9 Best CD Rates for February 2024 (up to 5.45% APY)

Finding a high CD rate provides a great way to grow your savings quickly and safely. You can expedite your savings with rates significantly higher than the national average from the list of banks and credit unions below.

All the CDs mentioned are FDIC or NCUA insured, have reasonable minimum deposit requirements, and favorable interest compounding schedules.

So don’t settle for average interest rates, open a high-yield CD to supercharge your savings. We did the work for you and found financial institutions with the most competitive rates available.

This post may contain affiliate links, meaning I get a commission at no cost to you if you decide to make a purchase through my links. Visit this page for more information. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

CD vs. Savings Accounts: Which should I choose?

CDs generally offer higher rates, but savings accounts give you more flexibility when it comes to withdrawing your money.

If you need money in the near future, I recommend looking at high-yield savings accounts. They offer a far higher rate than the average savings account, give you the ability to withdraw cash at any time, and the yield can be adjusted higher – like they have been since the Federal Reserve began raising interest rates last year.

Certificates of Deposit (CDs) on the other hand offer a fixed interest rate for a certain period of time, whether it’s six months or three years. It’s a good option for those that don’t need their money for some time and want to lock in a higher APY. If you do decide to withdraw prior to the CD maturity date, expect to pay an early withdrawal penalty. This penalty varies by bank and the CD term.

Highest Short-Term CD Rates

1. Discover Bank – Up to 4.80% APY

Rating:  ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)

APY = 2.00% to 4.80% APY
CD Maturity Term = Varies
Minimum Opening Deposit = $2,500

Earn up to a 4.80% APY with a Certificate of Deposit (CD) from Discover® Bank. To open a CD, a minimum deposit of $2,500 is required. The interest rate offered is based on the CD term:

CD TermAPY Rate
9-Month Term4.25% APY
12-Month Term4.80% APY
18-Month Term4.50% APY
2-Year Term4.00% APY
3-Year Term3.75% APY

Interest earned is calculated using simple interest, not compound interest. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

Requirements:

  1. Open a new Discover® Certificate of Deposit using the link below.
  2. Select CD term and deposit at least $2,500.
  3. Earn interest based on your CD term.

2. Alliant Credit Union – Up to 5.45% APY

Rating:  ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)

APY = 5.40% to 5.45%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1,000

Enjoy a 5.40% APY when you open a 12-month CD from Alliant Credit Union with a minimum deposit of just $1,000. Qualify for a slightly higher rate of 5.45% APY with their 12-month jumbo certificate when you deposit $75,000 or more.

Alliant Credit Union is one of the largest not-for-profit financial cooperatives in the nation. A financial cooperative means that the institution is owned and operated by its members. Their members-first philosophy allows Alliant to provide compelling bank products for their 800,000+ members.

3. Ponce Bank – 5.35% APY

Rating:  ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)

APY = 5.35%
CD Maturity Term = 3 month
Minimum Opening Deposit = $1

This CD is currently the most interesting one. Ponce Bank is offering a three-month high-yield CD that’s providing a 5.35% APY.

While this isn’t the highest rate on this list, it’s a very competitive one and the fact that you only have to hold it for three months makes it a clear winner for those who need a short-term solution for their savings.

It will also renew automatically each month until you close it out, allowing you to earn a high rate if you decide to save your money a little bit longer.

Headquartered in New York, Ponce Bank opened in 1960 with the goal of helping the underserved and underbanked community. This bank is a member of the FDIC. Deposits are insured up the limits of the federal law, which is $250,000 per deposit for each deposit account ownership category.

4. Western Alliance Bank – 5.23% APY

Rating:  ⭐ ⭐ ⭐ ⭐ ⭐ (5.0/5.0)

APY = 5.23%
CD Maturity Term = 6 months
Minimum Opening Deposit = $1

The 6-month CD offered by Western Alliance Bank is the best rate for this maturity term, earning a staggering 5.23% APY. Features of this account includes:

  • low $1 minimum deposit
  • automatic renewal at maturity unless you elect to pay-out
  • compounded daily and credited on the last calendar day of each month

If you’re looking for a savings option with a competitive APY that won’t tie up your money for a long time, Western Alliance Bank’s six-month CD may be the right option for you. This is an exclusive rate offered via their partnership with Raisin.

5. CIT Bank – 4.90% APY

Rating:  ⭐ ⭐ ⭐  1/2  (4.5/5.0)

APY = 4.90%
CD Maturity Term = 11 months
Minimum Opening Deposit = $1,000

CIT is a division of First Citizens Bank that currently offers a no-penalty, 11-month CD with a rate of 4.90% APY.

Benefits of the CIT Bank CD include:

  • No account opening or maintenance fees
  • Daily compounding interest to maximize earning potential
  • FDIC insurance up to $250,000

Like the Sallie Mae CD, this one has no penalty to access funds if needed before maturity. You can withdraw your money and any interest earned seven days after the funds have been received.

6. Synchrony Bank – 5.15% APY

Rating:  ⭐ ⭐ ⭐ ⭐  (4.0/5.0)

APY = 5.15%
CD Maturity Term = 9 months
Minimum Opening Deposit = $1

Synchrony Bank is an FDIC-insured online bank and part of Synchrony – a Fortune 500 company that helps consumers with their financial goals with products that include banking accounts and private-label credit cards.

Right now, they offer a 5.15% APY CD with a maturity term of 9 months. Their early withdrawal penalty is in line with other CDs, but you can withdraw interest paid during your CD’s current term without a penalty.

7. Bread Savings – 5.35% APY

Rating:  ⭐ ⭐ ⭐ ⭐  (4.0/5.0)

APY = 5.35%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1,500

Bread Savings (formerly Comenity Direct) provides a CD that gives you an interest rate of 5.35% APY, which is almost 4x the national average.

Like others on this list, Bread Savings is an online-only account with no brick-and-mortar locations. The lower operational expense is the main reason that these banks and fintech companies can offer the best CD rates.

Interest is accrued and compounded daily and is posted at the end of the month. Opening a CD requires a $1,500 minimum opening deposit.

Disclosures: The annual percentage yield is effective as of December 1, 2023. APY is a fixed rate and a $1,500 minimum balance is required. Bread Savings will pay this rate and APY through your CD maturity date. Fees could reduce the earnings on your account, and an early withdrawal penalty may be imposed for early withdrawal. Read the full terms here.

8. PenFed Credit Union – 4.65% APY

Rating:  ⭐ ⭐ ⭐ ⭐  (4.0/5.0)

APY = 5.25%
CD Maturity Term = 12 months
Minimum Opening Deposit = $1,000

PenFed is one of my all-time favorite credit unions. I’ve banked with them for years and use their Platinum Rewards Visa Signature® Card because it offers 5% back at gas stations and EV charging stations.

They offer CDs with nine different maturity terms, with the 12-month term being PenFed’s best CD rate at 5.25% APY.

Note that to become a PenFed member, you need to open a Regular Share account (standard savings account) and deposit a minimum of $5 to the account.

9. PSECU – 5.15% APY

Rating:  ⭐ ⭐ ⭐ ⭐  (4.0/5.0)

APY = 5.15%
CD Maturity Term = 12 months
Minimum Opening Deposit = $500

PSECU, short for Pennsylvania State Employees Credit Union, started in 1934 with the goal of pooling their money and working together to improve their financial lives.

This credit union offers a 12-month CD with a rate of 5.15% APY. PSECU CDs feature:

  • Flexible terms – choose from terms of 3, 6, 9, 12, 18, 24, 36, 48, and 60 months
  • No fees – PSECU never charges monthly maintenance fees on CDs
  • Competitive rates – dividend rates are guaranteed and locked in for the term of your certificate

Upon renewal, the term will be the same as the original term. You have a 10-day grace period after your CD matures to withdraw your money without penalty if you don’t want to renew.

Frequently Asked Questions (FAQs)

Which banks have the best CD rates?

Quontic Bank currently offers the best short-term 6-month CD rate of 5.30% APY.

Which bank is the best to buy CDs from?

The best CDs are offered by Western Alliance Bank, CIT Bank, and Discover Bank. Their CDs typically offer one of the highest rates available, with short maturity terms, and require a low minimum opening deposit.

What about a jumbo CD?

Jumbo CDs are certificate of deposits that require $100,000 to open. I don’t list them on here because interestingly enough, at this time, they don’t offer a higher rate than standard CDs.

What should I know before opening a CD?

While CDs provide a high fixed rate, it requires you to hold it for a specific period of time. Unlike a high-yield savings account, your funds typically can’t be withdrawn during the CD term without paying a penalty.

Consider how long you’re able and willing to hold a CD before committing to a maturity term. Longer maturity dates offer a higher rate, but gives you less flexibility.

The Bottom Line

At this time, I don’t recommend locking in a CD with a maturity term longer than 12 months. The Federal Reserve has been raising interest rates to prevent the economy from overheating and combat inflation, which has had a positive effect on CD rates.

Although there are CDs available that offer higher rates than the one mentioned on this list, their maturity terms are 15+ months. Before making a decision, please consider the quickly changing economic environment and how rates are affected by it.

Given the current situation, my strategy is to purchase short-term CDs and reinvest in new ones with higher rates after they mature.

Before considering CDs, take a look at this list of the best savings accounts. With no withdrawal penalties or limits, you may find an account with a rate comparable to what you would earn with CDs.

I’d be remiss not to mention that I Bonds are paying a competitive 5.27% APY. I Bonds are savings bonds issued by the U.S. Department of the Treasury and fully backed by the full faith and credit of the U.S. government.

About John Pham

John Pham is a personal finance expert, serial entrepreneur, and founder of The Money Ninja. He has also been fortunate enough to have appeared in the New York Times, Boston Globe, and U.S. News & World Report. John has a B.S. in Entrepreneurship and a Masters in Business Administration, both from the University of New Hampshire.

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Chris C.
Chris C.
5 months ago

Have you given any thought to discussing short-term treasuries? 3, 6 & 12 month rates are all above 5.4% today (18Sep23), all available in low-expense ETFs like BIL, TBIL, XBIL, OBIL etc. Considering the safety and flexibility they seem like good alternatives to CDs?

Thanks,
CC

A. Agnelli
A. Agnelli
8 months ago

And why is there no information on the 12-month CD from Merchants Bank of Indiana, where one gets 5.65% interest??? Sincerely, A.

The Dude
The Dude
10 months ago

Marcus
5.05% APY
10 months
$500 minimum
marcus.com/us/en/savings/high-yield-cds/10-mcd-promo

Keith
Keith
1 year ago

Looks like Bask has a 12 month CD at 4.10% APY now.