Current CD Rates for April 2024
Written by
Daria Uhlig
Edited by
Elizabeth Constantineau
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Certificates of deposit are one of the safest ways to save money you won’t need for a while. They’re similar to savings accounts in that your money earns interest and is insured up to $250,000 per depositor. But whereas savings accounts give you instant or near-instant access to your money, CDs hold your money for a predetermined period, called a term, while it earns interest.
Current CD Rates for April 2024
According to the most recent data from the Federal Deposit Insurance Corp. as of April 22, current CD rates range from 0.22% to 1.81%, depending on the term. One-month CDs earn the lowest average rates, and 12-month CDs earn the highest.
Several banks and credit unions offer high-yield CDs with better-than-average rates. Here are some of the best current CD rates for 12-month CDs:
| Financial Institution | Annual Percentage Yield | Minimum Opening Deposit |
|---|---|---|
| LendingClub | $2,500 | |
| BMO | $0 | |
| Vio Bank | $500 | |
| Marcus by Goldman Sachs, Member FDIC1 | $500 | |
| EverBank | $1,000 | |
| Capital One* | $0 | |
| Synchrony | $0 | |
| Barclays | $0 | |
| Discover® Bank, Member FDIC | $2,500 | |
| Ally | $0 |
How Do CDs Work?
Whereas a checking account or savings account lets you open the account with a small deposit, or even no deposit, and then add to your balance over time, a CD is a usually one-time deposit. You select a dollar amount and a term, and the CD earns the corresponding rate of interest. Most CDs have a fixed rate.
The bank periodically compounds the interest and credits it to your balance. That interest continues to accumulate until the CD matures — i.e., reaches the end of the term. At that time, you can renew the CD at the current rate or withdraw your initial deposit and all the interest it accrued. In most cases, you’ll forfeit some interest if you withdraw your money before the CD matures.
How Do Banks Set CD Rates?
Banks set their own CD interest rates based on many factors, including economic conditions, financial considerations and marketing goals. In addition, they use a federal interest rate called the federal funds rate as a benchmark.
The Federal Reserve’s Federal Open Market Committee sets the federal funds rate, raising or lowering it as economic conditions warrant, to keep prices stable and long-term interest rates moderate.
After reducing the federal funds rate twice in the early months of the pandemic to encourage people to spend, save and invest, the FOMC began increasing rates in early 2022 to help tame inflation. As of April 22, it has increased the rate 11 times in an effort to reduce the inflation rate to 2%, which is the Fed’s goal rate.
Here’s a look at those increases.
| Date | Increase | Rate |
|---|---|---|
| March 17, 2022 | 0.25% | 0.25% – 0.50% |
| May 5, 2022 | 0.50% | 0.75% – 1.00% |
| June 16, 2022 | 0.75% | 1.50% – 1.75% |
| July 28, 2022 | 0.75% | 2.25% – 2.50% |
| Sept. 22, 2022 | 0.75% | 3.00% – 3.25% |
| Nov. 3, 2022 | 0.75% | 3.75% – 4.00% |
| Dec. 15, 2022 | 0.50% | 4.25% – 4.50% |
| Feb. 2, 2023 | 0.25% | 4.50% – 4.75% |
| March 23, 2023 | 0.25% | 4.75% – 5.00% |
| May 4, 2023 | 0.25% | 5.00% – 5.25% |
| July 27, 2023 | 0.25% | 5.25% – 5.50% |
As you can see from the following chart, CD rates have moved in the same direction as the federal funds rate. But the change wasn’t immediate. However, they have jumped quite a bit by the most recent increase, on July 27, 2023.
Rates on most CDs have continued to rise even though there’ve been no further federal funds rate increases, illustrating the fact that, as important as the federal funds rate is, it’s not the only thing banks consider when they set rates.
| CD Term | Average Rates on Feb. 22, 2022 | Average Rates on Aug. 21, 2023 | Current Average Rate |
|---|---|---|---|
| 1 month | 0.03% | 0.22% | 0.22% |
| 3 months | 0.06% | 1.33% | 1.65% |
| 6 months | 0.09% | 1.34% | 1.57% |
| 12 months | 0.14% | 1.76% | 1.81% |
| 24 months | 0.18% | 1.50% | 1.54% |
| 36 months | 0.21% | 1.40% | 1.41% |
| 48 months | 0.22% | 1.34% | 1.32% |
| 60 months | 0.28% | 1.41% | 1.39% |
Will CD Rates Keep Going Up?
Whether CD rates will continue to rise depends in large part on the FOMC’s next moves with the federal funds rate. Fed Chairman Jerome Powell said in an April 3 speech, “We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2%.” With a rate decrease apparently on hold, it’s possible that CD rates could inch a bit higher. However, the Fed clearly is determined to begin reducing the federal funds rate as soon as conditions are right.
FAQ
High CD rates are catching the attention of consumers looking for a no-risk way to earn interest on their savings. Here are some of the questions they're asking before opening an account:- Who is paying the highest CD rates right now?
- While some financial institutions are offering temporary promotional rates, LendingClub has one of the highest posted rates for one-year CD accounts: 5.15%.
- Should I lock in a CD now or wait?
- CD rates could increase more, but there's no way to know for sure. A CD ladder can help maximize your savings no matter which way rates go. To build one, buy several CDs, each with a different term -- three months, six months and 12 months, for example -- instead of putting all your money into a single certificate.
- What is the best CD rate for $100,000?
- You need a jumbo CD to invest $100,000 in a single certificate. Some of the best jumbo CD rates can be found at Alliant Credit Union, Navy Federal Credit Union and Discover Bank.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 22, 2024.
1Marcus by Goldman Sachs CD rates are accurate as of 04/22/24.
*Capital One interest rates accurate as of 04/22/24. See website for all current rates.
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- FDIC. 2024. "National Rates and Rate Caps."
- Federal Reserve Bank of St. Louis. "Introduction to the FOMC."
- Chase. "What are CD rates and how are they determined?"
- Federal Reserve. 2024. "Speech."
