Latest Update on CD Rates and Trends
If you’re keeping an eye on CD rates and looking for the best deals, here’s a roundup of the latest changes in the market:
- The highest nationwide CD rate has dipped, now offering a 6-month rate of 5.55% from Newtek Bank, down from the previous 5.65%.
- Exciting news in the 18-month and 2-year CD terms as Credit Human emerges as a top player, offering 5.30% for a flexible term of 18-23 months.
- For those seeking longer-term security, rates of 5% or higher are available for up to 3 years.
Lock In 5.30% to 5.55% APY for 3 to 23 Months
Short-term certificates continue to offer competitive yields, with Newtek Bank reclaiming the top spot with a 6-month APY of 5.55%. Additionally, there are 10 more CDs paying 5.40% or better for terms ranging from 3 to 12 months.
If you’re considering longer-term options, Credit Human’s 18-23 month CD is now leading the pack at 5.30%, surpassing rates from the previous day.
Longer Terms Will Lock Your Rate to 2027—Or Beyond
Looking ahead, choosing a CD term extending beyond two years could be a strategic move given the potential for declining interest rates. Opting for a top 3-year CD at 5.00% can secure your returns until 2027, ensuring stability in an uncertain market.
CD Rates Are Still Near Record Highs
While CD rates have slightly decreased from their peak of 6.50% in October, they remain notably high compared to the past two decades. Securing a yield in the 4% to 5% range for extended periods remains a lucrative opportunity for savers.
Jumbo Deposits Can Provide More CD Options
Consider exploring jumbo CD options, such as those offered by State Bank of Texas and My eBanc, to maximize your earnings. While jumbo rates can be enticing, standard CDs may still offer competitive returns, so it’s wise to compare both before making a decision.
Where Are CD Rates Headed in 2024?
Following a period of rate hikes, CD rates surged to historic levels in late 2023. However, recent data suggests the Federal Reserve might delay rate cuts due to persistent inflation concerns. While expectations of rate reductions persist, uncertainties remain regarding the timing and extent of potential cuts.
Ultimately, CD rates could see a period of stabilization until further clarity emerges from the Federal Reserve’s upcoming meetings throughout the year.
How We Find the Best CD Rates
Investopedia continuously monitors over 200 banks and credit unions to provide daily rankings of the top-paying CDs while ensuring institutions are federally insured and maintain reasonable deposit requirements for inclusion in our lists.