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Though we’re seeing some reductions in lower-ranked certificates, the best nationwide CD rates held steady across every term today. The national leader continues to be NASA Federal Credit Union, which is paying 5.70% APY on a 9-month term, while runner-up Hyperion Bank is offering 5.65% APY for 15 months. If you want to lock in a rate for longer, returns above 5% can be had in every term up to 3 years.
Key Takeaways
- The best nationwide CD rate today is still 5.70% APY from NASA Federal Credit Union on a 9-month term.
- Though today’s best CD rates have dropped since October’s historic peak of 6.50%, you can still earn a high rate on a CD—including dozens of offers above 5%, on terms up to 3 years.
- The Fed may begin lowering interest rates sometime in 2024, which could make it a smart time to lock in one of today’s best CD rates before they decline.
Below you’ll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.
The Best CD Rates Are Still Very High
Certificate of deposit (CD) rates have been softening since they climbed to a record of 6.50% in October 2023. In November, we saw the total number of nationwide CDs paying at least 5.75% APY surge to a peak of 18. We began tracking that count in September. Sadly, no nationwide CDs remain at that rate.
But the top CD rates today are still historically very high, ranging from 4.82% to 5.70%—and they’re worth taking advantage of before the Federal Reserve decides to lower rates. While we don’t know exactly when the Fed will reduce the federal funds rate, the Fed’s Dec. 13 dot plot showed a median prediction among committee members of three rate cuts in 2024, for a total reduction of 0.75%.
After the top CD rate of 5.70%, another six offers pay 5.55% or more on terms ranging from 3 months to 15 months. And long-term CDs are also a smart buy right now since they can help you lock in a high rate over two to five years—a time frame in which rates could dramatically decline.
The top-paying 2-year certificate offers 5.39% APY, while you can earn 5.23% on a 3-year CD. The best CD rates for 4-year and 5-year CDs are below the 5% mark, but you can still lock in a long-lasting rate as high as 4.89% APY.
While the yields on these longer certificates are lower than CDs with shorter terms, securing one of these returns today means you’ll be able to enjoy it until 2026—or even as long as 2029—when rates on high-yield savings accounts and new CDs will have likely fallen.
Top Bank, Credit Union, and Jumbo CD Rates Today
While the best jumbo CD rate today is still 5.65% APY on 17 months, available from Hughes Federal Credit Union, you can earn that same rate with a standard 15-month CD. For 3-, 4-, and 5-year CDs, the jumbo rates are higher than the standard CD offer.
Jumbo CD rates do not always pay a higher return than standard certificates. Sometimes you can do just as well—or better—with a standard CD. That’s currently the case in five of the eight terms below, so it’s smart to shop both certificate types before making a final decision.
Where Are CD Rates Headed This Year?
The Federal Reserve opted to hold rates steady at a 22-year high last month, the third meeting in a row it’s done so. The Fed has been aggressively combating decades-high inflation since March 2022, raising the federal funds rate with fast and furious hikes that year and then more moderate increases in 2023.
This has created historically favorable conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
Though inflation has cooled significantly from its peak, Fed Chair Jerome Powell has made it clear that the rate-setting committee has not taken future rate hikes off the table—and won’t do so until they feel assured inflation is moving sustainably lower. Still, as mentioned above, the median prediction among committee members is three rate cuts in 2024, for a total reduction of 0.75%.
However, minutes released from the Fed’s Dec. 13 meeting revealed that there is much uncertainty among Fed members on the best timing for lowering rates. And that has been further complicated with two releases of new data. First, the most recent jobs report showed a hotter-than-expected labor market. Then, the latest inflation report showed an unwelcome acceleration in December. Both of these developments could make it harder for the Fed to pull the trigger on the first rate cut.
The central bank’s decisions on the federal funds rates have significant implications for CD shoppers and other savers, as banks and credit unions base their deposit rate decisions on the Fed’s benchmark rate. As we always caution, trying to predict the Fed’s future moves is an uncertain exercise. But for now, it seems CD rates are likely to continue edging down from their record peaks.
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
How We Find the Best CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD’s minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
Investopedia / Alice Morgan