The options for long-term savers got a welcome shot in the arm today, with exciting new rates from CBC Federal Credit Union, which any U.S. resident can join for free. CBC is offering 5.00% APY on 5-year certificates and 4.95% APY on 4 years, each the nationally leading rate in their term. Previously, the top 5-year yield was 4.68% APY, and the longest term on which you could earn at least 5% only extended to 3 years.
On the flip side, the best return on a 3-month certificate declined today, with Newtek Bank lowering its 5.00% APY rate in that term. The top nationally available 3-month rate is now 4.75% APY, on offer from Umbrella Bank.
But the sweet spot for rates is still medium terms, with the highest rate of any CD at 5.50% on a 19-month certificate, and 12 others paying 5.25% on terms ranging from 6 to 35 months.
- 5.00% APY is now available in the 5-year term, up from a top rate of 4.68% APY yesterday, but the 3-month term's top rate of 5.00% has dropped to 4.75% APY.
- A dozen CDs in our rankings currently pay 5.25% APY or more.
- The highest nationwide rate in any CD term remains 5.50% APY, available for 19 months.
- Top returns for jumbo CDs showed no change today.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.00% APY||4.75% APY||- 0.25|
|6 months||5.25% APY||5.25% APY||No change|
|1 year||5.25% APY||5.25% APY||No change|
|18 months||5.50% APY||5.50% APY||No change|
|2 years||5.35% APY||5.35% APY||No change|
|3 years||5.35% APY||5.35% APY||No change|
|4 years||4.73% APY||4.95% APY||+ 0.22|
|5 years||4.68% APY||5.00% APY||+ 0.32|
|10 years||4.30% APY||4.30% APY||No change|
The leading industry-wide CD across all terms still comes from Hyperion Bank, paying a 5.50% annual percentage yield (APY) on a 19-month term, while the most you can earn on any jumbo certificate remains 5.25% APY, available in the 6-month and 18-month terms.
|CD Term||Today's Top National Bank Rate||Today's Top National Credit Union Rate||Today's Top National Jumbo Rate|
|3 months||4.75% APY||4.50% APY||3.91% APY|
|6 months||5.25% APY||5.01% APY||5.25% APY|
|1 year||5.25% APY||5.15% APY||5.15% APY|
|18 months||5.50% APY||5.25% APY||5.25% APY|
|2 years||5.28% APY||5.35% APY||5.04% APY|
|3 years||4.60% APY||5.35% APY||4.99% APY|
|4 years||4.55% APY||4.95% APY||4.89% APY|
|5 years||4.50% APY||5.00% APY||4.84% APY|
|10 years||4.10% APY||4.30% APY||None|
Even if you have $100,000 or more to invest in a CD, it's smart to compare rates across all CD types, since you can often earn more with a standard CD than with the best jumbo certificates.
Will CD Rates Rise or Fall?
CD rates climbed in 2022 as a result of the Federal Reserve raising the federal funds rate to combat inflation. The Fed's actions this year have pushed rates to heights not seen in years. The Fed has already raised the fed funds rate twice this year, both times by 0.25%. While still an increase, the hikes were lower than last year when inflation was higher than it is now.
Below you can see how CD rates have trended over the last few years. The points on the graph indicate the highest CD rate offered for that term as of Monday of that week.
Tomorrow's report on the Consumer Price Index for March is expected to show that inflation cooled to 5.1% in March from 6% in February.
The Fed's next meeting will conclude May 3, and it appears most likely that additional hikes will be minimal. It's even possible the Fed could start lowering the federal funds rate before the year's out. If it decides to put a pause on rate hikes, we could see these lines on the graph stay the same for some time, or begin to drop—meaning now could be a good time to lock in a high CD rate.
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.
Federal Reserve. "Open Market Operations."
MarketWatch. "This Week's Major U.S. Economic Reports & Fed Speakers."
U.S. Bureau of Labor Statistics. "Consumer Price Index Up 0.4 Percent Over the Month, 6.0 Percent Over the Year, in February 2023."