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The best CD rates on the market for April 2024

Check out some of the top picks for the best CD rates of April.

Today’s savers enjoy some of the best CD rates of the last two decades. Though interest rates vary widely by bank, the top-paying accounts offer APYs of 5% or more — significantly more than the national average. To snag those, though, comparing rates among different banks and credit unions is critical. Learn more about how CDs work and how you can get the top CD rates offered today.

Read more: How to open a CD

CD rates today

The highest-paying CDs are now offering APYs of 5% or more, though these are only available at select banks. Nationally, the average interest rate on a one-year CD is 1.81% as of March 2024, while three-year CDs average 1.38%, according to the Federal Deposit Insurance Corp.

Current CD rates are some of the highest in nearly two decades, thanks to the Federal Reserve’s ongoing efforts to slow inflation. The central bank has kept interest rates high for much of the last two years, aiming to reduce inflation to 2%. This has led to higher rates on CDs and savings accounts as a result.

The last time CDs paid high rates over 5% was in late 2007, according to the Organization for Economic Co-operation and Development. When you shop around and compare rates from different banks, you can find one-year CD interest rates that are almost triple the national average.

Shopping for the best CD rates by term

The term of your CD — the length of time it takes your CD to mature — can also affect the interest rate a bank offers you. In general, long-term CDs feature higher APYs as a benefit of letting the bank hold onto your cash for a longer period. But longer terms don’t always equal higher interest rates with CD investing.

In the current market, it’s true that average interest rates increase between one-month and one-year CDs. Yet, at the moment, that upward interest rate trend isn't consistent with all longer-term CDs. Rates from the FDIC show two-year CDs have an APY of 1.53% but a four-year CD sits at 1.29%. As you can see, today's best CD rates aren’t necessarily tied to accounts with the longest terms.

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Are CD rates going up?

The federal funds rate is a target interest rate range that US banks charge one another to borrow excess reserves overnight. This rate influences both the interest rates that consumers pay when they borrow money and the rates that banks pay to their customers on deposit accounts like CDs, savings accounts, and others.

In early May 2023, the Federal Reserve voted to raise the federal funds rate to 5.00%-5.25%. Then, in July 2023, the Fed again voted to raise federal funds, this time to 5.25%-5.50%. It's held steady since then.

When the Fed increases the federal funds rate, rates on CDs and other banking products tend to increase too. Meanwhile, some financial institutions, including online banks, raised their interest rates on some CD products in the aftermath of the failure of Silicon Valley Bank to try to hold on to more customers.

The Fed has been raising rates over the past two years to bring inflation under control. Despite this, inflation rose slightly in February and remains above the Fed's target level of 2%. For this reason, experts think the Fed will hold steady on rates for at least the first half of the year — until inflation moves closer to its target. If inflation continues to slow, rate cuts could begin at that point, which would reduce rates on CDs as well.

How to avoid missing out

Savers may worry about locking their money into a CD and missing out on higher interest rates down the road. And in an environment where interest rates are rising, as they have been lately, missing out on a great rate is a real possibility.

CD laddering and no-penalty CDs can help you avoid the risk of missing out on higher CD rates later. Here’s a brief summary of these two options.

  • No-penalty CDs: This type of CD gives you the option to withdraw funds from your account before the maturity date without paying a penalty. As a trade-off for this flexibility, however, banks tend to offer lower APYs for this type of account.

  • CD ladder: With a CD ladder, you split your savings among multiple short-term CDs and longer-term CDs with staggered maturity dates (e.g., a 6-month CD, a 1-year CD, and a 2-year CD). When the first CD in your ladder matures, you can access those funds if you need them or roll the cash into a new CD — perhaps at a higher APY if one is available at that time. Of course, no one knows the future. So there’s always a risk that APYs could start trending downward as well.

How to choose a CD

When choosing a CD, consider the following factors:

  • Rates: Banks and credit unions control their rates, so you’ll find that the APYs on CDs can vary widely between financial institutions. Shop around to find the best rates.

  • Rate type: When looking at your CD options, compare APYs and determine whether the CD has a fixed or variable APY.

  • Term: CDs have different term lengths. Some are as short as one month; longer-term CDs can have terms as long as 10 years.

  • Penalties or monthly fees: With a typical CD, you pay a penalty if you withdraw the funds from your CD early (before its maturity date). You could lose some or all of your earned interest, and even part of your principal in some cases. Additionally, check to see whether or not you’ll be charged maintenance fees

  • Minimum opening deposit: The minimum opening deposit for a CD will vary by bank or credit union, typically ranging from $500 to $5,000.

In addition to traditional certificates of deposit, there are several other types of CD to consider, from bump-up CDs to step-up CDs, variable-rate CDs to jumbo CDs. Learn more about all the available types of CDs before investing.

Pros and cons of a CD account


  • CDs are a great intro to personal finance tools. Unlike the stock market, CDs offer safe, reliable returns with no rate changes.

  • CDs offer fixed interest rates with higher returns on average compared with other deposit accounts.

  • When you open a CD at a federally insured bank or credit union, that CD is insured up to $250,000.

  • Opening a CD may discourage you from tapping into your savings early.


  • You'll typically pay an early withdrawal penalty if you need your cash before a CD’s maturity date.

  • The competitive rates on CDs — especially longer-term CDs — might not keep up with inflation.

  • The minimum balance needed to open a CD may be too high.

  • Although CDs are safer, they offer lower returns than mutual funds and stocks.

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CD rate FAQs

What happens if I don’t withdraw the funds after the CD’s maturity date?

When a CD matures, the bank or credit union will give you a grace period of several days after the maturity date passes. You'll need to decide whether to withdraw your funds from the CD or or roll it over into a new CD, ideally one with a higher APY if possible. In most cases, if you do not withdraw your funds and the grace period passes, your bank or credit union will automatically renew the CD.

Are there other savings options available instead of CDs?

Although CDs are increasingly popular, they aren’t the only way to make your money grow. Depending on your financial situation and your goals, you may be better off with another savings account option.

Read more:

Kat Tretina, Hal Bundrick, and Zina Kumok contributed to this article.