Top CD rates today: Top rates remain competitive — November 28, 2023
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BLUEPRINT
Published 9:25 a.m. UTC Nov. 28, 2023
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Certificates of deposit (CDs) can be a great choice if you’re looking for a low-risk investment to generate interest on cash you don’t need to use immediately. Based on Curinos data, CD rates have been relatively stable over the past week even in the midst of a rate hike pause by the Federal Reserve.
Three-month CD rates
Rates on three-month CDs have increased by one basis point to 1.18% APY (as of November 27, 2023). The average APY is up four basis points from a month prior.
The current national high for a three-month CD is 5.83%, which would earn more than $355 in interest with a $25,000 deposit.
Six-month CD rates
When you opt for leading six-month CDs, you get a winning combination: solid interest rates and a commitment that’s only short-term.
The national average APY for six-month CDs is 1.62%, upmarginally from 1.61% last week and 1.56% one month ago.
The current top national rate for a 6-month CD is 5.59%, according to the data available from Curinos’ database. But you may be able to find better deals by shopping around.
You’d earn almost $690 in interest if you put $25,000 in a six-month CD with a rate of 5.59%.
One-year CD rates
If you’re up for setting aside your savings for a full year, you’ll be able to pick up even more impressive rates. One-year CDs can give you returns as high as, or even higher than, longer-term options.
Rates on 12-month CDs aren’t moving much. The national average APY is 1.85%, the same as last week and up three basis points from a month before.
The current national high for a 12-month CD is 5.70% which would earn more than $1,420 in interest with a $25,000 deposit.
Two-year CD rates
Interest rates on CDs with longer terms, such as those spanning two years, have remained stable.
The nationwide average APY stands at 1.65%, the same as a week prior yet up one basis points from one month ago.
Right now, the highest national rate for a 24-month CD is 5.51%, which would earn nearly $2,840 on $25,000 in savings.
Three-year CD rates
The national average APY for a three-year CD stands at 1.57%, which is the same as last week and up from 1.55% a month ago.
The highest rate was 5.50%, which would net almost $4,353 in interest if you invested $25,000.
Methodology
To establish average certificate of deposit (CD) rates, Curinos focused on CDs intended for personal use. CDs that fall into specific categories are excluded, including promotional offers, relationship-based rates, private, youth, senior, student/minor, affinity, bump-up, no-penalty, callable, variable, step-up, auto transfer, club, gifts, grandfathered, internet-only and IRA CDs. The average CD rates quoted above are based on a $25,000 deposit.
Generally, the earnings you make from your CDs are considered taxable income by the IRS. If you earn $10 or more, the financial institution should send you (and the IRS) a yearly 1099-INT form reporting your interest earnings. Even if you don’t receive a form, you’re still required to report the income.
For earnings of at least $1,500, you’ll need to itemize your interest income sources on Schedule B of the 1040 form. The silver lining is that there are some exceptions, but they mainly apply to government-issued investment vehicles.
The tax amount you pay depends on your specific marginal tax bracket.
Interest income from treasury bills, notes, and bonds, like I bonds, is exempt from state and local income taxes.
CD rates change on a regular basis, but the higher the better. As of November 27, 2023, the national average interest rate for a 12-month CD sat at 1.85 % APY, according to data from Curinos. But you can find plenty of banks advertising APYs well above this average, especially if you take a look at the top contenders in our ranking of the best CD rates.
A basis point is the term used to describe one hundredth of one percentage point. Therefore, if the yield on a CD increased from 1.50% to 1.60%, it increased by 10 basis points.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
