Even the Big Banks Have Great CD Rates Now (2024)

High interest rates have been a boon for savers willing to put their money with a credit union, smaller bank or an online bank they’ve maybe never heard of in order to chase the best rates. Every $1,000 locked up in a certificate of deposit for a year at current rates (as high as 5.75%) can earn nearly $60.

Such largess, however, hasn’t been available to customers of the biggest banks—until now.

While credit unions and digital banks still top our roundup of the very best CD rates, now even big banks are rolling out CDs with competitive interest rates, including some above 5%. While that’s nearly a percentage point lower than the top-yielding CDs, the convenience of being able to open a CD where you already bank, or at a bricks-and-mortar branch, might be worth the trade-off.

Savings in 12-month CDs are earning just 1.8% on average, according to FDIC data, so people looking to open a CD or who have one nearing maturity stand to do a lot better now. With big banks in on the action, there are few excuses for not having your cash in a CD with a higher yield.

The best megabank CD rates now

Here are the current top CD rates offered by the biggest traditional banks, which we’ve defined as banks that are among the top 10 by asset size as ranked by the Federal Reserve and that have consumer-facing branch networks.

  • PNC Bank: 5.05%; 4-month term; $1,000 minimum
  • Capital One: 5%; 12-month term; no minimum
  • TD Bank: 5% (rate for checking account customers only); 6-month term; $250 minimum
  • Bank of America: 4.75%; 7-month and 13-month terms; $1,000 minimum
  • Wells Fargo: 4.75%; 4-month and 7-month terms; $5,000 minimum
  • Citibank: 4.75%; 6-month term; $500 minimum
  • U.S. Bank: 4.75%; 7-month term; $1,000 minimum
  • Truist: 4.5%; 5-month term; $1,000 minimum
  • Chase: 4.25%; 2-month and 9-month terms; no minimum

The best CD rates are generally for promotional CDs, often characterized by nonstandard maturity terms—think seven or eight months versus six months or a year.

While banks don’t have membership eligibility requirements, unlike credit unions, some of the big banks offering generous promotional CD rates right now reserve their top yields for customers who already have a banking relationship (such as a checking account) with them. If you plan to open a CD where you already bank, ask if they have preferred rates for existing customers.

You can also check bank websites or use an aggregator site such as DepositAccounts or CD Valet. CD specials might have a higher minimum balance than ordinary CDs, or rates might be tiered, with higher balances earning more. Check the terms and conditions with the bank directly, including the amount of the early withdrawal penalty the bank charges if you need to break the CD and access your money before the maturity date.

Why big bank CD rates are rising

Typically, the biggest banks don’t offer great interest rates on deposit products for a simple reason: They don’t have to.

Especially following the 2023 collapse of Silicon Valley Bank, depositors got spooked and yanked money out of smaller institutions, putting those dollars in megabanks instead. Within days of that failure, the biggest 25 banks pulled in $120 billion in new deposits, while deposits at smaller banks plunged by $108 billion over the same time frame.

“Big banks just didn’t have to pay up,” says Alexander Yokum, Charlottesville, Va.-based regional-bank analyst at financial research firm CFRA. If you were getting deposits, why would you pay for them if you didn’t have to?”

Since then, though, that fear has receded, with smaller banks clawing back the deposits they lost and then some by wooing customers with higher rates. While megabanks aren’t as dependent as their smaller brethren on customer deposits, they’re under more pressure today to hang onto deposits and customers, so they’re bumping up their rates to be more competitive.

“Big banks are realizing, this is cutthroat, we’ve got to be aggressive, we have to compete,” says Jeffrey Roach, chief economist for wealth-management firm LPL Financial in Charlotte, N.C.

How long megabank CD rates will stay high

The persistence of elevated inflation has rewritten expectations for when the Federal Reserve will lower interest rates. Analysts have pushed the timeline for rate cuts further into the future, which means savers have more time to enjoy high yields on their cash.

Banks aren’t confident that rate cuts are coming soon, Roach says. Combined with growing evidence that savers are willing to move their money to chase higher rates, big banks are recalibrating their strategies for keeping customers—and their dollars—from walking out the door through 2024 and beyond.

“At this point, we’re seeing rates stay fairly steady. I think this could last until heading into 2025,” Roach says. “I think things will be pretty attractive for those who are savers.”

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More on CDs

  • Best 6-Month CD Rates
  • Best 1-Year CD Rates
  • Best 5-Year CD Rates
  • What Is a CD Ladder and How Do You Build One?

Meet the contributor

Even the Big Banks Have Great CD Rates Now (1)

Martha C. White

Martha C. White is a contributor to Buy Side from WSJ.

Even the Big Banks Have Great CD Rates Now (2024)

FAQs

Even the Big Banks Have Great CD Rates Now? ›

While credit unions and digital banks still top our roundup of the very best CD rates, now even big banks are rolling out CDs with competitive interest rates, including some above 5%.

Who is paying the highest CD rates right now? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
Morgan Stanley5.15%12 months
LendingClub Bank5.15%12 months
Able Bank5.15%12 months
Marcus by Goldman Sachs5.15%12 months
31 more rows
3 days ago

What bank is paying 5% on CDs? ›

Certificates of deposit with at least 5% interest
InstitutionMost Competitive CD TermHighest CD APY Available
CFG Bank12 months5.36%
Credit Human Credit Union18 months*5.10%
Dow Credit Union3 months*5.30%
Popular Direct6 months*5.35%
8 more rows
Jun 7, 2024

Can you get 6% on a CD? ›

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

Who has a 7% CD? ›

Right now, there aren't any financial institutions offering 7% interest on a CD. Alpena Alcona Area Credit Union, a local financial institution in Michigan, previously offered a 7.19% APY on a 7-month CD special, but that offer has ended. There are a few financial institutions with CDs paying 6% APY or more, though.

Where can I get 7% interest on my money? ›

7% Interest Savings Accounts: What You Need To Know
  • As of June 2024, no banks are offering 7% interest rates on savings accounts.
  • Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Should I lock in a CD now or wait? ›

Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

What is the best CD rate for $100,000? ›

Compare the Best Jumbo CD Rates
InstitutionRate (APY)Minimum Deposit
KS State Bank5.30%$100,000
Third Federal Savings & Loan5.25%$100,000
CD Bank5.25%$100,000
Affinity Federal Credit Union5.25%$50,000
11 more rows

How much does a $10,000 CD make in a year? ›

The national average APY for a one-year CD is 1.74 percent, based on Bankrate research, which shows this average has increased or remained the same since March 2022. If you deposited $10,000 into a one-year CD that pays this national average rate of 1.74 percent, in one year it would be worth a total of around $10,174.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

How much money do you make on a $5000 CD? ›

Today's top CD rates by term
CD termInstitution offering top APYEstimated earnings on $5,000 with top APY
6-monthBask Bank$132
9-monthForbright Bank$197
1-yearCIBC Bank USA$268
18-monthBask Bank$380
5 more rows
2 days ago

Can I put 100k in a CD? ›

Those with $100,000 or more may want to consider depositing their money into a jumbo certificate of deposit (CD) that's insured through a bank insured by the Federal Deposit Insurance Corp. (FDIC) or a credit union insured by the National Credit Union Administration (NCUA).

What is a Jumbo CD? ›

A jumbo CD is a certificate of deposit that traditionally requires a minimum deposit of $100,000. Some banks and credit unions offer jumbo CDs with lower minimums, such as $25,000. If that sum is far higher than the right amount for you to put into CDs, you can skip these CDs.

Do you pay taxes on CDs? ›

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

What is the highest yielding CD right now? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

What is the best CD rate at Chase bank? ›

Chase Bank CD Rates (June 2024)
Chase CDStandard APY*Relationship APY*
1 month0.01%0.02%
3 months0.01%2.00%
12 months0.01%2.00%
15 months0.01%2.50%
10 more rows

Which bank gives 8% interest? ›

Top 20 Scheduled Banks offering Best FD Rates
BanksHighest FD rate (% p.a.)Additional interest rate for senior citizens (% p.a.)
DCB Bank8.050.50
RBL Bank8.000.50
AU Small Finance Bank8.000.50
Induslnd Bank7.990.26-0.50
16 more rows

What is the current rate for CDs at bank of America? ›

FAQ: Bank of America CD Rates

Bank of America's current CD rates range from 0.03% APY for most fixed-term CDs to 5.00% APY for its seven-month featured CD. The bank also offers a one-year flexible CD with penalty-free access to your money at 4.25% APY.

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