Top CDs today, May 2, 2020 – 3 Offers That Promised 4.50% Have Disappeared But 9 Remain

Key Takeaways

• The CD market has seen a dramatic reduction in the number of offers that guarantee 4.50%. Nine certificates promise the same rate for terms from 3 to 18 month.
• PenAir Credit Union has announced a new offer that will extend your rate lock until early 2027. The new offer promises 4.40% annual percentage yield for 21 months.
• 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. It’s a good idea to lock in today’s best CD rates, given the uncertain economy.

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 that 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 offer this yield. The shortest option is a 3-month certificate from PonceBankDirect. Six institutions then offer a 4.50% interest rate for the 6-month period.

XCEL Federal Credit Union has the longest 4.50% term offer, with a 18-month period. This CD would guarantee your return until November 20,26.

All Institutions Insured by the Federal Government Are Equally Safe

You are protected by the U.S. Government in the unlikely event that an 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 pays 4.40% for a rate-lock you can enjoy until the year 2027. Want to extend the guarantee period with a slightly lower rate of return? Genisys Credit Union offers 4.32% for a period of 30 months.

The leading 4-year and 5-year certificates are a good option for savers who want to keep their money in the bank for longer. Lafayette Federal Credit Union will lock in a rate of 4.28 % for 4 years. Lafayette Federal Credit union offers the same rate of 4.28% on all its certificates for 7 months to 5 year, allowing you to lock in that rate until 2030.

Given the possibility that the Fed could cut rates in 2025, or even 2026, it is probably a good idea to buy multi-year CDs right now. The central bank has already lowered the federal fund rate by one percentage point. This year, there could be further cuts. Bank APYs will fall if the Fed lowers interest rates, but you can enjoy a CD’s rate until it matures.

Today's Best CDs Still Pay Historically High Returns

It's true that CD rates are no longer at their peak. But despite this pullback, CDs offer a fantastic return. In October 2023, the best CD rates surpassed 6%. Currently, the leading rate has dropped to 4.50%. Compare this to early 2022 before the Federal Reserve began its rapid-fire rate-hike campaign. The highest interest rate you could earn on the best CDs was 0.70% APY.

Jumbo CDs Outperform Regular CDs by 4 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 best jumbo CD rate is the same as or lower than top standard rates.

Both the top standard CDs and the top jumbo CDs offer the same 4.50% APY. Institutions are offering higher rates for jumbo CDs in 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.

It is therefore wise to check both types when shopping for CDs. If you find that a standard CD offers the best price, simply open it and deposit a jumbo amount.

What will CD rates be in 2025?

In December, the Federal Reserve announced its third rate cut in as many meetings. It was a reduction of a full percentage since September. In both January and march, central bankers refused to lower the benchmark interest rate further.

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. The fed funds rate is reflected in both CD rates and savings accounts.

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 Rates
• Best 1-Year Cd Rates
• Best CD Rates for 18-Month Term
• Best 2-Year Rates on CDs
• Best 3-Year CD rates
• Best 4-Year Rates
• Best 5-Year Rates on CDs
• 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 different from the national average that includes all banks that offer a CD in that term. Many large banks pay a pittance of 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 we find the best CD rates

Investopedia monitors the rates of more than 200 banks, credit unions and other institutions that offer CDs in the United States and determines the daily rankings of the highest-paying certificates for each major 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 must be located in at least forty states. While some credit unions ask you to donate money to a charity or organization to become a membership if you don’t meet the other eligibility criteria, (e.g. if you don’t live in certain areas or work in certain types of jobs), we exclude those credit unions who require a minimum donation of $40. To learn more about our methodology, please read the full article.

Article Sources Investopedia requires that writers use primary sources in order to support their work. White papers, government data and original reporting are some of the sources. We also use original research from other reputable publications when appropriate. 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."