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Key Takeaways
- Though the best CD rates are typically found at smaller banks and credit unions, 15 of the nation’s largest banks currently offer at least one CD paying 5% or better.
- Today’s leading big-bank rate is 5.50% APY, available from either BMO Alto for a 6-month term or Flagstar Bank for 7 months. BMO Alto also offers the runner-up rate of 5.30% APY for 12 months.
- The terms on these top bank certificates range from 4 to 15 months.
- To earn even more, or to lock in your rate for longer, our daily rankings of the best CD rates include dozens of options paying up to 5.75% APY—including rates over 5% guaranteed for as long as 3 years.
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CDs From Very Big Banks That Pay 5% or Better
If you’re a seasoned CD shopper, you know that the best rates are typically offered by smaller banks and credit unions, often with unfamiliar names. But if you simply prefer depositing your money with a bigger, brand-name bank, you’re in luck right now. That’s because 15 of the largest U.S. banks (ranked by total deposits) currently offer a CD paying at least 5%. And some have two, three, or even four different CD terms available at that rate or higher.
The highest rate you can earn from one of these top-sized banks is 5.50% APY. You can get that rate from BMO Alto (the online banking arm of BMO) for a 6-month term or from Flagstar Bank for 7 months. Note, however, that availability and rates can vary by zip code, state, or other restrictions so your mileage may vary.
Other Big Banks With Competitive CD Rates
Interested in a different big-name bank? CD rates offered by the two largest banks—Chase and Bank of America—are often quite a bit lower than what you can earn elsewhere. But by extending to the 30 or so largest banks, you can find several with a track record of offering better-than-average CD rates. Some of those that don’t currently offer a 5% CD, but have a rate in the 4% range, are Ally, American Express, Citi, Discover, HSBC, and Wells Fargo.
How to Earn Even More—Or Lock in a High Rate for Longer
The rates above are only best if you’re bent on opening a CD at one of America’s largest financial institutions. But if you’re willing to venture out to a smaller bank or credit union, you can easily earn even more. Our daily rankings of the best CD rates across every term provide almost two dozen options to earn 5.50% in terms up to 13 months.
Casting your net wider than the largest banks can also help you score a high rate that will last further into the future. In our rankings of the best nationwide offers, you can choose from multiple options paying between 5.00% and 5.45% on terms from 18 months to 3 years. And if you want to guarantee your rate even longer, several 4-year and 5-year CDs are paying in the mid 4% range—and as much as 4.73% APY.
While it’s true that these top-paying CDs are from banks or credit unions with less name recognition than the big banks, that doesn’t make them less safe. In fact, your deposits at any FDIC bank or NCUA credit union—regardless of its size—are covered by the same $250,000 in federal protection in the unlikely case that the institution fails.
CDs Are Easy to Hold Elsewhere
By definition, certificates of deposit are a place to stash your cash and not touch it for months or years. While there will be monthly statements and interest payments, these don’t require your attention or action, making CDs very easy to hold at an institution other than your primary bank. So it’s smart to search widely for a top rate that meets your requirements, and then enjoy the “park it and forget it” opportunity to earn a leading CD return from a bank or credit union that may be new to you.
CD Rates Will Likely Fall in 2024—So Don’t Delay
CD rates reached a record high last fall, thanks to the Federal Reserve‘s 11 inflation-fighting increases to the federal funds rate between March 2022 and July 2023. But the Fed has held its benchmark rate steady since July and is almost certain it won’t raise rates further. With the threat of additional rate hikes finally off the table, banks and credit unions have begun lowering their CD yields over the last two months.
But even bigger CD rate declines are likely to come this year, as the central bank currently expects to make one or more rate cuts in 2024. While it’s unknown when the first rate decrease will occur, the median expectation indicated in the Fed’s December “dot plot” report is a total of three cuts this calendar year totaling 0.75%.
As soon as the first decrease looks imminent, banks and credit unions will start dropping their CD rates more substantially than they have so far. That makes now an excellent time to lock in a top rate you can enjoy for a year or more down the road. Whether you choose one of the highest APYs available on short to mid-term CDs or opt for a slightly lower rate you can extend to 2027, 2028, or even 2029, you’ll set yourself up to enjoy guaranteed and predictable returns far into the future.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’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.