Key Takeaways
- CD rates continue to slip, with our count of offers paying at least 5.50% APY now down to 10—after totaling 30 on Feb. 1.
- The leading rate in each term held steady, however. That includes the overall leader in our daily rankings: 5.75% APY from for 6 months.
- Able to stretch to a jumbo deposit? You could choose runner-up rate of 5.65%, available for a 17-month term.
- Multi-year rate guarantees of 5% or better are still available in every term up to 3 years.
- CD rates have been gradually inching down for the past few months. But they'll likely fall faster if the Fed appears ready to make a rate cut.
CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
3 months | 5.42% APY | 5.42% APY | No change | |
6 months | 5.75% APY | 5.75% APY | No change | |
1 year | 5.50% APY | 5.50% APY | No change | |
18 months | 5.35% APY | 5.35% APY | No change | |
5.27% APY | 5.27% APY | No change | ||
3 years | 5.00% APY | 5.00% APY | No change | |
4.60% APY | 4.60% APY | No change | ||
5 years | 4.61% APY | 4.61% APY | No change |
The Best CD Rates Are Still Very High
Certificate of deposit (CD) rates have softened since climbing to a record high of 6.50% in October, and today brought another notable decline: BMO Alto's 6-month rate of 5.50% dropped to 5.25% APY. That lowers the number of CDs in our daily ranking that pay a least 5.50% APY to 10. A short five weeks ago, the count was triple.
Still, the top yield in every term held firm today, including the reigning rate champion, Andrews Federal Credit Union. Its offer of 5.75% APY on a 6-month term has been available for five weeks.
If you want to stretch your rate guarantee further into the future, you can earn up to 5.50% for a year, 5.35% for 18 months, or 5.27% APY as long as two years. You can even score a rate of 5.00% APY on 30 to 36 months. Beyond that, the 4-year and 5-year CD terms offer top rates in the mid-4% range.
It's true that rates have been gradually sliding since November. But don't lose sight of how high CD rates still are relative to the past 20 years. Also keep in mind that snagging the highest APY isn't the only way to win with today's CDs. Since CD rates could fall much further in 2024, locking in a rate soon that's guaranteed for a year or more down the road could be a smart move.
Top Bank, Credit Union, and Jumbo CD Rates Today
The best jumbo CD rate remains 5.65% APY on a 17-month term, available from Hughes Federal Credit Union. As always, beware that the best jumbo CD rates don't always pay more than standard certificates. Often, you can do just as well—or better—with a standard CD. That's the case right now in five of the eight terms below, so it's always wise to shop both certificate types before making a final decision.
CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
3 months | 5.42% APY* | 5.30% APY | 5.20% APY |
6 months | 5.55% APY | 5.75% APY* | 5.51% APY |
1 year | 5.50% APY | 5.43% APY | 5.51% APY* |
18 months | 5.13% APY | 5.35% APY | 5.65% APY* |
2 years | 5.00% APY | 5.27% APY* | 5.10% APY |
3 years | 5.00% APY | 5.00% APY | 5.10% APY* |
4 years | 4.60% APY* | 4.60% APY* | 4.60% APY* |
5 years | 4.61% APY* | 4.60% APY | 4.60% APY |
Where Are CD Rates Headed This Year?
The Federal Reserve announced at its Jan. 31 meeting that it is maintaining rates at their current level, the fourth meeting in a row it's done so. To combat decades-high inflation, the Fed had aggressively hiked interest rates between March 2022 and July 2023, raising the federal funds rate to its highest level in 22 years.
This in turn created historically favorable conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account. Rates on CDs continued rising to a peak this fall, reaching their highest levels in two decades.
But inflation has been cooling, putting the Fed in a holding pattern since July. The central bank also signaled after its January meeting that it was most likely finished with its rate-hike campaign. This means we've entered a new phase, where the Fed committee is focused on deciding the right timing to pull the trigger on a first rate cut.
Financial markets are currently forecasting more than one rate cut in 2024, according to the CME Group's FedWatch Tool, with a majority of traders believing the first cut will arrive by June. But what markets predict and what the Fed ultimately does may or may not align.
Indeed, Fed Chair Jerome Powell testified to Congress today and indicated the rate-setting committee still thinks it's likely they will implement rate cuts this year. But his remarks also conveyed caution that predictions at this time are merely best guesses.
"The economic outlook is uncertain, and ongoing progress toward our 2% objective for inflation is not assured," Powell said in his prepared comments. "Reducing policy restraint too soon or too much could result in a reversal of progress we have seen."Economic data released since the Fed's meeting aren't helping the case for the case for prompt rate cuts. Last week, the Fed's preferred inflation metric showed an acceleration from the previous month. And a Fed board member speaking Friday conveyed his less certain outlook about making a rate cut in 2024. When asked if the Fed would still cut rates this year, he responded, "We'll see."
What this means for CD rates is that they're likely to drift slightly lower, or even plateau, until it appears the Fed is ready to make its first cut. If at some point that seems to be in the cards, banks and credit unions will likely begin lowering rates more substantially.
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.