Best CD Rates for May 2024

Looking for the best CD rates to grow your savings? Compare and find the highest rates available in the market today!

Certificate of deposits (CDs) are savings vehicles offered by banks and credit unions. CD interest rates are typically higher than that of savings accounts and money market accounts, often rendering CDs more attractive than either of the aforementioned options.

CDs have a fixed maturity date and specific fixed interest rate, and once a CD matures, the entire principal amount, as well as earned interest, can be withdrawn. one drawback to a CD is that you’re required to keep your money in the account for a specified period of time, which makes CDs a highly-illiquid form of investment. (Savings bank accounts are a more liquid interest-bearing type of account.)

Quick Look: The Best CDs by APY

Best CD Rates

Explore some of the top banks and credit unions offering the best CD rates that can help you maximize your earnings.

1. Best for Low Deposits: Bread Savings

Bread Savings, formerly known as Comenity Direct, offers a suite of online CDs with rates that are worth considering for terms ranging from one to five years. It requires a $1,500 minimum opening deposit and charges no monthly or opening fees.

Here are the current CD rates from Bread Savings:

Bread Savings also offers a user-friendly online platform that makes managing your accounts easy and convenient. With 24/7 access to your accounts, you can easily track your savings and make deposits or withdrawals as needed.

2. Best for Low Fee Banking: Crescent Bank

Crescent Bank offers a wide range of online CDs that can help you grow your savings over time, from one to five years, with APY ranging from 4.10% to 5.00%. By opening a CD with Crescent Bank, you can enjoy a fixed interest rate for a specified period of time and no maintenance fees. Its minimum opening deposit of $1,000 is higher than other financial institutions.

Here are the current CD rates from Crescent Bank:

Crescent also offers other financial products and services including savings and checking accounts, money market accounts and IRAs.

3. Best for Simplicity: Live Oak Bank

If you’re someone who values simplicity and competitive APYs when it comes to your banking needs, Live Oak Bank might be the right choice for you. With a focus on offering straightforward and user-friendly features, Live Oak Bank is known for its savings accounts and CD account options.

Here are the current CD rates from Live Oak Bank:

Live Oak Bank operates entirely online, meaning that they do not have any physical branches or ATMs. While this can be convenient for those who prefer conducting their banking activities online, it may not be the best option for customers who prefer the option of in-person banking.

4. Best for Government Employees: Pentagon Federal Credit Union

Pentagon Federal Credit Union uses the term Money Market Certificate to refer to what banks call a Certificate of Deposit. You can open a Money Market Certificate for terms ranging from 6 months to 7 years. While PenFed may offer a lower APY than some other banks or credit unions, the convenience and ease of opening a Money Market Certificate with just $1,000 may still make it a viable option for some savers.

Here are the current CD rates from Pentagon Federal Credit Union:

How Do I Know if a CD is Right for Me?

If you’re a disciplined individual, have a set deposit amount and a specific long-term goal, CDs might be perfect for you.

However, one of the most important things to know is that a CD is a savings vehicle, not an ATM machine. If you’re one of those individuals who treats your savings account like a checking account, it’s important to realize that money (in both of those accounts, to be clear) are actually supposed to be reserved for access later.

Financial experts say that anywhere from 3 to 6 months of emergency expenses should be covered in case of a job loss, debilitating health occurrence or other catastrophe. And a CD could be a good vehicle for you to make that happen.

The benefits to CDs for an emergency fund are:

• They are safe from market risk.
• They’re interest bearing.

The only downfall to putting your funds in a CD is that they’re not as easily accessible as they would be in a bank-held savings account or money market fund. So, if you’re a freelance writer, for example, and you suddenly can’t find work, you may have to look into breaking into your CD early.

Can I Get My Money Out of a CD Early?

It’s definitely possible to get your money out of a CD early, though you’ll have to evaluate whether it’s beneficial for you to do so or not. Banks charge penalties when you cash in your CD early. Some good examples of needing to get money out of your CD early include:

1. You’ve found an investment with a higher return and approximately the same amount of risk.
2. The penalty isn’t huge enough to prevent you from taking out your CD.
3. You can alter your saving strategy with other investment products
4. You’re having a financial emergency.
5. You need the money for something important, such as the down payment for a house.

The earlier you withdraw, the less interest you’ll earn. CD withdrawal rules and conditions are not the same at every bank or credit union, so be sure you’re aware of what the bank or credit union will charge if something rises to the surface.

CD Ladders

CD laddering combines both short term and long term savings with more frequent access to a portion of your money. Essentially, you would divide the amount of money you’d like to invest into CDs, all with different maturity dates.

Ally Bank has a great tool for calculating CD ladders, and it involves choosing your ladder and also your total initial amount to calculate a total of estimated earnings based on the certificate rates you’ve received.

How Do I Get a CD?

You’ll be able to access a CD through your bank or credit union, and just about every brick-and-mortar locale has one. CDs are also increasingly offered by online banks as well. You may also work with a brokerage firm that can help you.

It’s important to do your research, check out the market rate and review customer service scores before choosing a bank CD or other investment vehicle, and Benzinga has put 5 great options in your basket. The following are the top 5 CD rates, all based on APY.

See Benzinga’s What is APY? for more information about APY.

Save with a CD Today

On a side note, you may note that the interest rates proposed here, while the highest APY of all CDs to date, aren’t as high as you’d like. While it’s true that in the grand scheme of all the investment possibilities, CDs rank on the low end. Remember, too, that a CD term can impact the rate you might get.

CDs are constantly battling inflation with relation to their percentage yield, but if you’re looking for a low-risk investment that beats savings accounts or money markets (especially to protect that emergency fund) then CDs really can have a place in your overall investment strategy.

Frequently Asked Questions