CD and Savings Rates Today: Start Earning More Interest (2024)

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Banks are fighting for customer dollars right now, and people with cash to spare are well-positioned to benefit from a high rate environment. With rates rapidly changing, how can you feel confident that you're getting thebest savings account or best CD?

We monitor rates from banks and credit unions daily to help you feel confident before you open a new account. Experts don't expect CD rates to go up in 2024, so now could be a great time to lock in a rate if you're ready. Here are the top rates for popular savings accounts and CDs on Tuesday, June 25.

Featured Nationally Available Deposit Rates

Account NameAPY (Annual Percentage Yield) Accurate as of 6/25/2024Minimum Account Opening Balance
Western Alliance Bank High-Yield Savings Premier5.36%$500
BrioDirect High-Yield Savings Account5.30%$5,000
Forbright Growth Savings5.30%$0
CIT Bank Platinum Savings5.00% (with $5,000 minimum balance)$100
Barclays Online Savings Account4.35%$0
Capital One 360 Performance Savings4.25%$0

Featured Nationally Available CD Rates

Account NameAPY (Annual Percentage Yield) Accurate as of 6/25/2024Minimum Account Opening Balance
Barclays 1 Year Online CD5.00%$0
Banc of California 3 Month CD, powered by Raisin5.34%$1
Barclays 6 Month Online CD4.85%$0
SkyOne Federal Credit Union 1 Year No Penalty CD4.75%$1
Discover 18 Month CD4.40%$2,500
Bread Savings 2 Year High-Yield CD4.65%$1,500
Quontic 5 Year CD4.30%$500

Savings Account Bonus

Alliant High-Rate Savings Account

Earn a $100 bonus when you deposit at least $100 a month for 12 consecutive months and have a balance of $1,200 or more at the end of the 12-calendar-month period (offer expires December 31, 2024).

See more savings account bonuses »

Leading Checking & Savings Combo Account Bonus

SoFi Checking and Savings

Earn up to $300 with qualifying direct deposit for eligible customers (offer expires 12/31/24). Earn up to 4.60% APY on savings balances (including Vaults) with direct deposit.

See more bank account bonuses »

About High-Yield Accounts

High-yield savings accounts aren't the only accounts paying favorable rates right now. You'll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.

High-Yield Savings Accounts

The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase.

High-Yield Checking Accounts

The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today's rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it's typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.

Money Market Accounts

The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.

Cash Management Accounts

A cash management account is also like a savings/checking hybrid. You'll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn't. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.

Certificates of Deposit

The best CD rates may outpace any of the other accounts we've described above. That's because a certificate of deposit requires you to "lock in" your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you'll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you'll let the bank hold your money, the higher rate you'll get. CD rates aren't variable; the rate you get upon depositing your money is the rate you'll get for the length of your term.

About CD Terms

Locking your money into an account in exchange for a higher interest rate can be a big decision. Here's what you need to know about common CD terms.

No-Penalty CDs

Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won't have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

6-Month CDs

The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don't have a large emergency fund for unexpected expenses.

1-Year CDs

The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses.

2-Year CDs

The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

3-Year CDs

The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

5-Year CDs

The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

Top Offers From Our Partners

CD and Savings Rates Today: Start Earning More Interest (1)

SoFi Checking and Savings Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured.

There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).

CD and Savings Rates Today: Start Earning More Interest (2024)

FAQs

Where can I get 7% interest on my money? ›

Why Trust Us? As of June 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Who has a 7% CD? ›

Right now, there aren't any financial institutions offering 7% interest on a CD. Alpena Alcona Area Credit Union, a local financial institution in Michigan, previously offered a 7.19% APY on a 7-month CD special, but that offer has ended. There are a few financial institutions with CDs paying 6% APY or more, though.

Who is paying the highest CD rates right now? ›

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

Should I lock in a CD now or wait? ›

Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

Where to put $10,000 for best interest? ›

A stocks and shares Isa is likely to be most suitable. That is unless you will turn 55 within 30 years, in which case a pension might be a better tax wrapper for you. If you're unsure about the time horizon, you could invest in both a pension and a stocks and shares Isa.

How much interest will $100 000 earn in a year? ›

At a 4.25% annual interest rate, your $100,000 deposit would earn a total of $4,250 in interest over the course of a year if interest compounds annually. Annual total: $104,250.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year2.62%$265.17
18 months2.22%$338.29
2 years2.08%$424.40
3 years1.95%$601.95
3 more rows
Jun 14, 2024

What bank is paying 5% on CDs? ›

Highest current CD rates (overall)
Institution nameAPYMinimum opening deposit
Morgan Stanley5.00%$5,000
Bask Bank5.00%$1,000
LendingClub Bank5.00%Contact institution for details
CFG Bank5.00%$500
31 more rows

Can you get 6% on a CD? ›

It's possible for some people to get 6% on a CD right now, but only if you are eligible to join a smaller credit union since no nationally available financial institutions are currently offering them. CDs with 6.00% APY are getting harder to find.

Should I open a CD right now? ›

Currently, rates on CDs are high — in most cases offering over 5% on your cash — but they likely won't go higher than they are now. For this reason, the beginning of this year could be a great time to lock-in CD rates and earn interest on your savings.

Do you pay taxes on CD interest? ›

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

What is the biggest negative of putting your money in a CD? ›

Banks and credit unions often charge an early withdrawal penalty for taking funds from a CD ahead of its maturity date. This penalty can be a flat fee or a percentage of the interest earned. In some cases, it could even be all the interest earned, negating your efforts to use a CD for savings.

Should I close a CD early to get a better rate? ›

While you'll miss out on interest for the remainder of the term, if you can lock in a higher rate, this is probably beneficial. But consider if your CD has an early withdrawal penalty, and how much interest you'll need to pay, to see if a new CD rate can help you earn a big enough return to justify paying the penalty.

Is there a risk of losing money in a CD? ›

You won't lose money if you don't break your terms

As long as your CD provider has FDIC insurance, your CD deposit will be safe up to $250,000. If you have savings you won't need in the near term, an early withdrawal penalty shouldn't scare you.

Where can I get 7% on savings? ›

The best regular savings accounts
  • First Direct Regular Saver - 7% AER.
  • Co-operative Bank Regular Saver - 7% AER.
  • Skipton Building Society - 7% AER.
  • Nationwide Flex Regular Saver - 6.5% AER.
  • Lloyds Bank Club Monthly Saver - 6.25% AER.
  • Natwest Digital Regular Saver - 6.17% AER.
Jun 20, 2024

Which bank gives 7% interest per month? ›

AU Small Finance Bank offers interest up to 7 percent on savings accounts, Equitas Small Finance Bank offers 7% interest in saving account for balances above Rs 5 lakh and up to Rs 50 crores.

Which bank gives 7% interest in RD? ›

SBI offers Recurring deposits at interest rates of 6.50% to 7% p.a. to other depositors, and 7.35% to 7.5% to senior citizens with a minimum monthly deposit of ₹100. The tenure for SBI RD ranges from 1 year to 10 years. These rates are effective from December 27, 2023.

Where can I earn 6% interest on my money? ›

Right now, two nationally available banks offer accounts earning at least 6% interest: Digital Federal Credit Union and Mango Financial. You may be able to find smaller, local banks offering 6% interest, but it's unlikely.

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