Key Takeaways
- CD rates reached a 20-year peak last fall due to the Federal Reserve’s actions against high inflation.
- While rates have slightly decreased, investing in a CD can still offer historically high returns.
- CD rates are primarily influenced by the federal funds rate, determined by the Fed.
- Considering potential rate cuts by the Fed in 2024 and 2025, now is an opportune time to secure a high CD rate for a term of 2 years or more.
- Explore our daily rankings for the best CDs offering rates until at least 2026, and even up to 2029.
The full article elaborates further below.
Today’s Best Rates on Medium- to Long-Term CDs
Our daily rankings consistently feature the top CD rates available nationwide, with durations ranging from 3 months to 5 years. Here are the current leading rates for CDs maturing between 2026 and 2029.
Top CD Rates You Can Lock in Until 2026 to 2029
| CD Type | APY | Term (months) | Minimum | |
|---|---|---|---|---|
| Best 2-Year CDs – Mature 2026 | Credit Human | 5.30% | 18-23 | $500 |
All the listed CDs are nationally available and federally insured by either the FDIC or NCUA, providing coverage up to $250,000 in case of institutional failure.
How CD Rates Got This High—And Where They’re Headed Next
Around two years ago, the Federal Reserve initiated an aggressive rate-hike strategy to combat high inflation levels. This led to a significant increase in the federal funds rate, subsequently driving up CD rates. However, following several rate holds by the Fed, CD rates have begun to stabilize after their initial surge.
While earlier predictions hinted at potential rate cuts this year, uncertainties surrounding inflation have altered these expectations. The Fed remains cautious about lowering rates until inflation is firmly under control. Therefore, the future trajectory of interest rates remains uncertain.
That Makes Now a Smart Time for Multi-Year CDs
Given the likelihood of decreasing savings and CD rates, it is wise to consider long-term CDs to secure current high rates. By locking in a rate for multiple years, you can shield your investments from potential rate decreases in the future.
Currently, shorter-term CDs offer the highest returns, but in anticipation of a possible downturn in interest rates, securing a rate sooner rather than later is advisable for extended rate guarantees.
Can’t Commit for Two Years? Here Are Your Next-Best Options
If you are unable to commit funds for an extended period, opting for shorter-term CDs can still enable you to benefit from current high rates based on your financial objectives.
- Today’s Best 3-Month CD Rates
- Today’s Best 6-Month CD Rates
- Today’s Best 1-Year CD Rates
- Today’s Best 18-Month CD Rates
While these options offer competitive rates, the rate guarantee will expire sooner than with longer-term CDs.
For easily accessible funds, high-yield savings accounts are viable alternatives, offering attractive rates currently at a 20-year high.
How We Find the Best Savings and CD Rates
Investopedia tracks rate data from over 200 banks and credit unions across the nation daily to determine the most competitive CD and savings rates. Institutions featured are federally insured, ensuring a maximum initial deposit of $25,000 for eligibility.
Our selection process prioritizes banks available in at least 40 states and credit unions with minimal entry requirements. For more detailed insights into our methodology, refer to our comprehensive guide.