Key Takeaways
- The best CD rates remain strong, with 15 certificates offering 5.40% APY or higher.
- Newtek Bank leads with a 5.55% APY for a 6-month term.
- Expected Fed rate cuts may impact CD rates in the near future.
- Although a Fed rate decrease is anticipated, economic indicators suggest a strong economy for now.
Below are featured rates from our partners, along with details on the best nationwide CDs available.
Lock In 5.40% to 5.55% APY for 3 to 12 Months
Short-term CDs offer the highest returns, with 15 options from 3 to 12 months at 5.40% APY or higher. Newtek Bank’s 6-month CD stands out with a 5.55% APY, while other CDs in the 5-7 month range offer 5.50%.
For longer-term rate locks, consider four 1-year CDs currently at a 5.40% rate, securing your return until spring 2025.
Longer Terms Secure Your Rate to 2026 and Beyond
Opt for a 2-year CD at 5.20% or a 5.00% rate until 2027. Guarantee a high return for 4 to 5 years with rates above 4%.
CD Rates Are Still Near Historic Highs
CD rates have softened but remain relatively high. While rates may decrease in the near future, locking in current rates is a wise move.
Choosing a long-term CD now before rates drop further can be advantageous as the Fed evaluates potential rate cuts.
Jumbo Deposits Can Provide More CD Options
Consider jumbo CDs for higher returns. State Bank of Texas and My eBanc offer top rates on certificates.
Comparing jumbo and standard CD rates is crucial, as standard CDs may offer better returns in some cases.
Where Are CD Rates Headed in 2024?
CD rates are expected to decrease further this year, influenced by the Federal Reserve’s actions.
Inflation trends and data will guide the Fed’s decisions on rate adjustments, impacting CD rates.
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How We Find the Best CD Rates
Each day, Investopedia analyzes rate data from over 200 banks to rank top-paying CDs across various terms. Institutions must be federally insured, and minimum initial deposits should not exceed $25,000.
Banks must be accessible in at least 40 states, while credit unions with donation requirements over $40 are excluded from the rankings.
Correction—April 3, 2024: This article has been corrected to remove an unavailable jumbo CD from Hughes Federal Credit Union.
Note that the “top rates” mentioned represent the highest nationally available rates identified by Investopedia, offering significantly better returns than national averages.