It wasn’t that long ago when even the best CD rates paid next to nothing due to record-low interest rates.
Well, times have changed, and short-term Certificates of Deposit (CDs) are once again offering decent returns for conservative and short-term investors.
But how high have rates risen?
Is it possible to earn 6% on a CD today?
For example, you can easily earn 3% APY or higher in a high-yield savings account, and inflation-linked bonds pay even more (right now, it’s 6.89% APY). However, these rates are variable and fluctuate at anytime. CDs allow you to lock in today’s best interest rates for a specified period.
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Are There 6% CD Rates Today?
Sadly, no. (or should I say, not yet?)
I’ve looked high and low, and unfortunately, I cannot locate any bank CDs paying 6% or more. Of course, that may change if interest rates continue to rise.
The last time rates were within striking distance of the 6% mark was in June 2000 (6.02% for a 5-year term), according to a Bankrate study.
Right now, a rate of 5% or lower is more realistic for a federally-insured certificate of deposit.
⚠️We aim to maintain the most up to date rates but since these change very quickly, sometimes our rates are out of date. Always check with the bank’s website to confirm the rate they are offering.
Best 5% CD Rates
It’s possible to earn 5% from select bank CDs. This is the best possible yield at the moment for this low-risk investment.
Here is a selection of financial institutions offering 5% CD rates at the time of this writing:
Bellco Credit Union
Bellco Credit Union, through the SaveBetter platform, has a 17-month CD that offers a yield of 5.00% APY – a nice way to lock in a good yield. There is a minimum deposit of just $1 and the interest is compounded daily and credited monthly.
Since it is offered through SaveBetter, there are no membership concerns.
Navy Federal Credit Union
Navy Federal Credit Union is one of the first brick-and-mortar institutions to offer a 5% CD. Its Special 15-Month Certificate earns 5.00% APY (as of 2/15/2023) and is available in taxable accounts and one CD per member. The minimum deposit is $50, and the maximum is $250,000.
Unfortunately, this credit union has strict membership requirements as you must come from a military background or be an immediate family member of a Navy Federal customer to join.
Best 4% CD Rates
Your CD options open up considerably when looking for a yield of at least 4%. It’s possible to get terms as short as one month or up to five years (if you’re a long-term planner).
Sallie Mae Bank
The Sallie Mae Bank 27-Month High-Yield CD has a total 4.85% APY yield. This product is only available through SaveBetter, and the minimum deposit is $1. This is a great short-term investment option if you are comfortable setting aside some funds for two years or more. You can also slot it in as a medium-term maturity on your CD ladder.
Signature Federal Credit Union
Signature Federal Credit Union offers above-average yields for longer terms. For instance, you can earn 4.50% APY on a 36-month term with a $500 minimum balance.
You can join this credit union online and make a minimum $5 deposit in a savings account. Additionally, over 5,000 shared branches across the United States make it easy to perform in-person transactions at partner credit unions.
SaveBetter
You can find the best CD rates and avoid the hassle of chasing the highest yields by joining SaveBetter.
This online platform partners with federally-insured banks and credit unions to offer competitive rates on high-yield savings accounts, term CDs, and no-penalty CDs. Even if you purchase CDs from multiple banks, you can access them through your SaveBetter dashboard.
In addition, you only need to deposit $1 compared to most banks with minimum deposits of $500 or more. However, you must carry high-yield CDs to term, but you can submit withdrawal requests for no-penalty CDs after 30 days.
Here are some of the highest rates available by term:
6 Months or Shorter
| Partner Bank | Term | Yield |
|---|---|---|
| Ponce Bank | 1-Month* | 4.50% APY |
| Western Alliance Bank | 6 Months | 4.60% APY |
| Western Alliance Bank | 3 Months | 4.45% APY |
| Ponce Bank | 6 Months | 4.00% APY |
| Ponce Bank | (No Penalty CD) | 4.41% APY |
12-Month CDs or Shorter
| Partner Bank | Term | Yield |
|---|---|---|
| Western Alliance Bank | 12 Months | 4.90% APY |
| Great Lakes Credit Union | 12 Months | 4.60% APY |
| American First Credit Union | 12 Months | 4.50% APY |
| Sallie Mae Bank | 10-Month (No Penalty CD) |
4.25% APY |
| SkyOne Federal Credit Union | 12 Months | 4.20% APY |
Learn More: Best 12-Month CD Rates
24-Month CDs or Shorter
| Partner Bank | Term | Yield |
|---|---|---|
| Bellco Credit Union | 17-month | 5.00% APY |
| Sallie Mae Bank | 23 Months | 4.85% APY |
| American First Credit Union | 24 Months | 4.65% APY |
| Blue Federal Credit Union | 15 Months | 4.50% APY |
| Sallie Mae Bank | 14-Month (No Penalty CD) |
4.40% APY |
| Idabel National Bank | 24 Months | 4.35% APY |
| Idabel National Bank | 15 Months | 4.00% APY |
Find a Great CD Rate with SaveBetter
Barclays Bank
Barclays Bank offers online-only banking services throughout the United States. Its term CDs have a $0 minimum deposit and will earn at least 4.50% APY.
Currently, the 12-month CD earns 4.50% APY, and most remaining terms make more than that (18, 36, 48, and 60 months). Find out more in our Barclays Bank Review.
Marcus by Goldman Sachs
Marcus offers high-yield term CDs ranging from 6 months to six years with yields above 3%.
These terms are currently yielding:
- 12 months: 4.50% APY
- 18 months: 4.75% APY
- 2 years: 4.35% APY
- 3 years: 4.30% APY
- 5 years: 3.70% APY
Each product requires a $500 minimum balance. Additionally, your CD is eligible for the 10-day guarantee that automatically bumps your interest rate up to a higher amount if the advertised yield increases during the initial funding period.
New members can also receive a $100 bonus cash by opening a savings account with the latest Marcus new account promotion. This account is optional but earns a high rate and has zero account fees, making it an excellent place to park your short-term savings. Learn more in our Marcus by Goldman Sachs Review.
Bask Bank
Bask Bank is best known for its savings account that earns American Airlines miles. You can also earn interest from a high-yield savings account and CDs:
- 6 months: 4.30% APY
- 12 months: 4.45% APY
- 18 months: 4.10% APY
- 24 months: 4.10% APY
The minimum deposit is $1,000 for every Bask Bank CD.
Capital One 360
Capital One 360 offers several online-only banking products, including its 360 Performance Savings high-interest savings account and fee-free 360 Checking account.
Another nice benefit is being able to purchase online CDs with no minimum deposit and a competitive rate:
- 6 months: 3.30% APY
- 9 months: 3.30% APY
- 12 months: 4.15% APY
- 18 months: 4.25% APY
- 24 months: 4.30% APY
- 36 months: 4.30% APY
- 60 months: 4.10% APY
Unfortunately, Capital One 360 doesn’t offer no-penalty or ramp-up CDs like several similar-sized platforms. Check out the latest Capital One 360 Promotions for more details.
Citi
Citi® offers some of the best CD rates you’ll find at a national bank.
It’s possible to open term and no penalty CDs that earn above 4%.
12-Month No Penalty CD: 4.05% APY and you can withdraw your funds after the first seven days.
Fixed Rate CD: 4.15% APY on a 12-month term.
The minimum deposit is $500 for either account type.
Citi offers fixed-rate CDs from 3 months to five years, but the rates are 2% or lower for the other terms, excluding the 12-month and 18-month terms. Check out Citi’s New Account Promotions.
CIT Bank
Online-only CIT Bank offers competitive yields for several insured savings products, including CDs. You have several options to choose from:
- No-Penalty CD: 36-Month term and a 3.10% APY. Withdrawals are possible seven days after account funding with a $1,000 minimum deposit.
- Term CDs: Three CIT Bank terms currently yield over 4% and have a $1,000 minimum deposit:
- 6 months: 3.30% APY
- 18 months: 4.25% APY
While these rates are impressive and some of the highest in the industry, you should also consider the Savings Connect Account. It’s a high-yield savings account that only requires a $100 opening deposit and currently earns .
Find out more about the latest CIT Bank Bonus Promotions.
Discover Bank
Discover Bank offers several terms with a 4% or higher yield, including a 10-year CD. Unfortunately, the minimum deposit of $2,500 is relatively high.
- 12 months: 4.50% APY
- 18 months: 4.75% APY
- 24 months: 4.30% APY
- 3 years: 4.30% APY
- 5 years: 4.10% APY
Discover offers these CD rates in taxable and IRA CD accounts. Locking in a long-term rate in a traditional or Roth IRA account can help you avoid paying taxes on your annual interest income. Here are the latest Discover Bank Promotions.
Live Oak Bank
Live Oak Bank has a 6-month CD offering 4.15% APY and a 1-Year CD with 4.45% APY.
However, the longer terms yield less and all CDs require a $2,500 minimum deposit.
Live Oak Bank also offers new customer bonuses when you make a qualifying deposit into a savings account.
PenFed Credit Union
If you prefer banking with one of the nation’s largest credit unions, then PenFed should be at the top of your list.
Depositors can earn high rates on taxable and IRA certificates with a $1,000 minimum deposit. You can open an account online, by phone, or at a local branch.
Non-retirement certificates are available, here are some of their rates:
- 6 months: 2.70% APY
- 12 months: 4.60% APY
- 18 months: 4.70% APY
- 2 years: 4.10% APY
- 3 years: 4.10% APY
- 5 years: 3.90% APY
IRA certificates have similar yields but tend to be 0.10% lower, and the shortest term is 12 months.
If you’re not a PenFed member, joining is easy, as the institution dropped its military and employment affiliation requirements a few years ago. You can join by depositing as little as $5 into an NCUA-insured savings account.
Synchrony Bank
You can earn competitive yields and enjoy $0 minimum balance CDs through Synchrony Bank. Term CDs currently earn the highest yields, although its no-penalty and bump-up products are attractive too.
Term CDs
You can quickly build a CD ladder with these short-term, medium-term, and long-term CDs:
- 3 months: 2.25% APY
- 6 months: 3.90% APY
- 9 months: 3.95% APY
- 12 months: 4.30% APY
- 18 months: 4.50% APY
- 24 months: 4.30% APY
- 36 months: 4.30% APY
- 60 months: 4.30% APY
No Penalty CD
An 11-Month no-penalty CD can earn 3.50% APY, and your funds are withdrawable beginning on the seventh day.
Bump-Up CDs
If you think future CD rates will increase before your current CD matures, but if you don’t want to commit new funds, you may consider a Bump-Up CD.
The current 24-month term earns 3.70% APY, which is lower than the traditional 24-month CD, but you can commit a small amount as there are zero deposit minimums. Learn more about Synchrony Bank in our full review.
Best 3% CD Rates
Ally Bank
Ally Bank offers a desirable No Penalty CD rate at 3.85% APY with an 11-Month term and no minimum deposit. You may also qualify for a 0.05% Loyalty Reward when you renew your CD at maturity.
It’s also possible to earn at least 4% interest on term CDs of at least 12 months and earn a Loyalty Reward at renewal Learn more about Ally Bank & Ally Invest Bonus and Promotions.
Marcus by Goldman Sachs
You can open two CDs with flexible redemption benefits that make it easier to get a higher rate on your money:
- 13-month No-Penalty CD: 3.85% APY and withdrawals are possible seven days after initial funding.
- 20-Month Ramp Bump CD: 3.70% APY with the opportunity to request one rate switch during the term penalty-free if future rates increase.
Both products require a $500 minimum deposit. The traditional high-yield CDs also earn a decent interest rate but you lack the flexibility of the above options. You should compare the yields of the three CD products to find the best rate and term for your goals.
Get Started with Marcus by Goldman Sachs
Final Thoughts
While 6% CD rates are currently unavailable, a term CD or a no-penalty CD is a reliable way to earn at least 4%, and secure a decent return from several leading banks for as little as six months or as long as 24 months.
These rates rival the best high-yield savings accounts and can be a more productive place to park the cash you don’t plan to spend during the next one or two years.