2025 Best CD Rates: Lock in 5.75% APY for 6 Months with Andrews Federal Credit Union

Highlights of Today's Top CD Rates

• Andrews Federal Credit Union leads the nation with a 5.75% APY on a 6-month CD.
• Competitive alternatives include T Bank's 5.65% APY for 13 months and Lafayette Federal Credit Union's 5.56% APY for 12 months.
• Longer-term CDs still offer attractive yields above 5% for terms up to 3 years.
• Our comprehensive ranking features 23 nationwide CDs with rates of at least 5.50% APY, reflecting a slight decline from earlier in the year.

Although CD rates have tapered from their October 2023 peak of 6.50%, current offers remain historically strong, providing excellent opportunities to secure high yields for fixed terms extending through 2027.

Why These CD Rates Stand Out in 2024

Andrews Federal Credit Union maintains the top spot nationwide, offering a 5.75% APY on a 6-month certificate—the highest since late January. For those seeking longer terms, T Bank and Lafayette Federal Credit Union provide compelling rates above 5.5% for 12 to 13 months.

Despite a modest decline over the past two months, 23 CDs nationwide still yield at least 5.50% APY, with terms ranging from 3 to 13 months. This gradual rate adjustment reflects evolving market conditions but still represents a lucrative saving option.

Securing a slightly lower rate guaranteed over several years can be a strategic move amid anticipated rate declines. For example, XCEL Federal Credit Union offers 5.45% APY for 18 months, and Pelican State Credit Union provides 5.27% APY for 24 months. Several top 3-year CDs also exceed 5%, locking in favorable returns through 2027.

Acting now to lock in these rates is advisable before potential Federal Reserve rate cuts exert downward pressure on CD yields. The Fed’s December 2023 projections indicate possible rate reductions totaling 0.75% during 2024, underscoring the value of timely investment.

Jumbo and Standard CD Rates: What to Consider

Hughes Federal Credit Union offers the best jumbo CD rate at 5.65% APY for 17 months. However, jumbo CDs don’t always outperform standard certificates; in fact, some standard CDs currently provide equal or better returns. Comparing both types is essential before committing.

Federal Reserve Outlook and CD Rate Trends in 2024

The Federal Reserve has held interest rates steady since July 2023, following a series of hikes to combat inflation, which reached a 22-year high. This environment has fostered historically attractive CD rates and high-yield savings opportunities.

Recent economic data, including robust job growth and persistent inflation, suggest the Fed may maintain elevated rates longer than anticipated. Fed Chair Jerome Powell has indicated that rate cuts are unlikely before mid-2024, with the next decision scheduled for March 20.

Consequently, CD rates are expected to decline gradually until clear signals emerge that the Fed will reduce rates. Once rate cuts are imminent, banks and credit unions typically lower CD yields more aggressively.

Additional Top Savings Options for 2024

• High-Yield Savings Accounts offering up to 5.00% APY.
• CDs with rates reaching up to 4.50% for May 2025 maturities.
• Money Market Accounts paying up to 4.40% APY.

How We Select the Best CD Rates

Our daily research analyzes over 200 federally insured banks and credit unions nationwide to identify the highest CD rates available for deposits up to $25,000. We ensure institutions meet availability criteria in at least 40 states and exclude credit unions requiring donations exceeding $40 for membership.

This rigorous methodology ensures our rankings highlight the most competitive rates, often significantly exceeding national averages.

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