Important points
In the wake of last week’s Fed rate cut, many banks and credit unions have lowered their CD rates, and today the three-month and three-year key APYs fell. However, the highest overall rate of 5.20% is still available and you can get a 6-month certificate from ableBanking. For a longer guaranteed interest rate, the best 1-year CD is Northpointe Bank’s 5.10% offer for 11 months. Or, choose Spectra Credit Union’s 5.05% 14-month offer and lock in your interest rate until nearly December 2025. To secure your interest rate through 2026, consider EFCU Financial’s 18-month CD at 4.55% or Lafayette Federal Credit Union’s 2-year CD at 4.78%. Or choose a mid-4% interest rate guaranteed through 2028 or 2029. CD rates are expected to continue falling, as last week’s Fed rate cut is likely only the first in a series. So act fast to get today’s rates while you still can.
Below you’ll find featured rates from our partners, followed by detailed rankings of the best CDs available nationwide.
Although the 3-month top rate has declined, the national top rate remains the top at 5.20%.
Among short-term CDs, the key three-month return fell today from 5.10% to 5.01%. The new leader for this period, Financial Resources Federal Credit Union, will be able to lock in its interest rate for four months.
But if you can extend it for a few months, the overall CD rate leader is ableBanking. The company offers interest rate guarantees higher than 5.20% and as long as 6 months. The national runner-up rate is 5.10% and is offered by three different institutions. The longest of these is Northpoint Bank’s 11-month offer.
Meanwhile, the longest term you can lock in at least 5.00% is 14 months, available at 5.05% APY from Spectra Credit Union. Its interest rate guarantee takes you through almost December 2025, but in the 18-month category you’ll earn 4.90% from FedChoice Federation Credit Union over a 15-month term and 4.55% from EFCU Financial over a full 18 months .
Top 3-year rates have fallen, but long-term CDs remain wise
Want to lock in your interest rate until 2026 or beyond? The best rate in this case is 4.78% for 2 years with Lafayette Federal Credit Union, but the highest APY to extend the guarantee through 2027 is 4.55% with EFCU Financial for a term is 30 months. Compared to the 4.65% that we were able to secure yesterday, the interest rate is lower today.
To extend your interest rate guarantee even further into the future, you can earn a 4.50% return with a 4-year certificate from SecurityPlus Federal Credit Union or a 4.32% return over 5 years with Lafayette Federal Credit Union . Late 2029.
Despite paying a lower annual percentage yield (APY) than short-term options, multi-year CDs are a smart choice right now before the Fed lowers the benchmark federal funds rate further. Additional reductions are likely to occur in 2024 and 2025, with the possibility of an extension into 2026, but any CD rates you secure will be held until the end of their term.
To view the top 15-20 rates nationwide for any time period, click on the desired time period in the left column above.
Today’s best CDs still promise great returns
It’s true that CD rates are no longer at their peak. However, despite the decline, they are still paying historically high profits. In October, we recorded the nation’s top interest rate of 6.50% for just a few days, but the top interest rate has now fallen to 5.20%. Still, dozens of banks and credit unions continue to offer interest rates of 5.00% or higher.
Compare this to early 2022, before the Federal Reserve embarked on a ferocious interest rate hike campaign. The maximum return from each term’s best CD ranged from just 0.50% to 1.70% APY.
Jumbo CD prices are the highest in five periods.
Jumbo CDs require a much larger deposit but do not always offer a higher rate. Currently, the best jumbo CD is at the top in five of the eight terms we track.
*Indicates the highest APY offered for each period. Click on the column header above to see a list of the highest value CDs across bank, credit union, and jumbo certificate terms.
How low will CD prices fall in 2024?
In a near-certain move, the Fed announced last week that it would cut the federal funds rate for the first time since March 2020. A new phase begins after an aggressive anti-inflation campaign with 11 interest rate hikes from spring 2022 to summer 2023. The Fed’s benchmark interest rate then remained at its highest level since 2001 for 14 months.
But what was not certain was how much the central bank would cut rates last week. As there was no prior public comment from Fed members on the size and pace of future rate cuts, interest rate traders are divided on whether this will be a modest 0.25 percentage point cut or a more drastic 0.50 percentage point cut. Ta. The Fed opted for a bold 0.50 point cut.
The Federal Open Market Committee (FOMC) said in a statement: “The Committee has increased confidence that inflation is on a sustained path toward 2%, and the risks to employment and achieving the inflation goals are approximately balanced.” We judge that there are,” he said. “In view of the evolution of inflation and the balance of risks, the Committee has decided to lower the target range for the federal funds rate by one-half percentage point.”
In addition to this first rate cut, the Fed also released a quarterly “dot plot.” This is an anonymous report of what each Fed member thinks will happen to the federal funds rate over the next few years. The commission’s median forecast is for an additional 0.50 percentage point reduction in 2024 and a further 1.00 percentage point reduction in 2025, according to last week’s forecasts.
Only time will tell what exactly happens to the federal funds rate after the last two meetings in 2024. However, with a 0.5 point cut already scheduled, the decline in the highest CD rate seen so far may continue for some time.
As a result, the interest rates we can guarantee today are expected to be significantly better than the rates expected in 2025. Therefore, fixing it as soon as possible is a wise proactive move.
Daily ranking of best CDs and savings accounts
Please note that the “best interest rate” quoted here is the highest interest rate available nationally, as determined by Investopedia in its daily interest rate survey of hundreds of banks and credit unions. This is significantly different from the national average, which includes all banks that offer CDs for that term, including many large banks that pay nominal interest. So while the national average is always very low, the best rates you can shop around and find are often 5, 10, or even 15 times higher.
How to find the best CD rates
Every business day, Investopedia tracks interest rate data from more than 200 banks and credit unions that offer CDs to customers nationwide to determine daily rankings of the highest-paying securities for each key period. To be eligible for inclusion on our list, a financial institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial deposit amount for CDs is Must not exceed $25,000 and maximum specified deposit amount must not be less than $5,000.
Banks must be available in at least 40 states. Additionally, some credit unions may require a specific charity or We ask that you donate to the association, but credit unions with contribution requirements of $40 or more are excluded. To learn more about how to choose the best rate, read our full methodology.
