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The average rate for a 3-month CD is 0.19% Annual Percentage Yield (APY), and 0.83% APY for a 5-year CD, according to the FDIC.
Online banks and credit unions generally offer higher interest rates on CDs than large brick-and-mortar banks. One of the best online institutions for earning a high interest rate on CDs is Signature Federal Credit Union. Signature Federal Credit Union pays Signature Federal Credit Union Certificate APY on CD terms ranging from three months to five years. In comparison, Chase offers Chase Certificate of Deposit (CD) APY on its fixed-terms CDs (the bank also offers relationship rates of 0.02% APY to 2.02% APY, depending on the CD term).
We’ve reviewed over a dozen financial institutions to keep up with the newest rate offerings. Our best CDs guide can be a great resource for learning about CDs and their various features. But if you prioritize finding a competitive CD rate above all else, this list is for you.
Average CD rates vs. highest CD rates
The FDIC keeps tabs on national rates for bank accounts that pay interest, like savings accounts and CDs. For CDs, the average interest rate depends on the term you choose. You can use the table below to see how the most competitive CD rates compare to average CD rates.
CD TermAverage interest rate (APY)Most competitive interest rates (APY)3 months0.19% Up to 2.00%6 months0.42%Up to 3.56% 1 year0.71%Up to 4.20% 2 years0.77% Up to 4.30% 3 years0.77% Up to 4.50% 4 years0.73%Up to 4.40%5 years0.83%Up to 4.50%
Best CD interest rates
Some of the institutions on our list are also top picks in our best CD guides. If you’re looking for a specific CD term, consider reviewing these posts, too:
Best 6-month CD guideBest 1-year CD guideBest 18-month CD guideBest 2-year CD guideBest 3-year CD guideBest 5-year CD guide
That said, if you’re comfortable with a high initial deposit, the following two CD options also might be suitable contenders — even though they aren’t featured in our best-of guides.
You might like to open a CD with Sallie Mae if you have at least Sallie Mae Certificate of Deposit for an initial deposit. Sallie Mae pays higher rates than you’d earn at a brick-and-mortar bank.
If you don’t have that much money for a minimum opening deposit, you can find another bank that requires less.
Popular Direct CDs stand out because these accounts offer high interest rates on 3-month to 5-year CDs.
You’ll need at least Popular Direct Certificate of Deposit to open a CD. You’ll want to pay attention to the CD early withdrawal penalties, though, because some terms have high penalties.