CD rates right now depend on the bank, the term length, and when you check — they change daily

There is no single "current CD rate." Banks set their own rates, and those rates shift based on what the Federal Reserve does with interest rates. A one-year CD at one bank might pay 4.50%, while another pays 4.75% for the same term. A five-year CD at the same bank might pay less than the one-year because the yield curve is inverted — lenders expect rates to fall, so they pay less for money locked up longer.

The only way to know what you can actually get is to check the banks and credit unions where you have accounts or where you want to open one. Most post their current rates on their websites, updated daily or weekly. Some of the largest banks — Chase, Bank of America, Wells Fargo — typically offer lower rates than online banks or credit unions because they have branch networks to maintain. Online banks like Marcus, Ally, and American Express often post higher rates because they have lower overhead.

Key Takeaways

  • CD rates change daily and vary by bank, so comparing rates across at least three to five institutions takes 15 minutes and can mean hundreds of dollars in extra interest over the CD's life.
  • Online banks and credit unions usually offer higher rates than large national banks for the same term length.
  • Shorter terms (three months to one year) and longer terms (five years and up) often pay differently depending on whether the Federal Reserve is expected to raise or lower rates.
  • The rate you see posted is the Annual Percentage Yield (APY), which already includes compounding, so you can compare it directly across banks without doing math.
  • Once you open a CD, the rate is locked in for the full term — it will not change if market rates rise or fall.

How to find the rates banks are offering today

Start with the banks where you already have a checking or savings account — they will show you their CD rates on the main website, usually under "Savings" or "Products." Write down the rate and the term (three months, six months, one year, two years, five years, and so on).

Then check two or three online banks. Marcus, Ally, American Express Personal Savings, and Discover all publish their rates on their homepages. Credit unions are harder to browse because each one sets its own rates, but if you belong to one, log in and check. If you do not, you can search for credit unions in your state through CO-OP Network or Alliant Credit Union, which often have competitive rates and allow membership from people outside their original geographic area.

Write the APY and term for each option side by side. The APY is what matters — it is the rate you will actually earn, already accounting for how often interest compounds. Do not compare the "nominal rate" or "stated rate" if you see it listed separately; use the APY.

Why rates differ between banks and term lengths

Large national banks pay lower rates because they do not need to compete as hard for deposits — people open accounts for convenience, not yield. Online banks have no branches, so they pass the savings to depositors in the form of higher rates. Credit unions are member-owned and often prioritize competitive rates on savings products.

Term length matters because of what the market expects to happen next. If the Federal Reserve is expected to raise rates, banks pay less for longer terms because they do not want to be locked into a low rate for five years when they could get a higher rate in a year. If rates are expected to fall, banks pay more for longer terms to lock in deposits before rates drop. This is why a five-year CD sometimes pays less than a one-year CD, or vice versa.

What to do once you have found the best rate

Before you open the CD, read the fine print about early withdrawal penalties. Most banks charge a penalty if you take your money out before the term ends — the penalty is usually a certain number of months of interest. A one-year CD with a three-month penalty means if you withdraw at month six, you lose three months of interest. Some banks charge a flat dollar amount instead. Know this before you commit.

Also check the minimum deposit. Most CDs require at least $500 or $1,000 to open, but some online banks allow $100 or even $1. If you have a small amount to save, this matters.

Once you have chosen a bank and a term, you can open the CD online in minutes if it is an online bank, or in person or online if it is a bank where you already have an account. The bank will ask you to fund it from a linked checking account or by transfer. The interest will be deposited into your account at the end of the term, or monthly or quarterly depending on the bank's policy.

How often rates change and when to check again

Banks adjust their CD rates in response to Federal Reserve decisions and market conditions. The Fed meets eight times a year and announces whether it is raising, lowering, or holding interest rates steady. When the Fed moves, banks usually adjust their CD rates within a few days.

If you are deciding whether to open a CD now or wait, check the Fed's calendar and upcoming economic reports. If a rate decision is coming in the next week or two, you might wait to see which direction rates move. If you are already in a CD, you cannot change the rate — it is locked in. But when that CD matures, you can shop for a new rate at that time.

Comparing CD rates across different term lengths

A three-month CD will always pay less than a one-year CD at the same bank, because you are tying up your money for less time. But a five-year CD might pay less than a one-year CD, or more — it depends on the yield curve. To decide which term makes sense for you, think about when you will need the money. If you might need it in two years, do not lock it into a five-year CD, because the early withdrawal penalty will eat into your gains.

If you want to hedge your bets, you can use a "CD ladder" — open multiple CDs with different maturity dates. For example, open a one-year, a two-year, and a three-year CD with the same amount in each. When the one-year matures, rates might be higher, and you can open a new three-year CD. This way you are not betting everything on one rate.

Where CD rates fit into your overall savings plan

A CD makes sense if you have money you will not need for a set period and you want a may provide return. The rate is locked in, so you do not have to worry about market swings. But you also cannot access the money without a penalty, so do not put money in a CD if you might need it for an emergency.

If you have three to six months of expenses in a regular savings account for emergencies, then a CD is a good place for money beyond that — money you are saving for a specific goal a year or more away. The rate you lock in today will be higher than what a savings account pays, and you will know exactly how much you will have when the CD matures.

Frequently Asked Questions

Do I need to check CD rates every day?

No. Check once when you are ready to open a CD, compare three to five banks, and choose. Rates do shift, but the difference between checking today and checking in a week is usually small — a few basis points. The bigger gain comes from choosing an online bank over a national bank, which can be 50 to 100 basis points.

What if rates go up after I open my CD?

Your rate stays the same for the full term. You cannot change it. This is the trade-off of a CD — you get certainty, but you give up the chance to benefit if rates rise. If rates do rise significantly, you can let the CD mature and open a new one at the higher rate, but you will have to pay an early withdrawal penalty if you want out sooner.

Are online bank CD rates really higher, or is there a catch?

Online banks genuinely pay more because they have lower costs. There is no catch — your money is insured by the FDIC up to $250,000 just like at a big bank. The only difference is you cannot walk into a branch. Everything is done by phone, email, or online.

Can I open multiple CDs at the same bank?

Yes. You can open as many CDs as you want at the same bank, and each one is insured separately up to $250,000 by the FDIC. This is useful if you are building a CD ladder or if you have more than $250,000 to save and want to spread it across multiple banks to stay within FDIC limits.

What happens when my CD matures?

The bank will notify you before the maturity date. You can then withdraw the money, open a new CD at the current rate, or move it to a savings account. If you do nothing, some banks automatically renew the CD at the current rate; others move it to a savings account. Check your bank's policy so you are not surprised.