CD rates change daily and vary by bank, term length, and deposit amount

There is no single "current CD rate" — what you earn depends on which bank you choose, how long you lock your money away, and how much you deposit. A one-year CD at one bank might pay 4.50%, while a one-year CD at another pays 4.75% on the same day. Rates also shift based on what the Federal Reserve does with its benchmark interest rate, which it adjusts roughly every six weeks.

The best way to find what banks are actually offering right now is to check their websites directly or use a rate-comparison tool. Banks post their current rates on their CD pages, and sites like Bankrate, DepositAccounts, and the FDIC's National Rates and Rate Caps table let you see multiple offers side by side. Rates you see online are usually accurate within a few hours, though some banks update less frequently.

Key Takeaways

  • CD rates vary by bank, term length (3 months to 5 years), and deposit size, so comparing multiple banks is necessary to find the best rate for your situation.
  • Rates change when the Federal Reserve adjusts its benchmark rate, which happens roughly every six weeks, and individual banks can change their rates any business day.
  • You can see current rates by visiting bank websites directly or using free comparison tools like Bankrate, DepositAccounts, or the FDIC's National Rates table.
  • Longer CD terms (like 5-year CDs) typically pay more than shorter ones (like 3-month CDs), but you cannot withdraw the money early without paying a penalty.
  • Online banks usually offer higher rates than brick-and-mortar banks because they have lower overhead costs.

How to check rates at specific banks

Go to the bank's website and look for the CD or savings rates page — most banks put it in the "Rates" or "Products" section. You will see a table showing the annual percentage yield (APY) for each term length. The APY already includes compounding, so it is the number to compare across banks.

If you bank somewhere already, log in to your account and check what they are offering. Some banks give existing customers a slightly higher rate, though this is less common than it used to be. Write down the rate, the term (how long you lock the money in), and any minimum deposit requirement, because all three affect whether that CD makes sense for you.

Using rate-comparison tools

Bankrate and DepositAccounts let you filter by term length, minimum deposit, and whether you want a brick-and-mortar bank or an online bank. You can sort by APY to see the highest rates first. Both sites update rates multiple times a day, though the exact timing varies by bank.

The FDIC's National Rates and Rate Caps table is updated weekly and shows what banks across the country are paying. It is less user-friendly than Bankrate, but it is an official government source and includes every FDIC-insured bank, so you know the data is complete.

Why rates differ between banks

Online banks almost always pay more than traditional banks because they do not have the cost of physical branches, staff, or ATM networks. A brick-and-mortar bank might pay 4.25% on a one-year CD while an online bank pays 4.75% on the same day. Both are safe if they are FDIC-insured, so the difference is pure yield.

Banks also adjust rates based on how much money they need to attract. If a bank has plenty of deposits, it may lower its CD rates. If it needs more cash, it raises them to draw in savers. This is why the same bank's rate can change from week to week, and why shopping around matters — you might find a bank offering 5.10% when your current bank is at 4.60%.

How term length affects the rate you earn

Longer terms almost always pay more than shorter ones. A 3-month CD might pay 4.00%, a 1-year CD might pay 4.50%, and a 5-year CD might pay 4.85%. The bank pays more for longer terms because it gets to hold your money longer and lend it out.

The trade-off is that you cannot touch the money without a penalty. If you need the cash before the term ends, you will lose some or all of the interest you earned, and possibly some of your principal. This is why it matters to match the CD term to when you actually need the money.

What happens when the Federal Reserve changes rates

The Federal Reserve sets a benchmark rate (the federal funds rate) that influences what banks pay on savings products. When the Fed raises its rate, banks usually raise CD rates within days or weeks. When the Fed cuts its rate, CD rates fall — sometimes immediately, sometimes more slowly.

The Fed does not set CD rates directly; banks choose their own rates based on what they think they need to pay to attract deposits. But the Fed's moves set the direction. If you are watching rates and thinking about opening a CD, knowing whether the Fed is likely to raise, cut, or hold steady can help you decide whether to lock in a rate now or wait.

Checking rates before you open a CD

Before you deposit money, compare at least three banks. Write down the APY, the term, the minimum deposit, and the early withdrawal penalty. Some banks charge a flat fee (like $25) if you withdraw early; others charge a number of months' interest (like three months of interest). The penalty matters because it affects whether breaking the CD early makes financial sense if an emergency happens.

Also check whether the bank compounds interest daily, monthly, or quarterly. Daily compounding earns you slightly more, though the difference is usually small. And confirm that the bank is FDIC-insured, which protects your deposit up to $250,000 if the bank fails.

Frequently Asked Questions

Do CD rates change every day?

Banks can change their CD rates any business day, and many do. Some change rates weekly, others daily. The best way to know what a bank is offering right now is to check their website directly or use a comparison tool that updates frequently.

Why is my bank's CD rate lower than what I see online?

Online banks have lower costs and usually pay more. If your bank is a traditional brick-and-mortar bank, it is normal for its rates to be lower. You can move your CD to an online bank when it matures, or open a new CD at an online bank now while keeping your checking account where it is.

Should I lock in a CD rate now or wait for rates to go higher?

No one can predict whether rates will go up or down. If you need the money in one year and a one-year CD rate looks reasonable to you, opening one now locks in that rate. If you think rates might rise soon, you could open a shorter-term CD (like 3 or 6 months) and then move to a longer term later.

Are online bank CDs as safe as CDs at my local bank?

Yes, if the online bank is FDIC-insured. FDIC insurance protects your deposit up to $250,000 regardless of whether the bank has physical branches. Check the bank's website for the FDIC insurance statement, usually near the bottom of the page.

Can I withdraw money from a CD before it matures?

Yes, but you will pay an early withdrawal penalty. The penalty varies by bank and term length — it might be a flat fee or a number of months' interest. Check the bank's CD terms before you open one so you know what the penalty is.