5 CDs With the Highest Interest Rates in May 2024 (2024)

Certificate of deposit (CD) accounts are paying their highest yields in decades thanks to the rapid pace of Federal Reserve rate hikes in 2022 and 2023. But the rates you'll get depend heavily on which account you choose.

Of course, there are several factors that determine CD yields, and a big one is the maturity term. While the banks themselves certainly play a big role, whether you're getting a 1-year or 5-year CD, for example, is a major factor in the yield.

With that in mind, here are the top CD rates in May from the banks on our radar for five different CD term lengths.

Highest 1-year CD rate

In most economic climates throughout the past several decades, longer-term CDs generally had higher yields. But thanks to the high-interest environment and expectation that rates will start to come down later in 2024, the exact opposite is true right now.

The highest-yielding 1-year CD on our list right now (excluding brokered CDs and those with opening deposit requirements over $5,000) is the Bread Savings CD, which offers a 5.25% APY on its 1 Year Bread Savings CD.

You may not be familiar with Bread Financial, but if you're a credit card user, you might know its former name: Comenity Bank. Comenity is the issuer of several major credit card products, and also has an online bank. Its CDs have a $1,500 minimum opening deposit, but if you're looking to maximize yield, a Bread Savings CD could be worth a look.

Highest 2-year CD rate

Bread Financial also offers a high APY on 2 Year CDs (4.65%) as of this writing. It has the same $1,500 opening deposit requirement.

However, for the sake of not being too repetitive, an alternative for those who want a lower opening deposit requirement would be Quontic CDs. The bank currently has 2 Year CDs with a 4.50% APY, with a significantly lower $500 minimum opening deposit.

Highest 3-year CD rate

Quontic is also the highest-yielding 3 Year CD on our top banks list, with a 4.40% APY as of this writing. It has the same $500 minimum.

For a little more color on Quontic, not only does it offer high-yield CDs, but it also has an interest-bearing checking product known as the Quontic High Interest Checking account. This account can link seamlessly with CDs for easy transfers and offers a debit card with ATM access at tens of thousands of locations nationwide.

Highest 4-year CD rate

Bread Savings CDs are the highest yielding (4.15%) at the 4 Year maturity length, and also have a $1,500 minimum deposit.

However, one option that is close is Marcus by Goldman Sachs, which offers a 4.05% APY on its 4 Year CD as of this writing. Not only does it have a lower $500 minimum deposit, but Marcus offers one of the few online CDs that allows account owners to withdraw their interest as it is paid, which could make it a great choice for income investors.

Highest 5-year CD rate

Considering the rest of this list, it shouldn't come as a surprise that Quontic also takes the title of the highest-yielding 5 Year CD, with a 4.30% APY as of this writing. Sure, it pays less than the other Quontic CDs on this list, but your rate is locked in for five years, no matter how interest rates trend overall.

It isn't just about the rates

The five options listed here have the highest CD interest rates among those we cover for their respective maturities. But it's also worth noting that there's more to consider than just the yield when shopping around for a CD. For example, if a bank makes it easy to transfer money to and from your checking account, it could be worth accepting a slightly lower rate than a CD where the transfer process takes a few days.

Another example is if you're retired or otherwise rely on your CDs for income, you'll need to find a CD that allows you to withdraw the interest that you receive. Not all banks do, and those that allow this might not have the absolute highest yields. Take the time to investigate beforehand to make the right choice for you.

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5 CDs With the Highest Interest Rates in May 2024 (2024)

FAQs

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

What bank is paying 5% on CDs? ›

Highest current CD rates (overall)
Institution nameAPYMinimum opening deposit
Morgan Stanley5.05%$5,000
LendingClub Bank5.00%Contact institution for details
Newtek Bank5.00%$2,500
My eBanc5.00%$5,000
31 more rows

What are the highest yielding CDs right now? ›

Here are Bankrate's top picks for banks with the best CD rates.
  • Popular Direct — 3 months - 5 years, 4.25% – 5.30% APY, $10,000 minimum deposit.
  • America First Credit Union — 3 months - 5 years, 4.20% – 5.25% APY, $500 minimum deposit.
  • Vio Bank — 6 months - 5 years, 2.75% – 5.25% APY, $500 minimum deposit.

Are there any 6% CDs? ›

Can You Get 6% on a CD? Earning 6% interest on a CD can be done, but you might have to do some digging to find an account that works for you, and you'll probably have to join a credit union. Currently, no banks offer 6% CDs, but some credit unions do. To open an account with a credit union, you need to become a member.

Where can I get 7% interest on my money? ›

Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Should I lock in a CD now or wait? ›

Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

Where can I get 5% interest? ›

Summary of the Best 5% Interest Savings Accounts of 2024
AccountForbes Advisor RatingAnnual Percentage Yield
M1 High-Yield Savings Account4.35.00%
Bask Interest Savings Account4.25.10%
UFB Secure Savings4.1Up to 5.25%
Salem Five Direct eOne Savings4.05.01%
1 more row

Should I get a 5% CD? ›

Is a 5% CD a Good Investment? If you have money to save that you won't need to touch for at least six months, a 5% CD may be worth considering. These CDs earn rates well above the national average CD and savings rates, according to the FDIC.

What is the highest CD rate at Capital One? ›

Capital One's 12 and 18-month CDs have the highest annual percentage yields (APYs), 5.00% and 4.45%. The bank regularly offers promotional CDs with higher rates. Currently, a 10-month CD offers 5.10% APY. Capital One yields are more competitive than many big banks, though several online banks offer similar rates.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

What is the CD rate for bank of Hope 2024? ›

*Promo Plus Certificate of Deposit: The Promotional APY (Annual Percentage Yield) of 5.35% for a term of 6 months, 5.25% for a term of 12 months are accurate as of 5/6/2024.

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
RBL Bank8.000.50
AU Small Finance Bank8.000.50
Induslnd Bank7.990.26-0.50
IDFC First Bank7.900.50
16 more rows

What will CD rates be in 2024? ›

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024. At its 2024 meetings, the FOMC held the federal funds rate steady at a target range of 5.25% and 5.50%.

Where can I earn 5% on a CD? ›

Best CD rates of June 2024
  • Alliant Credit Union: Earn up to 5.20% APY.
  • Ally Bank®: Earn up to 4.50% APY.
  • Barclays®: Earn up to 5.00% APY.
  • BMO Alto: Earn up to 5.15% APY.
  • Bread Savings™ (formerly Comenity Direct): Earn up to 5.25% APY.
  • LendingClub: Earn up to 5.15% APY.
  • Marcus by Goldman Sachs®: Earn up to 5.10% APY.
Jun 1, 2024

Where can I get 6% on money? ›

Digital Federal Credit Union has an account that pays over 6% APY, but you must meet membership requirements to get started. You also won't earn this high interest rate on your entire Digital FCU savings balance. Plenty of savings accounts are available around the U.S. and still offer great rates — over 5% APY.

What is the predicted interest rate for 2024? ›

Mortgage rate predictions 2024

The MBA's forecast suggests that 30-year mortgage rates will fall into the 6.4% to 6.7% range throughout the rest of 2024, and Fannie Mae is forecasting the same. NAR believes rates will average 7.1% this quarter and fall to 6.5% by the end of 2024.

What will CD rates be in 2025 in the USA? ›

Similarly, the Fed's interest rate cuts are not expected to be overly drastic, but rather, gradual. What this means is that come this time next year, you may not be able to sign a 1-year CD at 5% (or slightly more) like you can today. But it's possible that you'll be able to lock in a 1-year CD at 4.5%, or 4.25%.

What is the money market prediction for 2024? ›

The national average rate for savings accounts will be 0.3 percent by the end of 2024, McBride forecasts, while predicting an average of 0.35 percent for money market accounts. At the end of 2024, the top-yielding nationally available money market account and savings account are projected to be at 4.45 percent APY.

What will CD rates be in 2027? ›

The Top CDs for Locking Your Rate Until 2025 to 2027
Best 1-Year CDs - Mature Early 2025APYMinimum
Best 3-Year CDs - Mature 2027RateMinimum
Lafayette Federal Credit Union5.10%$ 500
EFCU Financial5.00%$ 500
DollarSavingsDirect5.00%$ 1,000
20 more rows
Feb 28, 2024

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