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What are today's CD interest rates?

Long-term CDs give you the opportunity to earn today's rates for up to 5 or even 10 years. Getty Images/iStockphoto

The Fed has raised rates 11 times since March 2022 in an attempt to temper inflation, which ticked back up again in July after appearing to cool in June. After last month's rate increase, the Fed's benchmark interest rate is at a 22-year high — and the borrowing landscape is much more expensive than it was last year. 

But there is one upside: Savers may be able to benefit. Right now, many banks and financial institutions offer high APYs to savers on interest-bearing accounts, like high-yield savings accounts and certificates of deposit (CDs). This results in heftier returns on their money. 

In turn, if you deposit some or all of your savings into a CD right now, you could earn a top rate on the money in the account. And, there are a wide variety of CD terms to choose from — all with higher-than-average rates. Depending on the amount you deposit, this one simple move could boost your savings balance by hundreds of dollars or more over the CD term. 

Start your journey by comparing top CD rates and earn more today.

What are today's CD interest rates?

Depending on your CD type, terms and other details, there's a varying range of CD rates you can qualify for today. The following CD rates are the current national averages for specific terms as of August 23, 2023, according to Bankrate.

  • 1-year CD yield: 1.63% APY
  • 3-year CD yield: 1.30% APY
  • 5-year CD yield: 1.37% APY

These averages look much different from the actual rates available on top CDs today, though. Here are some of the best CD rates by term today: 

6-month CD

  • Popular Direct: 5.35% APY
  • America First Federal Credit Union: 5.30% APY
  • Bank5 Connect: 5.30% APY

1-year CD

  • Santander Bank: 5.50% APY
  • Sallie Mae Bank: 5.50% APY
  • Popular Direct: 5.50% APY

5-year CD

  • Popular Direct: 4.60% APY
  • First Internet Bank of Indiana: 4.59% APY
  • Barclays Bank: 4.50% APY

Want the best CD for your savings? Compare top rates here and start earning more money today!

How to get a good CD rate

Use these strategies to lock in the best CD rate right now.

Look at online banks

There's a big difference between national average savings rates and the top interest rates available. In part, that's because different types of banks often have very different rates.

Online banks and online divisions of larger banks have fewer overhead costs to keep up their day-to-day operations, since there are no physical bank branches. Typically these are the banks with rates that have kept up with Fed changes over the past several year. Today, you're most likely to find CDs with competitive rates from online banks.

By contrast, large banks with branches across the country — where you may keep your checking account for convenience and easy access to branches and ATMs — often have lower CD and savings rates. Many of these banks' CDs are below average and may even still be close to zero. 

Consider short-term CDs

CD terms can range from around one to three months to 10 years. But often, short-term CDs are the best way to get a top rate today. 

But the overall economic environment has made it so short-term CDs (around six months to one year) have higher interest rates than longer terms right now. Bankrate's data actually specifies that one-year CD yields have surpassed five-year yields consistently since October 2022. 

The phenomenon is called the inverted yield curve. "This means rates are highest for short term CDs and treasuries and actually are lower as you go out further in time," says Donald F. Dempsey, CFP, founder of Dempsey Investment Management.

In order to take advantage of those high rates while also saving for the long-term, "A practical approach could be to ladder your CDs," Dempsey says. "Buy some one year, some two years, some three years, etc."

See all the best short-term CD rates you can qualify for here.

The bottom line

Right now, both CD rates and savings rates in general offer higher rates than have been seen in years. You can take advantage of the opportunity to lock in a great rate with flexible terms to help you reach your savings goals more quickly. Just make sure you compare different banking options and the term lengths that work for you in order to start maximizing your balance with the best CD rates available today.

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