Top CD Rates today, May 5, 2020 – New 1-Year Options Pays Nation-Leading 4.5%

Key Takeaways

• A new CD was added to our daily leaderboard this morning: an offer from Greenwood Credit Union that pays 4.50% for a period of 12 months, the highest APY rate in the nation.
• Eight more certificates promise the top rate of 4.50% nationwide, with terms from 3 to 18 month.
• PenAir Credit Union unveiled a new offer last week, offering 4.40% APY for 21 months. This will allow you to extend the rate lock through early 2027.
• Want to extend your return? The current top rates for certificates of 3 to 5 years range from 4.28% – 4.32%.
• The Fed is in a “wait-and see” mode but rate cuts in 2025 are expected. In today’s uncertain economic climate, it’s smart to lock-in today’s highest CD rates.

Below you'll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

A 4.50% rate you can guarantee until late 2026

Today’s highest CD rate in the country is 4.50%—and you have plenty of ways to lock that in. Nine offers are available, including the newly launched 12-month certificate by Greenwood Credit Union.

PonceBankDirect has the shortest 4.50% certificate, which is available for 3 months. Six institutions offer a rate of 4.50% for terms ranging from 6 to 13 month. XCEL Federal Credit Union guarantees its 4.50% APY rate for 18 months. This would ensure your return until November 20,26.

All Institutions Insured by the Federal Government Are Equally Safe

You’re protected if the institution fails. Not only that, but the coverage is identical—deposits are insured up to $250,000 per person and per institution—no matter the size of the bank or credit union.

Consider Multi-Year CDs to Guarantee Your Rate Down the Road

PenAir Credit Union offers a rate lock that will last until 2027. They pay 4.40% APY over 21 months and guarantee the rate until February 2027. Or, you can extend your guarantee even further by choosing a slightly lower APY. Genisys Credit Union pays a leading 4.32% over a 30-month period.

Savings enthusiasts who wish to store their money for longer may prefer the popular 4-year or 5-year certificate. Lafayette Federal Credit Union will lock in a 4.28% interest rate for four years. Lafayette Federal Credit Union offers the same 4.28% annual percentage yield (APY) on all certificates, from 7 months to 5 years. This rate is guaranteed until 2030.

Given the possibility that the Fed could cut rates in 2025, or even 2026, it is probably a good idea to invest in multi-year CDs. The central bank has already lowered the federal fund rate by one percentage point. This year, there could be further cuts. The Fed’s interest rate reductions will lower bank APYs, but a CD rate that you secure today will remain yours until it matures.

Today's Best CDs Still Pay Historically High Returns

It's true that CD rates are no longer at their peak. The best CDs are still offering a great return, despite the decline. In October 2023, the best CD rates surpassed 6%. Currently, the leading rate has dropped to 4.50%. Compare this to the early 2022 period, before the Federal Reserve started its campaign of rapid rate hikes. The highest interest rate you could earn on the best CDs was 0.70% APY.

Jumbo CDs top regular CDs in four terms

Jumbo CDs require much larger deposits and sometimes pay premium rates—but not always. In fact, in four of eight CD terms that we track, the top standard rates are lower or the same as the best jumbo CD rate.

The top standard and jumbo CDs for 18-month and 1-year CDs both pay the same APY of 4.50%. In the meantime, institutions offer higher jumbo rates under the following terms:

• 6 months: Credit One Bank offers 4.55% for a 6–7 month jumbo CD vs. 4.50% for the highest standard rate.
• 3 years: Hughes Federal Credit Union is offering 4.34% on a 3-year Jumbo CD, compared to the standard rate of 4.32%.
• 4 years: Lafayette Federal Credit Union is offering 4.33% on a 4-year jumbo-CD compared to 4.28% at the highest standard interest rate.
• 5 years: GTE Financial and Lafayette Federal Credit Union both offer 4.33% on jumbo 5-year CDs, compared to 4.28% on the highest standard rate.

When shopping for CDs, it is wise to always compare both types. If you find that a standard CD offers the best price, open it up with a jumbo deposit.

What will CD rates be in 2025?

In December, Federal Reserve announced the third rate reduction to the federal fund rate in as few meetings. This is a reduction of one full percentage point from September. In January and March, however, the central banks declined to further reduce the benchmark rate.

The Fed’s three 2024 rate cuts represented a pivot from the central bank’s historic 2022–2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for nearly 14 months.

Fed rate changes are important for savers because they reduce the rates that banks and credit unions will pay consumers to deposit their money. CD rates and saving account rates are affected by changes in the fed funds rates.

Time will tell what exactly will happen to the federal funds rate in 2025 and 2026—and tariff activity from the Trump administration has the potential to alter the Fed’s course. But with more Fed rate cuts possibly arriving this year, today’s CD rates could be the best you’ll see for some time—making now a smart time to lock in the best rate that suits your personal timeline.

Daily Rankings for the Best CDs, Savings Accounts and Investments

These rankings are updated every day so that you can get the best possible rates.

• Best 3-Month CD rates
• Best 6-Month CD rates
• Best 1-Year Cd Rates
• Best CD Rates for 18-Months
• Best 2-Year CD rates
• Best 3-Year CD rates
• Best 4-Year CD rates
• Best 5-Year CD rates
• Best High-Yielding Savings Accounts
• Best Money Market accounts

You can also read about the importance of this in

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 a much higher rate than the national average which includes all banks with a CD of that term. This includes many large banks who pay pittances in interest. The national averages will always be low, but the rates you can find by shopping around could be five, 10 or even 15 times more.

How to Find the Best CD Rates

Investopedia tracks rates for more than 200 banks nationwide that offer CDs, and calculates daily rankings to determine the best-paying certificates by term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks are required to be available in 40 states. Some credit unions may require you to donate to an association or charity to become a part of their organization if you do not meet other criteria (e.g. you do not live in a particular area or have a specific job). We exclude credit unions that require a donation of $40 or more. Read our methodology to learn more about how we select the best rates.

Article Sources Investopedia asks writers to use primary resources to support their writing. These include whitepapers, government data, original reports, and interviews with experts in the industry. Where appropriate, we also reference original research by other reputable publishers. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial policy

1. Federal Reserve Board. "Open Market Operations."

2. Federal Reserve Board. "Federal Reserve Issues FOMC Statement, Jan. 29, 2025."

3. Federal Reserve Board. "Federal Reserve Issues FOMC Statement, March 19, 2025."