Unlocking the Best CD Rates: Your Guide to High-Yield Returns
Key Takeaways:
- Discover the top national CD rate at 5.65% APY from MutualOne Bank for a 3-month term.
- Newtek Bank offers a competitive rate of 5.55% APY for a 6-month term.
- Explore rates ranging from 5.40% to 5.50% for terms extending into 2025, or secure rates up to 5.30% for 2 years.
- Longer terms provide the opportunity to secure rates until 2027 or beyond, with a top 3-year CD rate at 5.00%.
Lock In 5.30% to 5.65% APY for 3 to 23 Months
The highest nationally available CD rate stands at an attractive 5.65% APY with MutualOne Bank for a short 3-month term, offering a rate lock until August. If you seek a longer-term option almost to 2025, Newtek Bank provides a solid 5.55% APY for 6 months.
For extended durations, several options offer returns between 5.40% to 5.50% for 9 to 15 months. Alternatively, Credit Human’s offer of 5.30% for 18-23 months promises a secure return until spring 2026.
Longer Terms Will Secure Your Rate to 2027—Or Beyond
Opting for CDs lasting over two years can shield you from potential declining interest rates. Consider locking in a top 3-year CD rate at 5.00% to ensure a competitive return until 2027, or select rates in the mid-to-high 4% range for 4 to 5 years ahead.
CD Rates Are Still Near Record Highs
Though CD rates have slightly decreased from a historic high of 6.50% in October, you can still secure yields in the 4% to 5% range, a remarkable opportunity compared to the past two decades.
Currently, high CD rates surpass the current inflation rate of 3.5%, offering a substantial lead against inflation, especially with rates among the top in every CD term.
Jumbo Deposits Can Provide More CD Options
Jumbo CDs offer attractive rates, with State Bank of Texas and My eBanc providing rates of 5.50% APY for 12 months and 5.49% APY for 6 months, respectively. It’s essential to compare jumbo and standard CD rates, as standard CDs might offer equally competitive returns.
Where Are CD Rates Headed in 2024?
The Federal Reserve’s recent rate hikes have resulted in favorable CD conditions, with rates peaking in October-November at their highest in two decades. As the Fed maintains current rates due to cooling inflation, CD rates might plateau, with potential future cuts driving rates down.
Invest wisely to benefit from the current high CD rates and consider long-term locks before any potential rate cuts in 2024 and 2025.
How We Find the Best CD Rates
Daily, Investopedia evaluates over 200 banks and credit unions offering CDs, ranking the top-paying certificates in each major term. Institutions must be federally insured with a maximum initial deposit of $25,000 to qualify. Our methodology ensures only the most competitive rates are included, providing you with valuable insights for your financial decisions.