| 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 | 5.49% APY |
| 1 year | 5.40% APY | 5.40% APY | 5.50% 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 | 4.80% APY* | 4.52% APY |
| 5 years | 4.55% APY | 4.60% APY* | 4.42% APY |
Where Are CD Rates Headed in 2024?
The Federal Reserve announced Wednesday 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 ahigh-yield savingsormoney 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 has fallen enough to justify lowering the federal funds rate. According to the Fed's statement yesterday, 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 this week that it expects to reduce its benchmark rate more than once this year. In a quarterly release, the Fed issued 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 yesterday'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 likely accelerate.
The central bank will hold six more rate-setting meetings in 2024, with the next one scheduled for April 30 through May 1.
Best High-Yield Savings Accounts for June 2024—Up to 5.55%
Best CD Rates for June 2024: Up to 5.51%
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 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.
