The top nationwide CD rate is once again 5.75% APY today, available from both on a 7-month CD term and for 8 months. But one of the two runner-up certificates paying 5.70% came off the market today. The remaining 5.70% offer is available from for a 9-month CD.
Key Takeaways
- The overall leading rate in our daily ranking of the best CDs remains 5.75% APY, offered by two co-leaders on terms of 7 to 8 months.
- The number of nationally available CDs currently paying 5.60% APY or better dropped to seven today, with the removal of a 5.70% offer from the market.
- Though today's best CD rates are below October's historic peak of 6.50%, current CD returns are still historically high.
- If the Fed lowers interest rates in 2024, as many predict, CD rates can be expected to follow suit.
CD rates have been edging downward since climbing to a historic peak of 6.50% in October. The softening is not unexpected as it looks like the Federal Reserve is finished raising interest rates—and that it could even begin reducing rates sometime this year. Still, while CDs may no longer be paying their peak rates, the returns you can lock in for years or months down the road are still very high.
For the past several months, we've counted the number of CDs paying at least 5.75% APY. On Nov. 3, the number surged to a historic peak of 18. But in January 2024, we're left with just two CDs paying a rate that high. Fortunately, another five options are offering at least 5.60%, with terms ranging from 3 to 15 months.Though longer-term rates are lower, they can be a smart choice right now as we face the prospect of declining interest rates in 2024 and beyond. The top-paying 2-year certificate offers 5.39% APY, while you can secure 5.23% for a 3-year term. The best rates for 4-year and 5-year CDs are now below the 5% mark, but you can still lock in a long-lasting rate as high as 4.89% APY.
CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
3 months | 5.66% APY | 5.66% APY | No change | |
6 months | 5.75% APY | 5.75% APY | No change | and |
1 year | 5.64% APY | 5.64% APY | No change | |
18 months | 5.65% APY | 5.65% APY | No change | |
2 years | 5.39% APY | 5.39% APY | No change | |
3 years | 5.23% APY | 5.23% APY | No change | |
4 years | 4.82% APY | 4.82% APY | No change | |
5 years | 4.89% APY | 4.89% APY | No change |
Fast Fact
When asked in December if they were choosing more or less of certain investments during recent market events, 28% of Investopedia readers said they were leaning into CDs—just one percentage point behind the leading choice of money market funds. Additionally, 11% of readers said they would open a CD if they had an extra $10,000 to invest, in third place behind individual stocks and ETFs.
CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
3 months | 5.66% APY* | 5.55% APY | 5.20% APY |
6 months | 5.75% APY* | 5.75% APY* | 5.60% APY |
1 year | 5.55% APY | 5.64% APY* | 5.61% APY |
18 months | 5.65% APY* | 5.51% APY | 5.65% APY* |
2 years | 5.25% APY | 5.39% APY* | 5.30% APY |
3 years | 5.00% APY | 5.23% APY | 5.28% APY* |
4 years | 4.65% APY | 4.82% APY | 4.86% APY* |
5 years | 4.65% APY | 4.89% APY | 4.92% APY* |
Note that jumbo CDs don't always pay a higher return than standard certificates. Sometimes you can do just as well—or better—with a standard CD. That's currently the case in five of the eight terms above, so it's smart to shop both certificate types before making a final decision.
Where Are CD Rates Headed This Year?
The Federal Reserve opted to hold rates steady at a 22-year high last month, the third meeting in a row it's done so. The Fed has been aggressively combating decades-high inflation since March 2022, raising the federal funds rate with fast and furious hikes that year and then more moderate increases in 2023.
This has created historically favorable conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
Inflation has cooled significantly in recent months, including a mild drop in November. And though Chair Powell said the rate-setting committee is not taking the possibility of future rate hikes off the table, he also said in his press conference that Fed members have started to discuss lowering rates.
The Fed's Dec. 13 dot plot shows that, at that time, no members of the rate-setting committee predicted another rate increase in 2024. Instead, the median expectation was for three rate cuts in 2024, for a total drop of 0.75%.
However, the minutes released last week from the Fed's Dec. 13 meeting revealed that there is much uncertainty among Fed members on the right timing for lowering rates—and even if another rate hike will be needed before then. In addition, last Friday's hotter-than-expected jobs report may make it harder for the Fed to justify starting rate cuts. The Fed's next rate-setting meeting will conclude on Jan. 31.
The Fed's decisions on the federal funds rates have significant implications for CD shoppers and other savers, as banks and credit unions base their deposit rate decisions on the Fed's benchmark rate. As we always caution, trying to predict the Fed's future moves is an uncertain exercise. But for the time being, it seems CD rates are likely to continue inching down from their record peaks.
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.