Exploring the Top CD Rates in the Market
Considering investing in a Certificate of Deposit (CD)? Stay informed about the latest CD rates to make wise financial decisions. Here are some key takeaways:
- The leading CD rate in the country remains steadfast at 5.60% APY, provided by Northern Bank Direct for a 12-month term.
- If you prefer a shorter term, Newtek Bank offers 5.55% APY for 6 months.
- For longer durations, secure rates of 5.30% or higher for up to 2 years, or 4.70% to 5.00% for 3 to 5 years.
- Despite the gradual decline in the best CD rates due to anticipated Fed rate cuts, recent inflation trends suggest a delay in rate decreases.
Lock In 5.30% to 5.60% APY for 3 to 23 Months
The top CD rate nationally stands at 5.60% APY, offering a lucrative opportunity for the quick earners with Northern Bank Direct’s 12-month CD. Newtek Bank follows closely with a 6-month lock-in at 5.55% APY. Looking for a slightly longer term? Benefit from rates up to 5.40% for 18-month CDs and 5.30% for 3 to 15-month terms from various institutions like Credit Human.
Longer Terms Will Secure Your Rate to 2027—Or Beyond
Opting for CDs longer than two years can be advantageous amidst potential U.S. interest rate declines in the next few years. With a top 3-year CD offering 5.00% APY, you can secure returns until 2027. Alternatively, consider locking in mid-to-high 4% rates for 4 to 5 years ahead.
CD Rates Are Still Near Record Highs
While CD rates have slightly decreased from their peak of 6.50% in October, they remain attractive compared to historical averages. Locking in yields between 4% to 5% for extended periods can yield significant returns.
Jumbo Deposits Can Provide More CD Options
Explore jumbo CD options for enhanced returns, as institutions like State Bank of Texas and My eBanc offer competitive rates for various terms. Compare jumbo CD rates with standard rates to optimize your savings.
Where Are CD Rates Headed in 2024?
Amidst future uncertainties in the market, consider the impacts of inflation and potential Fed rate cuts on CD rates. Stay informed about market trends to optimize your CD investments.
How We Find the Best CD Rates
Gain insights into how Investopedia tracks and ranks the top-paying CDs from over 200 banks and credit unions nationwide. Discover the criteria used to identify the best rates, ensuring you make informed financial decisions.