Key Takeaways
- Though the best CD rates have been drifting lower ahead of a likely Fed rate cut next month, all the leading rates across terms held firm today.
- That means you can still earn the tip-top rate of 5.40% from INOVA Federal Credit Union, whose 5-month CD guarantees your rate to 2025.
- To lock a rate further into 2025, the top 1-year offers pay 5.25%, available from five institutions. Or you can score a 5.15% rate for 15 months with FedChoice Federal Credit Union.
- The longest CD paying at least 5.00% remains a 2-year certificate from USAlliance Financial, guaranteeing your rate until 2026. For rate locks of 3–5 years, top APYs reach the mid-4% range.
- Opening a CD sooner rather than later is smart, before rates sink further, as the Fed could lower interest rates multiple times this year.
Below you'll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
Open a New Account × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account × The offers that appear in this table are from partnerships from which Dotdash receives compensation.
Guarantee a Rate of 5.15% to 5.40% into 2025
Ahead of widely anticipated interest-rate cuts by the Fed next month—and likely beyond—the top CD rates across our nationwide rankings have been edging lower. But the current leading rates held their ground across every CD term today.
INOVA Federal Credit Union continues to pay the nation-leading rate of 5.40% on a 5-month term. But if you'd like your rate guaranteed for one month longer, you could opt instead for runner-up DR Bank, which will let you lock in 5.35% for 6 months.
Want to extend your rate guarantee further? The best 1-year CDs pay 5.25%, and you have a plentiful selection at that rate. Four institutions are paying that APY for 12 months, and another offers it for an 11-month term. All of those will take you into mid-2025.
In the 18-month term, the top return is 5.15%, but it's offered for 15 months. That certificate from FedChoice Federal Credit Union would lock your rate until about Thanksgiving 2025.
CD Rates Locked Into 2026—or Beyond—Are Smart Right Now
Despite paying lower annual percentage yields (APYs) than shorter CDs, attractive multi-year CDs are a wise move before the Fed starts cutting its benchmark federal funds rate. That's expected to begin Sept. 18, and it could continue with additional 2024 and 2025 cuts. Downward pressure on interest rates could even persist into 2026.
If you want to secure your rate until at least 2026, the highest-paying CD with a full 18-month term is The Federal Savings Bank's 5.05% offer. Or you could snag as much as 5.00% for 2 years, available from USAlliance Financial.
Meanwhile, top rates in the mid- to upper-4% range can be secured for even longer. In the 3-year term, American 1 Credit Union will guarantee a 4.75% rate for 36 months, while the 4-year leader is The Federal Savings Bank, paying 4.55%. For a 5-year rate lock, you can guarantee 4.50% with Pima Federal Credit Union until 2029.
| CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
| 3 months | 5.25% | 5.25% | No change | Merchants Bank of Indiana and Financial Partners Credit Union |
| 6 months | 5.40% | 5.40% | No change | INOVA Federal Credit Union |
| 1 year | 5.25% | 5.25% | No change | Five institutions |
| 18 months | 5.15% | 5.15% | No change | FedChoice Federal Credit Union |
| 2 years | 5.00% | 5.00% | No change | USAlliance Financial |
| 3 years | 4.75% | 4.75% | No change | American 1 Credit Union |
| 4 years | 4.55% | 4.55% | No change | The Federal Savings Bank |
| 5 years | 4.50% | 4.50% | No change | Pima Federal Credit Union |
Though Below the Peak, CDs Are Still a Wise Buy
CD returns are no longer at their absolute peak, but they're still running historically high. October brought us a top nationwide rate of 6.50%—for just a few days—and today the leading rate is down to 5.40%. Still, dozens of banks and credit unions are offering 5.00% or better. In fact, a total of 24 offers among the best nationwide CDs still pay 5.25% and up.
Compare that to early 2022, before the Federal Reserve embarked on its fast-and-furious rate-hike campaign. The most you could earn from the very best CDs in each term ranged from just 0.50% to 1.70% APY.
Jumbo CDs Lead Only Among 18-Month Offers
Jumbo CDs require much larger deposits, but they don't always offer higher rates. Right now, the best jumbo CDs only lead in the 18-month term. State Department Federal Credit Union offers 5.20% with a 15-month jumbo CD, vs. 5.15% for today's leading rate among standard 18-month certificates. Meanwhile, you can earn the same top rates with a jumbo CD as with a standard option in the 1-year and 3-year terms.
| CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
| 3 months | 5.25% APY* | 5.25% APY* | 5.20% APY |
| 6 months | 5.35% APY | 5.40% APY* | 5.30% APY |
| 1 year | 5.25% APY* | 5.25% APY* | 5.25% APY* |
| 18 months | 5.05% APY | 5.15% APY | 5.20% APY* |
| 2 years | 4.85% APY | 5.00% APY* | 4.84% APY |
| 3 years | 4.60% APY | 4.75% APY* | 4.75% APY* |
| 4 years | 4.55% APY* | 4.50% APY | 4.48% APY |
| 5 years | 4.45% APY | 4.50% APY* | 4.37% APY |
How Far Will CD Rates Fall in 2024?
As expected, the Federal Reserve kept the federal funds rate at its current level at its meeting that ended July 31. But speaking today at the Fed's annual meeting in Jackson Hole, Fed Chair Jerome Powell signaled that the central bank is finally ready to pivot to rate cuts. He refrained, however, from indicating how large the rate reductions would be—or how fast they will come.
"The time has come for policy to adjust," Powell said. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."
According to the CME FedWatch tool, investors are currently betting about 2-to-1 that the Fed will cut rates 0.25 percentage points on Sept. 18, instead of a larger 0.50 increase. But by the Dec. 18 meeting, a strong majority of traders predict the Fed will have lowered the federal funds rate by at least a full percentage point.
The central bank's mission to beat inflation led it to raise the federal funds rate 11 times between March 2022 and July 2023—bringing the benchmark interest rate to its highest level in 22 years. The rate-hike campaign has been a boon to savers with cash in the bank, as the fed funds rate directly influences the rates that banks and credit unions pay on CDs. As a result, CD rates hit a 20-year high last fall. Those with money in ahigh-yield savingsormoney market account have also benefited from these historically high rates.
Fed officials are generally careful not to jump the gun and will likely continue waiting for additional reports before making any decisions about changing the fed funds rate. But with confidence in a September rate cut high—and CD rates likely to move ahead of the central bank's move—if you've got the funds to spare, you may want to lock in an excellent CD rate while you can.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Best 3-Month CD Rates
Best 6-Month CD Rates
Best 1-Year CD Rates
Best 18-Month CD Rates
Best 2-Year CD Rates
Best 3-Year CD Rates
Best 4-year CD Rates
Best 5-Year CD Rates
Best High-Yield Savings Accounts
Best Money Market Accounts
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 (FDICfor banks,NCUAfor credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.
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.
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Federal Reserve Board. "Federal Reserve Issues FOMC Statement, July 31, 2024."
CME Group. "CME FedWatch Tool."
