Unlocking the Best CD Rates for Maximum Returns
Here are the key takeaways on how to maximize your CD returns and lock in competitive rates:
- Enjoy the highest nationwide CD rate of 5.65% APY with MutualOne Bank for a 3-month term.
- Earn 5.55% APY with Newtek Bank for a 6-month term.
- Explore offers up to 5.50% for terms extending into 2025.
- Secure rates as high as 5.30% for 2 years, and between 4.70% and 5.00% for 3 to 5 years.
- Despite a slight softening of CD rates earlier this year, recent inflation trends suggest favorable rate conditions may persist.
Lock In 5.30% to 5.65% APY for 3 to 23 Months
Among the featured rates, MutualOne Bank offers the highest return of 5.65% APY for a 3-month term, ensuring rate security until August. Newtek Bank provides a competitive 5.55% APY for a 6-month term.
Longer Terms Will Secure Your Rate to 2027—Or Beyond
Opting for CDs with terms longer than two years can be advantageous, especially amid potential interest rate declines. Lock in a guaranteed return until 2027 with a top 3-year CD at 5.00% APY or consider rates in the mid-to-high 4% range for 4 to 5 years.
CD Rates Are Still Near Record Highs
While CD rates have dipped slightly from their peak in October, they remain historically favorable. Investing in CDs offering yields in the 4% to 5% range can still lead to substantial earnings over time.
Jumbo Deposits Can Provide More CD Options
Consider jumbo CDs for higher earnings potential. State Bank of Texas and My eBanc offer competitive rates on jumbo CDs, although standard CDs may offer equally attractive returns in certain cases.
Where Are CD Rates Headed in 2024?
Following significant rate hikes by the Federal Reserve, CD shoppers have enjoyed favorable conditions. However, with the Fed holding rates steady amid uncertain inflation trends, CD rates are likely to remain stable in the near term.
How We Find the Best CD Rates
Every business day, Investopedia tracks rates from over 200 banks and credit unions to provide daily rankings of the top-paying CDs. Institutions must be federally insured, and CDs must require a maximum initial deposit of $25,000 to be considered.
Note that the rates highlighted are top national rates identified through comprehensive daily research, providing a stark contrast to national averages commonly reported.