September 1, 2022 – Forbes Advisor

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Today’s best interest rates on CDs, or certificates of deposit, range as high as 3.25%, depending on the CD’s term. Take a look at the top rates and typical yields being offered on CDs of various durations.

Related: Compare the Best CD Rates

Highest CD Rates Today: 1-Year, 6-Month, 9-Month Terms

The highest interest rate currently being offered on a one-year CD—one of the most popular CD terms—is 2.86%, according to data from If you find a 12-month CD with a rate in that vicinity, you’ve found a good deal. One week ago, the best rate was a lower 2.85%.

The average APY, or annual percentage yield, on a one-year CD is now 1.38%, up from 1.37% a week ago. APY provides a more accurate calculation of the annual interest you’ll earn with a CD because it takes into account compound interest. That’s the interest you earn not only on your deposit (or principal) but also on the interest in the account.

If you’re interested in a shorter-term CD, today’s best six-month CD rate is 2.25%. The top rate was the same last week. The current average APY for a six-month CD is 0.90%, compared to 0.91% last week at this time.

On nine-month CDs, the highest interest rate is now 1.98%; last week it was the same. Nine-month CDs today are being offered at an average APY of 0.91%, up from 0.90% a week ago.

Highest CD Rates Today: 15-Month, 18-Month and 2-Year Terms

On a 15-month CD, today’s best interest rate is 2.76%; you’ll do well if you can find a rate in that range. One week ago, the top rate was 2.66%.

The highest rate on an 18-month CD is currently 2.95%—up from 2.76% a week ago. The average APY is 2.01%, down slightly from 2.02% a week ago.

If you can hold out for two years, 24-month CDs today are being offered at interest rates as high as 2.96% APY. The top rate last week at this time was a similar 2.96%. Two-year CDs now have an average APY of 1.60%. That’s a jump from 1.58% last week at this time.

CDs are time deposit savings accounts that pay a fixed interest rate. You’re not supposed to touch your deposit until the CD’s term is up, whether that’s in six months, one year or five years. Your patience is rewarded with interest that’s usually better than what you’d earn from a regular savings account.

If you withdraw money from a CD before “maturity”—when it hits the end of its term—and you can be slapped with stiff penalties. For example, you can lose up to six months’ worth of interest if you make an early withdrawal from a one-year CD.

Highest CD Rates Today: 3-Year and 5-Year Terms

CDs with longer terms often have some of the most attractive interest rates and APYs—if you’re willing to keep your money locked up for years.

The average APY on a three-year CD is now 1.68%, down from 1.70% a week ago.

On a five-year CD, the highest rate today is 3.25%, the same as one week ago. APYs are averaging 1.88%, the same as this time last week.

The longer the term, the harsher the early withdrawal penalty. It’s not unusual to lose one full year’s worth of interest or more if you break open a five-year CD too soon. Be absolutely certain you understand the penalty before you make your investment.

How CDs Work

You “purchase” a CD from a financial institution by opening the account with a lump-sum deposit, which becomes the CD’s principal. CDs and share certificates (the credit union equivalent of bank CDs) often require that you make a minimum deposit. Minimum requirements vary by institution and range from a dollar to tens of thousands of dollars. Some institutions don’t require a minimum at all.

Once you deposit your principal, you start the clock on your timed investment and begin earning interest. The bank or credit union will provide you with regular statements showing how much interest you’re accruing.

Remember, you must avoid the temptation of tapping into your CD before the term ends. Early withdrawal penalties can be so severe that they take back your interest and then start eating into your principal.

Are CDs a Good Deal?

CDs typically pay higher interest than other savings vehicles, even the best high-yield savings accounts and money market accounts. And while they may not offer the kind of enviable returns that are possible with stocks, CDs beat the more attention-getting investments in one regard: They’re one of the safest places to put your money.

Investors lost millions in the 2022 crypto crash, and putting your money into the stock market, real estate or gold and other commodities can be risky, too. But when you buy a certificate of deposit or credit union share certificate from a federally insured financial institution, you can sleep easily with the knowledge that your investment is protected.

The FDIC provides you with up to $250,000 in coverage in the event the bank issuing your CD ever fails. For share certificates purchased from federal credit unions and most state-chartered credit unions, the NCUA insures your money up to the same limit.

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