Best CD Rates For July 2024 (Up to 6.50%)

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Compare The Best CD Rates For July 2024

When it comes to saving and growing your money, Certificate of Deposit (CD) rates are a popular long-term savings account to consider. If you’re looking for the best CD rates in July 2024, we’ve compiled a list of the top banks offering competitive rates.

The highest CD rates for July 2024 are

  • Financial Partners Credit Union — 8 months, 6.00% APY, $1,000 minimum deposit
  • TotalDirectBank— 6 months, 5.51% APY, $25,000 minimum deposit
  • My Banking Direct— 5 months, 5.50% APY, $2,500 minimum deposit
  • Wichita National Fixed Annuity— 5 Years, 6.50% APY, $10,000 minimum deposit

Remember that these rates are subject to change and may vary by region.

The following table compares the best CD rates today from 475 banks and credit unions, sorted from the highest APY to the lowest APY for 3-month, 6-month, 1-year, 2-year, and 5-year terms. You can also sort by term using the “Months” column.

Disclaimer: Interest rates change all the time. Our team updates this table daily. Please double-check with your bank or credit union!

What Has The Highest CD Rates Right Now?

As of July 15, 2024, the bank or credit union with the highest CD rate is 6.00% with Financial Partners Credit Union. The minimum account opening deposit is $1,000.00.

Consider a fixed annuity if you seek a higher interest rate to grow your savings. The long-term savings account works almost identically to a certificate of deposit but has higher rates, liquidity, and grows tax-deferred.

The Best 3-Month CD Rates

The following banks and credit unions have the highest CD rates for three months.

Best 3-Month CD RatesRateTermMinimum Deposit
Merrick Bank5.25% APY3 Months$25,000.00
Banesco USA5.25% APY3 Months$1,000.00
Total Direct Bank5.51% APY3 Months$25,000.00

The Best 6-Month CD Rates

The following banks and credit unions have the highest CD rates for six months.

Best 6-Month CD RatesRateTermMinimum
American Airlines5.35% APY6 Months$1,000.00
My eBanc5.45% APY6 Months$50,000.00
Total Direct Bank5.51% APY6 Months$25,000.00

The Best 1-Year CD Rates

The following banks and credit unions have the highest CD rates for 12 months.

Best 12-Month CD RatesRateTermMinimum
Eastman Credit Union5.40% APY12 Months$100,000.00
NexBank5.40% APY12 Months$25,000.00
USAlliance Financial5.40% APY12 Months$500.00

The Best 2-Year CD Rates

The following banks and credit unions have the highest CD rates for 24 months.

Best 2-Year CD RatesRateTermMinimum
Crescent Bank4.90% APY24 Months$1,000.00
NexBank4.80% APY24 Months$10,000.00
Eastman Credit Union5.40% APY24 Months$1,000.00

The Best 3-Year CD Rates

The following banks and credit unions have the highest CD rates for 36 months.

Best 3-Year CD RatesRateTermMinimum
Credit Human4.65% APY36 Months$500.00
First National Bank4.37% APY36 Months$500.00
Crescent Bank4.80% APY36 Months$1,000.00

The Best 4-Year CD Rates

The following banks and credit unions have the top CD rates for 48 months.

Best 4-Year CD RatesRateTermMinimum
Eastman Federal Credit Union4.65% APY48 Months$1,000.00
Crescent Bank4.50% APY48 Months$1,000.00
Credit Human4.65% APY48 Months$500.00

The Best 5-Year CD Rates

The following banks and credit unions have the highest CD rates for 60 months.

Best 5-Year CD RatesRateTermMinimum
First National Bank of America4.50% APY60 Months$1,000.00
Eastman Credit Union4.75% APY60 Months$100,000.00
Apple Federal Credit Union5.00% APY60 Months$500.00

The Best 10-Year CD Rates

These credit unions and banks have the highest payouts on 10-year CDs.

Best 10-Year CD RatesRateTermMinimum
Apple Federal Credit Union3.81% APY120 Months$500.00
Credit Human4.05% APY120 Months$500.00
Discover Bank®️3.75% APY120 Months$2,500
Redstone Federal Credit Union3.76% APY120 Months$500.00
Heartland National – CD Like Annuity5.80% APY10 Years$5,000

Compare CD Accounts

Leverage this tool to assess and compare the growth potential of three distinct certificates of deposit. It will provide clear insight for making informed decisions about your financial growth.

CD Rates Forecast

As we look ahead, it’s important to consider the forecast for CD rates and the factors that may impact them. One significant influencer is the Federal Reserve and its decisions regarding interest rates.

CD rates are starting to decline due to anticipated interest rate cuts by the Federal Reserve. The pace of this decline will be determined by a combination of the actual cuts made by the Federal Reserve and various market conditions.

Monitoring the Federal Reserve’s decisions and their subsequent impact on CD rates is crucial for staying informed about the latest developments. Understanding these factors can help individuals make informed decisions regarding their savings and investment strategies.

2024 CD Rates Forecast
Predicted TrendDecline
Influencing FactorsAnticipated interest rate cuts by the Federal Reserve
ImpactDependent on the actual cuts and market conditions
RecommendationMonitor Federal Reserve decisions to stay informed
Cd Rates

Calculating CD Returns

Understanding how your CD’s returns are calculated is crucial for assessing its overall profitability. The two common methods used are simple interest and compound interest.

  • With simple interest, the interest earned on your CD is calculated solely based on the principal amount and the agreed-upon interest rate. This means that the interest remains constant throughout the CD’s term.
  • Compound interest, on the other hand, allows your investment to grow more significantly over time. With this method, the interest earned is added to the principal, creating a higher balance on which the subsequent interest calculations are based. As a result, compound interest provides the potential for greater returns compared to simple interest, especially for longer-term CDs.

How to Choose the Right CD

When it comes to choosing a certificate of deposit (CD) that aligns with your financial goals, there are several important factors to consider. By carefully evaluating these factors, you can make an informed decision and maximize your savings potential. Here are some key considerations:

Annual Percentage Yield (APY)

The APY is a critical factor to consider when choosing a CD. It represents the interest rate you will earn on your investment over the course of a year, including compound interest. Higher APYs generally translate to greater returns on your savings. Compare the APYs different banks offer and select the highest rate available to maximize your earnings.

Minimum Deposit Requirements

Each bank sets its own minimum deposit requirement for CDs. You must ensure you meet the minimum deposit amount before opening an account. Some banks may have higher minimum deposit requirements than others, so consider your budget and choose a CD that aligns with your financial capabilities.

Early Withdrawal Penalties

CDs are designed for long-term investments, and withdrawing funds before maturity often incurs penalties. Familiarize yourself with the early withdrawal penalties associated with each CD option you’re considering. Evaluate how likely it is that you may need access to your funds before the CD’s term ends and choose an option with a reasonable penalty structure.

Term Length

The term length of a CD refers to the duration of the investment. Common terms range from 3 months to 5 years, with longer terms generally offering higher interest rates. Consider how long you can comfortably leave your money locked up in a CD without needing access. Selecting a term length that aligns with your financial goals and liquidity needs is crucial.

Comparing Fixed Rate and Variable rates.

Feature/AspectFixed-Rate CDsVariable-Rate CDs
Interest Rate StabilityGuaranteed to stay the same throughout the term.Fluctuates throughout the term, tied to benchmarks.
Return on InvestmentPredictable return.Potential for higher return if interest rates rise.
Risk LevelLow-risk.Exposed to interest rate risk.
FlexibilityLimited; penalties for early withdrawal.More flexibility; some offer penalty-free withdrawals.
ComplexityStraightforward and easy to understand.Can be more complex due to fluctuating rates.
Potential Downsides– Limited flexibility.
– Might offer lower returns compared to other investments.
– Unpredictable returns.
– Complexity in understanding.
Ideal ForInvestors who want a guaranteed return and are risk-averse.Investors willing to take on some risk for potentially higher returns.
The Best Cd Rates Today

Types of CDs and Their Features

  • Traditional CDs: The most common type, these have a fixed interest rate and a set term. You’ll face early withdrawal penalties if you take out money sooner than the maturity date.
  • No-Penalty CDs: Perfect for those uncertain about locking away their money for extended periods. They allow you to withdraw money early without any early withdrawal penalty.
  • Bump Up CDs: With these, if the CD rate today or in the future increases, you can request a ‘bump up’ to the higher rate.
  • Step-Up CDs: The interest rate increases at set intervals, usually annually.
  • Jumbo CDs: These require a higher minimum deposit but generally offer better CD rates than regular CDs.
  • Brokered CDs: These are sold through brokers rather than banks; they offer high yields but might have different rules concerning early withdrawal.
  • Add-On CDs: These allow additional deposits during the CD term without changing the maturity date.
The Highest Cd Rates Today

Long-Term CD vs. Short-Term CD

Feature/AspectLong-Term CDsShort-Term CDs
DurationTypically five years or more.Six months to one year.
Interest RatesGenerally higher than short-term CDs.Typically lower than long-term CDs.
Protection from Rate FluctuationsYes, offers protection from interest rate fluctuations for the entire term.No, more exposed to rate fluctuations.
Access to FundsLimited; might incur early withdrawal penalties.More flexible; easier access to funds without long commitment.
Inflation RiskThose wanting to lock in high rates for a longer period can commit funds without needing them.Less exposure due to shorter duration.
Ideal ForMore flexible; easier access to funds without a long commitment.Those uncertain about their financial future or anticipating higher interest rates in the near future.

Pros And Cons Of CDs

Pros of CD RatesCons of CD Rates
Higher interest rates compared to traditional savings accountsLimited flexibility with penalties for early withdrawal
Fixed interest rate provides stability and predictable returnsMight offer lower returns compared to other investments like stocks and annuities
FDIC insured up to $250,000 per account category, ensuring safety of fundsInterest rate risk with variable-rate CDs, returns can fluctuate
Various types of CDs available to suit different needs (e.g., No Penalty, Bump Up, Step-Up CDs)Inflation risk, especially with long-term CDs, as the purchasing power of the interest earned may decrease over time

Alternatives to CDs

Though CDs offer reliable returns, sometimes you might be looking for more liquidity or slightly different terms:

  • High-Yield Savings Accounts: These are high-interest savings accounts.
  • Money Market Accounts: They combine features of both checking and savings accounts, usually offering higher interest rates than traditional savings accounts but might have monthly fees.
  • Fixed Annuities: These pay fixed interest rates, but they’re not FDIC-insured but rather insured by an insurance company. They also come with a more extended commitment period (up to 20 years).

How We Can Help

At The Annuity Expert, we understand that finding the right investment can be overwhelming. With 15 years of experience as an insurance agency, annuity broker, and retirement planner, we’re dedicated to helping you navigate your options to find the best solutions at the lowest costs.

Your Financial Challenge

The core problem we solve is finding secure and profitable savings solutions tailored to your needs. Many savers struggle with low-interest rates and uncertain financial products, which can lead to anxiety and frustration. We recognize these challenges and are here to offer our expertise.

Our Commitment to You

We believe in transparency, reliability, and personalized service. Our goal is to provide you with the highest quality financial products that ensure your money works as hard as you do.

What We Recommend

Step 1: Initial Consultation

  • First Step: Schedule a free consultation with our experts. During this session, we will understand your financial goals and assess your current investment strategy.
  • Main Benefit: Gain clarity on your financial goals and the best path forward.

Step 2: Personalized Recommendations

  • What We Do: Based on your unique needs, we will provide tailored investment recommendations that offer the best returns and terms.
  • Main Benefit: Receive personalized advice that maximizes your investment potential.

Step 3: Secure Your Investment

  • Final Step: We assist you in opening your chosen investment accounts, ensuring all details are handled smoothly and efficiently.
  • Main Benefit: Secure a high-return investment with confidence, knowing you’ve made an informed decision.

Features and Benefits

  • Expert Advice: Personalized guidance to help you select the best investment options.
  • Updated Rates: Access to the latest and most competitive investment products.
  • Convenience: A wide range of investment options in one place.

Addressing Common Objections

  • Objection: “I’m worried about investment risks.”
    Response: We’ll help you choose a diversified portfolio that matches your risk tolerance and financial goals.
  • Objection: “Investment options seem too complex.”
    Response: Our experts simplify the process, providing clear and concise recommendations tailored to your needs.

Without our guidance, you might miss out on the best investment options and returns, potentially impacting your financial growth and stability.

By working with us, you’ll enjoy higher returns on your investments, peace of mind from secure financial products, and the confidence that comes with expert financial advice.

Imagine the relief and satisfaction of knowing your investments are growing efficiently and securely. Our tailored approach ensures you feel valued, supported, and confident in your financial future.

For free advice or a personalized quote, contact The Annuity Expert. Let us help you secure the best investment options and achieve your financial goals.

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Questions From Our Readers

What is a CD?

A CD is a savings account with a fixed interest rate and withdrawal date. Banks and credit unions offer it and typically have higher interest rates than regular savings accounts. Withdrawal before the maturity date incurs penalties. CDs are a low-risk way to save money with a guaranteed return.

What is the highest CD rate in history?

According to the Federal Reserve Bank of St. Louis data, the best bank CD rates were prevalent more than 30 years ago, with an 18.65% return on three-month CDs in 1980. Today, consumers can buy CDs above 5% but no longer achieve 6% rates.

Are CD rates forecasted to increase or decrease?

As of July 2024, interest rates are forecasted to decrease gradually over the next 12 months.

Are CDs safe?

Your CD is protected up to $250,000 when held at an FDIC-insured bank or an NCUSIF-insured credit union, whether with an online bank, a physical bank, or a credit union, as the U.S. government backs these accounts. Ensure you stay within the insurance limits for each account ownership category.

Are there fees associated with CDs?

CDs usually have penalties for early withdrawals, except for No-penalty CDs. However, even these might have penalties if funds are withdrawn within the first 6 to 7 days of opening.

What is considered a good CD rate?

A reasonable CD rate is influenced by your financial needs and how long you can lock up your money. Typically, longer terms offer better yields because banks value the certainty of holding your funds for a set duration. To ensure you’re getting a good deal, compare CD rates to national averages, noting that some banks offer rates exceeding 5 percent.

Is an online bank the best choice for a CD?

Due to their lower overhead costs, online banks often provide higher APYs than traditional brick-and-mortar banks. These savings are passed to customers at higher rates. Additionally, online banks might offer more competitive rates than local banks to attract and retain customers.

How long can you leave money on a CD?

CDs typically renew automatically, but if left unclaimed, they can be transferred to the government based on state laws. To prevent your CD from being considered abandoned, maintain regular contact with your bank and ensure they have your current mailing address.

Do CDs have beneficiaries?

Banks let you name a beneficiary for your CD, who will get your savings if you die. Experts recommend doing this. Without a named beneficiary, your CD savings will go through a court process called probate after your death.

Can you lose money in a CD?

Your money is safe if your CD is in an FDIC-insured bank or NCUA credit union and meets their guidelines. However, withdrawing early could cost you some interest or even part of the principal.

What happens if I withdraw from a CD early?

Early withdrawal from most CDs results in a penalty, typically a few months to a year of interest. Only no-penalty CDs allow fee-free early withdrawals. Explore various CD types for more information.

Who has the highest 12-month CD rate?

NexBanc offers 5.40% APY for 12 months.

What is the highest-paying CD rate right now?

Financial Partners Credit Union offers 6.00% APY for 8 months.

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

Eastman Credit Union offers one of the best CD interest rates today at 5.40% APY for 24 months.

Who has the best online CD rates?

Raisin offers the highest online bank CD rates.

Can you withdraw interest from CD without penalty?

In most cases, you cannot withdraw interest from a certificate of deposit (CD) without incurring a penalty. The penalty is typically a percentage of the interest earned or a certain number of days’ worth of interest. However, there are no-penalty CDs that earn less interest and have more liquidity.

What are the different CD terms available?

CD terms can range from 3 months to 10 years or more. Each term offers different interest rates and potential returns. When choosing a CD term, consider your investment goals and time horizon.

What is a good cd rate?

Any APY above 4% is considered a good CD rate. Select a longer term because rates are only decreasing going forward.

What’s the minimum deposit for a CD?

The minimum deposit for a CD is $1.

Can I roll a CD that matured yesterday into another CD?

You can typically roll over a Certificate of Deposit (CD) that matured yesterday into another CD. Most financial institutions offer a grace period after a CD’s maturity, during which you can transfer the funds to a new CD. This grace period varies but is commonly around 7 to 10 days from maturity. It’s important to act within this window to avoid automatic renewal or transfer of the funds to a different account type.

How do bank certificates work?

Bank Certificates of Deposit (CDs) are savings accounts with a fixed interest rate and term. When you deposit money in a bank for a specified period, the bank pays you interest in return. Withdrawing funds before the term ends may incur penalties. CDs are a low-risk investment option for earning interest on savings.

Where can I get 7% interest on my money?

Finding a guaranteed 7% interest rate on traditional savings or investment products like CDs or high-yield savings accounts is highly unlikely. Multi-Year Guaranteed Annuities (MYGAs) offer a fixed interest rate for a specified term and currently offer between 5% and 6%, depending on the term and the issuer.

When is CD interest taxable?

For traditional CDs, the interest earned is taxable in the year it is credited to your account, even if you don’t withdraw it. This means you need to report and pay taxes on this interest annually. However, the tax treatment differs for CDs held within an Individual Retirement Account (IRA). Interest earned on IRA CDs grows tax-deferred, meaning you won’t owe taxes on the interest until you begin taking distributions, typically in retirement.

What is the difference between a money market account and a CD?

Liquidity and interest rates are the main difference between a money market account and a CD. A money market account is more liquid, allowing you to access funds more easily than a CD, which locks in your money for a specified term. However, money market accounts typically offer lower interest rates than CDs. Additionally, money market accounts may require a minimum balance to maintain to qualify for the advertised interest rate, whereas CDs typically have fixed rates regardless of account balance.

Are CD rates fixed or variable?

CD (Certificate of Deposit) rates are generally fixed, meaning the interest rate you agree upon when opening the CD remains the same throughout its term. This fixed rate allows for predictable returns, making CDs a popular choice for those seeking stability in their investment.

Can you have multiple CD accounts?

Yes, you can have multiple CD accounts. Many people open multiple CDs at different banks or the same financial institution but with varying terms and rates. This strategy, known as a CD ladder, can help manage liquidity needs and take advantage of different interest rates, optimizing returns over time while ensuring investment parts mature at different intervals.

What does APY mean on a CD?

APY stands for Annual Percentage Yield. It refers to the amount of interest you earn on a CD (Certificate of Deposit) over a year, considering the effect of compounding interest. APY provides a more accurate depiction of your earnings than the simple interest rate because it includes how often the interest is applied to the balance.

Are CD rates guaranteed?

Yes, CD rates are guaranteed for the certificate of deposit term once you open an account and make a deposit.

When is the best time to invest in CDs?

The best time to invest in certificates of deposit (CDs) is typically when interest rates are high. High-interest rates mean you can lock in a better return on your investment for the duration of the CD term. During periods of high rates, investing in longer-term CDs can be particularly advantageous, as you secure a higher rate for a more extended period, protecting your investment against potential drops in interest rates in the near future.

What’s the longest CD term available?

Typically, the longest term available for a certificate of deposit (CD) is 10 years. Some financial institutions may offer CDs with terms as long as 10 years, providing a fixed interest rate for the duration of the term.

Can you negotiate CD rates with banks?

Generally, bank CD rates are not negotiable. Most banks set their CD interest rates based on broader economic conditions and the Federal Reserve’s rates, which are typically fixed and standardized for all customers.

What is the difference between an IRA CD and a regular CD?

IRA and regular CDs differ in how they’re funded and taxed. An IRA CD comes from a retirement account, offering tax benefits. Regular CDs are funded from regular savings and don’t have tax advantages. IRA CD earnings grow tax-free or tax-deferred, while regular CD earnings are taxed yearly.

How does a callable CD work?

A callable CD is a type of certificate of deposit that gives the issuing bank the right to terminate the CD before its maturity date. Typically, the bank will offer a higher interest rate for callable CDs as an incentive for the risk that they might “call” it, or pay it off early. If the bank decides to call the CD, it will return the principal and any accrued interest to the depositor. This option is usually exercised when interest rates fall, allowing the bank to refinance the debt at a cheaper rate.

What is the difference between APY and interest rate on a CD?

APY (Annual Percentage Yield) includes compounding interest, showing the true yearly return. The interest rate is the simple annual interest without compounding. APY provides a more accurate measure of CD earnings.

*Disclosure: Some of the links in this guide may be affiliate links. I may receive a commission at no cost if you purchase a policy. It helps us keep the lights on!

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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