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The average rate for a 3-month CD is 0.19% APY, and 0.83% APY for a 5-year CD, according to the FDIC.
Online banks and credit unions generally offer higher interest rates on CDs than large brick-and-mortar banks. One of the best online institutions for earning a high interest rate on CDs is Bread Savings. Bread Savings pays Bread Savings High-Yield CD on CD terms ranging from one to five years. In comparison, US Bank offers US Bank Certificate of Deposit for CD terms from one month to five years.
We’ve reviewed over a dozen financial institutions to keep up with the newest rate offerings. Our best CDs guide can be a great resource for learning about CDs and their various features. But if you prioritize finding a competitive CD rate above all else, this list is for you.
Average CD rates vs. highest CD rates
The FDIC keeps tabs on national rates for bank accounts that pay interest, like savings accounts and CDs. For CDs, the average interest rate depends on the term you choose. You can use the table below to see how the most competitive CD rates compare to average CD rates.
CD TermAverage interest rateMost competitive interest rates3 months0.19% APYUp to 1.75% APY6 months0.42% APYUp to 2.75% APY1 year0.71% APYUp to 3.82% APY2 years0.77% APYUp to 3.80% APY3 years0.77% APYUp to 4.50% APY4 years0.73% APYUp to 4.15% APY5 years0.83% APYUp to 4.25% APY
Best CD interest rates
Some of the institutions on our list are also top picks in our best CD guides. If you’re looking for a specific CD term, consider reviewing these posts, too:
Best 6-month CD guideBest 1-year CD guideBest 2-year CD guideBest 3-year CD guideBest 5-year CD guide
That said, if you’re comfortable with a high initial deposit or don’t mind limited terms options, the following four CD options also might be suitable contenders — even though they aren’t in our best-of guides.
Signature Federal Credit Union may be a good option if you’re specifically searching for a 3-year CD. The credit union has a limited-time offer where you can earn 4.50% APY on a 3-year term. If you’re looking for other CD terms, though, you might consider one of the other institutions on our list.
To open a Signature Federal Credit Union CD, you’ll have to become a member of the credit union. The easiest way to become a member is to enroll in the American Consumer Council. Then you’ll just need to open a savings account with $5.
While the Popular Direct Certificate of Deposit didn’t make it into any of our best CD guides, it still could be great if you already intend to open a CD with more than Popular Direct Certificate of Deposit. You’ll want to pay attention to the CD early withdrawal penalties, though, because some terms have high penalties.
Connexus offers competitive interest rates on its 1-year, 2-year, and 3-year CDs. It might be a good option if you have at least Connexus Credit Union Share Certificate for an initial deposit.
Alliant Credit Union might be worth considering if you’re searching for CD terms between one and five years. You’ll need a minimum of Alliant Certificate to open a CD.
LendingClub offers competitive interest rates and could be worthwhile if you have at least LendingClub Certificate of Deposit for a minimum opening deposit. However, if you’re worried about the standard-to-high early withdrawal penalties, then you may want to open a CD elsewhere.