Key Insights on the Best CD Rates
- Newtek Bank offers the highest CD rate at 5.55% APY for a 6-month term, holding firm as the top rate nationally.
- For longer terms, rates up to 5.40% for 1-15 months and 5.30% for 2 years are available.
- Certificates of 3 to 5 years offer rates ranging from 4.70% to 5.00% APY.
- CD rates have been gradually decreasing in anticipation of potential future Fed rate cuts expected this year.
- Recent inflation data suggests a delay in rate cuts, with the Fed monitoring the situation closely.
Discover featured rates from our partners and explore the best CDs available across the country.
Lock In 5.30% to 5.55% APY for 3 to 23 Months
Short-term certificates continue to offer the highest yields, with Newtek Bank leading at 5.55% for a 6-month term. Other institutions also provide competitive rates up to 5.50% for 5 or 7 months.
In the 1-year and 18-month terms, rates of up to 5.40% are achievable, with 12 CDs offering 5.40% APY or better for terms of 3 to 15 months.
Longer Terms Will Lock Your Rate to 2027—Or Beyond
Considering CD terms exceeding two years is advisable, as the possibility of declining U.S. interest rates in the coming years looms. Securing a top 3-year CD at 5.00% guarantees the rate until 2027, while rates in the mid-to-high 4% range are possible for 4 to 5-year terms.
CD Rates Are Still Near Record Highs
While CD rates have slightly decreased from the historic peak of 6.50% in October, they remain significantly higher than rates experienced over the past two decades. Earning yields in the 4% to 5% range for extended periods still presents an appealing opportunity.
Jumbo Deposits Can Provide More CD Options
Higher rates on jumbo CDs are available, such as 5.50% APY from State Bank of Texas for a 12-month certificate. However, standard CDs may offer competitive rates as well, requiring a thorough comparison before deciding.
Where Are CD Rates Headed in 2024?
The Federal Reserve’s recent actions to combat inflation have influenced CD rates positively, with a significant rise seen in October-November. The Fed’s decision to maintain rates indicates a cautious approach, awaiting clearer signs of sustained inflation decline before considering rate cuts.
Market uncertainties make the future of CD rates unpredictable. While potential rate cuts could impact CD rates, the timing remains uncertain, with several factors influencing future rate adjustments.
How We Find the Best CD Rates
Our daily tracking of rate data from over 200 institutions ensures we feature the top-paying CDs in various terms. To be listed, institutions must be federally insured, and CDs should have a manageable minimum deposit requirement. Our methodology emphasizes transparency and accessibility to identify the best rates available.