Best CDs in 2025: Lock in 5.25% or Higher Rates for Up to 2 Years

Key Highlights for 2024 CD Rates

• Andrews Federal Credit Union leads nationwide with a 5.75% APY on a 6-month CD, maintaining the top spot for over a month.
• Lafayette Federal Credit Union offers a competitive 5.56% APY on a 12-month CD, ideal for those seeking a longer term.
• For jumbo deposits, Hughes Federal Credit Union provides an attractive 5.65% APY over 17 months.
• Multi-year CDs offer robust returns: over 5% APY for terms up to 3 years and mid to high 4% APY for 4- and 5-year CDs.
• Expect CD rates to gradually decline as the Federal Reserve prepares for potential rate cuts anticipated in 2024.

Despite a slight decrease from the peak 6.50% APY recorded in October, current CD rates remain historically strong. Our latest nationwide CD rankings show 17 options offering 5.50% APY or higher, with multiple opportunities to secure rates above 5% extending through 2027.

Nationwide CD Rates Remain Highly Competitive

Andrews Federal Credit Union’s 5.75% APY on a 6-month CD continues to be the highest available nationally since late January 2024. Lafayette Federal Credit Union’s 12-month CD at 5.56% APY and Newtek Bank’s 6-month CD at 5.55% APY offer excellent alternatives for varying investment horizons.

Although yields have softened slightly over the past quarter, numerous CDs still provide returns of 5.50% APY or more, with terms ranging from 3 to 13 months. Earlier this year, nearly double that number of CDs offered such rates, signaling a gradual easing in yields.

Locking in a rate for more than one year is a prudent strategy given the expected rate reductions in 2024. Options like XCEL Federal Credit Union’s 18-month CD at 5.45% APY and Pelican State Credit Union’s 24-month CD at 5.27% APY allow investors to secure strong returns well into the future. Several 3-year CDs also surpass 5% APY, with 4- and 5-year CDs offering solid returns in the mid to upper 4% range.

Jumbo CDs and Where to Find the Best Rates

Hughes Federal Credit Union offers the top jumbo CD rate at 5.65% APY for a 17-month term. However, jumbo CDs do not always outperform standard CDs, so comparing both options before committing is advisable.

Outlook for CD Rates in 2024

The Federal Reserve held interest rates steady in early 2024 after a series of aggressive hikes that pushed rates to a 22-year high. This environment created historically favorable yields for CDs and other savings products. However, with inflation cooling and the Fed signaling an end to rate hikes, many institutions have begun lowering CD rates.

Market expectations now anticipate the first rate cut from the Fed in mid-2024, likely around June. Until then, CD rates are expected to gradually decline. Investors should consider locking in current high rates before reductions accelerate following the Fed's initial cut.

Economic indicators such as strong employment growth and persistent inflation have delayed rate cuts, keeping yields elevated for longer than originally forecasted.

How We Source the Best CD Rates

Our daily analysis covers over 200 federally insured banks and credit unions nationwide, focusing on institutions available in at least 40 states. We exclude credit unions requiring donations exceeding $40 for membership to ensure accessibility. CDs included have minimum deposits of $25,000 or less. This rigorous methodology ensures you access the highest genuine rates available.

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