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Hilarey Gould
:max_bytes(150000):strip_icc()/Hilarey-Gould-BW-WebReady-3cfe8520e3ae47b0a3376a4ad73fa422.jpg "Top CD Rates Dec. 29, 2023: Just 2 Offers of 5.75% or Better in the Last Days of 2023 (1)")
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Hilarey Gould has over a decade of journalism experience, with expertise in editing, content strategy, SEO, social media, and more. She is currently the Senior Editorial Director, Financial Products and Services, at Investopedia, and has held editorial roles at The Balance, Bankrate, SmartAsset, and realtor.com. Hilarey has a master's in journalism from the University of Missouri.
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Published December 29, 2023
With just two days left in 2023, there are still only two nationwide CDs with rates of 5.75% or better. The top CD rate today remains 5.79% APY, available on an 8-month term from Climate First Bank. The second-best rate today is once again 5.75% from INOVA Federal Credit Union, also on an 8-month term.
Top CD rates haven't moved much this week, but there's no guarantee they'll be available in the new year, so locking in a high CD rate now may be smart if rates decline in 2024.
Key Takeaways
- As 2023 comes to an end, there are just 2 nationwide CD offers with rates of 5.75% or better in our daily rankings of the best CD rates. Seven weeks ago, we counted 16.
- The top CD rate remains 5.79% APY from Climate First Bank. The second-best rate is 5.75% from INOVA Federal Credit Union.
- CD rates hit a peak of 6.50% in October, but today's top rates are still historically high.
- The top rate on a jumbo CD is 5.77%, offered on both 6-month and 1-year CD terms.
- Interest rates are expected to decline in the new year, and CD rates will likely follow suit.
Below you'll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.
Open a New Account × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account × The offers that appear in this table are from partnerships from which Dotdash receives compensation.
For the past several months, we've counted the number of CDs paying at least 5.75% APY. On Nov. 3, the number surged to a historic peak of 18. Now, as we close out 2023, we're left with just two CD offers with rates that high. There are another nine CDs that offer at least 5.65%.
The most attractive rates continue to be available in terms of three to 18 months, but there are still high rates offered on longer-term CDs. 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.
Fast Fact
When asked in December if they were choosing more or less of certain investments during recent market events, 28% of Investopedia readers said they were leaning into CDs—just one percentage point behind the leading choice of money market funds. Additionally, 11% of readers said they would open a CD if they had an extra $10,000 to invest, in third place behind individual stocks and ETFs.
| CD Terms | Yesterday's Top National Rate | Today's Top National Rate | Day's Change (percentage points) | Top Rate Provider |
| 3 months | 5.66% APY | 5.66% APY | No change | TotalDirectBank |
| 6 months | 5.79% APY | 5.79% APY | No change | Climate First Bank |
| 1 year | 5.70% APY | 5.70% APY | No change | Langley Federal Credit Union |
| 18 months | 5.65% APY | 5.65% APY | No change | Hyperion Bank |
| 2 years | 5.39% APY | 5.39% APY | No change | Digital Federal Credit Union |
| 3 years | 5.23% APY | 5.23% APY | No change | U.S. Senate Federal Credit Union |
| 4 years | 5.00% APY | 5.00% APY | No change | Farmers Insurance Federal Credit Union |
| 5 years | 5.00% APY | 5.00% APY | No change | Farmers Insurance Federal Credit Union |
For anyone with a jumbo-sized deposit, the leading jumbo CD offer is 5.77% APY, available from My eBanc for either a 6-month or 1-year term.
| CD Term | Today's Top National Bank Rate | Today's Top National Credit Union Rate | Today's Top National Jumbo Rate |
| 3 months | 5.66% APY* | 5.65% APY | 5.20% APY |
| 6 months | 5.79% APY* | 5.75% APY | 5.77% APY |
| 1 year | 5.66% APY | 5.70% APY | 5.77% APY* |
| 18 months | 5.65% APY* | 5.51% APY | 5.60% APY |
| 2 years | 5.25% APY | 5.39% APY* | 5.30% APY |
| 3 years | 5.00% APY | 5.23% APY | 5.28% APY* |
| 4 years | 4.80% APY | 5.00% APY* | 4.86% APY |
| 5 years | 4.75% APY | 5.00% APY* | 4.92% APY |
Note that jumbo CDs don't always pay a higher return than standard certificates. Sometimes you can do just as well—or better—with a standard CD. That's currently the case in six of the eight terms above, so it's smart to shop both certificate types before making a final decision.
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 ahigh-yield savingsormoney 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.
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.
Best CD Rates for September 2024: Up to 5.25%
Best High-Yield Savings Accounts for September 2024: Up to 5.50%
Best Money Market Accounts for September 2024—Up to 5.35% APY
Note that the "top rates" quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.
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.
:max_bytes(150000):strip_icc()/12-29topcdratestodaycustomillo-812577c220c8468882d42dbfde3a135f.jpg "Top CD Rates Dec. 29, 2023: Just 2 Offers of 5.75% or Better in the Last Days of 2023 (2)")
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
Federal Reserve Board. "Federal Reserve Issues FOMC Statement, Dec. 13, 2023."
Federal Reserve. "FOMC Press Conference."
Federal Reserve Board. "Economic Projections From the Dec. 12-13 FOMC Meeting."
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