• Written by
    Lindsey Crossmier

    Lindsey Crossmier

    Financial Writer

    Lindsey Crossmier is an accomplished writer with experience working for The Florida Review and Bookstar PR. As a financial writer, she covers Medicare, life insurance and dental insurance topics for RetireGuide. Research-based data drives her work.

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  • Edited By
    Lamia Chowdhury
    Lamia Chowdhury, editor for RetireGuide.com

    Lamia Chowdhury

    Financial Editor

    Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.

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  • Financially Reviewed By
    Stephen Kates, CFP®
    Stephen Kates, Certified Financial Planner™ and personal finance expert

    Stephen Kates, CFP®

    Certified Financial Planner™ Professional and Founder of Clocktower Financial Consulting

    Stephen Kates is a Certified Financial Planner™ professional and personal finance expert with over a decade of experience working with individuals and families who need help with their finances. With experience as a financial advisor for two of the largest financial firms in the country, Stephen has worked with hundreds of clients to build comprehensive financial plans to grow and protect their wealth.

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  • Published: March 30, 2023
  • Updated: October 31, 2023
  • 9 min read time
  • This page features 8 Cited Research Articles
Fact Checked
Fact Checked

A qualified expert reviewed the content on this page to ensure it is factually accurate, meets current industry standards and helps readers achieve a better understanding of retirement topics.

Cite Us
How to Cite RetireGuide.com's Article

APA Crossmier, L. (2023, October 31). Best CD Rates for November 2023. RetireGuide.com. Retrieved May 20, 2024, from https://www.retireguide.com/retirement-planning/investing/certificate-of-deposit/cd-rates/

MLA Crossmier, Lindsey. "Best CD Rates for November 2023." RetireGuide.com, 31 Oct 2023, https://www.retireguide.com/retirement-planning/investing/certificate-of-deposit/cd-rates/.

Chicago Crossmier, Lindsey. "Best CD Rates for November 2023." RetireGuide.com. Last modified October 31, 2023. https://www.retireguide.com/retirement-planning/investing/certificate-of-deposit/cd-rates/.

Key Takeaways
  • Certificate of deposit (CD) rates are influenced by the Federal Reserve’s national deposit rates, which are rising in 2023, as of the most recent report from Feb. 21. 
  • CDs are an important and safe investment tool to grow your retirement funds.
  • CD rates are typically expressed as an annual percentage yield (APY), which is the amount of annual interest you’ll earn within one year. 
  • Keep in mind that each CD type may offer a different average rate, depending on what features it has. 

Current CD Rates

1 month CD

  • 5.55% Treasury Yield
  • 0.22% National Deposit Rate
  • 0.97% National Deposit Rates Rate Cap Adjusted
  • 7.41% National Rate Cap
  • 7.41% Treasury Yield Rate Cap Adjusted

3 month CD

  • 5.55% Treasury Yield
  • 1.42% National Deposit Rate
  • 2.15% National Deposit Rates Rate Cap Adjusted
  • 7.41% National Rate Cap
  • 7.41% Treasury Yield Rate Cap Adjusted

6 month CD

  • 5.53% Treasury Yield
  • 1.39% National Deposit Rate
  • 2.14% National Deposit Rates Rate Cap Adjusted
  • 7.39% National Rate Cap
  • 7.39% Treasury Yield Rate Cap Adjusted

12 month CD

  • 5.46% Treasury Yield
  • 1.79% National Deposit Rate
  • 2.54% National Deposit Rates Rate Cap Adjusted
  • 7.30% National Rate Cap
  • 7.30% Treasury Yield Rate Cap Adjusted

24 month CD

  • 5.03% Treasury Yield
  • 1.50% National Deposit Rate
  • 2.25% National Deposit Rates Rate Cap Adjusted
  • 6.79% National Rate Cap
  • 6.79% Treasury Yield Rate Cap Adjusted

36 month CD

  • 4.80% Treasury Yield
  • 1.38% National Deposit Rate
  • 2.13% National Deposit Rates Rate Cap Adjusted
  • 6.51% National Rate Cap
  • 6.51% Treasury Yield Rate Cap Adjusted

48 month CD

  • 4.80% Treasury Yield
  • 1.30% National Deposit Rate
  • 2.05% National Deposit Rates Rate Cap Adjusted
  • 6.51% National Rate Cap
  • 6.51% Treasury Yield Rate Cap Adjusted

60 month CD

  • 4.60% Treasury Yield
  • 1.38% National Deposit Rate
  • 2.13% National Deposit Rates Rate Cap Adjusted
  • 6.27% National Rate Cap
  • 6.27% Treasury Yield Rate Cap Adjusted
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What Are CD Rates?

A CD’s rate is the annual interest you’ll earn, which is usually expressed as an annual percentage yield (APY). Your CD rate is heavily influenced by the Federal Reserve’s national deposit rates, which increased throughout 2022. Within the first two months of 2023, the upward trend is continuing.

CD rates generally pay compound interest, which means the interest on your CD will also earn interest. CDs compound daily or monthly, depending on your issuer.

The national average interest rate for CDs, also known as the national deposit rate, is 1.36% for a one-year CD, 1.22% for a three-year CD and 1.26% for a five-year CD. These are the average rates as of Feb. 21, 2023, and are subject to change regularly.

Most issuers competitively offer above the national average interest rate. And typically, the longer your term length, the higher your interest rate.

The type of CD you choose will also influence your rate. There are different CD types, each with unique features to cater to your retirement goals.

For example, with most CDs, you’ll face a penalty if you try to access your money before it’s maturity date. But if you purchase a no-penalty CD, you’ll be able to tap into your funds without facing the penalty.

However, since this CD is less risky than a traditional CD, you should expect a lower interest rate. Generally, the safer the investment, the lower the interest rate.

Below is a table comparing average interest rates with several different CD types. Remember that these are general projections, so the average interest rates will likely vary by issuer.

Average CD Type Rates
Lower RatesAverage CD RateHigher Rates
  • Traditional CD

You shouldn’t try to force a CD into your retirement portfolio if it doesn’t fit. While CDs are a safe and secure investment, they don’t offer as high of returns compared to other options, such as stocks.

You also can’t typically tap into your money once it’s invested in the CD. If you predict you might need your money before the CD reaches maturity, it would be best to consider a more liquid option.

However, if you find a specific CD type that fits your needs, there is little to no risk of adding a CD to your investment portfolio. Learn how CDs work within your retirement plan to determine if it’s right for you.

How CD Rates Work for Retirement Planning

CD rates act as a secure anchor with little to no risk for your retirement plan. With most CDs, the rate is locked in until it reaches maturity, which means you have guaranteed interest to rely on. Your initial investment and interest are also protected by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 if issued by a bank. If you get your CD from a credit union, your deposit is insured up to $250,000 by the National Credit Union Administration.

On the other hand, there are many high-risk, high-reward investments you can add to your portfolio, such as stocks and cryptocurrency. While these options can add a hefty boost to your retirement funds, they also risk losing money.

Pros & Cons of CDs Rates as a Retirement Investment
  • Typically has reliable fixed rates for guaranteed returns
  • Some CD types have higher rates than others
  • There are options for flexible rates if needed
  • While CD rates are higher than some investment options, they’re low compared to higher risk options
  • The CDs with higher rates usually have higher risk

Your CD can help you combat high inflation by allowing your money to grow at a set rate. Keep in mind that some CDs, like bump-up or step-up CDs, allow you to adjust your interest rate during your term.

Bump-up CDs allow you one chance to bump up your interest rate, while step-up CDs have a predetermined schedule of multiple increases throughout the term. If you want flexible rates as a feature within your retirement plan, you could consider a bump-up or step-up CD.

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Factors to Consider When Choosing CD Rates

The term length, potential penalty fees and type are all factors to consider when selecting a CD. Your term length and CD type determine your CD’s rate. Typically, the longer your CD’s term length is, the higher your interest rate is. The longer you commit to leaving your money untouched, the more risk you take, which is why you receive the higher rate.

Barbara O’Neill, CFP®, CEO of Money Talk and author of Flipping a Switch offered advice on which type of CDs offer the best rate. “Right now, the best rates available are through brokerage CDs. It’s not unusual to see brokerage CDs paying 4.5%, or even close to 5% interest. “

As for penalty fees, if you tap into your CD before it matures, you will face an early withdrawal penalty. Penalties vary depending on your issuer. For example, with Capital One Bank, the penalty will cost you three months of interest for a CD with a maturity of one year or less.

If you think you have a high chance of needing to access your money early, you could consider a no-penalty CD. Your initial rate will likely be lower than a traditional CD, but you won’t risk losing any of your interest due to a penalty.

If you’re a retiree looking for a CD with:You Could Consider a:
  • A high interest rate
  • Long term length
  • 5-year brokered CD
  • A moderate interest rate
  • Short term length
  • Access your money before maturity
    without penalty
  • 1-year no-penalty CD

Tips for Maximizing CD Rates

You can maximize your certificate of deposit rates by laddering CDs, browsing competitor rates before opening a CD, and keeping track of maturity dates.

When asked for tips about finding a good CD rate, Valadez told RetireGuide, “Don’t just walk into your bank that you use for your checking or savings accounts. Due to advances in technology, you can open accounts with various banks online in a matter of minutes and purchase their CDs. You’ll want to shop around — but always read the fine print and understand penalty structure, withdrawal rules, etc.”

3 Tips To Maximize Your CD Rate
Ladder your CDs
You can purchase multiple CDs with different maturities and stagger them. This way, you can benefit from the long-term maturity rates, while also having regular access to your money before reinvesting them. You should only consider laddering CDs if you have enough money to open multiple CDs and can keep up with overlooking multiple deposits. 
Browse competitor rates
Many issuers offer competitive or promotional rates for CDs. Don’t go with the first bank or credit union you know — compare rates of several different issuers before opening a CD to ensure you're getting the best rate. 
Keep track of your maturity dates
Some CDs will automatically reinvest in another CD after it reaches maturity, and it won’t always be at the same rate you originally invested at. Keep track of your CD’s maturity rates to confirm they won’t auto renew at a lower rate. 

If you’re wary about CDs giving you the high rates you want for your retirement portfolio — you can always consider higher risk investment options. That being said, you shouldn’t choose only low-risk, or only high-risk investments for your portfolio. You could consider a mix of both low-risk and high-risk investments, so you retain some security with room for growth.

Frequently Asked Questions About CD Rates

What is an APY?
APY stands for annual percentage yield. It is the yearly return on a bank or investment account.
How do CD rates differ from other types of retirement investments?
CD rates can be considered a safe middle ground to other retirement investments. CD rates are higher than money market or traditional savings accounts, but lower compared to stocks or cryptocurrency. 
How can I maximize my CD rates for retirement planning?
Maximize your CD rates for retirement planning by laddering CDs, shopping when interest rates are high to lock your rate and comparing CD types to choose the one which benefits fits needs. 
What is the typical range of CD rates, and how are they determined?
CD rates can range from less than 1% for a short-term CD to over 2% for a long-term CD. The rate is usually dependent on the length of the term, with longer terms offering higher interest rates. The bank's policy and the current interest rate environment also play a role in determining CD rates.

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Last Modified: October 31, 2023

8 Cited Research Articles

  1. Federal Deposit Insurance Corporation. (2023, February 21). National Rates and Rate Caps. Retrieved from https://www.fdic.gov/resources/bankers/national-rates/2023-02-21.html
  2. Capital One. (2023, January 18). 360 CD Account Disclosures. Retrieved from https://www.capitalone.com/bank/disclosures/cds/online-cds/
  3. U.S. Inflation Calculator. (2023). Current US Inflation Rates: 2000-2023. Retrieved from https://www.usinflationcalculator.com/inflation/current-inflation-rates/
  4. Morgan Chase Bank. (2023). What Is a Compound Interest Account. Retrieved from https://www.chase.com/personal/banking/education/budgeting-saving/what-is-a-compound-interest-account
  5. First Republic Bank. (2021, October 6). Money Market vs. Certificate of Deposit (CD): Where Should I Invest? Retrieved from https://www.firstrepublic.com/insights-education/money-market-vs-certificate-of-deposit-cd-where-should-i-invest
  6. Gravier, E. (2020, November 8). You Can Earn More Interest When You Put Your Money in a CD—Here Are the Different Types Offered. Retrieved from https://www.cnbc.com/select/types-of-certificates-of-deposits-cds/
  7. National Credit Union Administration. (2020, March). Deposits Are Safe in Federally Insured Credit Unions. Retrieved from https://ncua.gov/newsroom/press-release/2020/deposits-are-safe-federally-insured-credit-unions
  8. Kurta Law. (n.d.). Brokered CDs. Retrieved from https://www.kurtalawfirm.com/brokered-cds/