Best CD rates of January 2024 (up to 6.5%)

“The top-yielding savings accounts, money market accounts, and CDs are earning well more than the current rate of inflation, and this is likely to persist in 2024,” says Bankrate Chief Financial Analyst Greg McBride. “Interest rates will probably come down a bit, but so too will inflation. The yields you lock in today will look even better as inflation ticks lower during the year.” (See some of the highest-paying savings accounts you can get now here.)

Here’s what to know about the CDs with the best APY in January 2024, and our top finds below. For those who don’t meet the often highly restrictive set of requirements associated with the best accounts, we’ve also listed the five most accessible CD rates this month, as well.

Why are certificate of deposit rates so much higher now?

Though well below the industry’s current leading offers — many of which now exceed 6% APY or higher — the national average CD deposit rate has nevertheless remained in a steady upward progression over the period. The average national deposit rate for a 12-month CD reached 1.86% APY as of Dec. 18, according to the latest figures from the Federal Deposit Insurance Corporation (FDIC). This time last year, CDs with the same maturity date carried an average rate of 1.07% APY. On Dec. 20, 2021, the average 12-month CD carried a rate of just 0.13% APY. 

Part of this upward march on CD rates is due to the Federal Reserve raising rates. The U.S. central bank has raised interest rates 11 consecutive times since the beginning of 2022 — four of those times in 2023 — in its efforts to increase borrowing pressure and lower national inflation to its target 2%.

Liquidity has become a primary focus for many banks and credit unions in the months and years following the COVID-19 pandemic and various bank failures that plagued financial markets in early 2023, says Dan Carey, a certified public accountant and head of finance and accounting at Cambridge Savings Bank.

“With the Federal Reserve rapidly rising rates, there has been an emphasis to secure deposits with terms which typically come with higher rates than transactional accounts like savings or money markets,” Carey says, adding that “it allows the consumer to generate interest income relatively safely and allows the bank to secure a deposit for a defined period of time.”

Note that the federal-funds rate has remained relatively unchanged since July 2023. That, Carey suggests, may signify the peak, or end, of the current rising rate environment. “If you are looking to lock in a higher rate CD, now might be the best time to do so,” Carey says. (See some of the highest-paying CDs you may get now here.)

How to select the certificate of deposit that’s right for you

At the start of 2024, interest rates from the leading CD providers have risen to levels not seen since the early 1990s, Bankrate data show. That can be lucrative for consumers. At 6%, a $10,000 fixed-rate 12-month CD would earn $600 in interest at the end of a 12-month term. At the national average that same balance would earn just $186 over the period.

McBride says there are a few things to watch out for before making a deposit. “Stick to CDs issued directly by federally-insured banks and credit unions,” says McBride. “Avoid equity-linked or other index CDs that are more a hybrid between asset classes than an actual cash holding. Even brokered CDs can be tricky to get out of if you need your money prior to maturity. Above all else, match the CD maturity to your investment timeframe.”

Beyond that, Carey adds that a detailed look at the fine print will also help determine any other fees or financial constraints that could eat away at that precious interest. “Since a CD is a defined term, there is typically a penalty charged for withdrawing earlier than the term ends,” Carey says, adding that “the penalty is normally a few months of interest earned and never touches the principal balance you deposited. You’ll want to be comfortable with losing interest earned on your investment in case an emergency happens, and you need to withdraw.”

10 of the best CDs rates of January 2024

Here are the 10 best deposit rates for CDs in January 2024. All of these accounts are protected by either the FDIC or National Credit Union Administration (NCUA), unless otherwise noted. It’s critical to read all of the fine print before opening an account to learn about any potential restrictions or hurdles. 

And since nearly all of the leading rates are found at credit unions with membership requirements that render most readers ineligible, we’ve also included a ranking of the five most accessible CD rates this month below.  

Financial Partners Credit Union: 6.50% APY 

The 8-month special certificate at Financial Partners Credit Union stands as the top-earning CD this month. That said, it only applies to balances from $1,000 to $5,000 for new members in the counties of Los Angeles, Orange, Riverside, or San Diego; the city of South San Francisco; and the city of Alameda, California.

Northeastern Connecticut Healthcare Credit Union: 6.17% APY

This month only, 5-month share certificates with new money to the credit union earn a high 6.17% APY. However, accounts here are only accessible to members employed or associated with select healthcare services in towns located in northeastern Connecticut. 

Empower Federal Credit Union: 6.00% APY 

For a shorter term option, those eligible for this credit union may consider a 3-month share certificate and its high 6.00% APY rate. Just be sure to meet the $500 balance minimum and become a member to get started. Membership here is restricted to those who live, worship or attend school in a select New York county, those who have an immediate family member or household member who is already a member, or to those who are employed or retired from one of several member companies. 

Yolo Federal Credit Union: 6.00% APY

The special rate 6-month share certificate at Yolo Federal Credit Union pays a high 6.00% APY on deposits of $500 or more. To meet the eligibility requirements at this credit union, the fine print here states that you’ll only need to open a regular savings account to become a member. Minimum balance requirements for a savings account is only $1, with all tiers up to $100,000 minimum daily balances earning 0.03% APY, making this one of the most attainable options for an industry-leading rate.

Travis Credit Union: 6.00% APY

The 4-month share certificate at this credit union comes in at a 6% APY. Just bring a minimum opening deposit of $500 and meet the credit union’s membership requirements. Membership here is only available to those who live, work, worship or attend school in a select number of counties in California, military or civilian personnel of Travis Air Force Base, or those who have immediate family members of current members. It should also be noted that deposits here are restricted to $50,000.

Associated Credit Union: 5.90% APY

Open a 19-month CD with a minimum deposit of $500 and earn a promotional 5.90% APY at this credit union. Like most credit unions, though, you will have to become a member. To do so, you will need a valid Georgia driver’s license, work for a qualified employer in the state, or have a qualified family member who is already a member of the credit union. This one also renews in the form of a 24-month CD, so be sure to review your terms and rates after reaching the maturity date.

Dexsta Federal Credit Union: 5.90% APY

Regular certificates with 36-month maturity dates and balances of at least $1,000 are eligible for a high 5.90% APY. To become a member and open an account; you, a family member or member of your household must live, work, worship, volunteer or attend school in New Castle or Kent County Delaware, or in Cecil County, Maryland. If you meet those regional requirements, you’ll also need to make a $5 account deposit and bring two forms of identification along with proof of address to get started. 

My eBanc: 5.77% APY 

Both the six- and 12-month jumbo time deposit accounts at this online-only bank pay a handsome 5.77% APY. You’ll just need to deposit a minimum $50,000 to qualify. There are also no maintenance fees and interest compounds daily. Like with most CDs, withdrawing early results in a penalty. For CDs with six- to 12-month maturity dates, My eBanc imposes a penalty of three months interest for withdrawing early. 

Local Government Federal Credit Union: 5.75% APY

You’ll only need to make the minimum $250 deposit to open a share term certificate at Local Government FCU. For accounts with 18-month maturity dates, one-time balances beyond that amount promise a high 5.75% APY. Like most credit unions, though, this rate is only available to members of this Raleigh-North Carolina-based institution. Depositors or their family members here must be an employee or volunteer of North Carolina’s local government, including both elected and appointed officials. 

Boeing Employees’ Credit Union (BECU): 5.75% APY

Members of this Washington-based credit union stand to earn a high 5.75% on 3- to 5-month CDs when you also open a Member Advantage checking and savings account. Those who only want to open a CD, though, can still earn a highly competitive 5.60% APY for this short-term account. To join, however, prospective members must either live, work, worship or go to school in Washington state or other select counties in Oregon and Idaho.

5 most accessible CDs rates of January 2024

Since many of the rates associated with these top offers come with highly restrictive membership requirements, we’ve also pulled together the most accessible CDs of the month. The top five accounts below sidestep regional restrictions, membership requirements, and all include attainable opening balance requirements of $1,000 or less. 

Forbright Bank: 5.60% APY

It only takes a $1,000 minimum opening balance deposit to earn a highly competitive 5.60% APY with this 9-month CD. Although there are only physical branch locations in Maryland and Northern Virginia, this rate can also be accessed online by visiting open.forbrightbank.com. 

BMO Alto: 5.55% APY

There are no minimum balance requirements to open this high-earning 12-month CD at BMO Alto. Just sign on and fund your account within the 10-day grace period and earn a high 5.55% APY fixed rate. 

Ponce Bank: 5.50% APY

Come with the minimum $1 to open an account at this online-only bank and earn a highly competitive 5.50% APY on this 3-month CD. There are no maximum deposit requirements here so all balances are accepted. This account automatically renews on the next business day when the term ends, so be sure to keep an eye on this maturity date. 

Synchrony Bank: 5.50% APY

There are no minimum or maximum balance restrictions to earn 5.50% for this 15-month CD. Just fully fund your account within the 10-day grace period and stay invested until the maturity date to reach the maximum savings potential. There’s also no interest penalty for early withdrawals, however your principal balance faces a penalty taking out your investment prior to the maturity date. 

Marcus by Goldman Sachs: 5.50% APY

You have 10 days to reach the $500 minimum deposit requirement and start earning a high 5.50% APY for this 12-month CD. CD balances at Marcus are limited to $1 million per account.