Best CD Rates of July 2024

Written by Jill A. Chafin | Edited by Ali Cybulski | Updated on 07/01/2024

Locking in a high-yield certificate of deposit (CD) can fast-track your financial goals while taking advantage of today’s highest CD rates.

You can get a CD from various financial institutions, including traditional banks and credit unions, as well as online-only banks. However, credit unions require membership — usually based on a certain location or job — to take advantage of rates.

Here’s a closer look at the top CD rates on the market and tips for picking the best one to fit your needs.

Location
Deposit Amount
Filters
Institution
APY
Early Withdrawal Penalty (Days)
Min. to Earn
Min. Deposit
First Federal Lakewood
3 Month CD Special - New Money
3.6 (2 Reviews)
5.61%
$500
View
First Federal Lakewood
3 Month CD Special - New Money
View
3.6 (2 Reviews) Member FDIC
APY 5.61%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
TotalDirectBank
3 Month CD
1.6 (47 Reviews)
5.51%
30 Days
$25k
$25k
View
TotalDirectBank
3 Month CD
View
1.6 (47 Reviews) Member FDIC
APY 5.51%
Early Withdrawal Penalty (Days) 30 Days
Minimum to Earn $25k
Minimum Deposit $25k
Atomic Credit Union
3 Month Share Certificate
0.0 (0 Reviews)
5.50%
$1k
$1k
View
Atomic Credit Union
3 Month Share Certificate
View
0.0 (0 Reviews) NCUA Insured
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit $1k
Desert Rivers Credit Union
1 Month Super CD
0.0 (0 Reviews)
5.50%
$500
View
Desert Rivers Credit Union
1 Month Super CD
View
0.0 (0 Reviews) NCUA Insured
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Lowland Credit Union
91 Day Share Certificate
0.0 (0 Reviews)
5.50%
$1k
View
Lowland Credit Union
91 Day Share Certificate
View
0.0 (0 Reviews) NCUA Insured
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Quontic Bank
3 Month CD
2.1 (30 Reviews)
5.50%
$500
View
Quontic Bank
3 Month CD
View
2.1 (30 Reviews) Member FDIC
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Shoreham Bank
3 Month CD
2.0 (14 Reviews)
5.50%
$1k
$1k
View
Shoreham Bank
3 Month CD
View
2.0 (14 Reviews) Member FDIC
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit $1k
Susser Bank
3 Month CD
3.4 (2 Reviews)
5.50%
$1k
$1k
View
Susser Bank
3 Month CD
View
3.4 (2 Reviews) Member FDIC
APY 5.50%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit $1k
Flushing Bank
91 Day CD
1.6 (10 Reviews)
5.40%
$1k
$1k
View
Flushing Bank
91 Day CD
View
1.6 (10 Reviews) Member FDIC
APY 5.40%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit $1k
INOVA Federal Credit Union
4 Month CD
2.4 (42 Reviews)
5.40%
$200
View
INOVA Federal Credit Union
4 Month CD
View
2.4 (42 Reviews) NCUA Insured
APY 5.40%
Early Withdrawal Penalty (Days)
Minimum to Earn $200
Minimum Deposit
Kelly Community Federal Credit Union
3 Month Share Certificate
0.0 (0 Reviews)
5.40%
$1k
View
Kelly Community Federal Credit Union
3 Month Share Certificate
View
0.0 (0 Reviews) NCUA Insured
APY 5.40%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
MutualOne Bank
3 Month CD Special
1.8 (6 Reviews)
5.40%
$500
View
MutualOne Bank
3 Month CD Special
View
1.8 (6 Reviews) Member FDIC
APY 5.40%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Oxford Bank
4 Month CD Special
2.7 (5 Reviews)
5.39%
$10k
View
Oxford Bank
4 Month CD Special
View
2.7 (5 Reviews) Member FDIC
APY 5.39%
Early Withdrawal Penalty (Days)
Minimum to Earn $10k
Minimum Deposit
River Works Credit Union
3 Month CD
0.0 (0 Reviews)
5.38%
$500
View
River Works Credit Union
3 Month CD
View
0.0 (0 Reviews) NCUA Insured
APY 5.38%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Bask Bank
3 Month CD
2.6 (96 Reviews)
5.35%
90 Days
$1k
$1k
View
Bask Bank
3 Month CD
View
2.6 (96 Reviews) Member FDIC
APY 5.35%
Early Withdrawal Penalty (Days) 90 Days
Minimum to Earn $1k
Minimum Deposit $1k
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CD rate news 2024

The best CDs currently range from 5.35% to 6%, which is higher than average compared with the last 15 years.

But as the Fed begins to see progress on inflation, financial experts anticipate one rate cut later this year. That means CD rates could drop later this year as well.

While the Federal Reserve does not directly set CD rates, it does control the federal funds rate. Commercial banks and credit unions refer to the fed rate to determine their own interest rates on products such as deposit accounts, credit cards and loans. The federal funds rate is 5.25% to 5.50% and has not changed since July 2023.

The ideal time to invest in a CD depends on your financial circumstances and goals. But if you have extra funds to invest, locking in a high-rate CD now could be a smart move.

Current promotional CD rates

Here are three financial institutions that currently offer high-interest CDs with minimal withdrawal penalties and a relatively stable rate history. Banks are listed in order from highest to lowest rate.

Institution Minimum deposit 6-month annual percentage yield (APY) 12-month APY Longest term available
Bask Bank $1,000 5.35% 5.30% 24 months: 4.75% APY
Rising Bank $1,000 5.25% 5.20% 3 years: 3.85% APY
BMO Alto $0 5.15% 5.05% 60 months: 4.80% APY

What is a certificate of deposit (CD)?

A CD is a type of savings account that locks up a fixed amount of money for a fixed period of time. In exchange, you’ll typically earn higher yields than a traditional savings account.

You determine how much you want to deposit within the bank’s minimum deposit requirements and a maturity date that works for you: CD terms range from one month to five years. A term is the length of time your money stays in a CD, and banks generally charge an interest-rate penalty if you have to cash out early.

As you consider opening a CD, you’ll want to look at these important factors:

Types of CDs

Banks, credit unions and online lenders offer a range of CDs to fit various financial needs. Here are some popular options to consider.

How to choose a CD

If you’re ready to invest in a CD, here are five steps to help you make the right choice.

1. Determine your financial goals

Ask yourself what you hope to gain from investing in CDs. If you want to build an emergency fund, then a high-yield savings account might be a better fit. But if you’re saving for a long-term goal, such as a down payment on a home, then setting aside funds in a CD can help you stay on track.

2. Find a federally insured financial institution with competitive rates

A high-yield CD can help you get the best return on your savings compared with a standard CD. Research rates, and stick to financial institutions backed by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).

Standard coverage is $250,000 per account holder, per insured institution, per ownership category. An ownership category simply refers to who owns an account, such as a single or joint account.

3. Pick a CD type and term

Explore the different types of CDs to find the best options for your long-term financial goals. Then, decide how long you feel comfortable locking away your funds. CD terms commonly range from three months to five years, though some banks may offer other choices.

4. Understand the early withdrawal penalties

Life can be unpredictable, and you may need to withdraw funds before your CD’s term ends. Make sure to review the early withdrawal penalties before investing in a CD so you can be prepared for a worst-case scenario.

One way to prepare for unexpected expenses is to invest in CD ladders, which is a series of CDs with staggered maturity dates. This way, you have CDs maturing at regular intervals.

5. Deposit funds

Banks may have minimum deposit requirements that can vary greatly by financial institution. Some banks don’t require a minimum deposit, while others set a steep minimum of $25,000. A $1,000 minimum deposit can be a common requirement.

Pros and cons of CDs

Pros Cons

Fixed rates: CDs with fixed rates offer guaranteed, predictable returns.

Higher rates: You can typically earn more on CDs than on savings and money market accounts.

Safe investments: CDs issued by federally insured institutions feature insurance coverage.

No maintenance fees: Unlike traditional savings and money market accounts, CDs do not charge these monthly fees.

Early penalty: You will likely face a hefty penalty if you withdraw funds before your CD’s maturity date.

Funds are fixed: Once you’ve opened a CD, you typically can’t add funds after making your initial deposit.

Lower returns than stock options: Stocks have higher potential returns but also greater potential losses.

How to build a CD ladder

A CD ladder is a savings strategy that involves buying multiple CDs and then staggering their maturity dates to allow for regular access to cash without penalties. You may want to spread your funds evenly over several CDs or put larger amounts in a couple of the CDs.

Here’s an example of how someone could invest $15,000 into a CD ladder:

How much does a $10,000 CD make in a year?

Your earning potential with a CD depends on the rate, term and deposit amount. Unlike traditional savings accounts, you can’t keep adding more funds to your CD after opening it.

Here’s a breakdown of how much you could earn with a $10,000 CD using several different rates and terms.

APY CD term Earnings
2.50% 3 months $61.92
3.00% 6 months $148.89
4.50% 12 months $450.00
4.80% 60 months $2,641.73

Alternatives to CDs

Although CDs typically earn higher rates than other types of savings accounts, they might not be the best option for your financial goals. For example, if you need regular access to your savings or want to set up automatic deposits, one of the following savings accounts might be a better choice.

Frequently asked questions

What happens if I withdraw from a CD early?

The exact penalties will depend on the details outlined for your CD account. That said, federal law determines the minimum penalties for early withdrawals. For example, if you withdraw funds within six days after opening a CD account, you will need to pay seven days of simple interest. You can estimate how much an early withdrawal might cost you with our early withdrawal penalty calculator.

How are CDs taxed?

Any income earned from your CD accounts will be taxed as interest income for the tax year in which it was earned. You can expect to receive a 1099-INT in January outlining how much you earned from interest during the previous tax year. Use this form when filing your tax return.

Should I put my emergency funds in a CD?

Because you’ll want immediate access to emergency funds, a CD is probably not the best choice to store them. You may want to put them in a high-yield savings account or money market account. You could think about dividing your emergency savings between multiple accounts for short-term expenses and using a CD ladder for longer-term expenses.

Do CDs charge fees?

Most CDs are free to open and don’t charge the maintenance fees of some traditional savings or money market accounts. However, brokered CDs may carry commission or asset-based fees. Also, most CDs charge early withdrawal fees if you decide to cash out before the end of the term.

Can you lose money on a CD?

Because CDs have fixed interest rates, the only way you could lose money is with an early withdrawal. Even then, the earned interest might be enough to cover the penalty your bank charges.