Top CD Rates Analysis and Insights
- Nation-leading MutualOne Bank is holding firm with its impressive 3-month CD rate of 5.65% APY, the highest nationally available rate.
- Newtek Bank follows closely with a 6-month rate of 5.55% APY.
- CD rates for 1 to 3 years range from 5.25% to 5.40%, while 4-year and 5-year CD rates hover in the upper 4% range.
- Despite a slight decline from historic highs, today’s top CD rates remain competitive amidst anticipation of Fed rate cuts.
Lock In 5.25% to 5.65%—On Terms Up to 23 Months
Leading the pack, MutualOne Bank maintains the nation’s top CD rate of 5.65% APY for a 3-month term, securing rates until mid-August. For a longer commitment, Newtek Bank offers a compelling 6-month CD at 5.55% APY, extending rate locks almost until Thanksgiving.
If you prefer a longer commitment, several CDs are available from 9 to 15 months with rates of 5.35% to 5.50%, including NexBank’s attractive 1-year CD at 5.40% APY. Alternatively, Credit Human offers a flexible 18 to 23-month option at 5.25%, securing rates until spring 2026.
Long CD Terms Secure Your Rate to 2027—Or Beyond
Choosing a 2-year or longer CD term can shield you from potential declining interest rates, with top 3-year CDs offering 5.00% APY for rate guarantees up to 2027. Similarly, high 4% range rates for 4 or 5-year terms provide extended security.
The best CD rates are not exclusive to small banks and credit unions; major US banks like BMO Alto are offering top 5-year returns alongside competitive rates for other CD terms.
CD Rates Are Still Near 20-Year Highs
While CD rates have slightly decreased from their peak last fall, they remain significantly higher than averages seen over the past two decades, presenting lucrative long-term earning opportunities.
Despite the potential for rate decreases in the future, locking in current high CD rates can provide a smart hedge against future rate drops.
Jumbo CDs Offer a Rate Bump in Some Terms
Jumbo CDs such as those from State Bank of Texas and State Department Federal Credit Union can offer higher rates, though standard CDs may sometimes yield better returns.
When considering CD options, always compare both types to maximize your potential returns.
Where Will CD Rates Go in 2024?
The Federal Reserve’s recent actions and the current economic climate have set the stage for uncertainty in future CD rates. While the Fed has paused rate hikes due to cooling inflation, future rate cuts are not off the table, indicating continued rate stability for the time being.
Stay informed about upcoming Fed decisions and inflation trends to make strategic decisions regarding CD investments.
How We Find the Best CD Rates
Our daily analysis tracks over 200 banks and credit unions, highlighting the top-paying CDs with minimum initial deposit requirements not exceeding $25,000. Institutions must be federally insured and meet specific criteria to ensure top rates are featured.
For a comprehensive understanding of our methodology and selection process, refer to our full methodology guide.