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Certificates of deposit (CDs) can be an excellent option if you’re seeking a low-risk investment to earn interest on money you don’t need right away. CD rates held mostly steady over the past week, according to data from Curinos, as the Federal Reserve put a pause on its effort to curb inflation by raising short-term rates.

CD RATES TODAY
Term
Average APY
High rate
3-month CD
1.26%
5.39%
6-month CD
1.79%
5.40%
1-year CD
1.96%
5.37%
2-year CD
1.71%
5.00%
3-year CD
1.62%
4.75%
Source: Curinos. Data accurate as of May 22, 2024. Quoted rates are based on a $25,000 deposit.

Three-month CD rates

Rates on three-month CDs have seen no change since this time last week, remaining at 1.26% today.

Over the past month, rates on three-month CDs have climbed marginally.

The current national high for a three-month CD is 5.39%, which would earn more than $330 in interest with a $25,000 deposit.

Six-month CD rates

By choosing a top-rated six-month CD, you benefit from a winning mix of competitive interest rates and a short-term commitment.

The national average APY for six-month CDs is 1.79%, the same as last week and up from 1.77% one month ago.

The current top national rate for a 6-month CD is 5.40%, according to the data available from Curinos. Shopping around can help you find better deals.

With that rate, you’d earn almost $670 in interest if you deposited $25,000.

One-year CD rates

If you’re up for setting aside your savings for a full year, you’ll be able to grab even more impressive rates. One-year CDs can give you returns as high as, or even higher than, longer-term options.

Rates on 12-month CDs are moving up. The national average APY is 1.96%, up one basis point from last week and three basis points from a month before.

The current national high for a 12-month CD is 5.37%, which would earn roughly $1,340 in interest with a $25,000 deposit.

Two-year CD rates

Interest rates on CDs with longer terms, such as those spanning two years, are also on the rise.

The national average APY is 1.71%, a one basis point jump from last week and up two basis points from one month ago.

Right now, the highest national rate for a 24-month CD is 5.00%, which would earn nearly $2,570 on $25,000 in savings.

Three-year CD rates

The national average APY for a three-year CD stands at 1.62%, which is flat to where it stood last week and up from 1.61% a month ago.

The highest rate was 4.75%, which would net almost $3,731 in interest if you invested $25,000.

Methodology

To establish average certificate of deposit (CD) rates, Curinos focused on CDs intended for personal use. CDs that fall into specific categories are excluded, including promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs. The average CD rates quoted above are based on a $25,000 deposit.

Frequently asked questions (FAQs)

Generally, the earnings you make from your CDs are considered taxable income by the IRS. If you earn $10 or more, the financial institution should send you (and the IRS) a yearly 1099-INT form reporting your interest earnings. Even if you don’t receive a form, you’re still required to report the income.

For earnings of at least $1,500, you’ll need to itemize your interest income sources on Schedule B of the 1040 form. The silver lining is that there are some exceptions, but they mainly apply to government-issued investment vehicles.

The tax amount you pay depends on your specific marginal tax bracket.

Interest income from treasury bills, notes, and bonds, like I bonds, is exempt from state and local income taxes.

CD rates change on a regular basis, but the higher the better. As of May 22, 2024, the national average interest rate for a 12-month CD sat at 1.96% APY, according to data from Curinos. But you can find plenty of banks advertising APYs well above this average, especially if you take a look at the top contenders in our ranking of the best CD rates.

A basis point is the term used to describe one hundredth of one percentage point. Therefore, if the yield on a CD increased from 1.50% to 1.60%, it increased by 10 basis points.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Taylor Tepper

BLUEPRINT

Taylor Tepper is the lead banking editor for 91Ӱ Blueprint. Prior to that he was a senior writer at Forbes Advisor, Wirecutter, Bankrate and Money Magazine. He has also been published in the New York Times, NPR, Bloomberg and the Tampa Bay Times. His work has been recognized by his peers, winning a Loeb, Deadline Club and SABEW award. He has completed the education requirement from the University of Texas to qualify for a Certified Financial Planner certification, and earned a M.A. from the Craig Newmark Graduate School of Journalism at the City University of New York where he focused on business reporting and was awarded the Frederic Wiegold Prize for Business Journalism. He earned his undergraduate degree from New York University, and married his college sweetheart with whom he raises three kids in Dripping Springs, TX.

Megan Horner

BLUEPRINT

Megan Horner is editorial director at 91Ӱ Blueprint. She has over 10 years of experience in online publishing, mostly focused on credit cards and banking. Previously, she was the head of publishing at Finder.com where she led the team to publish personal finance content on credit cards, banking, loans, mortgages and more. Prior to that, she was an editor at Credit Karma. Megan has been featured in CreditCards.com, American Banker, Lifehacker and news broadcasts across the country. She has a bachelor’s degree in English and editing.