Top CD Rates Today: May 10, 2024 | 9 Best APYs Of Up To 5.36% (2024)

CDs

Top CD Rates Today: May 10, 2024 | 9 Best APYs Of Up To 5.36% (1)

Top CD Rates Today: May 10, 2024 | 9 Best APYs Of Up To 5.36% (2)Written by

Karen Bennett

Top CD Rates Today: May 10, 2024 | 9 Best APYs Of Up To 5.36% (3)Edited by

Marc Wojno

May 10, 2024 / 5 min read

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Key takeaways

  • The highest CD rate across nine terms is 5.36% APY, offered on a one-year term.
  • In addition to choosing a CD based on APY, be sure to pick a term that suits your financial goals.
  • For most CD terms, national averages are only yielding around one-third of the highest rates.

Opening a fixed-rate certificate of deposit (CD) with a term of at least one year, today, should give you peace of mind that your savings will continue to earn the same annual percentage yield (APY) should rates begin to retreat later this year. APYs on competitive CDs have been high as of late because they follow the federal funds rate, which is currently at a range of 5.25-5.50 percent — the highest it has been since early 2001. But with the Federal Reserve expected to lower rates later this year, CD APYs could eventually drop, in turn.

Since the start of this week, top yields on popular CD terms between 18 months and five years have dipped. You'll still find APYs of 5.00 percent or higher on terms of up to 18 months, however. Highest APYs on terms between two years and five years range from 4.45 percent to 4.80 percent. Locking in such an APY now on a fixed-rate CD means you'll continue to earn that yield until the term expires.

Bankrate’s table below shows the highest yields offered on widely available CDs, by term. It also lists national average CD rates and how much you’d earn for each term with a $5,000 investment.

Today's best CD rates by term

CD termInstitution offering top APYHighest APYNational average APYEstimated earnings on $5,000 with top APY
3-monthPopular Direct5.30%1.23%$65
6-monthPopular Direct5.30%1.71%$131
9-monthForbright Bank5.30%N/A$197
1-yearCIBC Bank USA5.36%1.77%$268
18-monthTAB Bank5.00%1.84%$380
2-yearTAB Bank4.80%1.53%$492
3-yearFirst Internet Bank of Indiana4.61%1.42%$724
4-yearFirst Internet Bank of Indiana4.45%1.50%$951
5-yearFirst Internet Bank of Indiana4.50%1.43%$1,231

Note: Annual percentage yields (APYs) shown are as of May 10, 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.

When is a CD a good idea?

A CD can be a good place for money you’re saving for future purchases or expenses. For instance, you might put money into a 12-month CD for a vacation you’re planning for next year. Or, you might deposit funds into a five-year CD to make a down payment on a house soon after the CD matures. A benefit of locking in your money is you’ll be less tempted to use it for impulse purchases in the meantime.

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 six 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

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.

Top CD Rates Today: May 10, 2024 | 9 Best APYs Of Up To 5.36% (2024)

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