Key Takeaways
- Mountain America Credit Union unveiled a sweetheart of a CD offer on Valentine’s Day last week, lifting the top nationwide CD rate to 5.00%.
- Anyone nationwide can join Mountain America, and its new certificate guarantees the 5% rate for a generous 18 months.
- Whether the Fed will cut interest rates this year is currently clouded by uncertainty—which in turn means it’s unclear how long today’s stellar CD rates will last.
- If an 18-month term isn’t a great fit for your financial timeline, our daily ranking of the best CD rates can lead you to dozens of options paying mid- to upper-4% rates for 3 months to 5 years.
The full article continues below these offers from our partners.
A New 5% Offer Rejuvenates the CD Market
For more than two years, from late 2022 until January 2025, the highest rate you could earn on a nationally available certificate of deposit (CD) was 5.00% APY or better. In fact, the top nationwide rate even reached 6% territory for some brief periods.
But last month, it seemed the salad days of 5%-plus CD rates had perhaps come to an end, when the leading rate in the country dropped to 4.75% and later to 4.73%.
Fortunately, Mountain America Credit Union has come to the rescue, unveiling a new 18-month CD paying 5.00% APY last Friday. Locking in this offer now would guarantee a 5% return on your cash until August of next year.
Though based in Sandy, Utah, anyone nationwide can join Mountain America. In addition to those who qualify by living or working in the credit union’s immediate service territory, anyone with a membership in the nonprofit American Consumer Council (ACC) is also eligible. ACC membership is held by many active CD shoppers, as it grants access to numerous nationwide credit unions. But if you’re not already a member, you can join the ACC with a lifetime membership donation of $15.
Mountain America’s 18-month certificate can be opened with as little as $500, and states no maximum deposit limit.
All Federally Insured Institutions Have the Same Protection
Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government in the unlikely case that the institution fails. Not only that, but the $250,000 coverage is identical no matter the size of the bank or credit union.
Where Are CD Rates Headed in 2025?
CD rates are directly impacted by the Federal Reserve’s benchmark interest rate, the federal funds rate. Thanks to the Fed’s aggressive rate-hike campaign from 2022–2023, which aimed to tame post-pandemic inflation, rates on savings and CD accounts shot to their highest levels in more than 20 years.
But with inflation down considerably in 2024, the central bank tapped the brakes last fall, cutting the fed funds rate in September, November, and December. Because of that, the best CD rates have moved slightly lower than their 2023 peak.
Further progress against inflation, meanwhile, has been difficult to achieve. As a result, the Fed announced a rate pause at its January meeting. And interest rate traders are currently pricing in greater than 50% odds that no further rate cuts will come from the Fed at its March, May, and June meetings, according to the CME Group’s FedWatch Tool.
Of course, Fed rate predictions more than a month or so ahead are not considered reliable. That’s because the central bankers make each rate decision meeting by meeting, based on the freshest economic data. Complicating the outlook is the proposal of tariffs and other economic policies by the new Trump administration, all of which have the potential to alter the Fed’s course if they are implemented.
But the general expectation is that the fed funds rate will move lower in 2025 and possibly 2026—and when it does, it will nudge CD rates lower too. That means locking in one of today’s stellar rates for months or years down the road could be a smart move.
Other CD Rates and Terms Worth Considering
Don’t fret if 18 months is not the right duration for your savings timeline. Perhaps you need access to your money sooner than that, or maybe you’d like to lock in a rate that’s guaranteed for two or more years. No matter your time frame, we’ve got you covered with our rankings of the best CD rates. In the graph below, you can see all the top rates currently available, and below that, links to our full rankings for every CD term.
Daily Rankings of the Best CDs and Savings Accounts
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.