12 best short-term CDs to open in January 2024

When it comes to maximizing the returns on your savings, you have several good options to choose from right now. After all, while rate hikes were paused at the most recent Federal Reserve meeting, the Fed has increased its benchmark rate several times over the last 18 months, leading to interest-bearing accounts — like high-yield savings accounts, certificates of deposit (CDs) and money market accounts — offering significantly higher annual percentage yields (APYs) compared to the rates that were offered in 2020 and 2021.

But while there are lots of smart interest-bearing account options to choose from, there are potential pros and cons to consider with each. For example, while many high-yield savings accounts currently offer rates well above 5.25%, these accounts come with variable interest rates. What that means is that if and when the overall rate environment declines, the earnings on your high-yield savings account will likely go with them. And, money market account rates are also typically variable, so you can't necessarily rely on consistent returns with those types of accounts, either. 

One type of interest-bearing account that offers reliable returns, however, is a CD. Unlike money market or high-yield savings accounts, the rates on CDs are fixed — so you're protected from any rate fluctuations that may occur during your CD term. And, due to the unusual rate environment, short-term CDs currently offer some of the highest rates available today, so it's worth considering a CD with a term of one year or less if you want to rake in top interest earnings. To help you get started, we've listed some of the best short-term CDs to consider this January.

Find the best rates you could earn on a CD today.

12 best short-term CDs to open in January 2024

If you want to earn the most interest possible using a CD account, the following short-term CD options may be worth considering this month: 

• Financial Partners Credit Union 8-month CD — 6.50% APY: Minimum opening deposit requirement is $1,000 and the account pays interest on a maximum balance of $5,000; early withdrawal penalty is 90 days of interest; you must also be a new member and qualifying California resident to open this CD
• Citizens State Bank 7-month CD — 5.75% APY: Minimum opening deposit requirement is $10,000; early withdrawal fee is 180 days of interest on the amount withdrawn or half of the future interest, whichever is greater, as well as a $50 penalty
• NASA Federal Credit Union 9-month CD: 5.70% APY: Minimum opening deposit requirement is $10,000; early withdrawal penalty is 182 days of dividends on the amount withdrawn or all dividends on the withdrawn amount if the account has been open less than 182 days
• TotalDirectBank 3-month CD — 5.66% APY: Minimum opening deposit requirement is $25,000; early withdrawal penalty is one month of compounded interest earned on the CD
• Forbright 9-month CD — 5.60% APY: Minimum deposit requirement is $1,000; early withdrawal penalty is three months of interest 
• State Bank of Texas 1-year CD — 5.60% APY: Minimum opening deposit requirement is $50,000; early withdrawal penalty is 60 days of interest
• Lafayette Federal Credit Union 1-year CD — 5.56% APY: Minimum opening deposit requirement is $500; early withdrawal penalty is six months of interest
• Signature Federal Credit Union 3-month CD — 5.55% APY: Minimum opening deposit requirement is $500; early withdrawal penalty is 45 days of interest
• LendingClub 1-year CD — 5.55% APY: Minimum opening deposit requirement is $2,500; early withdrawal penalty is 90 days of interest
• Colorado Federal Savings Bank 1-year CD — 5.55% APY: Minimum opening deposit requirement is $5,000; early withdrawal penalty is three months of interest
• Nexbank 1-year CD — 5.55% APY: Minimum opening deposit requirement is $25,000; early withdrawal penalty is six months of interest
• Northpointe Bank 11-month CD — 5.55% APY: Minimum opening deposit requirement is $25,000; early withdrawal penalty is nine months of interest

Explore your top CD options online here.

The bottom line

Today's short-term CDs offer some of the highest rates available on interest-bearing accounts — and the fixed-rate nature of these accounts is another perk that makes them worth consideration. But if you want to lock in a top rate on a CD with a term of one year or less, you may want to make a move now. There are a lot of unknowns with the current interest rate environment and if rates decline in the near future, you could miss out on the opportunity for big interest earnings on your money. Just make sure to do your homework before opening any type of CD to make sure you can meet the requirements — and that the terms align with your financial goals.