We independently evaluate all of our recommendations. If you click on links we provide, we may receive compensation.
- Personal Finance News
- CD News
By
Sabrina Karl
:max_bytes(150000):strip_icc()/SabrinaKarlBio-fec3f52216e94fc5b9dfea3f4b794140.jpeg "The Best CDs to Lock in a Rate Until 2026 to 2029—Before the Fed Cuts Rates (1)")
Full Bio
Sabrina Karl has over two decades of experience writing about savings, CDs, and other banking topics. She is currently a staff writer at Investopedia and one of the country's top experts on how to earn as much as possible on the money you hold in the bank. She previously wrote for Bankrate.com, CreditCards.com, DepositAccounts.com, and RateSeeker.
Learn about our editorial policies
Published August 08, 2024
:max_bytes(150000):strip_icc()/8-8Feature-Deagreez-fa43719c805f4b24a46925044a14a72f.jpg "The Best CDs to Lock in a Rate Until 2026 to 2029—Before the Fed Cuts Rates (2)")
Key Takeaways
- With the Fed expected to lower rates in September, it's a smart time to open CDs that guarantee today's great returns well into the future.
- Below we lay out more than 30 excellent options for locking in a CD rate until 2026, 2027, or even 2028–2029—with returns up to 5.25%.
- Unlike a savings account, CD rates are guaranteed until the end of their term. The bank or credit union can't reduce your APY on an existing CD.
- CD rates surged to a 20-year peak last fall. Though now slightly lower, the best CD rates are still near record highs.
- The Fed could actually make many rate cuts over the next two years—making today's longer-term CDs a wise financial bet.
The full article continues below these offers from our partners.
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.
Why CDs Are So Very Smart Right Now
More than two years ago, the Federal Reserve embarked on an aggressive rate-hike campaign in a fight against decades-high inflation. With 11 increases to the federal funds rate in 2022 and 2023, the Fed raised the benchmark rate to 5.25%–5.50%, its highest level since 2001.
As a result, certificate of deposit (CD) rates surged in 2023, notching 20-year highs. And though CD rates have softened a bit since the Fed stopped hiking rates, they're still paying historically high returns. Just compare today's rates below to what CDs were paying in early 2022.
But with inflation now considerably lower, the Fed is considering rate cuts. In fact, it's widely expected the Fed will announce a rate reduction of 0.25 to 0.50 percentage points at its Sept. 18 meeting, according to the CME Group's FedWatch Tool.
This matters to CD shoppers because any anticipated rate cut by the Fed will cause banks and credit unions to start lowering their CD rates, in addition to what they pay on savings accounts. That means today's savings and CD rates aren't likely to last much longer.
Not only that, but continued Fed rate cuts are possible through 2026. You can see in the chart below that, as of June 12, Fed members projected they would lower their benchmark rate by more than 2 percentage points over the next two and a half years.
This possibility of a long slide in CD rates makes it a smart move to stash money you won't need for a while in a CD as soon as you can, to secure one of today's historically high rates. And the longer you can commit, the longer you'll enjoy that CD rate guarantee—no matter what happens with the Fed.
Today's Best CDs With a Guaranteed Rate Until 2026 to 2029
Our daily ranking of the best CD rates always provides you with a list of the highest nationally available offers. Right now, the tip-top returns are available on shorter-term CDs. But since odds are high that interest rates could enter a two- to three-year decline, it's smart to lock in a rate today that's guaranteed for two years—or even longer if you feel confident you can live without access to the cash.
Here are our roundups of today's hottest rates that will guarantee your annual percentage yield (APY) into 2026, 2027, or even as long as 2028–2029.
These CDs Are All Federally Insured
All the CDs listed below are available nationwide, even if offered by a credit union. And all are federally insured—covered by the Federal Deposit Insurance Corporation (FDIC) for banks or the National Credit Union Administration (NCUA) for credit unions. That means in the unlikely case the institution fails, your deposits up to $250,000 are protected.
Top CDs That Will Mature in 2026
| Bank or Credit Union | APY | Term (Months) | Minimum |
|---|---|---|---|
| American 1 Credit Union | 5.25% | 18 | $1,000 |
| American 1 Credit Union | 5.15% | 24 | $1,000 |
| Soarion Credit Union | 5.05% | 18 | $1,000 |
| The Federal Savings Bank | 5.05% | 18 | $5,000 |
| Credit Human | 5.00% | 18–23 | $500 |
| Bask Bank | 5.00% | 18 | $1,000 |
| CommunityWide Federal Credit Union | 5.00% | 18 | $1,000 |
| LendingClub | 5.00% | 18 | $2,500 |
| West Town Bank & Trust | 5.00% | 18 or 24 | $10,000 |
| USAlliance Financial | 5.00% | 24 | $500 |
For more details about these CDs, including early withdrawal penalties and information about the institutions, visit our daily rankings:
- Best 18-Month CDs
- Best 2-Year CDs
Top CDs That Will Mature in 2027
| Bank or Credit Union | APY | Term (Months) | Minimum |
|---|---|---|---|
| Vibrant Credit Union | 5.00% | 30 | $5 |
| American 1 Credit Union | 5.00% | 36 | $1,000 |
| EFCU Financial | 4.75% | 30 | $500 |
| Credit Human | 4.70% | 24–35 | $500 |
| Dept. of Commerce Federal Credit Union | 4.60% | 24–35 | $25,000 |
| The Federal Savings Bank | 4.60% | 36 | $5,000 |
| Luana Savings Bank | 4.55% | 30 | $2,000 |
| NexBank | 4.55% | 36 | $25,000 |
| Lafayette Federal Credit Union | 4.52% | 36 | $500 |
| Popular Direct | 4.50% | 36 | $10,000 |
For more details about these CDs, including early withdrawal penalties and information about the institutions, visit our daily ranking:
- Best 3-Year CDs
Top CDs That Will Mature in 2028 or 2029
| Bank or Credit Union | APY | Term (months) | Minimum |
|---|---|---|---|
| Grow Financial | 4.75% | 60 | $500 |
| Credit Human | 4.60% | 36–59 | $500 |
| Dept. of Commerce Federal Credit Union | 4.60% | 36–47 | $25,000 |
| American 1 Credit Union | 4.60% | 48 | $1,000 |
| The Federal Savings Bank | 4.55% | 48 | $5,000 |
| Pima Federal Credit Union | 4.50% | 48 or 60 | $250 |
| SecurityPlus Federal Credit Union | 4.50% | 48 | $1,000 |
| Farmers Insurance Federal Credit Union | 4.50% | 48 or 60 | $1,000 |
| American 1 Credit Union | 4.50% | 60 | $1,000 |
| Dept. of Commerce Federal Credit Union | 4.45% | 48–59 | $25,000 |
| The Federal Savings Bank | 4.45% | 60 | $5,000 |
| First Internet Bank | 4.35% | 60 | $1,000 |
For more details about these CDs, including early withdrawal penalties and information about the institutions, visit our daily rankings:
- Best 4-Year CDs
- Best 5-Year CDs
Can't Commit for Years? Here Are Your Next-Best Options
If you're not able or willing to lock up any savings for a couple of years, you can still benefit from today's historically high rates. One way is by putting money in a shorter-term CD, depending on your personal timeline:
- Today's Best 3-Month CD Rates: Rates up to 5.25%
- Today's Best 6-Month CD Rates: Rates up to 5.50%
- Today's Best 1-Year CD Rates: Rates up to 5.30%
As you can see, some of these CDs pay higher rates than you'll find for terms of two years or longer. While that makes them near-term winners, you'll lose when your short rate guarantee runs out.
For money you need to keep fully accessible and can't commit to a CD at all, consider a high-yield savings account. Our daily ranking of the best savings account rates reaches up to 5.50% APY, with more than a dozen additional offers paying 5.25% or more.
Savings account rates are variable, meaning they can change at any time. Right now, the top high-yield savings account rate is just below a 20-year high. But once a Fed rate cut appears imminent, savings account rates will start dropping.
Best Jumbo CD Rates for August 2024
Best Money Market Accounts for August 2024—Up to 5.35% APY
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account'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.
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. "Open Market Operations."
CME Group. "CME FedWatch."
Federal Reserve Board. "Summary of Economic Projections—June 12, 2024," Page 4.
Related Terms
What Is the CME FedWatch Tool and How Does It Work?
The CME FedWatch Tool provides the probabilities for Fed rate changes. The tool is based on prices for fed funds futures.
more
Blended Rate: Definition, Examples, Calculation Formula
A blended rate is an interest rate charged on a loan that's in-between a previous rate and the new rate.
more
Euro Interbank Offered Rate (Euribor) Definition, Uses, vs. €STR
Euribor, or the Euro Interbank Offered Rate, is a reference rate expressing the average interest rate at which eurozone banks offer unsecured loans on the interbank market.
more
Purchase Rate: Types of Credit Card Rates
The purchase rate is the interest rate applied to credit card purchases and only applies to unpaid balances at the end of the billing cycle.
more
Vasicek Interest Rate Model Definition, Formula, Other Models
The Vasicek interest rate model predicts interest rate movement based on market risk, time and long-term equilibrium interest rate values.
more
Overnight Rate (Federal Funds Rate): Definition and How It Works
The overnight rate is the interest rate at which a depository institution can lend or borrow funds that are required to meet overnight balances.
more
- About Us
- Terms of Service
- Dictionary
- Editorial Policy
- Advertise
- News
- Privacy Policy
- Contact Us
- Careers
- #
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- K
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X
- Y
- Z
Investopediais part of the Dotdash Meredithpublishingfamily.
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.
