Key Takeaways
- The top CD rate currently available is 5.51% APY for a 3-month or 6-month term at TotalDirectBank.
- Additional top rates include 5.50% APY on CDs with terms of 5 to 9 months.
- For longer terms, you can secure rates of 5.25% to 5.00% on 2- to 3-year CDs and upper 4% returns on 4- to 5-year CDs.
- Despite a slight decrease in rates, the CD market remains competitive given current economic indicators.
Lock In 5.35% to 5.51%—On Terms of 3 to 15 Months
TotalDirectBank maintains its leading position with a 5.51% APY offer for 3-month or 6-month certificates. A minimum deposit of $25,000 is required to secure this rate until Thanksgiving.
If you have a lower deposit amount, there are runner-up CDs offering 5.50% on terms of 5 to 9 months, with minimum deposits ranging from $5 to $10,000. Additionally, newer CDs paying 5.40% are available for longer durations, reaching up to 2025.
Longer CDs Guarantee Your Rate Until 2026 or Beyond
Opting for CDs with terms of 2 years or more is wise as interest rates may decline in the near future. Credit Human offers a 5.25% rate for 18 to 23-month terms, extending the rate guarantee until spring 2026. The longest 3-year term secures your rate promise until 2027.
For even longer guarantees, consider rates in the high-4% range for 4 or 5-year terms.
CD Rates Are Still Near 20-Year Highs
Though CD rates have slightly decreased from their peak, they remain favorable compared to historical averages. Rates in the 4% to 5% range offer attractive long-term earning opportunities despite the recent softening.
Looking ahead, it’s essential to monitor how rates may trend in the coming years, especially considering the recent inflation data and the Federal Reserve’s monetary policies.
Where Will CD Rates Go in 2024?
Following a period of rate hikes, the Federal Reserve is currently maintaining its benchmark rate. The outlook for CD rates hinges on inflation trends, with uncertainties prevailing in the market.
While the Fed has hinted at potential rate cuts, the timeline for any adjustments remains unclear. As economic conditions evolve, keeping a close watch on inflation data and Fed announcements will be crucial for CD investors.
How We Find the Best CD Rates
Every business day, Investopedia reviews rate data from over 200 banks and credit unions nationwide to identify the top-paying CDs in various terms. To make our list, institutions must be federally insured, and CDs must have a maximum initial deposit of $25,000. Banks must be accessible in at least 40 states, and credit unions with donation requirements exceeding $40 are excluded from our rankings for transparency and fairness.