That’s the interest you earn not only on your deposit (or principal) but also on the interest itself. The current average APY for a six-month CD is 1.62%, steady with last week at this time.ĪPY provides a more accurate calculation of the yearly interest you’ll earn with a CD because it factors in compound interest.

If you’d prefer a CD with a shorter term than one year, today’s best rate on a six-month CD is 5.59%. Last week, three-month CDs were earning 1.20% on average. The current average rate on a three-month CD sits at 1.20%, but the highest rate is 5.83%. Current 3-Month CD Ratesįor short-term savings goals, three-month CDs might make sense. That’s why it’s critical to research any potential penalties prior to making your investment. That means you could lose an entire year’s worth of interest if you withdraw funds from a five-year CD before its maturity. These CDs generally offer the highest interest rates, but they require you to stash your cash for several years.Įarly withdrawal penalties typically scale according to the length of the CD term. If you’re looking to earn as much interest as possible, consider opening a longer-term CD. For instance, you could sacrifice up to six months’ worth of interest if you withdraw funds from a one-year CD before it matures. If you withdraw money from your CD account before it “matures” (when it reaches the end of its term), you’ll likely face stiff penalties that may negate some or all of the interest you’d earn. If you follow through, you’ll be rewarded with an amount of interest that’s typically greater than what you’d earn from a standard savings account.

That could be in six months, one year or five years, depending on the term you’ve chosen. When you open a CD account, you agree not to touch your deposit until the CD’s term ends. Data accurate as of November 30, 2023.Ī CD is a type of savings account that pays a fixed interest rate for a fixed amount of time. Rates are based on a $25,000 minimum deposit.

Danske bank fixed term deposit rates