March 2024 CD Rates


Bank Name CD Type Term APY
Synchrony Bank 9-month CD 9 months 5.50% APY
Bread Savings 12-month CD 12 months 5.55% APY
PenFed Credit Union 12-month CD 12 months 5.25% APY
Marcus by Goldman Sachs 1-year CD 12 months 5.15% APY
TotalDirectBank 12-month CD 12 months 5.50% APY
Newtek Bank 24-month CD 24 months 4.75% APY
Luana Savings Bank 36-month CD 36 months 4.81% APY
First National Bank of America 48-month CD 48 months 4.55% APY
Bread Savings 60-month CD 60 months 4.15% APY
BMO Alto 3 Year CD 36 months 5.10% APY


As of March 2024, the market has witnessed a notable surge in CD rates, offering investors an attractive avenue to park their funds. The top rates range from 5.55% APY for a 12-month CD from Bread Savings to 4.15% APY for a 60-month CD, also from Bread Savings. This diversity in terms and rates caters to various investment horizons and risk appetites.

Synchrony Bank leads the short-term market with a 9-month CD offering an impressive 5.50% APY, showcasing the competitiveness of online banks in the financial landscape. Similarly, PenFed Credit Union and Marcus by Goldman Sachs are not far behind, offering 5.25% and 5.15% APY for their 12-month CDs, respectively. This trend underscores a growing inclination towards shorter-term CDs, which provide flexibility and relatively high returns in a fluctuating interest rate environment.

Longer-term investments are not left behind, with institutions like Luana Savings Bank offering a 4.81% APY for a 36-month CD, demonstrating the market’s confidence in medium-term financial instruments. The diversity in these rates and terms reflects a broader trend in the banking sector, where both traditional and online banks are aggressively competing to attract depositors amidst a changing economic landscape.

These rates are a clear indicator of the banks’ strategies to leverage competitive yields to attract deposits, a move that benefits both the financial institutions and savers alike. With the Federal Reserve’s expected moves in 2024 and the ongoing adjustments in the financial markets, these CD rates offer a snapshot of a dynamic environment where savers can still find attractive returns amidst economic uncertainty. The key takeaway for consumers is the importance of shopping around to find the best rates and terms that suit their individual financial goals and timelines.


What Exactly is a Certificate of Deposit?

It’s never too early to begin building your nest egg. Safe and effective investments can help you slowly and steadily grow your savings. You may have heard the term “CD” commonly used in banking. If you’ve asked yourself, “What is a Certificate of Deposit?” you aren’t alone. Many people have heard the term but don’t fully understand what exactly it is. Basically, a CD is a savings account with some strings attached.


The Basics

A certificate of deposit, commonly referred to as a CD, is a time deposit account available at banks. Customers give the bank cash and agree to leave it in an account for a certain period of time. These safe investment options offer higher interest rates than savings accounts or money market accounts. However, the interest rates are generally lower than riskier investments, such as annuities or stocks.


CD Versus Savings Account

A CD is very similar to a savings account. Both earn interest and keep your money safe. CDs and savings accounts are both backed by the FDIC for up to $250,000. Unlike a savings account, you can’t freely withdraw money from a CD. The investment is locked in for a specified period of time, which is how long it takes the CD to mature.


Initial Investments

Most banks require a minimum investment amount to open a CD. The average minimum is $1,000, but some banks require $10,000 or more. The maximum amount banks will allow is often capped at $1,000,000 between one or several CDs. Since the FDIC only insures bank accounts for $250,000, it’s in the investor’s best interest to keep each CD below that amount. You can compare the minimum deposit for CDs with the CD Comparison Table above.


Early Withdrawal Penalties

If you choose to take an early withdrawal, you’ll face a penalty. The exact amount you’ll lose varies based on the bank and the CD. You can expect to lose some interest and possibly even some of the principal you invested. Federal law only stipulates the minimum amount a bank can charge as an early withdrawal penalty. There is no maximum penalty amount regulated by law, but the bank must disclose this information when you open the account.


CD Terms

CDs are available in terms ranging from as little as a couple of months or as long as 10 years. Typically, a longer term is associated with a higher interest rate. The most common CD terms are about a year or two. Interest rates change daily. (You can view the most current rates by viewing the CD rate section of our site above.) If you choose a fixed CD, you’ll lock in the rate at the time of investment. If you opt for a variable rate CD, the rate will fluctuate based on the U.S. Treasury Note rates. At the end of your maturity date, you can withdraw the funds and interest or choose to roll the total into another CD. You can also take just the interest and invest the principal again.


No Penalty CDs

For those who don’t feel comfortable with the concept of not being able to touch their funds for several months or years, there are penalty-free CD options. These options are also called liquid CDs. Unfortunately, the freedom to freely withdraw your money comes with a lower interest rate than traditional CDs offer.



All earnings on a CD are taxable in the year they are received. Your initial investment isn’t taxed, but the interest you receive is taxable income you’ll need to report to the IRS. Your bank will mail a 1099-INT detailing all taxable earnings at the end of the year.

If you’re looking for a stable investment option, CDs are an excellent choice. You’ll want to decide if the potential earnings from a CD’s interest rate is worth tying up your cash for several months or years. Everyone’s financial situation is unique. For some, a high-yield savings account is a good alternative to a CD because they provide more flexibility.