Best CD Rates For March 2024 - Up to 5.50% | Bankrate (2024)

Updated March 11, 2024

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Note: Annual percentage yields (APYs) shown are as of March 14, 2024. All other information is current as of March 11, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Best CD rates from top banks for March 2024

Note: Annual percentage yields (APYs) shown are as of March 14, 2024. All other information is current as of March 11, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

At its last meeting on Jan. 31, the Federal Reserve kept interest rates steady and projected there could be multiple rate cuts in 2024. The Fed’s Federal Open Market Committee kept its key benchmark, the federal funds rate (which determines how much banks borrow and lend their reserves to each other overnight), at a target range of 5.25 to 5.5 percent.

Although it’s a bad time to borrow money at these rates, it’s a great time to save as interest rates on savings accounts are at their highest in 22 years. And even though rates remain steady, now is still a good time to consider long-term CDs after the Fed raised rates 11 times since March 2022.

The Fed’s next scheduled announcement regarding interest rates is March 20.

CD yields have peaked. Whether your time horizon is measured in months or years, think about locking in current CD yields.— Greg McBride, CFA | Bankrate chief financial analyst

Where are CD rates headed in 2024?

CD rates are likely to maintain their current levels or slightly dip headed into March. Yields are likely to start decreasing months before the Fed begins lowering rates.

Currently, shorter-term CDs – with terms of six months to 18 months – generally have higher yields than longer-term CDs. But those longer-term CD yields could be peaking soon, if they haven’t already. So locking one in now could be a good decision for long-term money that you want to keep safe in an FDIC-insured bank.

However, most CDs have significant early withdrawal penalties, so consider these when deciding on an account and term.

National average interest rates for CDs

The national average of CD interest rates suggests that shorter term CDs have higher yields than longer-term CDs. With the Fed having raised rates 11 times since March 2022, what goes up might eventually come down. So, getting a long-term CD now could make sense if the Fed lowers rates in the future.

Researching average interest rates provides insight into the CD rate environment and can help in finding a CD with a yield that's much higher than average.

Here are the current average rates as of March 14, 2024, according to Bankrate's most recent survey of institutions:

Some banks have promotional CD rates.There might be certain restrictions on these CDs. For instance, you might have to bring money from outside the bank to be eligible for this APY. Promotional CDs may renew at a different term and at a different APY. (That APY is likely to not be known when you purchase a promotional CD.)

Even some of the largest banks might have some featured CD rates.

*It’s possible for these offers to end sooner.

These promotional CDs might not be available in certain areas. APYs for some products may vary by region. The promotional offers are as of March 11, 2024.

When you open a CD, selecting a term is an important step. The term is the length of time that the money stays stashed in the account. For example, opening a CD with a one-year term means you’re making a commitment to the bank that you’ll keep your money in the account for one year.

Here’s where you’ll find some of the top yielding CDs by term.

How to choose the best CD for you

CDs are a good option for longer-term goals or for money that you’re comfortable locking away for a set period of time. Follow the steps below to choose the right CD strategy for you:

1. Determine what the money will be earmarked for. Money you may need in the near future, such as for an emergency fund or short-term goals, usually works better in a liquid account such as a high-yield savings account or money market account. A no-penalty CD may also be a good place for money you might need access to before the CD matures.
2. Figure out when you’ll need the money in the CD and pick a term that aligns with your savings goals. Terms can range from just a few months to several years.
3. Decide whether you prefer a fixed or variable APY. (If you think the Fed has raised rates so many times that rates will decrease in the future, you might want a CD with a fixed APY instead of a savings account with a variable APY.)
4. Shop around and compare rates. Research banks and credit unions to find the best rates as well as a minimum opening deposit that’s in line with the amount you plan to put in the CD. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer a competitive yield.

Types of CDs

Banks and credit unions offer a wide range of CDs to fit different financial needs. Take some time to consider which type of CD is best for you.

How does a certificate of deposit work?

A CD is a type of account offered by banks and credit unions that generally earns a fixed APY for the CD’s term. Regular CDs also generally have early withdrawal penalties if you make a withdrawal before the CD term ends.

Who should get a CD?

Pros and cons of CDs

Before you choose a CD, weigh the pros and cons to ensure you're making the right investment choice for your financial situation.

CDs vs. traditional savings accounts

Savings and money market accounts are more liquid than CDs, meaning the funds you keep in those types of accounts are easier to access without penalties or limitations. This makes savings accounts better for your emergency fund. You could withdraw the savings you’ve placed in a CD, but be prepared to pay a penalty if you take the money out before the CD’s maturity date (unless you’ve purchased a no-penalty CD).

CDs vs. high-yield savings accounts

CDs generally have an early withdrawal penalty if you withdraw your money before the CD matures. CDs generally have fixed APYs.

A high-yield savings account is a liquid account that allows you to withdraw money without a fee and savings accounts generally have variable APYs.

CDs vs. money market accounts

CDs have set terms and generally also have early withdrawal penalties if you withdraw your money before that term ends.

Money market accounts, like savings accounts, generally have variable APYs. But unlike most savings accounts, they might have check-writing privileges – which let you write checks from this account.

In exchange for less liquidity, however, CDs typically offer a higher interest rate than money market accounts.

CDs vs. bonds

CDs typically pay a fixed interest rate, so you know how much you’re earning up front. You’re also guaranteed to receive the same interest rate for the entire term and receive your full principal amount back, as long as you don’t make any premature withdrawals.

On the other hand, bonds offer more flexibility and the chance to earn a higher yield. A bond is a loan you make to a government or a corporation to receive some interest. You can sell a bond before it matures without getting hit with an early withdrawal penalty, and you may get back more or less than your original investment if interest rates have moved. With municipal bonds, the interest you earn is often exempt from taxes.

There are many different types of bonds, and some are riskier than others. Bonds aren’t protected by FDIC or NCUSIF insurance like CDs are, and the value of your bonds will fluctuate based on what’s happening with interest rates. If interest rates are rising, the price of your bonds will likely fall and vice versa.

How to build a CD ladder

CD laddering staggers the maturity dates on your CDs. This strategy involves buying multiple CDs at once that mature at different dates. It’s a way to spread out when the money becomes available and to keep from having all of your money stuck in a long-term CD if rates rise.

In the current rate environment, purchasing a 3-year CD now could potentially help you earn a yield that might not be available if the Fed lowers rates.

CD laddering can also shield you from interest rate changes that could otherwise hurt you. If rates are rising, you’ll be able to take advantage of higher yields the next time one of your laddered CDs matures. On the other hand, if interest rates are falling, you’ll be glad you locked up your savings when the bank was paying more favorable yields.

Consider keeping your CD ladder focused on CDs with shorter-term maturities during a rising rate environment so you can more quickly take advantage of higher rates. Conversely, committing to CDs with longer terms makes more sense when rates are decreasing because it enables you to continue earning higher CD yields than the market currently offers.

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and CD APYs. The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.

Note: Bankrate doesn’t include callable CDs or brokered CDs on this page and compares regular CDs and no-penalty CDs separately.