Key Takeaways
- The nation's best CD rates have been inching lower in anticipation of Fed rate cuts—and today saw two leading term rates drop.
- The top 1-year rate is down to 5.25%, available from five institutions, while the best 18-month rate is now 5.15%, available from FedChoice Federal Credit Union. The previous leaders in both terms paid 5.30%.
- The best overall rate remains 5.40%. National leader INOVA Federal Credit Union will guarantee that rate for 5 months.
- The longest CD term paying at least 5.00% continues to be 2 years, on offer from USAlliance Financial. For rate locks of 3–5 years, you can secure APYs in the mid-4% range.
- It's smart to open a CD before rates sink further—and the longer the term, the better—as the Fed is expected to start cutting interest rates next month, as well as maybe two more times this year.
Below you'll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
Open a New Account × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account × The offers that appear in this table are from partnerships from which Dotdash receives compensation.
Leading 1-Year and 18-Month Rates Drop, While Top 5.40% Offer Remains
The top CD rates across our national leader board have been declining ahead of widely anticipated interest-rate cuts by the Fed in the coming months. That includes declines today in two of the shorter terms: 1 year and 18 months.
Among 1-year offers, the previous top rate of 5.30% dipped today to 5.25%. You can earn that from five different banks and credit unions, on terms of 11 to 12 months.
In the 18-month term, yesterday's leading rate was also 5.30%. But today that top return is down to 5.15%. You can earn that guaranteed rate for 15 months with FedChoice Federal Credit Union.
If you're game for a shorter rate lock, INOVA Federal Credit Union continues to pay the nation-leading rate of 5.40% on a 5-month term. If you'd like your rate guaranteed for an additional month, you could instead opt for runner-up DR Bank, which will let you lock in 5.35% for 6 months.
Multi-Year CDs Are a Smart Move Right Now
Despite paying lower annual percentage yields (APYs) than shorter CDs, attractive multi-year CDs are a smart move before the Fed starts cutting its benchmark federal funds rate. That's expected to begin Sept. 18, and it could continue with additional 2024 and 2025 cuts. Downward pressure on interest rates could even persist into 2026.
The longest term in which CD shoppers can lock in a rate of at least 5.00% is currently 2 years, available from USAlliance Financial. And in the 3-year term, EFCU Financial will guarantee you a 4.75% rate for 30 months, while American 1 Credit Union extends that return for a full 36 months.
Meanwhile, top rates in the mid-4% range can be secured for even longer. The 4-year leader is The Federal Savings Bank, paying 4.55%, while the top 5-year CD rate is 4.50%, available from Pima Federal Credit Union. These offers could guarantee your return until 2028 or 2029.
| CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
| 3 months | 5.25% | 5.25% | No change | Merchants Bank of Indiana and Financial Partners Credit Union |
| 6 months | 5.40% | 5.40% | No change | INOVA Federal Credit Union |
| 1 year | 5.30% | 5.25% | - 0.05 | Five institutions |
| 18 months | 5.30% | 5.15% | - 0.15 | FedChoice Federal Credit Union |
| 2 years | 5.00% | 5.00% | No change | USAlliance Financial |
| 3 years | 4.75% | 4.75% | No change | EFCU Financial and American 1 Credit Union |
| 4 years | 4.55% | 4.55% | No change | The Federal Savings Bank |
| 5 years | 4.50% | 4.50% | No change | Pima Federal Credit Union |
Though Down From Their Peak, CDs Are Still a Wise Buy
Today's CD rates aren't at their absolute peak, but they're still running historically high. October brought us a top nationwide rate of 6.50%—for just a few days—and today the leading rate is down to 5.40%. Still, quite a few banks and credit unions are offering 5.00% or better. And a total of 25 offers among the best nationwide CDs still pay 5.25% or more.
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 Lead Among 18-Month and 3-Year Offers
Jumbo CDs require much larger deposits, but they don't always offer the best rates. Right now, the best jumbo CDs only lead among 18-month and 3-year CDs. State Department Federal Credit Union offers 5.20% with a 15-month jumbo CD, vs. 5.15% for today's leading rate among standard 18-month certificates. And EFCU Financial pays 4.85% for a 30-month term, edging out the best standard 3-year CD (4.75%) by 10 basis points.
| CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
| 3 months | 5.25% APY* | 5.25% APY* | 5.20% APY |
| 6 months | 5.35% APY | 5.40% APY* | 5.30% APY |
| 1 year | 5.25% APY* | 5.25% APY* | 5.25% APY* |
| 18 months | 5.05% APY | 5.15% APY | 5.20% APY* |
| 2 years | 4.85% APY | 5.00% APY* | 4.85% APY |
| 3 years | 4.60% APY | 4.75% APY | 4.85% APY* |
| 4 years | 4.55% APY* | 4.50% APY | 4.48% APY |
| 5 years | 4.45% APY | 4.50% APY* | 4.37% APY |
How Far Will CD Rates Fall in 2024?
As expected, the Federal Reserve kept the federal funds rate at its current level at its meeting that ended July 31. But a rate cut is almost certainly on the horizon: According to the CME FedWatch tool, 100% of federal funds futures traders expect the Fed will cut rates by at least 0.25 percentage points at its next meeting in September, and they also overwhelmingly predict rates will move even lower in November and also December.
In the News
In a Reuters poll released Aug. 19, a slim majority of economists (55%) reported they expect the Fed to cut the federal funds rate by 25 basis points in each of the next three meetings (September, November, and December), for an overall drop of 0.75 percentage points by year's end.
Recent inflation reports have provided more evidence that the Fed's campaign to tamp down inflation has been effective, strengthening predictions of rate cuts in the near future. The latest Consumer Price Index (CPI), released last week, showed a July inflation rate of 2.9%—the first reading below 3% in over three years. This encouraging report bolsters expectations that Fed rate cuts are on the September horizon.
The central bank's mission to beat inflation led it to raise the federal funds rate 11 times between March 2022 and July 2023—bringing the benchmark interest rate to its highest level in 22 years. The rate-hike campaign has been a boon to savers with cash in the bank, as the fed funds rate directly influences the rates that banks and credit unions pay on CDs. As a result, CD rates hit a 20-year high last fall. Those with money in ahigh-yield savingsormoney market account have also benefited from these historically high rates.
But the Fed has kept rates steady since its last rate hike in July 2023. The most recent decision, on July 31, marked the eighth consecutive meeting in which the central bank left its benchmark rate unchanged.
Fed officials are generally careful not to jump the gun and will likely continue waiting for additional reports before making any decisions about changing the fed funds rate. But with confidence in a September rate cut high—and CD rates likely to move ahead of the central bank's move—if you've got the funds to spare, you may want to lock in an excellent CD rate while you can.
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
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Federal Reserve Board. "Federal Reserve Issues FOMC Statement, July 31, 2024."
CME Group. "CME FedWatch Tool."
Reuters. "Fed Is Predicted To Deliver Three Quarter-Point Rate Cuts This Year: Reuters Poll."
Federal Reserve Board. "Open Market Operations."
