Unlock the Best CD Rates: A Comprehensive Guide
- Nation-Leading Rates: Newtek Bank offers an impressive 5.55% APY for a 6-month term.
- Extended High Rates: Lock in rates up to 5.40% for 1-15 months or 5.30% for 2 years.
- Long-Term Certificates: Get rates ranging from 4.70% to 5.00% APY for 3-5 year terms.
- Economic Outlook: CD rates have been gradually decreasing in anticipation of potential Fed rate cuts.
- Inflation Impact: Recent inflation data suggests a delay in rate cuts by the central bank.
Lock In 5.30% to 5.55% APY for 3 to 23 Months
The highest CD yields are still found in short-term certificates. As of now, Newtek Bank leads with a 5.55% rate for a 6-month term, followed closely by two other institutions offering 5.50% for 5 or 7 months.
Longer Terms Will Lock Your Rate to 2027—Or Beyond
Choosing a CD term exceeding two years offers stability amid potential rate declines. Secure a 3-year CD at 5.00% or enjoy mid-to-high 4% rates for 4-5 years.
Where Are CD Rates Headed in 2024?
The Federal Reserve’s actions impact CD rates significantly. Despite a recent rate-hike pause due to inflation cooling, potential rate cuts are uncertain. The upcoming meetings will shed light on future rate adjustments, with projections hinting at possible cuts later this year.
Jumbo Deposits Can Provide More CD Options
Consider jumbo CDs for higher yields, such as State Bank of Texas’s 5.50% APY for 12 months. However, comparing jumbo and standard CD rates is crucial to maximize returns.
How We Find the Best CD Rates
At Investopedia, we curate daily rankings of top-paying CDs from over 200 federally insured institutions. These rankings are based on rates for CDs with a maximum initial deposit limit of $25,000, ensuring nationwide coverage and transparency in selecting the best rates.