Top CDs May 2, 2024 - Six Deals Let You Lock in 5.40% or 5.50%—Until 2025

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

Lock In 5.30% to 5.65% APY for 3 to 23 Months

The top rate you can earn with a nationally available CD continues to be 5.65% APY. MutualOne Bank renewed that rate after withdrawing it nationally two weeks earlier. But it's a short-term offer, providing only a 3-month rate lock.

That's why you may prefer the next best rate of 5.55% APY, which is available from Newtek Bank for 6 months.

For a longer duration, you can earn 5.40% to 5.50% from one of six options that range from 9 months to 15 months. That could keep your rate lock in place as long as August 2025. For a slightly longer lock, though, you might prefer Credit Human's offer of 5.30% on a take-your-pick term of 18-23 months, potentially extending your guaranteed return until spring 2026.

Longer Terms Will Secure Your Rate to 2027—Or Beyond

Choosing a CD term longer than two years is also a smart option, since it's possible U.S. interest rates could enter a declining period for the next 2-3 years. To lock in a rate that will last far into the future, you can choose a top 3-year CD paying 5.00%, guaranteeing that return until 2027. Or you can opt to secure a rate in the mid-to-high 4% range for as far as 4 or 5 years down the road.

CD Rates Are Still Near Record Highs

CD rates have inched lower since they climbed to a historic peak of 6.50% in October. At the start of February, the number of CDs in our daily ranking that paid at least 5.50% APY was 30. Today that count sits at eight.

But don't lose sight of how much certificates of deposit (CDs) still pay relative to the past 20 years. Locking in a yield in the 4% to 5% range for a year or more down the road is still a great earning opportunity.

Also keep in mind that snagging the absolute highest APY isn't the only way to win with today's CDs. Since CD rates could fall quite substantially in 2024 and 2025, locking in a long-term rate now—before rates move lower—can be a smart move.

Jumbo Deposits Can Provide More CD Options

The top two jumbo CDs let you earn more than you can with a standard CD. State Bank of Texas is paying 5.50% APY on a 12-month certificate, while My eBanc offers 5.49% APY for 6 months.

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 six of the eight terms below, so it's always wise to shop both certificate types before making a final decision.

Where Are CD Rates Headed in 2024?

To combat decades-high inflation, the Federal Reserve aggressively hiked the federal funds rate between March 2022 and July 2023, raising the benchmark rate to its highest level in 22 years. That's important to savers because when the fed funds rate rises, banks and credit unions increase the interest rates they're willing to pay on customer deposits.

As a result, this past fall saw 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 rose to an October-November peak that was the highest we've seen in two decades.

But since its last rate hike in July, the Fed has been in a holding pattern. As was almost universally expected, the Federal Reserve's rate-setting committee announced yesterday that it is maintaining the federal funds rate at its current level. It's the sixth meeting in a row in which the central bank has held its benchmark rate steady.

That's because inflation has been cooling, allowing the Fed to stop raising interest rates. Yet, further inflation progress has been elusive, putting the central bank in wait-and-see mode as it looks for evidence that inflation is falling enough to justify lowering the federal funds rate.

The Fed's written statement yesterday left out discussion of projected rate cuts. When asked about this during his press conference following the statement's release, Fed Chair Jerome Powell responded that the stalled progress against inflation means it will take longer than originally expected to lower the fed funds rate.

"My colleagues and I today said that we didn't see progress in the first quarter," Powell said. "And I've said that it appears then that it's going to take longer for us to reach that point of confidence. So I don't know how long it will take. When we get that confidence, then rate cuts will be in scope."

But Powell also indicated that, despite the uptick in recent inflation readings, a rate hike is not expected.

"I think it's unlikely that the next policy rate move will be a hike," Powell told reporters at Wednesday's press conference.

It therefore seems likely the fed funds rate will stay where it is for some number of months—although with great uncertainty on when exactly the Fed will first cut rates. Following yesterday's Fed statement and comments from Powell, a majority of fed funds futures traders are betting it will take three more meetings—until Sept. 18—for the first rate cut to be implemented, according to CME Group's FedWatch Tool.

As a result, CD rates could continue their current plateau. If at some point it becomes clear the Fed is ready to make a first rate cut, that would drive CD rates down more quickly. But it appears that could be months away.

The central bank will hold five more rate-setting meetings in 2024, with the next one scheduled to conclude June 12.

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.