Key Takeaways
- Latest data shows the top CD rate in the nation has dipped, with a 5.55% rate on a 6-month certificate.
- Currently, the most competitive CD rate is 5.51%, offered by TotalDirectBank for 3 or 6 months with a minimum $25,000 deposit.
- Five runner-up CDs offer a 5.50% APY for savvy investors.
- Options for locking in rates until 2025 with CDs paying 5.35% or better on terms from 9 to 15 months, while rates for 2-3 years range from 5.00% to 5.25%.
- Although CD rates are slightly below last fall’s peak, they remain attractive, especially considering recent inflation trends.
Lock In 5.35% to 5.51%—On Terms Up to 15 Months
Recently, the nation-leading CD rates of 5.65% and 5.55% have given way to a new top rate of 5.51% for terms of 3 or 6 months at TotalDirectBank. By opting for the longer 6-month term, you can secure your rate until Thanksgiving.
If you prefer an extended rate guarantee, nine CDs offering 5.35% or better allow you to lock your rate until 2025, spanning terms from 9 to 15 months, including the best 1-year rate of 5.40% from NexBank.
Longer CDs Can Guarantee Your Rate Until 2026 or Beyond
Consider selecting a CD term of two years or more to safeguard your earnings against potential interest rate declines. Credit Human’s offer of 5.25% for 18 to 23 months can keep your rate secured until spring 2026.
For even longer-term strategies, you can lock in a rate for 3 years or longer, providing rate promises until 2027, or opt for rates in the high-4% range for 4 or 5 years down the road.
CD Rates Are Still Near 20-Year Highs
Although CD rates have slightly decreased from the historic peak of 6.50% in October, they remain significantly higher than average over the past two decades. Earning yields in the 4% to 5% range on CDs offers a compelling investment opportunity.
While securing the highest APY is vital, it’s also crucial to consider locking in long-term rates before potential rate cuts in 2024 and 2025 for optimal CD returns.
Jumbo CDs Offer a Rate Bump in Some Terms
Explore the leading jumbo CD options, such as State Bank of Texas and State Department Federal Credit Union, which offer enhanced APYs compared to standard CDs for terms like 12 or 15 months.
Despite jumbo CDs providing higher rates in some cases, standard CDs may offer comparable or superior earnings in certain scenarios. Shop around to determine the best certificate for your financial goals.
Where Will CD Rates Go in 2024?
The Federal Reserve’s rate hikes resulted in favorable CD conditions last fall, reaching peak rates not seen in two decades. However, with the Fed holding rates steady due to slowing inflation, CD rates are expected to remain stable in the near future.
Investing in CDs today can help you stay ahead of inflation by earning 1 to 2 percentage points above the current inflation rate.
How We Find the Best CD Rates
Investopedia tracks daily rate data from over 200 nationwide banks and credit unions to compile rankings of the highest-paying CDs in various terms. Institutions featured in the lists must be federally insured and have reasonable deposit requirements.
For a comprehensive methodology on how the best rates are selected, refer to our detailed methodology guidelines.