Key Insights on Current CD Rates
- Newtek Bank continues to lead with a competitive 5.55% APY for a 6-month certificate, the best nationally available CD rate as of March 18.
- The market has seen a gradual decrease in top CD rates, likely to accelerate with potential rate cuts by the Federal Reserve.
- Expectations are set on multiple rate reductions this year, with the possibility of a total decrease of 0.75 percentage points.
The Leading CD Rates
Newtek Bank maintains the top position with a 5.55% APY on a 6-month CD, requiring a $2,500 minimum deposit. For a longer-term investment, consider a 1-year CD offering 5.40% APY or a 2-year CD at 5.20% APY.
Insights on CD Rate Trends
CD rates, which peaked at 6.50% in October, have gradually declined. Despite this, locking in rates above 4% is still attractive given future rate uncertainties.
Timing is critical. While 5.55% is currently the highest rate for a 6-month term, considering slightly lower long-term rates now can be a strategic move in anticipation of rate drops in 2024 and 2025.
Top Bank, Credit Union, and Jumbo CD Rates
Hughes Federal Credit Union offers an exceptional 5.65% APY for a 17-month jumbo CD. It’s essential to compare standard and jumbo CD rates to maximize returns.
Outlook on CD Rates in 2024
The Federal Reserve is contemplating rate cuts following its inflation-fighting measures. With markets predicting multiple rate decreases, CD rates are expected to continue declining, especially once a rate cut is imminent.
Stay updated on the Federal Reserve’s decisions as they will impact CD rates. The next rate-setting meeting is scheduled for April 30 through May 1, 2024.
How We Determine the Best CD Rates
Investopedia tracks data from over 200 banks and credit unions daily to identify top-paying CDs. To make our list, institutions must be federally insured, with minimum initial deposits not exceeding $25,000.
We prioritize banks available in at least 40 states and exclude credit unions with high donation requirements. Our methodology ensures accurate and up-to-date rankings for the best CD rates.