Top CD rates today: Rates continue to be competitive — June 14, 2024
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BLUEPRINT
Published 6:02 a.m. UTC June 14, 2024
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Certificates of deposit (CDs) are a good choice for those in search of a low-risk earnings-generating savings product for cash you don’t need immediately. Based on Curinos data, CD rates have been relatively stable over the past week as the Federal Reserve paused its rate hike policy.
| CD RATES TODAY | ||
|---|---|---|
Term
| Average APY
| High rate
|
3-month CD
| 1.28%
| 5.39%
|
6-month CD
| 1.80%
| 5.40%
|
1-year CD
| 1.96%
| 5.37%
|
2-year CD
| 1.71%
| 5.12%
|
3-year CD
| 1.62%
| 4.75%
|
Three-month CD rates
Rates on three-month CDs have seen no change since this time last week, remaining at 1.28% today.
Over the past month, rates on three-month CDs have climbed marginally.
The current national high for a three-month CD is 5.39%, which would earn more than $330 in interest with a $25,000 deposit.
Six-month CD rates
By choosing a top-rated six-month CD, you benefit from a winning mix of competitive interest rates and a short-term commitment.
The national average APY for six-month CDs is 1.80%, the same as last week and up from 1.79% one month ago.
The current top national rate for a 6-month CD is 5.40%, according to the data available from Curinos. Shopping around can help you find better deals.
With that rate, you’d earn almost $670 in interest if you deposited $25,000.
One-year CD rates
If you’re willing to lock away your savings for 12 months, you can grab even better rates. One-year CDs can give you returns as high as, or even higher than, longer-term options.
Rates on 12-month CDs are increasing. The national average APY is 1.96%, up one basis point from last week.
The current national high for a 12-month CD is 5.37%, which would earn around $1,340 in interest with a $25,000 deposit.
Two-year CD rates
Interest rates on CDs with longer terms have remained stable.
The nationwide average APY stands at 1.71%, the same as last week and a month ago.
The current national high for a 24-month CD is 5.12%. By locking in a rate close to this high, you’ll make the most of your returns on this longer-term investment.
If you invest $25,000 in a 24-month CD at the high rate of 5.12%, you’d earn around $2,630 in interest.
Three-year CD rates
The national average APY for a three-year CD stands at 1.62%, which is the same as last week and from a month ago.
The highest rate was 4.75%, which would net almost $3,731 in interest if you invested $25,000.
Methodology
To establish average certificate of deposit (CD) rates, Curinos focused on CDs intended for personal use. CDs that fall into specific categories are excluded, including promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs. The average CD rates quoted above are based on a $25,000 deposit.
Frequently asked questions (FAQs)
Generally, the earnings you make from your CDs are considered taxable income by the IRS. If you earn $10 or more, the financial institution should send you (and the IRS) a yearly 1099-INT form reporting your interest earnings. Even if you don’t receive a form, you’re still required to report the income.
For earnings of at least $1,500, you’ll need to itemize your interest income sources on Schedule B of the 1040 form. The silver lining is that there are some exceptions, but they mainly apply to government-issued investment vehicles.
The tax amount you pay depends on your specific marginal tax bracket.
Interest income from treasury bills, notes, and bonds, like I bonds, is exempt from state and local income taxes.
CD rates change on a regular basis, but the higher the better. As of June 13, 2024, the national average interest rate for a 12-month CD sat at 1.96% APY, according to data from Curinos. But you can find plenty of banks advertising APYs well above this average, especially if you take a look at the top contenders in our ranking of the best CD rates.
A basis point is the term used to describe one hundredth of one percentage point. Therefore, if the yield on a CD increased from 1.50% to 1.60%, it increased by 10 basis points.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
