We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more.
- Personal Finance News
- CD News
By
Hilarey Gould
:max_bytes(150000):strip_icc()/Hilarey-Gould-BW-WebReady-3cfe8520e3ae47b0a3376a4ad73fa422.jpg "Top CDs Dec. 28, 2023: 5.79% Remains the Best Rate Across All Terms (1)")
Full Bio
Hilarey Gould has over a decade of journalism experience, with expertise in editing, content strategy, SEO, social media, and more. She is currently the Senior Editorial Director, Financial Products and Services, at Investopedia, and has held editorial roles at The Balance, Bankrate, SmartAsset, and realtor.com. Hilarey has a master's in journalism from the University of Missouri.
Learn about our editorial policies
Published December 28, 2023
The top CD rates remained steady today, with the leading 5.79% APY available for at least another day on the 8-month CD from Climate First Bank. The best CD rates across all terms remained unchanged for the third day in a row.
The second-best CD rate today is 5.75%, also offered on an 8-month term from INOVA Federal Credit Union. With just a few days left in 2023, locking in a top CD rate now could be the right move if the Federal Reserve decides to lower interest rates next year.
Key Takeaways
- The top CD rate in our daily ranking of the best nationwide CDs remains 5.79% APY on an 8-month CD from Climate First Bank.
- CD rates hit a peak of 6.50% in October, but today's top rates are still historically high.
- Just two nationally available CDs pay at least 5.75% APY. Seven weeks ago, we counted 16 CDs that offered 5.75% APY or more.
- The top rate on a jumbo CD is 5.77%, offered on both 6-month and 1-year CD terms.
- The Federal Reserve is expected to cut interest rates in the new year, so CD rates will likely continue their decline.
Below you'll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.
The number of CDs paying at least 5.75% surged to a historic peak of 18 on Nov. 3. But in the eight weeks since, the number has fallen sharply—down to just two now. Three other CDs pay 5.70% APY, on terms of 7 to 14 months.
The highest rates continue to be available in terms of up to 18 months. But stellar rates can still be had on longer terms. The top-paying 2-year certificate offers 5.39% APY, while you can secure 5.23% for a 3-year term. And in the 4-year and 5-year terms, you can lock in a long-lasting rate as high as 5.00% APY.
Though the yields on these longer certificates are lower than certificates with shorter terms, securing one of today's record rates for as long as possible could be a smart move, as the current expectation is that interest rates will be falling over the next few years.
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 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 | TotalDirectBank |
| 6 months | 5.79% APY | 5.79% APY | No change | Climate First Bank |
| 1 year | 5.70% APY | 5.70% APY | No change | Langley Federal Credit Union |
| 18 months | 5.65% APY | 5.65% APY | No change | Hyperion Bank |
| 2 years | 5.39% APY | 5.39% APY | No change | Digital Federal Credit Union |
| 3 years | 5.23% APY | 5.23% APY | No change | U.S. Senate Federal Credit Union |
| 4 years | 5.00% APY | 5.00% APY | No change | Farmers Insurance Federal Credit Union |
| 5 years | 5.00% APY | 5.00% APY | No change | Farmers Insurance Federal Credit Union |
For anyone with a jumbo-sized deposit, the leading jumbo is 5.77% APY, available from My eBanc for either a 6-month or 1-year term.
| 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* | 5.65% APY | 5.20% APY |
| 6 months | 5.79% APY* | 5.75% APY | 5.77% APY |
| 1 year | 5.66% APY | 5.70% APY | 5.77% APY* |
| 18 months | 5.65% APY* | 5.51% APY | 5.60% 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 | 4.80% APY | 5.00% APY* | 4.86% APY |
| 5 years | 4.75% APY | 5.00% 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 six of the eight terms above, so it's smart to shop both certificate types before making a final decision.
Where Are CD Rates Headed Next Year?
The Federal Reserve opted to hold rates steady at a 22-year high earlier this month, the third meeting in a row it's done so. The Fed has been aggressively combating decades-high inflation since March of last year, raising the federal funds rate with fast and furious hikes in 2022 and then more moderate increases in 2023.
This has created historically favorable conditions for CD shoppers, as well as for anyone holding cash in ahigh-yield savingsormoney 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 dot plot shows that no members of the rate-setting committee predict another rate increase in 2024. Instead, the median expectation is for three rate cuts in 2024, for a total drop of 0.75%.
This has significant implications for CD shoppers and other savers. Banks and credit unions base their deposit rates on the fed funds rate. Even talk about cuts means the wild runup we've seen in deposit rates is likely over.
"The Fed virtually made it official that there'll be no more rate hikes this cycle," Robert Frick, corporate economist with Navy Federal Credit Union, said in a statement.
"That's a call to action for savers to lock in current high CD rates and other rates in safe vehicles such as Treasuries," Frick said. "Those rates will likely only drop from here, and given they're higher than the rate of inflation, savers can earn real returns for now."
As we always caution, trying to predict the Fed's future rate moves is an uncertain exercise. But for the time being, it seems CD rates are likely to continue pulling back from their recent peaks.
18 Best CD Rates for June 2024: Up to 6.00% APY
Best High-Yield Savings Accounts for June 2024—Up to 5.55%
Best Money Market Account Rates for June 2024—Up to 5.35%
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 Top CD Rates Today
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.
:max_bytes(150000):strip_icc()/12-28cdratestodaycustomillo-79eac54627274f0493f403137db581e1.jpg "Top CDs Dec. 28, 2023: 5.79% Remains the Best Rate Across All Terms (2)")
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, Dec. 13, 2023."
Federal Reserve. "FOMC Press Conference."
Federal Reserve Board. "Economic Projections From the Dec. 12-13 FOMC Meeting."
Related Terms
What Is a Certificate of Deposit (CD) and What Can It Do for You?
A certificate of deposit (CD) is a type of savings account offered by banks and credit unions that pays a fixed interest rate on money held for an agreed upon period of time.
more
Variable-Rate Certificate of Deposit (CD): Meaning, Example, FAQs
A variable-rate certificate of deposit is an investment product with relatively low risk, but its interest rate can fluctuate, unlike most standard CD, which have fixed rates.
more
Jumbo Certificate of Deposit (CD): What It Is, Pros and Cons
A jumbo certificate of deposit (CD) is a type of savings account with higher balance requirements than a traditional CD. It generally pays a higher interest rate.
more
Add-On CDs: Meaning, Pros and Cons, Example
Add-on CDs are specialty CDs that allow you to add more funds to your CD after the initial deposit. Learn whether an add-on or standard CD is a better choice for you.
more
Types of Specialty Certificates of Deposit (CDs) Explained
Specialty CDs offer features such as the ability to add to the principal or avoid early withdrawal fees. Some options offer more flexibility but may have lower rates than standard CDs.
more
What Are Savings? How to Calculate Your Savings Rate
Savings is the money left over after subtracting consumer spending from disposable income. Learn about high-yield savings, CDs, and money market accounts.
more
- About Us
- Terms of Service
- Dictionary
- Editorial Policy
- Advertise
- News
- Privacy Policy
- Contact Us
- Careers
- #
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- K
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X
- Y
- Z
Investopedia is part of the Dotdash Meredithpublishingfamily.
We Care About Your Privacy
We and our 100 partners store and/or access information on a device, such as unique IDs in cookies to process personal data. You may accept or manage your choices by clicking below, including your right to object where legitimate interest is used, or at any time in the privacy policy page. These choices will be signaled to our partners and will not affect browsing data.
We and our partners process data to provide:
Store and/or access information on a device. Use limited data to select advertising. Create profiles for personalised advertising. Use profiles to select personalised advertising. Create profiles to personalise content. Use profiles to select personalised content. Measure advertising performance. Measure content performance. Understand audiences through statistics or combinations of data from different sources. Develop and improve services. Use limited data to select content.
