Key Takeaways Today’s highest CD rate is 5.40% for a 6-month CD. CD rates from online banks are commonly twice as high as the national average rates.
CD ladders let you leverage high rates without locking up all of your money long-term. The best interest rates on CDs (certificates of deposit) currently top out at 5.40%, depending on the term.
Here’s a look at how CD rates are trending, along with an overview of the best rates for several different terms. Related: Compare the Best CD Rates Highest CD Rates Today See More See Less A CD is similar to a savings account, but the interest rate is fixed—not variable. The other major difference is that you’ll typically only earn interest on a CD account if you refrain from withdrawing funds during the term.
That term could range from a few weeks to several years, depending on the CD you choose. If you withdraw money from your CD before it “matures” (reaches the end of its term), you’ll likely get hit with steep penalties in the form of reduced interest. For instance, you may forfeit six months’ worth of interest if you withdraw money from a one-year CD before 12 months are up.
If you’re interested in accruing the maximum amount of interest possible, consider long-term CDs, which historically have the highest APYs. But again, long-term CDs are only an option if you’re willing to stash away some cash you won’t be able to touch for years. Generally, CDs with longer terms carry more severe withdrawal penalties than .
