Top CDs Today: New High-Rate Options
CD Term Today's Top National Bank Rate Today's Top National Credit Union Rate Today's Top National Jumbo Rate 3 months 5.20% APY* 5.12% APY 5.20% APY 6 months 5.40% APY 5.75% APY* 5.35% APY 1 year 5.60% APY 5.50% APY 5.75% APY* 18 months 5.35% APY 5.70% APY* 5.52% APY 2 years 5.05% APY 5.30% APY 5.35% APY* 3 years 4.80% APY 5.25% APY 5.35% APY* 4 years 4.65% APY 4.85% APY 5.12% APY* 5 years 4.66% APY 4.77% APY 4.85% APY*
*Indicates the highest APY offered in each term. 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?
Though CD rates are already at record levels, it's possible they could climb a bit higher. That's because the Federal Reserve yesterday announced another quarter-point increase in the federal funds rate. That matters because the fed funds rate is a direct driver of the yields that banks and credit unions are willing to pay customers for their deposits.
Since March 2022, the Federal Reserve has been aggressively combating decades-high inflation with 11 hikes to its benchmark rate over the past 12 meetings. With today's latest bump, the cumulative increase so far totals 5.25%, rising to its highest level since 2001. That's created a heyday for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
Yesterday's announcement provided no strong indications on whether the Federal Reserve will raise its benchmark rate even higher this year, with the written statement simply reiterating the Fed's commitment to bringing inflation back down to the Fed's target level of 2% and assessing what future policy tools will be necessary to do so.
In his post-announcement press conference, Federal Reserve Chairman Jerome Powell indicated that the committee has made no decisions at this time on whether to raise rates again in 2023, or if so, what timing or pace they would follow.
“I would say it is certainly possible that we would raise funds again at the September meeting if the data warranted. And I would also say it’s possible that we would choose to hold steady at that meeting. We’re going to be making careful assessments, as I said, meeting by meeting,” Powell said.
It is reasonable to expect that yesterday's increase, as well as any potential future hikes, will nudge CD rates a bit higher. But the impact will presumably be small, as the Fed's July move had been nearly certain since June, and many banks and credit unions moved ahead with rate bumps in anticipation. Once it appears the Fed is ready to halt its rate-hike campaign for good, that will be the signal that CD rates have likely peaked.
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
