Key Takeaways
- Triggered by last week's Fed rate cut, many banks and credit unions have been lowering their CD rates, and today saw the leading APY slip in the 3-month and 3-year terms.
- But the top overall rate of 5.20% remains on offer, available from ableBanking for a 6-month certificate.
- For a longer rate guarantee, the best 1-year CD is Northpointe Bank's 5.10% offer on 11 months. Or choose Spectra Credit Union's 5.05% offer for 14 months, locking your rate until almost December 2025.
- To secure a rate until 2026, consider EFCU Financial's 18-month CD at 4.55% or Lafayette Federal Credit Union's 2-year CD at 4.78%. Or choose a mid-4% rate that's guaranteed until 2028 or 2029.
- Because last week's Fed rate cut is likely only the first in a series, CD rates are expected to keep sliding lower. So act fast to snap up one of today's rates while you still can.
Below you'll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
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Leading 3-Month Rate Has Dropped, but 5.20% National Leader Stays on Top
Among short-term CDs, the leading 3-month return fell today, from 5.10% down to 5.01%. The new leader in that term is Financial Resources Federal Credit Union, though they will let you lock in that rate for 4 months.
But if you can stretch a couple of months longer, the overall CD rate leader is ableBanking, which is paying a higher 5.20% and with a longer rate guarantee of 6 months. The national runner-up rate is 5.10%, which is offered by three different institutions. The longest term among these is Northpointe Bank's 11-month offer.
Meanwhile, the longest duration for which you can lock in at least 5.00% is 14 months, available from Spectra Credit Union at 5.05% APY. Its rate guarantee would take you almost to December 2025, while in the 18-month category, you can score 4.90% from FedChoice Federal Credit Union for a 15-month term, or 4.55% from EFCU Financial for a full 18 months.
Top 3-Year Rate Has Dipped, but Long-Term CDs Are Still Smart
Want to lock in your rate until 2026 or beyond? The best rate for that is 4.78% on a 2-year term from Lafayette Federal Credit Union, while the highest APY that stretches your guarantee until 2027 is EFCU Financial's 4.55%, available for 30 months. That rate is down today, vs. the 4.65% you could secure yesterday.
To extend your rate guarantee even further into the future, you can snag a 4.50% return on a 4-year certificate from SecurityPlus Federal Credit Union, or a 4.32% return available from Lafayette Federal Credit Union for 5 years—stretching your rate lock until late 2029.
Despite paying lower annual percentage yields (APYs) than shorter terms, multi-year CDs are a smart move right now—before the Fed further reduces its benchmark federal funds rate. Additional cuts are likely in 2024 and 2025, and could even extend into 2026—while any CD rate you secure will be yours to keep until its term ends.
| CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
| 3 months | 5.15% | 5.01% | - 0.14 | Financial Resources Federal Credit Union |
| 6 months | 5.20% | 5.20% | No change | ableBanking |
| 1 year | 5.10% | 5.10% | No change | Northpointe Bank |
| 18 months | 4.90% | 4.90% | No change | FedChoice Federal Credit Union |
| 2 years | 4.78% | 4.78% | No change | Lafayette Federal Credit Union |
| 3 years | 4.65% | 4.55% | - 0.10 | EFCU Financial |
| 4 years | 4.50% | 4.50% | No change | Securityplus Federal Credit Union |
| 5 years | 4.32% | 4.32% | No change | Lafayette Federal Credit Union |
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 5.20%. Still, dozens of 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 Five Terms
Jumbo CDs require much larger deposits, but they don't always offer higher rates. Right now, the best jumbo CDs lead in five 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% | 5.01%* | 4.90% |
| 6 months | 5.20% | 5.10% | 5.25%* |
| 1 year | 5.10%* | 5.05% | 5.09% |
| 18 months | 4.55% | 4.90% | 4.99%* |
| 2 years | 4.45% | 4.78% | 4.84%* |
| 3 years | 4.15% | 4.55% | 4.65%* |
| 4 years | 4.10% | 4.50%* | 4.48% |
| 5 years | 4.00% | 4.32% | 4.37%* |
- This week's drop in the leading standard 6-month CD rate to 5.20% means you can now earn more with the jumbo 6-month offer from Justice Federal Credit Union paying 5.25%.
- Among 18-month certificates, State Department Federal Credit Union's 15-month jumbo CD pays 4.99% vs. 4.90% for today's leading standard rate.
- In the 2-year term, you can earn more with Lafayette Federal Credit Union's 4.84% jumbo certificate than with the best standard CD rate of 4.78%.
- EFCU Financial's 3-year jumbo rate of 4.65% is the winner in that term, compared to 4.55% for a standard CD.
- In the 5-year term, State Department Federal Credit Union's jumbo CD pays 4.37%, which outdoes the top standard rate of 4.32%.
How Far Will CD Rates Fall in 2024?
In what was an all but certain move, the Federal Reserve last week announced its first cut to the federal funds rate since March 2020. That starts 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.
What was not certain, however, was how much the central bank would cut rates last week. With no prior public comment from Fed members on the magnitude or pace of coming rate cuts, interest-rate traders were split on whether we'd see a modest cut of 0.25 percentage points or a bolder reduction of 0.50 points. The Fed chose a bold 0.50-point decrease.
"The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that the risks to achieving its employment and inflation goals are roughly in balance," the Federal Open Market Committee (FOMC) said in its statement. "In light of the progress on inflation and the balance of risks, the Committee decided to lower the target range for the federal funds rate by a 1/2 percentage point."
In addition to this first rate reduction, the Fed also released its quarterly "dot plot," which anonymously indicates what each Fed committee member expects will happen to the federal funds rate over the next few years. Last week's projections show that the median expectation of the committee is for an additional 0.50 percentage points in cuts in 2024, with another 1.00 percentage points of reductions in 2025.
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 decline we've seen in the best CD rates so far could continue for some time.
As a result, the rates you can guarantee today are expected to be quite a bit better than what you'll likely see in 2025. 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
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Federal Reserve Board. "Federal Reserve Issues FOMC Statement, Sept. 18, 2024."
Federal Reserve Board. "Summary of Economic Projections, Sept. 18, 2024," Page 4.
