Key Takeaways
- Last week saw the last 5% CD vanish, ending a long run in which 5%–6% CD options were continuously available since 2022.
- But don’t fret, because you can still lock in great rates to enjoy far down the road, with eight CDs paying 4.75% or more.
- The nation-leading APY is 4.85%, available from PonceBankDirect for 3 months or Tampa Bay Federal Credit Union for 9 months.
- All CD rate leaders have held firm from last week, including upgraded 4- and 5-year rates of 4.35% and 4.40%, respectively, from Transportation Federal Credit Union.
- The Fed’s December rate cut is triggering many banks and credit unions to reduce rates in 2025. So if you’re shopping today’s best CDs, it’s wise to lock in as soon as you can.
Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.
Two Ways to Earn the Nation-Leading CD Rate of 4.85%
Last week saw the end of the 5%-plus era for CD rates. Since November 2022, you could earn at least 5% with the top nationwide CD, with several periods in that stretch offering dozens of 5%-or-better CDs—and rates even reaching as high as 6.50% in late 2023.
But with the Federal Reserve now three cuts into a rate-reduction phase—having lowered the federal funds rate by a cumulative percentage point across September, November, and December meetings—the best CD rates have been drifting lower.
That leaves the current nation-leading rate at 4.85%, which you can earn from two different institutions. PonceBankDirect will let you lock in that rate for 3 months, while Tampa Bay Federal Credit Union guarantees it for 9 months.
Among 1-year CDs, you can earn the top nationwide rate of 4.57% from Alabama Credit Union, guaranteeing that return until January 2026.
Consider Longer CDs to Secure Your Rate Further Down the Road
Among CDs that will lock your return into later 2026 or as far as 2027, two good options are 4.50% offers from Credit Human for 12–17 months or XCEL Federal Credit Union for 18 months. Meanwhile, the top APY on a 2-year certificate is also from Credit Human. With its take-your-pick term of 18–23 months, its 4.40% rate can be guaranteed as far as December 2026. Or choose its 24–35 month CD paying a just slightly lower 4.35% APY.
If you want an even longer rate lock, you’re in luck, as the leading 4- to 5-year rates increased last week. With a rate boost, Transportation Federal Credit Union has taken the lead in both of these terms, letting you enjoy a promised 4.35% for 4 years or 4.40% for 5 years.
Long-term CDs are likely smart right now, given the prospect of continued Fed rate cuts. The central bank has so far lowered the federal funds rate by a full percentage point, and further cuts in 2025 are expected. While any interest-rate reductions from the Fed will push bank APYs lower, a CD rate you secure now will be yours to enjoy until it matures.
Today’s Best CDs Still Pay Historically High Returns
It’s true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer a stellar return. October 2023 saw the best CD rates push above 6%, while the leading rate is currently down to 4.85%. 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 the country ranged from just 0.50% to 1.70% APY, depending on the term.
Best Jumbo CDs Out-Pay Standard CDs in Just One Term
Jumbo CDs require much larger deposits, but they don’t always offer higher rates. Right now, the best jumbo CDs lead in just one of the eight terms we track. Among 1-year CDs, you can earn a higher 4.75% with a jumbo certificate from Tampa Bay Federal Credit Union, compared to 4.57% for the best 1-year regular CD. But in the other seven terms, the highest jumbo rate is at or below the best standard rate.
Where Are CD Rates Headed in 2025?
Last month, the Federal Reserve announced a third cut in as many meetings to the federal funds rate, reducing it by another 0.25 percentage points. That follows a bolder 0.50-point decrease in September and a quarter-point reduction in November.
All of this represents a pivot from the Fed’s historic 2022-2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for 14 months.
Now that inflation has cooled—and if the trend continues—it’s expected the Fed will continue to lower interest rates. According to the central bank’s “dot plot” forecast, Fed committee members currently predict they will reduce interest rates another 0.50 percentage points in 2025, and then another half-point in 2026.
Fed rate moves are significant to savers, as reductions to the fed funds rate push down what banks and credit unions are willing to pay consumers for their deposits. As a result, it currently seems likely that CD rates, as well as savings account rates, are in for a slow and gradual decline over the next two years.
Time will tell what exactly happens to the federal funds rate in 2025 and 2026. But with three Fed rate cuts already in the books, the CD rates available now are probably the best you’ll see for some time. That makes now a smart time to lock in the best rate that suits your financial timeline.
Daily Rankings of the Best CDs and Savings 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 (FDIC for banks, NCUA for 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.
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