March 18, 2025: Best CD Rates Drop to 5.55% - Updated National Averages & Jumbo Offers

Highlights of Today’s CD Rate Changes

• The highest national CD rate fell from 5.75% to 5.55% APY, offered by Newtek Bank on a 6-month term.
• One-year CD rates also saw a slight dip, now leading at 5.40% APY from multiple banks and credit unions.
• Jumbo CDs remain attractive with Hughes Federal Credit Union offering 5.65% APY for 17 months.
• CD rates have been gradually declining over recent months, with sharper drops expected if the Federal Reserve cuts rates.

Below, explore featured rates from our partners and a detailed ranking of the best CDs nationwide.

National CD Rate Leader Sees Decline

Today, the top yield for a nationally available CD dropped to 5.55% APY, available at Newtek Bank for a 6-month term, down from 5.75% since late January. The leading 1-year CD rate also decreased slightly to 5.40%, offered by two banks and four credit unions.

While CD rates have softened from the October peak of 6.50%, locking in yields between 4% and 5% for one year or longer remains a strong opportunity compared to the past two decades.

Remember, securing the highest APY isn’t the only winning strategy. With potential rate declines in 2024 and 2025, locking in a competitive rate now can protect your returns over time.

Current Top Jumbo and Standard CD Rates

The best jumbo CD rate remains at 5.65% APY for a 17-month term from Hughes Federal Credit Union. Most jumbo CD rates have held steady. However, standard CDs can sometimes offer comparable or better rates, so it’s wise to compare both options before deciding.

Other term leaders have maintained their rates today.

Outlook for CD Rates in 2024

Since maintaining rates at its January 31 meeting, the Federal Reserve has paused after a series of hikes aimed at curbing inflation. This pause has created favorable conditions for savers with CDs, high-yield savings, and money market accounts.

Although inflation is cooling, recent data shows it remains more persistent than expected. The Fed’s next meeting will likely hold rates steady again, accompanied by updated forecasts on potential rate cuts for 2024.

Market expectations suggest multiple rate cuts this year, possibly starting by June, but actual Fed actions may vary. Fed Chair Jerome Powell emphasized uncertainty and cautioned against premature easing to avoid reversing inflation progress.

Depending on Fed signals, CD rates may continue a gradual decline or stabilize until a rate cut seems imminent.

Additional Savings Options for 2025

• High-Yield Savings Accounts: Up to 5.00%
• Best CD Rates: Up to 4.50%
• Money Market Accounts: Up to 4.40%

Important Notes

The "top rates" listed are the highest nationally available APYs identified through daily research of hundreds of banks and credit unions. These rates far exceed national averages, which include many institutions offering minimal returns.

Our Methodology for Finding the Best CD Rates

Investopedia analyzes rate data daily from over 200 federally insured banks and credit unions nationwide. To qualify, institutions must be available in at least 40 states, and CDs must have a maximum initial deposit of $25,000. Credit unions requiring donations above $40 for membership are excluded.

For complete details on our selection process, please review our full methodology.

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