Top CD Rates Today, July 5, 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 5.40% APY 5.65% APY 5.25% APY 1 year 5.48% APY 5.50% APY 5.52% APY 18 months 5.33% APY 5.50% 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 4.59% 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?
Market watchers are currently pricing in more than 85% odds that the Federal Reserve will implement a quarter-point rate increase to the federal funds rate at its next meeting, scheduled to conclude on July 26. And there are several signs that one or two such rate hikes could be coming.
Since March 2022, the Fed has been on a mission to combat decades-high inflation with aggressive increases to the fed funds rate. Because banks and credit unions closely follow this benchmark when setting their own rates, the Fed's cumulative increases (they've totaled 5.00% in all) have driven today's savings and CD rates to their highest levels since 2007. This has created a heyday for CD shoppers as well as anyone holding cash in a high-yield savings or money market account.
On June 14, the central bank held its benchmark rate steady for the first time in 11 meetings, in order to better study the impact of previous rate hikes. Minutes from that meeting that were released today show that all 11 voting members of the rate-setting committee that makes that decision agreed to it. But several members pushed for or "could have supported" a proposal to raise rates a quarter point at that meeting because “the labor market remained very tight, momentum in economic activity had been stronger than earlier anticipated, and there were few clear signs that inflation was on a path to return to the committee’s 2% objective over time.”
The minutes and several other indicators, including statements from Fed Chairman Jerome Powell last week, have signaled that two more rate hikes are possible this year.
But beware that Fed rate moves are never reliably predictable, as conditions can change quickly, and each rate decision is based on up-to-the-minute economic data and news. What we do know is that if the Fed implements any further rate hikes, it will almost certainly push CD rates higher. But if instead the Fed continues to hold its benchmark rate steady, today's CDs may already be at or near their peak rates, making them a good buy right now.
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
