Below you'll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

The Overall Rate Leader Pays 5.55%

The top yield across all CD terms on a nationally available certificate fell this week to 5.55% APY, available to lock in with Newtek Bank for 6 months. Previously, a top rate of 5.75% APY had been available since late January.

In the 1-year term, you can earn as much as 5.40% APY, guaranteeing your rate into 2025. You can also score 5.20% into 2026 with the best 2-year CD or secure a 5.00% rate as long as 2027.

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	5.55% APY	5.55% APY	No change
1 year	5.40% APY	5.40% APY	No change	6 institutions
18 months	5.35% APY	5.35% APY	No change
	5.20% APY	5.20% APY	No change
3 years	5.00% APY	5.00% APY	No change
4 years	4.60% APY	4.60% APY	No change
	4.70% APY	4.70% APY	No change

It's true that certificate of deposit (CD) rates have softened since climbing to a record high of 6.50% in October. At the start of February, the number of CDs in our daily ranking that pay a least 5.50% APY was 30. Today that count is down to seven. But don't lose sight of how high CD returns still are relative to the past 20 years. Being able to lock in a return in the 4% to 5% range for a year or more down the road is still a great earning opportunity, especially if future interest rates fall.

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 significantly in 2024 and 2025, locking in a rate soon that's guaranteed far into the future can be a smart move.

Today's Top Bank, Credit Union, and Jumbo CD Rates

Today's best jumbo CD rate remains 5.65% APY on a 17-month term, available from Hughes Federal Credit Union with a deposit of at least $99,000.

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 every term but two 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*	5.50% APY*	5.51% APY
1 year	5.40% APY	5.40% APY	5.51% APY*
18 months	5.05% APY	5.35% APY	5.65% APY*
2 years	4.91% APY	5.20% APY*	5.05% APY
3 years	5.00% APY*	5.00% APY*	4.97% APY
4 years	4.55% APY	4.60% APY*	4.52% APY
5 years	4.55% APY	4.70% APY*	4.42% APY

Where Are CD Rates Headed in 2024?

The Federal Reserve announced today that it is maintaining rates at their current level, the fifth 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.

Inflation has since been cooling, allowing the Fed to stop raising interest rates. But it's now in wait-and-see mode, looking for evidence that inflation is falling sufficiently low to justify lowering the federal funds rate. According to the Fed's statement today, that first rate cut could still be a ways off.

“The Committee does not expect it will be appropriate to reduce the (fed funds rate) until it has gained greater confidence that inflation is moving sustainably toward 2 percent", the central bank said in the statement, using language identical to its previous statement in January.

Additionally, in his post-announcement press conference, Fed Chair Jerome Powell similarly echoed sentiments he's relayed before: "Inflation has eased substantially while the labor market has remained strong. And that is very good news. But inflation is still too high. Ongoing progress in bringing it down is not assured, and the path forward is uncertain."

Still, the Fed signaled today that it expects to reduce its benchmark rate more than once this year. In a quarterly release, the Fed also released its latest "dot plot" forecast, which indicates how many rate cuts each Fed member expects we'll see by the end of 2024. The median prediction from today's dot plot is three rate cuts by year-end, for a total rate reduction of 0.75 percentage points. That's the same median projection as seen in the December dot plot.

Financial markets currently agree, betting on at least three rate decreases this calendar year, according to the CME Group's FedWatch Tool. A strong majority of traders believe the first cut will arrive in June.

Of course, what markets predict today and what the Fed ultimately does may or may not align. But given an assumption of a reduced fed funds rate sometime this year, CD rates are likely to continue drifting lower. Then once it appears a Fed rate decrease is actually forthcoming, CD rate declines will accelerate.

The central bank will hold six more rate-setting meetings in 2024, with the next one scheduled for April 30 through May 1.

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.