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The next Federal Reserve meeting is just a few days away, and as usual, its rate-setting decision could impact CD returns. Right now, traders are pricing in a 90-95% chance the Fed will cut its benchmark interest rate a quarter-point on Wednesday, according to the CME Group's FedWatch Tool. That's after the Fed reduced the federal funds rate by a half point in September and a quarter point in November.
What the Fed does with the fed funds rate is important to savers because that benchmark rate influences what banks and credit unions are willing to pay on savings, money market, and certificate of deposit (CD) accounts. Indeed, the Fed's historic 2022-2023 rate-hike campaign to combat post-pandemic inflation caused CD rates to surge to 20-year highs late last year—reaching above 6%.
However, inflation has now cooled, and the Fed has shifted to a rate-cutting phase. That has nudged CD rates a bit lower, with the top nationwide rate now 5.50%. Still, these are historically high returns, making CDs an attractive option for some of your cash savings.
But with additional Fed rate cuts expected—both next week and in the new year—the days of 4%–5% CD returns are probably numbered. That makes today's top CDs a smart move right now, letting you protect your earnings from whatever rate cuts the Fed makes in the next year or two.
Additionally, it's wise to consider the longest CD term you can manage since any CD rate you lock in now is yours to enjoy until it matures. For instance, opening a 2-year CD can guarantee you'll earn a high rate as far into the future as December 2026. And 3-, 4-, and 5-year CDs will secure your stellar return even longer.
With online banking, you can apply for any of these CDs on the weekend, which might be easier than trying to fit it in during the week. Though your application likely won't be processed over the weekend, the bank or credit union will have it Monday morning, and you won't have to worry about applying during busy work or school hours.
Every business day, we track the certificate of deposit rates available from more than 200 banks and credit unions that offer nationwide certificates. Act now to lock in an exceptional return that will pay dividends for months or years into the future.
| Top 6-Month CDs | APY | Term | Minimum |
|---|---|---|---|
| Nuvision Credit Union | 5.50% | 8 months | $1,000 |
| Alabama Credit Union | 5.00% | 7 months | $5,000 |
| Tampa Bay Federal Credit Union | 4.85% | 9 months | $500 |
| Top 1-Year CDs | APY | Term | Minimum |
| Signature Federal Credit Union | 4.65% | 13 months | $500 |
| Dow Credit Union | 4.60% | 13 months | $500 |
| GTE Financial | 4.59% | 12 months | $500 |
| Top 18-Month CDs | APY | Term | Minimum |
| XCEL Federal Credit Union | 4.50% | 18 months | $500 |
| All In Credit Union | 4.44% | 18 months | $1,000 |
| Signature Federal Credit Union | 4.40% | 18 months | $500 |
| Top 2-Year CDs | APY | Term | Minimum |
| Credit Human | 4.30% | 18-23 months | $500 |
| First National Bank of America | 4.29% | 24 months | $1,000 |
| Genisys Credit Union | 4.27% | 25 months | $500 |
| Top 3-Year CDs | APY | Term | Minimum |
| Credit Human | 4.25% | 24-35 months | $500 |
| Popular Direct | 4.25% | 36 months | $10,000 |
| Merrick Bank | 4.15% | 36 months | $25,000 |
| Top 4-Year CDs | APY | Term | Minimum |
| Popular Direct | 4.15% | 48 months | $10,000 |
| Credit Human | 4.11% | 36-59 months | $500 |
| NASA Federal Credit Union | 4.09% | 49 months | $10,000 |
| Top 5-Year CDs | APY | Term | Minimum |
| Popular Direct | 4.25% | 60 months | $10,000 |
| Credit Human | 4.11% | 36-59 months | $500 |
| Merrick Bank | 4.05% | 60 months | $25,000 |
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.
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that's below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. 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.
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