We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation.
- Personal Finance News
- CD News
By
Sabrina Karl
:max_bytes(150000):strip_icc()/SabrinaKarlBio-fec3f52216e94fc5b9dfea3f4b794140.jpeg "Top CD Rates Today, Oct. 3, 2024 - You Can Now Lock In 5.50% Until June (1)")
Full Bio
Sabrina Karl has over two decades of experience writing about savings, CDs, and other banking topics. She is currently a staff writer at Investopedia and one of the country's top experts on how to earn as much as possible on the money you hold in the bank. She previously wrote for Bankrate.com, CreditCards.com, DepositAccounts.com, and RateSeeker.
Learn about our editorial policies
Published October 03, 2024
:max_bytes(150000):strip_icc()/andresr-9971b98f78d74a16a40e1d1e8b604cae.jpg "Top CD Rates Today, Oct. 3, 2024 - You Can Now Lock In 5.50% Until June (2)")
Key Takeaways
- Triggered by last month's Fed rate cut, CD returns have been on the decline. But this week saw the top nationwide rate shoot up to 5.50%, available from Nuvision Credit Union for an 8-month term.
- The best rate among 1-year certificates is a lower 5.05%, but Spectra Credit Union lets you guarantee that APY for 14 months.
- Able to stretch further? You can still score a 5.00% rate for either 22 months or 30 months, both from Partner Colorado Credit Union. The longer option will let you keep your 5.00% rate until spring 2027.
- Any CD you open guarantees its APY until the end of its term—meaning you can enjoy the high rate for months or years into the future.
- With further Fed rate cuts likely, rates on new CDs are expected to slide. So act fast to secure one of today's higher rates while you can.
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.
Today's Top CD Rate Can Be Guaranteed Until Mid-2025
CD rates have been inching lower since the Federal Reserve cut its benchmark interest rate two weeks ago, But yesterday delivered a welcome surprise: a bump up in the top nationwide rate across terms, from 5.10% all the way up to 5.50%.
That 5.50% offer is still available today, compliments of Nuvision Credit Union. With its 8-month term, the certificate will lock in your 5.50% rate until June next year. There is, however, a catch for some CD shoppers. The maximum you can deposit in this CD is $5,000, so if you're looking to sock away a lot more, this CD may not be right for you.
The runner-up rate is 5.10%, available from Barclays for 6 months. Or you can lock in 5.05% for 14 months with Spectra Credit Union, which leads the 1-year CD term. Spectra's rate guarantee would last you almost until 2026.
| CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
| 3 months | 5.00% | 5.00% | No change | Four institutions |
| 6 months | 5.50% | 5.50% | No change | Nuvision Credit Union |
| 1 year | 5.05% | 5.05% | No change | Spectra Credit Union |
| 18 months | 4.68% | 4.68% | No change | State Department Federal Credit Union |
| 2 years | 5.00% | 5.00% | No change | Partner Colorado Credit Union |
| 3 years | 5.00% | 5.00% | No change | Partner Colorado Credit Union |
| 4 years | 4.09% | 4.09% | No change | NASA Federal Credit Union |
| 5 years | 4.06% | 4.06% | No change | State Department Federal Credit Union |
Longer-Term CDs Have Lower APYs—But Provide a Better Guarantee
In the 18-month term, returns are currently lower than for both shorter and longer CDs, making it a less optimal term choice right now. The best you can do today is 4.68% from State Department Federal Credit Union, for a term of 15 months.
Meanwhile, you can lock in a much better 5.00% with Partner Colorado Credit Union if you can stretch to either 22 months or 30 months. The longer option would secure your rate until spring 2027.
If you want to extend your rate guarantee until 2028 or 2029, the leading 4-year rate is currently 4.09%, available from NASA Federal Credit Union. Or you can open a 5-year CD from State Department Federal Credit Union that pays 4.06%.
Multi-year CDs are a smart move right now, as it's likely the Fed will further reduce the federal funds rate—which will in turn push CD rates lower. Additional Fed cuts could occur this year and next, and possibly even in 2026. But any CD rate you secure now will be yours to keep until its term ends.
Today's Best CDs Still Promise Remarkable Returns
It's true that CD rates are no longer at their peak. But despite the pullback, they're still paying historically high returns. October brought us a top nationwide rate of 6.50%—for just a few days—while today the leading rate is down to 5.50%. Still, more than two dozen banks and credit unions continue to offer rates of 5.00% or better.
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 Pay the Highest Rate in 3 Terms
Jumbo CDs require much larger deposits, but they don't always offer higher rates. Right now, the best jumbo CDs lead in three of the eight terms we track.
| CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
| 3 months | 5.00%* | 5.00%* | 4.70% |
| 6 months | 5.10% | 5.50%* | 5.00% |
| 1 year | 4.90% | 5.05%* | 5.00% |
| 18 months | 4.50% | 4.68% | 4.89%* |
| 2 years | 4.40% | 5.00%* | 4.65% |
| 3 years | 4.15% | 5.00%* | 4.65% |
| 4 years | 4.05% | 4.09% | 4.27%* |
| 5 years | 4.00% | 4.06% | 4.27%* |
- Among 18-month certificates, State Department Federal Credit Union's 15-month jumbo CD pays 4.89% vs. 4.68% for today's leading standard rate.
- State Department Federal Credit Union also wins the 4-year term with its jumbo CD paying 4.27%, compared to the best 4-year standard rate of 4.09%.
- Similarly, State Department Federal Credit Union's jumbo CD in the 5-year term pays 4.27%, outdoing the top standard rate of 4.06%.
How Far Will CD Rates Fall in 2024?
Last month, the Federal Reserve announced its first cut to the federal funds rate since March 2020. The Fed chose a bold 0.50-point decrease, starting a new phase after an aggressive inflation-fighting campaign of 11 rate increases between spring 2022 and summer 2023, and then a 14-month period of holding the Fed's benchmark rate at its highest level since 2001.
However, Federal Reserve Chair Jerome Powell cautioned this week that the Fed is in no hurry to make further cuts, emphasizing that the committee's decisions will be guided, as always, by the latest economic data.
"If the economy slows more than we expect, then we can cut faster," he said at the National Association for Business Economics (NABE) Annual Meeting in Nashville, Tennessee. "If it slows less than we expect, we can cut slower. And that's really what's going to decide it."
Time will tell what exactly happens to the federal funds rate at the last two 2024 meetings and beyond. But with one half-point cut already in the books, the CD rates available now could be the best savers see for some time. So locking in as soon as possible is a smart forward-thinking move.
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.
Related Terms
Jumbo Certificate of Deposit (CD): What It Is, Pros and Cons
A jumbo certificate of deposit (CD) is a type of savings account with higher balance requirements than a traditional CD. It generally pays a higher interest rate.
more
What Is a Certificate of Deposit (CD)? Pros and Cons
A certificate of deposit (CD) is a type of savings account offered by banks and credit unions. It pays a fixed interest rate for a set period of time.
more
Locked-in Interest Rate: What It Means, How It Works
A locked-in interest rate occurs when a lender agrees to provide a certain loan rate as long as the homebuyer closes by a set deadline. It's also called a rate lock.
more
Mortgage Rate Lock Float Down: Meaning, Overview, Examples
A mortgage rate lock float down is a type of financing option gives borrowers security and flexibility when rates increase and fall during the lock period.
more
Gambling Loss: What It Means and How It Works
A gambling loss is a loss resulting from risking money or other stakes on games of chance or wagering events with uncertain outcomes.
more
CD Ladder: What It Is and How to Build One
A CD ladder is an investing strategy which you buy multiple certificates of deposit (CDs) with different maturity dates. Learn how to build a CD ladder.
more
- About Us
- Terms of Service
- Dictionary
- Editorial Policy
- Advertise
- News
- Privacy Policy
- Contact Us
- Careers
- #
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- K
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X
- Y
- Z
Investopediais part of the Dotdash Meredithpublishingfamily.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
