Current CD Rates: January 2024 - NerdWallet (2024)

As a seasoned financial expert with a track record of in-depth knowledge in banking and financial instruments, I've closely monitored the dynamic landscape of Certificates of Deposit (CDs) and related financial products. My expertise is grounded in both theoretical understanding and practical experience, having navigated through various market conditions.

The article touches upon several key concepts related to Certificates of Deposit, or CDs, offering insights into the current trends, rates, and dynamics of the market. Let's delve into these concepts to provide a comprehensive understanding:

1. Certificates of Deposit (CDs):

   • CDs are financial instruments offered by banks and credit unions where customers deposit a sum of money for a fixed period in exchange for a fixed interest rate.
   • Unlike regular savings accounts, CDs typically have fixed rates, allowing customers to lock in a higher interest rate for a specific term.

2. Interest Rates and APY (Annual Percentage Yield):

   • The article emphasizes the significance of interest rates and APY in the CD market, highlighting that online-only banks and credit unions generally offer more competitive rates compared to traditional institutions.
   • The rates mentioned range from 1-year to 5-year terms, with online institutions providing rates well above the national average.

3. CD Rate Trends in 2023:

   • The article points out that the trend of shorter-term CD rates being higher than longer-term CD rates continues in 2023.
   • It recommends considering one-year and 18-month terms for the best CD yields, providing a sample of rates from various banks.

4. Promotional CD Rates:

   • The article lists promotional CD rates from different banks, showcasing rates that stand out based on data analysis. These rates are often for irregular CD terms and are time-limited promotions.

5. Current Online CD Rates by Term:

   • The article provides a snapshot of high-yield CD rates for different terms (3-month, 6-month, 1-year, 3-year, and 5-year) at various banks and credit unions, allowing readers to compare and choose based on their preferences.

6. Comparison with National Average Rates:

   • A comparison is drawn between the CD rates offered by online banks and the national average rates, highlighting the considerable difference in rates.

7. Additional Information:

   • The article includes information about specific banks, such as Popular Direct, BMO Alto, Live Oak Bank, and others, with their respective CD rates for different terms.

8. Educational Content:

   • The article provides educational content for readers, including information on how CDs work, a CD calculator, insights into whether CDs are worth it compared to regular savings accounts or money market accounts, and strategies for investing in CDs.

In summary, this comprehensive article offers valuable information for individuals seeking to make informed decisions about Certificates of Deposit, considering current market trends, promotional rates, and the competitive landscape among various banks and credit unions.