Best Nationwide CD Rates and How to Secure Them
If you’re looking to maximize returns on your savings, investing in Certificates of Deposit (CDs) can be a lucrative option. Here’s a breakdown of the best nationwide CD rates currently available and how you can lock in these high rates for various term lengths.
Key Takeaways
- The top nationwide CD rate stands at an impressive 5.51%, offered by TotalDirectBank for 3-month or 6-month terms.
- Consider locking in a rate for longer durations with options like NexBank’s 1-year CD at 5.40% APY or Credit Human’s 2-year offer at 5.25% until 2026.
- For extended rate guarantees, BMO Alto’s 5-year CD pays a competitive 4.80%.
- Despite a slight dip from last fall’s peak, current CD rates remain attractive, with potential delays in rate cuts by the Fed due to recent inflation indicators.
Lock In 5.40% to 5.51%—On Terms of 3 to 15 Months
TotalDirectBank leads with a national CD rate of 5.51% APY for 3-month or 6-month certificates. To secure this top rate until Thanksgiving, a $25,000 minimum deposit is required.
If you’re looking for options with lower deposit requirements, there are five runner-up CDs offering competitive rates starting from 5.50% with minimums as low as $5 to $10,000. Across a total of 13 CDs offering at least 5.40%, you can lock in rates well into 2025, with the longest being a 15-month offer from NASA Federal Credit Union.
Longer CDs Will Guarantee Your Rate Until 2026 or Beyond
Opting for CDs with terms of two years or longer is a wise move to potentially shield against declining interest rates. Credit Human’s offer of 5.25% for 18 to 23 months could secure your rate until spring 2026. Moreover, a 3-year term can extend your rate guarantee until 2027, while rates in the high-4% range are available for 4-5 year terms.
Large U.S. Bank is a CD Rate Leader
Although smaller banks and credit unions usually offer the best CD rates, BMO Alto, the online arm of a major U.S. bank, offers the top 5-year rate at the moment. With competitive rates across different CD terms, BMO Alto stands out among its peers.
CD Rates Are Still Near 20-Year Highs
CD rates have slightly retreated from the historic peak of 6.50% in October. However, the current rates, ranging from 4% to 5%, still provide an excellent opportunity for long-term earnings. Securing these rates before potential future drops can be beneficial.
While the highest APY is appealing, it’s also crucial to consider the long-term stability of rates. With expectations of potential rate cuts, locking in current rates for extended periods may be advantageous.
Where Will CD Rates Go in 2024?
The Federal Reserve’s cautious stance post-inflation hikes indicates a possible hold on rate adjustments. While inflation progress is monitored, CD rates are likely to remain stable for some time. However, market indicators suggest a potential rate cut announcement in September.
Jumbo CDs Offer a Rate Bump in Some Terms
For those seeking higher returns, jumbo CDs can provide enhanced rates compared to standard CDs in certain terms. Careful consideration between standard and jumbo CDs is essential to maximize earnings based on current rate differentials.
For detailed insights into CD rates, stay informed with daily rankings highlighting the best CD rates available nationally and at top financial institutions.
How We Find the Best CD Rates
Our daily rate tracking methodology ensures comprehensive coverage of more than 200 banks and credit unions nationwide. We prioritize federally insured institutions with accessible rates and reasonable deposit minimums to provide you with the most up-to-date and valuable information for making informed investment decisions.
By monitoring the latest rate data, we aim to guide you towards the most rewarding savings opportunities amidst a dynamic financial landscape.