Top CD Rates Today, June 26, 2023
CD Term Today's Top National Bank Rate Today's Top National Credit Union Rate Today's Top National Jumbo Rate 3 months 5.16% APY 5.12% APY 5.20% APY 6 months 5.41% APY 5.65% APY 5.46% APY 1 year 5.52% APY 5.50% APY 5.52% APY 18 months 5.25% APY 5.45% APY 5.27% APY 2 years 5.00% APY 5.25% APY 5.23% APY 3 years 4.76% APY 5.13% APY 5.18% APY 4 years 4.54% APY 4.85% APY 5.12% APY 5 years 4.55% APY 4.77% APY 4.84% APY
To view our lists of the top-paying CDs across terms for bank, credit union, and jumbo certificates, click on the column headers above.
Where Are CD Rates Headed This Year?
The Federal Reserve has been on a mission for the last 15 months to combat decades-high inflation with aggressive increases to the federal funds rate, which have totaled 5.00% so far. Because deposit rates closely follow the fed funds rate, the Fed's multiple increases have driven today's savings and CD rates to their highest levels since 2007, creating a heyday for CD shoppers, as well as anyone holding cash in a high-yield savings or money market account.
At its last meeting, on June 14, the Fed held rates steady for the first time in 11 meetings. But Fed Chair Jerome Powell last Wednesday said that one or two additional rate hikes are still likely this year, and U.S. Federal Reserve Gov. Michelle Bowman echoed that prediction on Thursday. "Although tighter monetary policy has had some effect on economic activity and inflation to date, we have seen core inflation essentially plateau since the fall of 2022." As a result, she said, she believes "additional policy rate increases will be necessary to bring inflation down to our target over time."
It's overwhelmingly expected that any further rate hikes by the Fed would be in minimal 0.25% increments, meaning if one or two more increases arrive, we could see a fed funds rate rise up to 0.50% higher than today. Even a 0.25% increase later this year would almost certainly push CD rates higher.
But a word of caution: There is never any guarantee on what moves the Fed will make, as each rate decision is based on up-to-the-minute economic data and financial news. So while it's currently probable that the Fed will raise rates further, it's also still possible the Fed will back away from that plan. If that happened, it would mean today's CDs are already at or near their peak rates, making them a good buy right now.
The Fed's next meeting will conclude July 26.
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 five, 10, or even 15 times higher.
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. 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.
Source: Investopedia
