Top 12 CD Rates for January 2024: Unlock Savings with Rates Up to 5.55%

Navigating the realm of personal finance to discover the optimal savings solution can be a daunting task. Amidst the various choices, Certificate of Deposit (CD) accounts emerge as a compelling option for those seeking a reliable avenue to bolster their savings. Offering fixed interest rates that frequently outpace those of standard savings accounts, CD accounts stand out as an appealing choice for individuals aiming to fortify their financial standing. This guide delves into the CD rates for January 2024, shedding light on the factors that shape them and presenting some of the top choices. Explore how money helps flourish through strategic savings with CD accounts.

Understanding Certificate of Deposit (CD) Rates

The Basics of CD Rates

CD rates, or Annual Percentage Yields (APYs), represent the interest earned on a Certificate of Deposit over a specified period. Unlike regular savings accounts, CDs require depositors to lock away their funds for a predetermined term, which can range from a few months to several years. The longer the term, the higher the potential interest rate, offering individuals a way to grow their savings more rapidly.

Factors Influencing CD Rates

Several factors contribute to the determination of CD rates. Online banks and credit unions typically offer more competitive rates than traditional brick-and-mortar institutions. Additionally, the Federal Reserve’s decisions on interest rates influence the broader financial landscape, prompting banks to adjust their CD rates accordingly.

The CD term is another critical factor. Generally, longer terms come with higher rates, reflecting the commitment of depositors to keep their funds locked away for an extended period. As of January 19, 2024, the landscape of CD rates is influenced by the Federal Reserve’s recent rate hikes, resulting in higher rates compared to previous years.

Unveiling the Best CD Rates for January 2024

Top CD Rates Overview

As we explore the CD rates for January 2024, it’s essential to note that these rates are subject to change, and depositors should verify the latest rates before making any decisions. Online financial institutions, including banks and credit unions, often present more enticing rates, exceeding the national averages for both one-year and five-year terms.

Sample of Top 12 CD Rates

The following list showcases some of the best CD rates available as of December 21, 2023, in the current market:

Barclays Online CD:

  • 1-year APY: 5.30%
  • 3-year APY: 4.30%
  • 5-year APY: 4.15%

Alliant Credit Union Certificate:

  • 1-year APY: 5.40%
  • 3-year APY: 4.45%
  • 5-year APY: 4.35%

LendingClub CD:

  • 1-year APY: 5.00%
  • 3-year APY: 4.30%
  • 5-year APY: 4.00%

BMO Alto Certificate of Deposit:

  • 1-year APY: 5.30%
  • 3-year APY: 4.60%
  • 5-year APY: 4.60%

Popular Direct CD:

  • 1-year APY: 5.35%
  • 3-year APY: 4.55%
  • 5-year APY: 4.35%

Bread Savings™️ CD:

  • 1-year APY: 5.50%
  • 3-year APY: 4.25%
  • 5-year APY: 4.15%

Quontic Bank CD:

  • 1-year APY: 5.30%
  • 3-year APY: 4.40%
  • 5-year APY: 4.30%

TAB Bank CD:

  • 1-year APY: 5.27%
  • 3-year APY: 4.25%
  • 5-year APY: 4.00%

Marcus by Goldman Sachs High-Yield CD:

  • 1-year APY: 5.35%
  • 3-year APY: 4.40%
  • 5-year APY: 4.10%

Ally Bank High Yield CD:

  • 1-year APY: 5.00%
  • 3-year APY: 4.15%
  • 5-year APY: 4.00%

Synchrony Bank CD:

  • 1-year APY: 5.30%
  • 3-year APY: 4.30%
  • 5-year APY: 4.00%

Sallie Mae Bank CD:

  • 1-year APY: 5.25%
  • 3-year APY: 4.00%
  • 5-year APY: 4.00%

The Annual Percentage Yields (APYs) mentioned above are accurate as of January 19, 2024. However, rates are subject to change. Therefore, individuals should always verify the most up-to-date information when considering CD options.

The Impact of CD Rates on Earnings

Understanding how CD rates impact earnings is crucial for depositors. Let’s consider three scenarios with a starting deposit of $10,000:

  1. Different amounts, same one-year rate:
  • A $500 deposit earns $25.
  • A $1,000 deposit earns $50.
  • A $5,000 deposit earns $250.
  • A $10,000 deposit earns $500.
  1. Exact amounts, different one-year rate:
  • 3.00% APY makes $300.
  • 4.00% APY makes $400.
  • 5.00% APY makes $500.
  • 5.30% APY makes $530.
  1. Exact amounts, different five-year rates:
  • 3.00% APY earns approximately $1,593.
  • 4.00% APY earns roughly $2,167.
  • 5.00% APY earns roughly $2,762.
  • 5.30% APY earns roughly $2,946.

Making Informed Decisions

Choosing the Right CD

Selecting the correct CD involves considering various factors:

  • CD Term: The term of the CD impacts the interest rate, with longer terms offering higher rates. Depositors should choose a term that aligns with their financial goals and timeline.
  • CD Type: Different CDs come with unique features, such as no-penalty CDs or bump-up CDs. Understanding the type of CD that suits individual needs is essential.
  • CD Rate: Comparing rates across different banks and credit unions helps depositors find the most competitive options. While convenience is crucial, aiming for a high rate ensures optimal returns.
  • CD Deposit: The amount deposited into a CD depends on individual savings goals. It’s advisable to have more funds than the CD’s minimum requirement, and depositors should be mindful of FDIC insurance limits for protection.


There are currently many opportunities available for individuals who want to grow their savings through Certificates of Deposit (CDs) as of January 19, 2024. In order to secure the most favourable rates, it is essential to have a comprehensive understanding of the factors that influence them. It involves meticulously comparing rates across various banks, which empowers individuals to make informed decisions that align with their unique financial objectives. It’s essential to stay up-to-date with CD rates since they can frequently change, especially before making any financial commitments. In today’s world, where economic decisions can have a significant impact on our future, investing in CDs with favourable rates is a wise choice for those who want to improve their financial well-being.

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