rates as expected, CD rates will also decline.

Average CD rates today

The table below shows the national average APY and highest available APY for each type of CD listed.

National average APY for different CD terms

Term National average APY Highest APY
3-month CD 1.65% 5.65%
6-month CD 1.57% 5.55%
1-year CD 1.81% 5.6%
2-year CD 1.54% 5.3%
3-year CD 1.41% 5%
5-year CD 1.39% 4.7%

*Average national rate data comes from the FDIC website. Figures are correct as of May 2024.

Pros and cons of CDs

Like all products offered by financial institutions, CDs have several pros and cons. The table below shows you what you can expect when you choose this savings method.

  • Higher rates than standard savings accounts
  • Relatively safe
  • Fixed interest rates instead of variable rates
  • Penalty for early withdrawals
  • May require a minimum deposit
  • Low returns when compared to stocks and bonds
  • Less flexibility than traditional savings accounts

Types of CDs

Financial institutions offer the following types of CDs:

How much can I earn with a CD?

To give you an idea of how much you can earn with a CD, we calculated the interest earned for CDs with various terms in the table below.

Interest earned from CDs with a $500 deposit and 3.9% APY

Amount Deposited APY Term Interest Earned
$500 3.9% 6-month CD $9.66
$500 3.9% 1-year CD $19.50
$500 3.9% 3-year CD $60.81
$500 3.9% 5-year CD $105.41

How to choose the best CD

Consider the following factors when choosing a CD.


CD term

It’s important to choose a term that works with your finances. For example, if you’ll need money to pay tuition 12 months from now, it’s best to choose a three-month CD or a six-month CD.

See More See Less

CD rate

Look for the highest rate you can find, as the rate determines how much interest you earn on your account.

See More See Less

Minimum deposit

Not everyone has thousands of dollars available to deposit. If you’re just getting started with saving, look for a CD with a low minimum balance requirement.

See More See Less

Withdrawal allowances

In many cases, withdrawing money before your term ends results in a financial penalty. If you think you’ll need access to your funds before the end of your term, look for a penalty-free CD.

See More See Less

CD type

Before choosing a CD, think carefully about your needs. Make a decision based on how much money you have, how long you can afford to let it sit in a CD account and how much you want to earn.

See More See Less


Insurance protects you if your bank fails. Therefore, it’s important to choose a CD insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration.

See More See Less

How to build a CD ladder

A CD ladder is a group of CDs with different maturity dates. 

For example, you may have six-month, 12-month, 24-month, 36-month and 60-month CDs. Building a CD ladder makes it easier to take advantage of high interest rates without blocking access to the majority of your funds.

Here’s how to build a CD ladder:

  1. Determine how much you have available to deposit.
  2. Split the total amount of money you have by the number of CDs you want to buy.
  3. Open multiple accounts with different term lengths.
  4. Decide whether to reinvest or withdraw your money when each term comes to an end.

How to open a CD account

Follow these steps to open a CD:

  1. Research your options.
  2. Select a financial institution.
  3. Fill out the application. Be prepared to provide proof of identity, such as a driver’s license or state-issued photo ID card.
  4. Make your deposit.
  5. Leave the money alone until your term ends.

Alternatives to CDs

Here are two alternatives to CDs.

High-yield savings account

A high-yield savings account is a savings account with a higher-than-average APY. Like CDs, high-yield savings accounts allow you to earn interest. The biggest difference is that you can withdraw funds at any time without facing a penalty.

Some of the best high-yield savings accounts include:

Money market account

A money market account is like a mix of a checking account and a savings account. You earn interest on your money, but you can also use checks or a debit card to take out cash. Both accounts earn interest, but with a money market account, you can withdraw money anytime without penalties.

Some of the best money market accounts include:

FAQ: Best CD rates

Where can I earn 5% on a CD?

As of May 2024, you can earn 5% on a CD at several banks, including Barclays, Quontic, Capital One and Western Alliance.

Where can I get 6% on a CD?

You may be able to find a CD with a 6% rate at a local credit union.

What happens if I withdraw from a CD early?

In many cases, you have to pay an early-withdrawal penalty. For example, the bank may require you to forfeit six months’ worth of interest.

Are CDs taxable?

Yes, you must pay taxes on savings account interest, including interest earned on CD accounts.

Are CDs safe?

CDs are one of the safest savings options available, as they’re usually insured by the FDIC or the NCUA. Additionally, you’re not investing in stocks, so you don’t have to worry about losing money due to market downturns.

About the Author

Leigh Morgan
Leigh Morgan Personal Finance

Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.

In the last five years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.

In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.