:max_bytes(150000):strip_icc()/AnnaFrank-768d5770fc464aa1a08c9bcb914ad2c9.jpg "6 Months, 5 Years, or Something In Between—What Are the Best-Paying CD Terms Right Now?")
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Key Takeaways
- The highest CD rates right now are in shorter terms, led by 6 months at 4.45% APY.
- CD yields have already begun slipping after the Fed’s September cut, with more declines expected this fall.
- Longer-term CDs offer slightly lower APYs but can help lock in today’s elevated yields before they drift lower.
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Which CD Terms Pay the Most Right Now?
CD yields are still strong, but they’ve have edged lower in the past two weeks. After the Fed’s Sept. 17 rate cut, some banks and credit unions modestly trimmed their offers. But today brought a wave of first-of-the-month adjustments—six of the eight CD terms we track saw their leading rate drop 5 to 15 basis points. In one bright spot, the top 3-year rate ticked higher, rising 10 basis points.
Though the top 6-month rate fell today—from 4.60% to 4.45%—that term still offers the highest yield. The 3-month and 12-month terms aren’t far behind at 4.35%. After that, the 2- and 3-year terms are next in line at 4.25%.
The chart below shows today’s best nationwide CD rates across terms, from 3 months to 5 years.
Why This Matters for You
CD rates remain attractive, but they’re drifting lower and will likely keep falling as the Fed cuts. That makes it important to weigh the trade-off between capturing the very top short-term yields now and locking in a strong multi-year rate before today’s APYs fade further.
What To Think About Before Choosing a CD
Putting money into a certificate of deposit (CD) takes more planning than dropping it into a savings account. With a CD, you’re choosing a time commitment—and it’s one that comes with real consequences. Cash out early, and you’ll pay an early withdrawal penalty that can eat into your earnings.
So how do you decide which CD is right for you? While it’s smart to shop around for a top-paying CD, the bigger question is how long you’re comfortable committing your money. And answering that comes down to two key factors.
How Soon You’ll Need Your Money
Start with your financial timeline. Are you setting aside this cash for a specific goal—like buying a home or paying tuition—or is it extra savings you won’t need to touch anytime soon?
If you think you may need access within the year, there’s little reason to lock up funds in a 3-year CD, no matter how tempting the rate. On the other hand, if you’re confident you can leave the money untouched, it may be worth comparing longer-term CDs that guarantee today’s rate well into the future.
Where Interest Rates Are Headed
The second factor is where U.S. interest rates appear to be going. The Federal Reserve sets the federal funds rate, which directly influences what banks and credit unions pay on CDs and savings. When the Fed raises rates, deposit yields climb. When it cuts rates, they drift lower.
That’s important because, unlike a savings account rate—which the bank can change any time it likes—a CD rate is locked in for the CD’s full term. So the question becomes whether the rate you can grab now will still look good a year or two from now.
At the moment, it’s widely expected the Fed will lower rates again in late October—and possibly once more in December. That means CD yields are very likely to decline in the months ahead. And that presents an opportunity for savvy savers: lock in one of today’s higher rates now, for as long a term as fits your financial timeline.
Should You Grab a Higher Rate Now—Or Lock In for Longer?
If your goal is to capture the very top APY you can, shorter CDs are still in the lead. The highest rate available today is 4.45% APY on a 6-month CD, with both 3-month and 12-month terms close behind at 4.35%.
But the middle of the curve is also strong right now, with the best 2- and 3-year rates of 4.25% just slightly trailing the shorter terms. That means you can still lock in a rate well above 4% until late 2027 or even 2028.
If you don’t need some of your savings for a while, longer CDs could also be smart right now. Even though their APYs are a notch below the best short-term offers, they’ll guarantee their 4%+ return far into the future—no matter how much the Fed lowers its benchmark rate in the coming years.
Ultimately, the right choice depends on your timeline. If you’ll need access within the year, a CD term of 6–12 months makes the most sense. But if you can set the money aside for longer, locking in a multi-year CD now could protect your returns as broader interest rates move lower.
CD strategy tip
You don’t have to choose just one CD. A smart strategy is to split your savings—for example, keeping some cash in a top high-yield savings account for easy access while opening CDs of different lengths. That way you capture today’s best rates and still maintain flexibility.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
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 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. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. 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.
