Top CD Rates Today: Leading 5.79% Offer Continues for Another Day

Top CD rates continued in their post-Christmas doldrums, meaning the leading 5.79% APY remains available today. Every term-leading rate also remained unchanged for a second day following the holiday break.

The current rate leader is offered by Climate First Bank on an 8-month term. The national runner-up also has an 8-month term, with INOVA Federal Credit Union paying 5.75%. With the Federal Reserve looking to possibly lower interest rates next year, locking in a top CD rate now could be a smart move to earn an excellent guaranteed return for months or years down the road.

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 seven 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.

For anyone with a jumbo-sized deposit, the leading jumbo offer has fallen from 5.80% a week ago to 5.77% APY now, available from My eBanc for either a 6-month or 1-year term.

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 a high-yield savings or money 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 continued. "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.

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.