Of the major US banks, these pay the best CD rates – up to 5.50% (2024)

This way you earn even more – or you fix a high rate for a longer period of time

The above prices are only the best if you are willing to open a CD with one of America's largest financial institutions. But if you're willing to move to a smaller bank or credit union, you can easily earn even more. Our daily ranking ofBest CD pricesoffer nearly twenty opportunities during each term to earn 5.50% over a period of up to 13 months.

By casting your net wider than the largest banks, you can also score a high interest rate that will last longer in the future. In our ranking of the best national offers you can choose from several options and pay between 5.00% and 5.45% on terms of18 monthsUnpleasant3 years. And if you want to guarantee your rate for even longer, even more4 years oldInCDs from 5 yearspays in the mid 4% – and as much as 4.73% APY.

While it's true that these top-paying CDs come from banks or credit unions with less brand recognition than the big banks, that doesn't make them any less safe. In fact, your deposits are ateveryone FDICbank ofNCUAThe credit union – regardless of its size – is covered by the same $250,000 federal protection in the unlikely event that the institution goes bankrupt.

CD prices will likely drop in 2024, so don't wait too long

CD prices reached a record high last fall, thanks toFederal Reserve's 11 inflation-fighting walks tofederal funds ratebetween March 2022 and July 2023.But the Fed has held its key interest rate steady since July and is almost certain it will not raise rates further. With the threat of further rate hikes finally off the table, banks and credit unions have begun cutting their CD rates over the past two months.

But this year will likely see an even bigger drop in CD rates as the central bank currently expects one or more rate cuts.cutsin 2024. While it is unknown when the first rate cut will occur, the average expectation is indicated in the Fed's December report.prik plotThe report covers a total of three cuts this calendar year, totaling 0.75%.

Once the first decline appears imminent, banks and credit unions will begin cutting their CD interest rates more significantly than they have to date. That makes now an excellent time to lock in a top rate that you can enjoy for a year or more. Whether you choose one of the highest APYs available on short- and medium-term CDs, or opt for a slightly lower rate that you can extend to 2027, 2028, or even 2029, you'll enjoy guaranteed and predictable returns. far into the future.

This is how we find the best savings and CD prices

Every weekday, Investopedia tracks interest rate data from more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country, ranking the highest-paying accounts daily. To qualify for our lists, the facility must be federally insured (FDICfor banker,NCUAfor credit unions) and the minimum account deposit cannot 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 (such as not living in a certain area or working in a certain type of job), we exclude credit. unions whose donation requirement is $40 or more. To learn more about how we choose the best prices,read our entire working method.