Top CDs in 2025: Best 4-Year Rates Rise to 4.80%, 5-Year Rates Dip to 4.60% – March 21 Update

Highlights for March 21, 2024

• Pelican State Credit Union raises its 4-year CD rate to 4.80% APY, up from 4.60%, locking in strong returns through 2028.
• Credit Human lowers the top 5-year CD rate slightly to 4.60% APY from 4.70%, still a competitive long-term option.
• Newtek Bank leads nationally with a 6-month CD offering 5.55% APY, ideal for short-term savers.
• Federal Reserve maintains interest rates steady, signaling a pause before potential cuts later in 2024.
• CD rates have softened since last fall's peak but remain historically attractive compared to the past two decades.

Below are today’s featured CD rates from trusted institutions, followed by a detailed ranking of the best nationwide CD options.

4-Year CD Rates Climb While 5-Year Rates Ease

The top 4-year CD rate has increased to 4.80% APY at Pelican State Credit Union with a low $500 minimum deposit, offering a solid opportunity to lock in returns for the next four years.

Conversely, the leading 5-year CD rate has declined slightly to 4.60% APY at Credit Human, also requiring just $500 to open. This still represents a strong long-term yield in today’s market.

Meanwhile, the highest 6-month CD rate remains at 5.55% APY from Newtek Bank, perfect for those seeking high short-term earnings.

While CD yields have dropped from their October 2023 peak of 6.50%, locking in rates between 4% and 5% now is still a lucrative strategy, especially if interest rates fall in the coming years.

Current Jumbo CD Rates and Considerations

Hughes Federal Credit Union offers the best jumbo CD rate at 5.65% APY for a 17-month term, requiring a $99,000 minimum deposit. However, jumbo CDs don’t always outperform standard CDs, so comparing both types before investing is wise.

What to Expect for CD Rates Through 2024

The Federal Reserve paused rate hikes for the fifth consecutive meeting, holding the federal funds rate steady to monitor inflation trends. This pause follows aggressive rate increases from March 2022 through July 2023, which pushed CD rates to two-decade highs.

Inflation is easing but remains above target, prompting the Fed to signal that rate cuts will only occur once inflation sustainably approaches 2%. The Fed’s "dot plot" forecasts three rate reductions by the end of 2024, with markets anticipating the first cut as early as June.

As the Fed potentially lowers rates, CD yields are expected to decline gradually, with sharper drops once cuts are confirmed. Savvy investors may consider locking in current rates to maximize returns.

The Fed has six rate-setting meetings planned for 2024, with the next session from April 30 to May 1.

Additional Savings Options

• High-Yield Savings Accounts for May 2025 currently offer up to 5.00% APY.
• Best CD rates for May 2025 reach up to 4.50% APY.
• Money Market Accounts provide yields up to 4.40% APY.

How We Identify the Best CD Rates

Our daily research covers over 200 federally insured banks and credit unions nationwide. To qualify for our rankings, institutions must offer CDs with a maximum $25,000 minimum deposit and be available in at least 40 states. We exclude credit unions requiring donations of $40 or more for membership. This careful vetting ensures you see the highest, most accessible rates available.

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