Where to find current CD rates

CD rates are published by the bank or credit union offering the account, and you can find them on their website under "CDs," "Certificates of Deposit," or "Savings Products." Most banks list rates by term length—3 months, 6 months, 1 year, 2 years, 5 years—and update them daily or weekly as market conditions change.

You do not have to visit each bank individually. Websites like Bankrate, DepositAccounts, and the FDIC's BankFind tool let you search CDs by term and sort by rate. Credit unions often have lower minimums and competitive rates; you can search credit union CDs through CO-OP Network or Lendingclub's credit union finder. These comparison sites pull rates directly from institutions, so the numbers are current.

Your own bank's website is worth checking even if the rate looks low elsewhere—some banks offer relationship bonuses (higher rates if you have a checking account with them) or promotional rates for new customers. Write down the rate, the term, the minimum deposit, and whether the rate is fixed or variable before you compare.

Key Takeaways

  • CD rates vary by bank, term length, and deposit amount, so comparing at least three institutions takes 15 minutes and can earn you hundreds of dollars more.
  • The Annual Percentage Yield (APY) is the only number that matters—it includes compounding and lets you compare rates fairly across different banks.
  • Longer terms usually pay higher rates, but online banks and credit unions often beat traditional banks on shorter terms too.
  • The rate you see today may change by tomorrow, so lock in a rate by opening the account the same day you decide, or confirm the rate is still available before you fund it.

Understanding APY versus the stated rate

Banks publish two numbers: the interest rate and the Annual Percentage Yield (APY). The APY is the number you should use to compare, because it includes how often the bank compounds your interest. A CD that compounds daily at 4.50% APY will earn you more than one that compounds monthly at 4.50%, even though the stated rate is the same.

The APY already does the math for you. If a CD shows 4.75% APY, that is the actual return you will receive in one year if you leave the money untouched. When you are looking at a comparison table, ignore the "interest rate" column and look only at APY.

One more detail: the APY assumes the rate stays the same for the full term. Most CDs have fixed rates, so this is reliable. A few banks offer variable-rate CDs where the rate can change partway through—these are rare and usually pay less, so avoid them unless you have a specific reason.

How term length affects the rate you will see

Longer CDs almost always pay higher rates than shorter ones. A 5-year CD might pay 4.75% APY while a 6-month CD pays 4.25% APY at the same bank. The bank locks in your money for longer, so it pays you more. This relationship is called the yield curve, and it shifts with economic conditions.

Right now, the yield curve is relatively flat in some places—meaning a 1-year CD might pay almost as much as a 5-year CD. This changes. If you are comparing rates, always look at the specific term you actually want, not just the highest number on the page.

A common strategy is the CD ladder: you split your money across CDs of different lengths (one 1-year, one 2-year, one 3-year, for example) so that one matures every year. This lets you take advantage of higher rates on longer terms while still having access to some of your money regularly. You do not need to ladder—it is just one way to think about the tradeoff between rate and flexibility.

Minimum deposits and how they change rates

Most banks offer the same APY regardless of whether you deposit $500 or $50,000. Some banks, especially credit unions, offer tiered rates—a higher APY if you deposit $25,000 or more, for example. Check the fine print on the rate table to see whether a higher rate requires a larger deposit.

If you have a large sum to invest, it is worth calling a few banks directly. Some will negotiate a rate for deposits of $100,000 or more, though this is less common than it used to be. Online banks almost never negotiate; they publish one rate and stick to it.

Why online banks and credit unions often have higher rates

Online banks have lower overhead—no branch buildings, fewer staff—so they pass savings to customers in the form of higher CD rates. A bank like Marcus, Ally, or American Express Bank often pays 0.25% to 0.50% more APY than a traditional bank in your town. The tradeoff is that you manage everything by phone, email, or website; there is no local branch.

Credit unions are member-owned, not shareholder-owned, so they can return profits to members through better rates. If you belong to a credit union or can join one (many are open to people who live or work in a certain area, or who belong to a professional group), check their CD rates before you decide on a bank.

Both online banks and credit unions are insured the same way as traditional banks—up to $250,000 per account holder per institution by the FDIC (for banks) or NCUA (for credit unions). Your money is equally safe whether you use a local bank or an online one.

Locking in a rate and watching for changes

CD rates move constantly. If you see a rate you like, the fastest way to lock it in is to open the account that same day. Most banks let you open a CD online in 10 minutes. Once your account is open and funded, the rate is yours for the full term, even if rates drop the next day.

If you want to open an account but are not ready to fund it yet, ask the bank whether you can reserve a rate. Some banks will hold a rate for 7 to 10 days; others will not. If they will not, you have two choices: fund the account now and transfer money in later, or wait and accept that the rate may change.

Do not wait for rates to drop. Rates move based on Federal Reserve decisions and economic conditions, and they are just as likely to rise as to fall. If a rate meets your needs, open the account.

Comparing rates across different term lengths

When you are deciding between a 1-year CD at 4.50% APY and a 2-year CD at 4.75% APY, the math is straightforward: the 2-year CD pays 0.25% more per year. Over two years, that extra 0.25% adds up. But you also lose access to your money for an extra year.

Use a CD calculator (available free on Bankrate or DepositAccounts) to see the dollar difference. If you have $10,000, a 2-year CD at 4.75% earns about $980 total, while a 1-year CD at 4.50% earns about $450 in year one. The difference matters only if you do not need the money in year one.

The real question is: will you need this money in the next year or two? If yes, choose the shorter term and accept the lower rate. If no, the longer term usually makes sense because the rate premium is real money in your pocket.

Frequently Asked Questions

Can I move my money out of a CD early if I need it?

Yes, but most banks charge an early withdrawal penalty—usually three to six months of interest. If you withdraw from a 5-year CD after one year, you lose the interest you would have earned in the next three to six months. Some banks have no penalty on CDs under six months. Check the terms before you open the account.

What is the difference between a CD and a high-yield savings account?

A CD locks your money in for a set term and pays a fixed rate. A high-yield savings account lets you withdraw money anytime without penalty, but the rate can change. Right now, both pay similar rates (around 4% to 5% APY), so the choice depends on whether you need access to the money. If you might need it within a year, use savings. If you will not touch it, a CD usually pays slightly more.

Do I have to pay taxes on CD interest?

Yes. The interest you earn on a CD is taxable income in the year you earn it, even if you do not withdraw the money. The bank will send you a 1099-INT form at tax time showing how much interest you earned. If you earn more than $10 in interest across all accounts, you must report it on your tax return.

What happens when my CD matures?

When the term ends, the bank will notify you. You then have a grace period (usually 7 to 10 days) to decide what to do: renew the CD at the current rate, move the money to a savings account, or withdraw it. If you do nothing, most banks automatically renew at the current rate. Read the maturity notice carefully so you do not miss the deadline to make a change.

Should I open multiple CDs at different banks to earn higher rates?

Yes, if you have enough money. Each bank insures up to $250,000 per account holder, so if you have $100,000, you could open a $50,000 CD at one bank and a $50,000 CD at another, and both are fully insured. This also lets you compare which bank offers the best rate for your term. Just keep track of maturity dates so you do not miss renewal deadlines.