Current CD rates and market trends
In today’s financial landscape, CD rates are fluctuating, impacting investor choices. Let’s explore the latest figures and insights on CD rates:
Key Takeaways
- The leading 18-month CD rate has dropped to 5.25% APY, available from DR Bank or NASA Federal Credit Union, extending for 15 months.
- TotalDirectBank offers the best nationwide CD rate of 5.51% for a 3-month or 6-month term.
- Consider NexBank’s offer of 5.40% for a 1-year CD or Credit Human’s 2-year offer at 5.25%.
- Several institutions provide 5.00% on 3-year CDs, or opt for BMO Alto’s top 5-year CD at 4.80%.
- Current CD rates are slightly below last fall’s peak but could remain stable in the coming months despite potential Fed rate changes.
Lock In 5.30% to 5.51%—On Terms of 3 to 13 Months
TotalDirectBank leads the national CD market with a 5.51% APY on 3-month or 6-month certificates, securing a return beyond Thanksgiving with a $25,000 minimum deposit requirement. Other options offer competitive rates and terms till 2025, with CIBC Agility’s 5.36% for 13 months.
Longer CDs Will Guarantee Your Rate Until Fall 2025 or Beyond
Choosing a longer CD term, such as Credit Human’s offer of 5.25% for 18 to 23 months, can secure your rate till 2026. Opt for a 3-year term to lock in rates until 2027 or consider the high-4% range for 4-5 years ahead.
Latest Insights on CD Rates
Despite a recent decrease from the historic peak, current CD rates offer favorable earning opportunities. Large institutions like BMO Alto provide competitive rates, signaling an advantageous market for investors.
CD Rates Are Still Near 20-Year Highs
While CD rates have slightly decreased, they remain high compared to the past two decades, offering potential investors an attractive earning opportunity.
Where Will CD Rates Go in 2024?
The Federal Reserve’s rate decisions have a direct impact on CD rates. As inflation remains a key concern, the Fed’s cautious approach indicates a stable trajectory for CD rates. Fed officials anticipate monitoring market data before implementing any significant changes.
How We Find the Best CD Rates
Investopedia tracks the rates of over 200 banks and credit unions daily to identify top-paying certificates. Institutions meeting federal insurance requirements and offering competitive rates make it to our lists, ensuring investors get the most relevant and up-to-date information.