With a Fed rate cut on Thursday, grab this 5.50% CD before it’s gone

Key recommendations

The Federal Reserve is widely expected to announce another quarter-point interest rate cut Thursday afternoon.
This will push savings and CD rates lower – making now a smart time to secure one today’s best prices on CDs before they evaporate.
The best paying CD available nationwide is a 5.50% offer from Nuvision Credit Union. Its 8-month term will guarantee you stellar returns after the 4th of July.
But longer CDs may be even smarter, as the Fed will likely continue to cut rates through 2025, putting savings and CD rates on a long slide.
If you act fast, you can secure 5% more for up to a year or lock in 4.00% to 4.65% through 2026, 2027, even 2029.

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Why it’s a great idea to grab one of today’s best CDs fast

Anytime US interest rates are high but go lower, certificates of deposit (CD) are one of the smartest places to put some of your savings. That’s because annual percentage yield (APY) you sign up for is the rate you’ll keep, even if interest rates on savings accounts and new CDs drop.

This is the situation in which the American economy is now. Triggered by an aggressive rate hike campaign in 2022–2023 by Federal ReserveCD rates soared last fall to their highest levels in 20 years – and are still paying historically high rates.

But the days of 5% CDs are probably numbered, since the Fed has moved to cut rates now that inflation got cold The central bank started this new phase with an interest rate cut of 0.50 percentage points on September 18 and is expected to cut further at its meeting on Thursday. More than 95% of interest rate traders predict the Fed will announce another quarter point cut.

The highest APY nationwide is 5.50%, but longer guarantees are smart, too

The national leader among CDs pays 5.50% APY. That offer comes from Nuvision Credit Union for a period of 8 months. Opening one of these CDs today will guarantee you’ll earn 5.50% until early July 2025. Anyone nationwide can join Nuvision.

But Nuvision’s offering comes with a wrinkle. As a special promotion, it can only be opened with a deposit up to maximum $5,000 (minimum $1,000). So if you’re looking to put more money into a CD, this Nuvision offering won’t fully meet your needs.

Fortunately, ours the daily ranking of the best CDs nationwide can lead you to nine additional offers that pay 5.00% or more. The terms of these top paying certificates range from 3 to 12 months.

While rates in the 5% range are appealing, opting for a longer CD term might be a better move, even if it comes with a lower APY. If you can go without some of your savings for 18 months or more, you can stretch one of today’s stellar rates much further. You could score one maximum rate of 4.65% for 15 months with a single option, while Leading 2 Year CD Pays 4.29%. This 24-month rate lock will allow you to earn a guaranteed return until close to Thanksgiving 2026.

Even locking in longer rates is worth considering. You can secure a maximum rate of 4.00% to 4.10% on certificates that guarantee their rates up to 2027, 2028or even late 2029.

Don’t delay — More Fed rate cuts to come

Unfortunately for savers, the Fed is unlikely to hold off on its expected quarter-point rate cut this week. More than three-quarters of interest rate traders are forecasting another quarter-point cut at the Fed’s Dec. 18 meeting.

The Fed itself has also signaled that it expects to cut rates further in 2025 and likely in 2026, as indicated by “dot chart.” The quarterly chart, last published on September 18, shows anonymously what each Fed committee member expects to happen to federal funds rate in the next few years. As you can see below, their median forecasts are for rate cuts totaling half a percentage point in the last two meetings in 2024, another percentage point of cuts in 2025, and possibly another half-point cut in 2026.

Time will tell what happens to the federal funds rate in December and beyond. But it’s pretty safe that the rates you can secure today are quite a bit better than what we’re likely to see in the coming months. So locking in your favorite CD soon is still a smart, forward-thinking move — guaranteeing your attractive returns no matter how many rate cuts the Fed offers.

Daily ranking of the best CDs and savings accounts

Note that the “top rates” mentioned here are the highest rates available nationally that Investopedia has identified in its daily rate research of hundreds of banks and credit unions. This is much different than the national average, which includes all banks that offer a CD with that term, including many large banks that pay a low interest rate. So the national averages are always quite low, while the top rates you can find by shopping around are often five, 10 or even 15 times higher.

How we find the best CD savings and rates

Each business day, Investopedia tracks rate data from more than 200 banks and credit unions that offer CDs and savings accounts to customers across the country and determines daily rankings of the best paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the minimum initial account deposit must not exceed $25,000. It also cannot specify a maximal deposit amount that is below $5,000.

Banks must be available in at least 40 states to qualify as nationwide. 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 (for example, you don’t live in a certain area or work in a certain type of labor), we exclude credit unions whose donation requirement is $40 or more. For more on how we choose the best rates, read our full methodology.