CD Rate Landscape: Latest Insights and Trends
Key Takeaways
- Newtek Bank now leads with a 6-month CD rate at 5.55% APY following a drop in the previous top rate of 5.65%
- Several CDs with rates of 5.35% or higher offer terms from 9 to 15 months, enabling rate locking until 2025
- Mid-term CDs ranging from 2 to 3 years boast rates between 5.00% to 5.25%, while 4-year and 5-year CDs offer upper-4% returns
- Current top CD rates have slightly decreased from their peak last fall, hinting at possible Fed rate cuts, though recent inflation data suggests delays in rate adjustments
Lock In 5.35% to 5.55%—On Terms Up to 15 Months
After a 3-week stint with a leading CD rate of 5.65%, Newtek Bank’s 6-month CD at 5.55% now takes the top position. Locking this rate secures your investment until approximately Thanksgiving. Additionally, 10 CDs offer rates of 5.35% or higher, allowing rate locking until 2025, with terms ranging from 9 to 15 months, including NexBank’s 1-year CD at 5.40%.
Longer CDs Can Guarantee Your Rate Until 2026 or Beyond
Opting for a CD term of two years or more is wise, especially with potential future interest rate declines. Credit Human’s offer of 5.25% for 18 to 23 months can extend your rate guarantee until spring 2026. For those seeking longer-term security, consider rates of 5.00% for 3 years or high-4% returns for 4 to 5 years.
CD Rates: Current Landscape and Outlook
The top 5-year CD return currently comes from BMO Alto, a significant U.S. Bank player operating both online and with physical branches. While offering competitive rates across various terms, BMO Alto stands out for the highest 5-year rate.
CD Rates Are Still Near 20-Year Highs
Although CD rates have slightly declined from their peak of 6.50% in October, opportunities to earn in the 4% to 5% range, securing returns for a year or more, remain favorable. By investing in high-yield CDs, you can stay ahead of inflation by 1 to 2 percentage points.
Jumbo CDs Offer a Rate Bump in Some Terms
Leading financial institutions like State Bank of Texas and State Department Federal Credit Union provide opportunities for higher returns with jumbo CDs. While jumbo rates vary across terms, it’s essential to compare standard and jumbo CDs to maximize returns.
Where Will CD Rates Go in 2024?
In response to high inflation levels, the Federal Reserve raised rates to new highs before pausing. Despite the current holding pattern, expectations of rate cuts depend on inflation trends. As inflation moderates, the Fed may consider rate adjustments, influencing CD rates.
For further insights, explore the latest high-yield savings accounts, CD rates, and money market account rates.
How We Find the Best CD Rates
Daily tracking of 200+ banks and credit unions helps us rank the top-paying CDs across various terms. Accredited institutions with minimum deposits under $25,000 and widespread availability meet our criteria. Learn more about our methodology for selecting the best rates.