6 CD Accounts Currently Offering Rates of 5.25% or Higher

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Certificates of deposits typically offer higher yields than even the best high-yield savings accounts. Average CD rates in the U.S. right now range from 0.23% up to 1.83%, according to data from the Federal Deposit Insurance Corporation.

Fortunately, in today’s high interest rate environment, you can find CDs delivering 5 to 10 times the national average. Keep in mind, unlike a savings account, you need to keep your money invested in the CD for the full term. Otherwise, you could pay fees and early withdrawal penalties.

CD Accounts With Rates of 5.25% or Higher

The good news is you don’t have to commit to a five-year CD to earn the highest CD rates. Most of the best CD accounts today, with yields of 5.25% or higher, are available with terms of 13 months or less.

Note that to qualify for the highest CD interest rates, you may need to open a bank account at the same financial institution. With this in mind, it makes sense to evaluate all the features and offerings of the financial institution before opening a CD.

The financial institutions listed here either have no monthly fees or fees that are easily waived by meeting certain requirements. Here are some of the highest CD rates today, ranging from 5.25% to $5.75%.

Andrews Federal Credit Union: 5.75%

Andrews Federal Credit Union seeks to attract new customers with a APY 6-month share certificate for new members only. If you already have an account with AFCU, you can still take advantage of high rates with an 8-month CD at APY.

You’ll need a $1,000 minimum balance to qualify for either offer. You can open an account online or in one of AFCU’s branches in Maryland, Virginia, Washington D.C. and New Jersey, or overseas in Germany, Belgium and the Netherlands.

If you have a friend who already banks at AFCU, ask them for a referral to an AFCU free checking account and you can each earn an extra $50, on top of the increase you’ll collect on these high-yield CDs.

Lafayette Federal Credit Union: 5.61%

Lafayette Federal Credit Union has been serving members in Maryland, Virginia and Washington D.C. since 1935. The regionally focused credit union offers a variety of certificates. To earn the highest rate of , you’ll need to open a 1-year jumbo certificate with a minimum opening deposit of at least $100,000. A one-year CD with a deposit of at least $500 earns APY. If you don’t want to tie up your cash for that long, consider a 7-month CD with a yield of .

CIBC: 5.25%

CIBC has a special offer for customers who prefer to visit a local branch. You can earn APY with a 13-month, jumbo certificate of at least $100,000. CIBC has branches for personal banking in California, Florida, Illinois, Michigan, Missouri and Wisconsin.

TotalDirectBank: 5.51%

TotalDirectBank offers a lucrative and convenient option for short-term savings with a three-month CD at APY. Six-month and 12-month CDs deliver a return of APY. You’ll need a $25,000 minimum deposit on these accounts to qualify for these high APYs. TotalDirectBank CDs and other services are available in all 50 states except Florida.

BMO Alto: 5.50%

BMO Alto was rated one of the best banks in GOBankingRates yearly rankings for 2024. The online bank’s 6-month CD offers APY, with no minimum opening deposit and no minimum balance required. It’s easy to open a BMO Alto CD by transferring funds from an existing bank account via ACH.

Flagstar Bank: 5.50%

Flagstar Bank is offering a 7-month CD with an APY of . You must open the account with at least $500 in new money, transferred from a bank account that is not part of Flagstar or New York Community Bancorp., to qualify for this promotional APY. Flagstar Bank has more than 400 branches in Arizona, California, Florida, Indiana, Michigan, New Jersey, New York, Ohio and Wisconsin.

Final Take

CD rates aren’t what they were last year, with yields of 6% and above. But you can still lock in rates above 5%. Be sure to read the fine print, take note of minimum deposit requirements and understand the fees and penalties for early withdrawal before you commit to opening a CD or share certificate.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 29, 2024. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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