Key Takeaways
- Two banks and one nationwide credit union are paying today’s top CD rate of 5.50%, on terms of 6 to 9 months.
- To lock your rate for a full year, consider NexBank’s 5.35% offer. After that, five additional CDs pay 5.30% on terms of 10 to 13 months.
- With the Fed expected to cut interest rates next month, longer-term CDs are smart right now. For instance, you can lock in 5.35% for 1 year, 5.15% for 2 years, or 5.00% for 3 years.
- Those who can stretch further might like to secure an upper-4% return that’s guaranteed as long as 2029.
- CD rates will likely keep sliding in anticipation of multiple Fed rate cuts.
Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
Today’s Top Rate Is 5.50%—But With a Short Guarantee
The top nationwide CD rate of 5.50% APY is available from three different institutions. DR Bank is paying that tip-top rate for 6 months, while Presidential Bank offers a 7-month term, and Vibrant Credit Union, a 9-month term.
The country’s best CD rates are all on certificates with shorter terms. After the three leading offers above, 17 more CDs pay 5.30% to 5.40% on terms up to 15 months. Among them is the top-paying 1-year CD, available from NexBank for 5.35% APY.
If you can save a little longer than a year, Jovia Financial Credit Union is paying 5.30% for 15 months, which would secure your rate past Halloween 2025. Or maybe you’d prefer a rate lock until 2026, which you can get from American 1 Credit Union’s 18-month certificate paying 5.25%.
Consider Multi-Year Rate Guarantees—Before Rates Move Lower
If you’re able to commit cash to a CD for longer, you can guarantee a rate of 5.15% for 2 years, also from American 1 Credit Union. Or you can lock in 5.00% until 2027—either with Vibrant Credit Union for 30 months or American 1 Credit Union for 36 months.
The best 4-year CD rate is 4.60%. You can score that rate from three different institutions: Credit Human, Department of Commerce Federal Credit Union, and American 1 Credit Union. Or maybe you’d like to stretch a rate guarantee a full five years. Grow Financial Credit Union is the leader there, offering a rate lock of 4.75% until 2029.
Despite paying less than shorter-term CDs, it could be smart to lock in an attractive multi-year rate before the Fed makes its first rate cut. Not only that, but CD rates could keep sliding as it’s possible the Fed will lower rates for the coming 2–3 years. Opening a CD now will lock in today’s rate for the entire term—allowing you to enjoy a high APY for years into the future, despite falling rates.
CD Rates Still at Historic 20-Years Highs
Today’s CD rates aren’t at their absolute peak, but they’re still running historically high. October brought us a top nationwide rate of 6.50%, and today that’s down to 5.50%. Still, quite a few banks and credit unions are offering 5.00% or better. Eight CDs among the top national rates still pay 5.35% or more.
The longest currently available term of 5% or better is 36 months from American 1, mentioned above, but this may not last long. Any APY above 4% may be worth locking in—before the Fed cuts rates.
Jumbo CDs Lead for 1-Year and 5-Year Terms
Jumbo CDs require much larger deposits, and the best jumbo CDs don’t offer the best rates in most terms—except for 1-year and 5-year CDs. One American Bank is offering 5.40% for an 11-month term, which is 5 basis points higher than the standard 1-year CD. Similarly, Grow Financial Federal Credit Union pays 4.86% for a 60-month term, edging out the best standard 5-year CD (4.75%) by 11 basis points.
Where Are CD Rates Headed in 2024?
The Federal Reserve kept the federal funds rate at its current level of 5.25% to 5.50% at its meeting that concluded Wednesday, as was expected. But a rate cut seems to be on the horizon: According to the CME FedWatch tool, 100% of federal funds futures traders expect the Fed will cut rates by at least 0.25 percentage points at its next meeting in September, and they also overwhelmingly predict rates will move even lower in November.
Recent inflation reports provided more evidence that the Fed’s campaign to tamp down inflation has been effective, strengthening predictions of rate cuts in the near future. The central bank’s mission to beat inflation led it to raise the federal funds rate 11 times between March 2022 and July 2023, bringing the fed funds rate to its highest level in 22 years.
The central bank’s rate-hike campaign has been a boon to savers with cash in the bank, as the fed funds rate directly influences the rates that banks and credit unions pay on CDs. As a result, CD rates hit a 20-year high last fall. Those with money in a high-yield savings or money market account have also benefited from these historic rates, with savings accounts still paying their highest rates in two decades.
But the Fed has kept rates steady since its last rate hike in July 2023. This week marked the eighth consecutive meeting in which the central bank left its benchmark rate unchanged.
The Fed’s “dual mandate” compels it to carefully adjust rates in response to economic indicators of inflation and job growth. Recent news of slow wage growth in the second quarter plays an important role in its outlook.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” the FOMC said in its most recent official statement. “The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.”
Fed officials are generally careful not to jump the gun and will likely continue waiting for additional reports before making any decisions about changing the fed funds rate. But with confidence in a September rate cut high—and CD rates likely to move ahead of the central bank’s move—if you’ve got the funds to spare, lock in an excellent CD rate while you still can.
Daily Rankings of the Best CDs and Savings Accounts
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.