Best CD Rates For December 2023 (Up to 6.00%)

Shawn Plummer

CEO, The Annuity Expert

Compare The Best CD Rates For December 2023

Compare the best CD rates today from 475 banks and credit unions with the following table, sorted by the highest APY to the lowest APY, including 3-month, 6-month, 1-year, 2-year, and 5-years. Additionally, sort by term using the “Months” column.

Disclaimer: Interest rates change daily, and we’re doing our best to keep you updated. Please double-check with your bank or credit union!

What Has The Highest CD Rates Right Now?

As of December 4, 2023, the bank or credit union the highest CD rate is 6.00% APY with Travis Credit Union. The minimum account opening deposit is $500.00.

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
Signature Federal Credit Union5.55% APY3 Months$500.00
Ponce Bank5.40% APY3 Months$1.00
Western Alliance Bank5.51% APY3 Months$1.00

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
TotalDirectBank5.76% APY6 Months$25,000.00
Franklin Mint Federal Credit Union5.60% APY6 Months$500.00
Western Alliance Bank5.70% APY6 Months$1.00

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
My eBanc5.77% APY12 Months$50,000.00
Popular Direct5.67% APY12 Months$10,000.00
State Bank of Texas5.85% APY12 Months$50,000.00

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
Luana Savings Bank5.63% APY24 Months$100,000.00
Maple Mark Bank5.40% APY24 Months$25,000.00
Newtek Bank5.60% APY24 Months$50,000.00

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
U.S. Senate Federal Credit Union5.23% APY36 Months$1,000.00
Bread Savings4.90% APY36 Months$1,500.00
Mountain Credit Union5.03% APY36 Months$2,500.00

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
Bread Savings4.50% APY48 Months$1,500.00
The State Exchange Bank4.50% APY48 Months$1.00
Barclays4.45% APY48 Months$1.00

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
Farmers Insurance5.00% APY60 Months$1,000.00
Barclays4.50% APY60 Months$0.00
Bread Savings4.50% APY60 Months$1,500.00

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 Union4.00% APY120 Months$500.00
Credit Human4.00% APY120 Months$500.00
Discover Bank3.80% APY120 Months$2,500
EmigrantDirect.com2.75% APY120 Months$1,000
Vio Bank2.75% APY120 Months$500
Equitrust CD-Like Annuity6.00% APY10 Years$10,000

What is a Certificate of Deposit (CD)?

A CD, or Certificate of Deposit, is a type of savings account where you agree to keep your money deposited for a specific CD term length. In return, financial institutions like banks and credit unions offer higher interest rates compared to traditional savings accounts. The key here is understanding CD terms and rates to maximize your earnings.

Cd Rates

How Do CD Rates Work?

The CD interest rates determine how much you’ll earn over the CD’s maturity date. Often, CD rates are dictated by several factors, including the federal reserve policies, fed funds rate, and national averages. Currently, the rates for December 2023 seem to be competitive, as many banks and credit unions aim to attract more customers.

How Do Cds Work

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.

This table provides a concise comparison between fixed-rate and variable-rate CDs based on the provided content. Let me know if you’d like any further details or adjustments!

Annual Percentage Yield (APY):

This term might sound complex, but it’s simply a measure that reflects the amount you will earn or owe over a year. The annual percentage yield (APY) is what you should look at when comparing CD accounts since it considers compound interest. This means that your initial deposit earns interest, and the interest you accumulate also leads to higher annual percentage yields.

Helpful Tool: Compound Interest Calculator

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

Where to Find the Best CD Rates?

The highest CD rates today can often be found with online banks. Online banks tend to have less overhead compared to brick-and-mortar counterparts, allowing them to offer competitive rates. However, always ensure that the online bank or internet bank you choose is FDIC-insured or, in the case of a credit union, backed by the National Credit Union Administration.

Jumbo CDs and promotional CDs might also offer higher-than-average rates, but always check for terms and conditions, especially early withdrawal penalties. The table above allows you to research the best jumbo CD rates today.

Helpful Tool: CD Calculator

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.

Helpful Tool: How does a 3-month CD work

Creating a CD Ladder

Instead of investing all your funds in a single CD, consider spreading them across multiple CDs with varying terms, known as a CD ladder. For example, invest in a one-year CD, a three-year CD, and so on. As each CD matures, you can reinvest or use the funds, providing flexibility and a steady stream of interest.

Helpful Tool: CD Ladder Calculator

Cd Laddering

Pros And Cons Of CDs

Benefits 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
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
Various types of CDs are available to suit different needs (e.g., No Penalty, Bump Up, Step-Up CDs)Complexity in understanding variable-rate CDs and fluctuating returns
No-penalty CDs offer more flexibility with penalty-free withdrawalsEarly withdrawal penalties (except for No-penalty CDs) if funds are withdrawn soon after opening

Is Your Money Safe in CDs?

Absolutely! CDs are among the safest investments. Most CDs from banks are FDIC insured (Federal Deposit Insurance Corporation) up to $250,000 per account ownership category, ensuring your money’s safety. Credit unions offer similar protection through the National Credit Union Administration (NCUA).

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).

Helpful Tool: Compare Accounts With An APY Calculator

History of CD Account Rates

The 1980s In the 1980s, the average CD interest rate was around 12%. This was a great return on investment, especially compared to savings account rates, typically around 0.75%. As a result, CDs became increasingly popular in the 1980s as more and more people began looking for ways to invest their money.

The 1990s
The early 1990s saw a decrease in CD interest rates, with the average rate falling to around 11%. This decline was due to several factors, including the recession of the early 1990s and the Gulf War. Despite this decrease, high-interest CDs remained popular investment options and were a good way to earn a higher return on your money.

The 2000s
The early 2000s were a period of instability for CD interest rates. The average rate fell to around ten percent in 2001, before rising to 12% in 2002. However, the terrorist attacks of September 11th caused a sharp decrease in CD interest rates, with the average rate falling to just over six percent in 2003. Despite this decrease, CDs remained a popular investment option for many people.

Next Steps

CDs are a fantastic way to grow your money securely. You can maximize your returns by understanding CD terms, rates, and the offerings of different financial institutions. Whether you’re looking for short-term CDs or specialty CDs or even exploring options beyond the traditional CD accounts, there’s an avenue for every investor. Remember, personal finance is about making informed decisions, so always stay updated with the current CD rates and trends. Happy investing!

Frequently Asked Questions

What are CD rates?

CD rates, also known as certificates of deposit rates, refer to the interest rates offered by banks for holding a CD account. These rates can vary depending on the bank, the term length of the CD, and market conditions. Savers often compare CD rates to find the best return on their investment.

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. Currently, consumers can buy CDs at 6% rates.

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 personal 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?

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

How long can you leave money in 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 on 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?

State Bank of Texas offers 5.85% APY for 12 months.

Who has the best CD rates?

Associated Credit Union offers high-yield CD rates at 5.90% APY for 19 months.

Who has the highest-paying CD right now?

Travis Credit Union offers one of the best credit union CD rates at 6.00% for four months.

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

Farmers Insurance Federal Credit Union offers one of the best CD interest rates today at 5.00% APY for 60 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 with more liquidity.

Best CD rates for 2023.

The best CD rates for 2023 can vary depending on the financial institution and the specific term of the deposit. It is recommended to compare offers from different banks to find the highest rates available. Online banks and credit unions often provide competitive rates, so consider exploring those options as well.

Current CD interest rates.

Current CD interest rates vary depending on the financial institution and the term length of the CD. As of [current date], some banks offer CD rates ranging from [percentage] for short-term CDs to [percentage] for long-term CDs. It is recommended to compare rates from different banks to find the best option for your financial goals.

*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

CEO, The Annuity Expert

Shawn Plummer is a licensed insurance agent and annuity broker with over a decade of first-hand experience. 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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