Unlocking the Top CD Rates: A Guide for Savvy Investors
Key Takeaways:
- The highest nationally available CD rate sits at 5.65% APY, offered by MutualOne Bank for a 3-month term.
- Runner-up Northern Bank Direct provides a competitive 5.60% rate for a 12-month duration.
- Nine offerings currently boast rates of at least 5.50% APY.
- Explore locking in rates up to 5.40% for 15 months, up to 5.30% for 2 years, or between 4.70% and 5.00% for 3 to 5 years.
- Despite a gradual decline, CD rates remain strong as inflation indicators suggest a delay in potential rate cuts.
The rates below showcase offerings from our partners and insights from our study of the top CDs nationwide.
Lock In 5.30% to 5.65% APY for 3 to 23 Months
Currently, the leading national CD rate remains at 5.65% APY with a short 3-month lock-in by MutualOne Bank. Consider the slightly lower 5.60% APY from Northern Bank Direct for a 12-month commitment to maximize returns.
For slightly longer durations, options include locking in up to 5.40% with an 18-month rate and a range of 13 CDs yielding at least 5.40% APY for terms spanning 3 to 15 months. Credit Human offers a 5.30% rate for a flexible term of 18-23 months.
Longer Terms Will Secure Your Rate to 2027—Or Beyond
Opting for a CD term exceeding two years could prove beneficial as a hedge against potential rate declines. Consider the stability of a top 3-year CD at 5.00% or secure mid-to-high 4% rates for 4 to 5 years ahead.
CD Rates Are Still Near Record Highs
Though CD rates have slightly dipped from their peak of 6.50% in October, they remain historically favorable. Locking in yields of 4% to 5% for prolonged periods presents substantial earning opportunities.
Strategically selecting long-term rates now could safeguard against future rate drops in 2024 and 2025.
Jumbo Deposits Can Provide More CD Options
Explore offerings such as a 5.50% APY on a 12-month jumbo CD from State Bank of Texas or a 5.49% APY for 6 months from My eBanc. Always compare jumbo CD rates against standard CD rates for optimal returns.
Where Are CD Rates Headed in 2024?
With inflation concerns at the forefront, Federal Reserve actions heavily influence CD rates. Though past hikes led to favorable CD rates, current projections signal a potential rate cut. Stay informed to capitalize on market shifts.
For detailed rankings and tips on choosing CDs wisely, trust our daily research tracking over 200 institutions nationwide to secure the best rates.