Unlocking the Best CD Rates: Your Guide to Maximizing Your Returns
- After a brief hiatus, MutualOne Bank has reclaimed its position as the leading national CD provider, offering a competitive 5.65% APY on a 3-month certificate.
- In second place is Northern Bank Direct, providing a solid 5.60% rate for a 12-month term.
- For those seeking longer rate guarantees, options include rates up to 5.40% for 15 months, up to 5.30% for 2 years, or a range between 4.70% and 5.00% for 3 to 5 years.
- While CD rates have been gradually trending downwards in anticipation of potential Fed rate cuts, recent inflation data suggests a delay in further decreases.
Lock In 5.30% to 5.65% APY for 3 to 23 Months
The leading national CD rate currently stands at 5.65% APY, offered by MutualOne Bank for a 3-month term. Northern Bank Direct follows closely with a rate of 5.60% APY for a 12-month period.
For those seeking slightly longer commitments, the top 18-month rate offers returns of up to 5.40% APY. Additionally, Credit Human’s 18-23 month offer of 5.30% presents an attractive alternative.
Longer Terms Will Secure Your Rate to 2027—Or Beyond
Opting for a CD term exceeding two years could prove beneficial as interest rates may decline over the next few years. A 3-year CD at 5.00% can secure returns until 2027, while rates in the 4-5% range are available for 4 to 5-year terms.
Where Are CD Rates Headed in 2024?
Heightened inflation prompted the Federal Reserve to raise interest rates to peak levels in the fall of 2023. While recent data suggests a possible delay in rate reductions, it remains uncertain whether multiple cuts will materialize in 2024.
While current CD rates may maintain their plateau, any indication of a Fed rate cut could prompt a quicker decrease in CD rates. Conversely, a Fed rate hike due to persistent inflation could bolster CD rates.
Jumbo Deposits Can Provide More CD Options
Consider opting for jumbo CDs to potentially earn higher returns than standard CDs. While some jumbo rates may be lower, it’s essential to compare offerings across both standard and jumbo certificates before making a decision.
How We Find the Best CD Rates
At Investopedia, we meticulously track rate data from over 200 banks and credit unions nationwide to compile daily rankings of top-paying CDs. To feature on our lists, institutions must be federally insured, with the CD’s minimum initial deposit capped at $25,000.
Our selection criteria ensure that banks are accessible in at least 40 states, and we exclude credit unions with hefty donation requirements. To learn more about our methodology for choosing the best rates, refer to our detailed explanation.