Current CD Rates, Oct. 2024: APYs Are Falling
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The best CD rates have largely dropped from around 5% to mid-4% annual percentage yields for six-month through one-year terms. The era of 5% APYs on certificates of deposit is nearly over as the Federal Reserve cut its benchmark rate its benchmark rate at the Sept. 17-18 meeting, the first Fed rate decrease since March 2020.
Longer-term high-yield CDs, such as three- to five-year terms, have been around 4% for much of this year and are now slipping into 3% territory. Skip down to see current CD rates.
» COMPARE: Check out our best CD rates
High CD rates for now
The Fed dropped its benchmark rate on Sept. 18, 2024. As a result, banks and credit unions have started lowering CD rates. With a CD, you can lock in high rates while they’re still around.
2024 data highlight: bigger drops for high-yield CDs
CD rates at nearly two dozen online banks and credit unions saw bigger drops in August and September than previous months this year. While rates were on a slow decline since January, the Fed rate cut in September has accelerated the descent. For the median APYs of four popular CD terms, both short- and long-term yields slipped. The biggest change since January was for one-year CDs at 50 basis points (0.50 percentage point).
In contrast, rate drops from January through July were 20 basis points at most. Shorter-term rates generally remain higher than longer-term rates.
CD term | Median APY: Late Jan. 2024 | Median APY: Late Sept. 2024 | Change |
---|---|---|---|
6-month CD | 5.00%. | 4.55%. | -0.45 percentage point (45 basis points). |
1-year CD | 5.10%. | 4.60%. | -0.50 percentage point (50 basis points). |
3-year CD | 4.25%. | 3.90%. | -0.35 percentage point (35 basis points). |
5-year CD | 4.00%. | 3.60%. | -0.40 percentage point (40 basis points). |
See methodology details |
CD rate trends 2024: higher short-term CDs
The trend of shorter-term CD rates being higher than longer-term CD rates continues, both for national averages and among high-yield CDs. While seeing CD rates around mid-4% can be exciting, the term length is also important. You earn less interest with a six-month CD than a one-year CD with the same rate.
Overview: high-yield and national CD rates
Online-only banks and credit unions continue to have the most competitive interest rates on certificates of deposit, but these high-yield CD rates are now dropping faster than they have so far this year after the Fed cut the federal funds rate. See where rates are going in our CD rate forecast.
» Learn more: how Fed rate increases affect CDs
National average CD rates have also been higher than they’ve been for most of the past decade, though they remain far lower than CDs at online institutions. The gradual rise of online high-yield CD rates started in July 2021, after a relatively low-rate environment in 2020 and early 2021. After the Fed rate cut in September, CD rates across the industry will likely drop even more. (See more details about historical CD rates to see more context.)
High-yield CD rates today can be several times the national average of 1.42% APY for five-year terms and the national average of 1.88% APY for one-year terms. Unlike regular savings accounts, most CDs have fixed rates, so you can lock in a higher rate while it lasts.
Here's a look at current CD rates at some online banks and credit unions.
Current promotional CD rates
The following promotional CD rates stand out based on NerdWallet’s data analysis in late July 2024. Expiration dates for a promo are shown when available.
In general, promotional rates tend to be for irregular CD terms and featured on banking websites as a “promotional rate” or “CD special.” (For more details, see how promotional CD rates work.)
Name (click to see our review) | CD rate (or certificate rate) |
---|---|
Bank of America: 7-month CD | 4.60% APY.* |
NASA Federal Credit Union: 9-month Certificate | 4.99% APY. |
Bask Bank: 9-month CD | 4.60% APY. |
Synchrony Bank: 9-month CD | 4.50% APY. |
LendingClub: 10-month CD | 4.70% APY. |
NBKC Bank: 11-month CD | 4.50% APY. |
BMO: 13-month CD | 4.30% APY. |
NASA Federal Credit Union: 15-month Certificate | 4.54% APY. |
NASA Federal Credit Union: 49-month Certificate | 4.09% APY. |
*Bank of America’s rate is based on a San Francisco ZIP code. Rates may vary by location. |
Current CD rates: high-yield and national averages by term
Here’s a sample of three high-yield CD rates per term, compared to the national average, at various online banks and credit unions.
CURRENT CD RATES: 3-month | |
Popular Direct | 4.65% APY. |
Alliant Credit Union | 4.25% APY. |
EverBank (formerly TIAA Bank) | 3.95% APY. |
National average for 3-month CD | 1.55%. |
» See more best 3-month CD rates | |
CURRENT CD RATES: 6-month | |
Popular Direct | 4.50% APY. |
BMO Alto | 4.70% APY. |
Alliant Credit Union | 4.45% APY. |
National average for 6-month CD | 1.81%. |
» See more best 6-month CD rates | |
CURRENT CD RATES: 1-year | |
Popular Direct | 4.40% APY. |
BMO Alto | 4.50% APY. |
Bread Savings™ | 4.40% APY*. |
National average for 1-year CD | 1.88%. |
» See more best 1-year CD rates | |
CURRENT CD RATES: 3-year | |
Popular Direct | 3.65% APY. |
BMO Alto | 3.90% APY. |
Bread Savings™ | 3.50% APY*. |
National average for 3-year CD | 1.43%. |
» See more best 3-year CD rates | |
CURRENT CD RATES: 5-year | |
Popular Direct | 3.55% APY. |
BMO Alto | 4.00% APY. |
Bread Savings™ | 3.50% APY*. |
National average for 5-year CD | 1.42%. |
» See more best 5-year CD rates | |
“National average” refers to the Federal Deposit Insurance Corp. national averages. *Bread Savings disclosure |
Member FDIC
Marcus by Goldman Sachs High-Yield CD
4.30%
1 year
Member FDIC
Capital One 360 CD
4.30%
11 months
Federally insured by NCUA
Alliant Credit Union Certificate
4.50%
1 year
Member FDIC
Discover® CD
4.10%
1 year
» Want to see a wider pool of high rates? See our list of the best high-interest accounts
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