Insights into the Best CD Rates
Key Takeaways
- The highest nationally available 18-month CD rate has decreased to 5.25% APY, offered by NASA Federal Credit Union for 15 months or Farmers Insurance Federal Credit Union for 18 months.
- MutualOne Bank unveiled the best CD rate in the country at 5.65% for a 3-month term.
- 16 CDs offer rates of 5.40% or higher on terms up to 12 months.
- CDs with terms ranging from 2 to 5 years are offering rates of 4.70% to 5.20% APY.
- Expect CD rates to decline more rapidly following potential rate cuts from the Federal Reserve later this year.
Lock In 5.40% to 5.65% APY for 3 to 12 Months
The top 18-month CD rate has decreased to 5.25%, down from 5.35%. NASA Federal Credit Union offers a 15-month certificate at this rate, while Farmers Insurance Federal Credit Union provides an 18-month option.
MutualOne Bank now leads with a 5.65% APY for a 3-month CD, surpassing the previous 5.55% rate offered by Newtek Bank on a 6-month term.
Additionally, 14 other CDs offer rates of 5.40% APY or higher with terms ranging from 3 to 12 months.
Longer Terms Secure Your Rate to 2026 and Beyond
Consider a 2-year CD at 5.20% APY or a 5% rate guaranteed up to 2027. Alternatively, opt for a high-4% rate for 4 to 5 years into the future.
CD Rates Are Still Near Historic Highs
Although CD rates have softened from their peak, locking in rates between 4% and 5% for future years remains a lucrative opportunity.
Anticipate further declines in CD rates in 2024, with potential rate cuts from the Federal Reserve affecting the market.
Jumbo Deposits Can Provide More CD Options
State Bank of Texas offers 5.50% APY on a 12-month jumbo CD, while My eBanc provides 5.49% APY for 6 months. Compare jumbo and standard CD rates for the best option.
Where Are CD Rates Headed in 2024?
CD rates are expected to decrease further in 2024, influenced by Federal Reserve decisions on the federal funds rate. Stay informed on potential rate cuts for strategic CD investments.
How We Find the Best CD Rates
Investopedia tracks rates from over 200 banks and credit unions to determine daily rankings of top-paying CDs. Institutions must be federally insured, and CDs must have a minimum initial deposit below $25,000 to be included in the rankings.
For detailed methodology on selecting top rates, refer to our full methodology.