Top CD Rates Today: May 28 — Earn Up To 5.75% APY (2025)

Top CD Rates Today: May 28 — Earn Up To 5.75% APY (1)

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Dover Federal Credit Union is offering a 24-month Flex Share Certificate with a 5.39% APY. You can open this account with a minimum deposit of just $500, providing a great opportunity to boost your savings over two years. Keep reading to learn more about the top CD rates available today.

Key Takeaways

  • For 3-month CDs, MutualOne Bank offers the top rate of 5.65% APY.
  • NexBank offers the highest one-year CD rate, with 5.40% APY.
  • CD rates today remain above the national average.

Top CD Rates Today

Here’s a look at the top CD rates for today:

CD TERMHighest APY National Average APYWHERE TO INVEST
3-month5.65% 1.26%MutualOne Bank
6-month5.50%1.80%INOVA FCU
1-year5.40%1.96%NexBank
18-month5.25%1.84%Credit Human
2-year5.39%1.71%Dover FCU
3-year5.75%1.62%Farmers Insurance Federal Credit Union
4-year4.70%1.50%BMO Alto
5-year4.80%1.61%BMO Alto


Quick Tip

While there are various types of CDs available to savers, one noteworthy option is the inflation-protected CD. Unlike traditional fixed-rate CDs, these special CDs have their rates tied to inflation, which means the interest rate can adjust over time.

If inflation rises, the interest rate on the CD also rises, preserving the purchasing power of your savings over time. Opting for this type of CD could be a smart move for anyone looking to protect their savings from the erosive effects of inflation.

Top CD Rates from 2010 to 2024

The landscape of CD rates has evolved significantly over the past decade. In the early 2010s, rates were relatively low, reflecting the aftermath of the 2008 financial crisis. Banks offered CD rates slightly below 0.42%, a trend that persisted for several years as the economy slowly recovered. Fast forward to the mid-2010s, and while rates began to inch upwards, they remained modest, barely crossing the 0.60% threshold for longer-term CDs by the end of 2019.

The real turning point came in recent years, especially from 2022 onwards, when CD rates witnessed a remarkable surge, with the best rates now exceeding 5.00%. This shift is largely attributed to the Federal Reserve’s response to inflation and economic conditions, pushing interest rates higher to stabilize the economy. By December 2023, some banks were offering rates of 5.30% or more on 12-month CDs.

Today, investors have the opportunity to secure much higher returns on CDs than they could have just a few years ago, highlighting the importance of timing and market conditions in maximizing savings and investments.

How CDs Work

CDs are a type of savings account with a fixed interest rate and a set maturity date. When you open a CD, you agree not to withdraw your money until the term ends, which can range from a few months to several years. If you do decide to take your money out early, you’ll likely face a penalty. Here are some key points to know:

  • CDs offer fixed interest rates for the duration of their term, making them a predictable, stable investment. Common terms include 3, 6, 12 and 18 months.
  • When you open a CD at a bank or credit union, it’s protected by federal insurance — FDIC for banks, NCUA for credit unions — safeguarding your money up to $250,000.
  • CDs are considered a safer investment compared to stocks and crypto, providing a secure place for your savings.

Pros To Opening a CD

  • Your earnings on a CD are guaranteed, so you know exactly what you’re getting.
  • The interest rate on a fixed-rate CD won’t change, offering stability that’s not always found in other investments.
  • With a CD, it’s harder to dip into your savings on a whim, helping you save more effectively.
  • Your CD investment at an insured bank or credit union is protected up to $250,000, offering you a sense of security.
  • CDs generally come without monthly maintenance fees, unlike some bank accounts or checking accounts.

Cons To Opening a CD

  • Withdrawing your money before the CD’s term ends means facing penalties.
  • With fixed interest rate CDs, if interest rates rise, your CD keeps the same rate, which means you might miss opportunities for higher earnings.
  • The return on a CD might be lower than what you could earn through other investments like stocks or real estate.
  • Automatic renewal features may lock you into a new term with your CD if you’re not attentive at the end of your current term.
  • Opening a CD at a bank may require a minimum deposit, posing a challenge for individuals beginning with modest sums.

Are CD Accounts Worth It?

If you are looking to tuck away a lump sum of money for a large purchase or future investment, a CD is a low-risk way to do just that. However, if you are looking to make more money faster, a CD may not be the right fit for you. Always consider your financial goals carefully, and consult with a financial advisor to make the most informed decision.

Methodology

GOBankingRates is here to help you navigate your finances. Here’s an explanation of how we choose the top CD rates today.

GOBankingRates analyzes deposit rates from banks and credit unions with nationwide availability. We then identify the best rates among this group by focusing on annual percentage yield. Institutions listed in the daily chart are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.

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Top CD Rates Today: May 28 — Earn Up To 5.75% APY (5)
Top CD Rates Today: May 28 — Earn Up To 5.75% APY (6)

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Top CD Rates Today: May 28 — Earn Up To 5.75% APY (7)

FAQ

Here are the answers to some of the most frequently asked questions regarding CD accounts.

  • What is the highest paying CD rate right now?
    • As of May 28, 2024, the highest paying CD rate is offered by Farmers Insurance Federal Credit Union at an APY of 5.75% for their 3-year Variable Rate Certificate. This rate outpaces many others in the market today.
  • What should you consider when choosing a CD?
    • When selecting a CD, consider factors like the term length, interest rate, minimum deposit requirements and the penalty for early withdrawal. Also, think about your financial goals and how the CD fits into your overall savings or investment strategy.
  • Can you lose money on a CD?
    • Generally, CDs are considered a low-risk investment, and it's unlikely you'll lose your principal as long as you choose CDs from FDIC-insured banks or NCUA-insured credit unions. However, withdrawing funds before the maturity date can result in penalties that might reduce your earnings.

Compare CD Rates

  • Best 3-Month CD Rates
  • Best 6-Month CD Rates
  • Best 1-Year CD Rates
  • Best 5-Year CD Rates
  • Best No-Penalty CD Rates
  • Best Jumbo CD Rates
  • Best No-Penalty CD Rates
  • Best CDs With No Minimum Deposit Requirement
  • Best CD Accounts

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of May 28, 2024.

Sheiresa McRae Ngocontributed to the reporting for this article.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

Top CD Rates Today: May 28 — Earn Up To 5.75% APY (2025)

FAQs

Who is paying the highest CD rates right now? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
Citibank5.13%3 months
Morgan Stanley5.10%18 months
MYSB Direct5.10%18 months
Bask Bank5.00%18 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? ›

Right now, the only financial institution offering a 6% CD is Financial Partners Credit Union. To become a member of the credit union, you must live, work or go to school in Orange County, San Diego County, Riverside County, Los Angeles County, the city of South San Francisco or the city of Alameda.

Is 5% APY on a CD good? ›

If you have money to save that you won't need to touch for at least six months, a 5% CD may be worth considering. These CDs earn rates well above the national average CD and savings rates, according to the FDIC. However, you should consider more than just APY when deciding whether or not a 5% CD is a good investment.

Can you get 7% on a CD? ›

Can You Get a 7% CD Account? There was a lot of excitement in August 2023 about a few credit unions offering 7% APYs on certificates. But those rates were offered for a limited time only and are no longer available. However, the nation's best CD rates are still well above 5%, with some pushing toward 6%.

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.

Where can I get 5% interest? ›

Best 5% interest savings accounts
Savings AccountAPY
Primis Savings Account5.07% APY
EverBank Performance℠ Savings5.05% APY
Salem Five Direct eOne Savings5.01% APY
CIT Bank Platinum Savings5.00% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000
19 more rows
6 days ago

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.

Where can I earn 6%? ›

Three Options for Locking in a 6.00% APY Return
  • Primis Novus Checking. 6 months.
  • Financial Partners Credit Union CD. 8 months.
  • Nuvision Credit Union CD. 10 months.
Jun 6, 2024

Can I put 100k in a CD? ›

Typically, jumbo CDs require a minimum deposit of $100,000, though some banks and credit unions offer jumbo certificates with minimum deposits as low as $50,000.

What is considered a good 6-month CD rate right now? ›

Compare the best 6-month CDs
INSTITUTIONSTAR RATINGAPY ON 6-MONTH CDs
Popular Direct certificates of deposit4.815.35%
Marcus by Goldman Sachs High-Yield certificates of deposit4.805.10%
Bask Bank Certificates of Deposit4.765.35%
Synchrony Bank certificates of deposit4.754.80%
7 more rows

Who has the highest paying CD right now? ›

Best 1-Year CD Rates
  • Abound Credit Union – 5.25% APY.
  • Mountain America Credit Union – 5.25% APY.
  • KS State Bank – 5.25% APY.
  • Forbright Bank – 5.25% APY.
  • Merchants Bank of Indiana – 5.25% APY.
  • Seattle Bank – 5.25% APY.
  • Bread Savings – 5.25% APY.
  • Utah First Credit Union – 5.25% APY.

Do you pay taxes on CD interest? ›

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.

Who has a 5% APY? ›

Savings accounts with 5% APY or higher
BankAPYMin. deposit to open
CIT Bank5.00% (on balances of $5,000 or more)$100
DollarSavingsDirect5.00%$0
CommunityWide Federal Credit Union5.00%$1
Varo Bank5.00% on first $5,000 (3.00% on the rest)$0
12 more rows
4 days ago

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

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

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.

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