CD shoppers lost their top-rate option today, which only lasted a fleeting few days. On Friday, Hyperion Bank unveiled a 19-month promotional CD paying 5.50% APY, claiming the crown of highest return you could earn on any nationwide certificate in any term. But today the bank pulled that offer. Now the most you can earn is 5.35%, which you can get from two easy-to-join credit unions paying that APY on slightly longer terms.
That was today's only notable change, with almost every other CD in our rankings holding its ground. You can still earn at least 5% in every term from 3 months up to 5 years, except for a minimally lower 4-year rate, and our rankings include 17 different CDs that pay at least 5.15% annual percentage yield (APY).
Many of the top CD rates now beat the 5% March inflation rate, according to the Consumer Price Index (CPI) figure released yesterday. This is a rare occurrence, at least in recent years. No one knows what the April inflation figure will be, but this may be a good time to lock in an inflation-busting CD rate.
- The industry-leading rate of 5.50% APY across all CD terms tumbled today, with the new top rate registering at 5.35% APY.
- You can still earn at least 5% in every CD term from 3 months to 5 years, except for a slightly lower top rate in the 4-year term.
- Across all our rankings, 17 different CDs are paying 5.15% APY or more.
- Top returns for jumbo CDs showed no movement today.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.00% APY||5.00% APY||No change|
|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||5.25% APY||- 0.25|
|2 years||5.35% APY||5.35% APY||No change|
|3 years||5.35% APY||5.35% APY||No change|
|4 years||4.95% APY||4.95% APY||No change|
|5 years||5.00% APY||5.00% APY||No change|
|10 years||4.30% APY||4.30% APY||No change|
The new industry co-leaders are both nationally available credit unions that not only offer easy membership, but are also completely free to join. Langley Federal Credit Union is offering 5.35% APY on 22-month certificates, while Credit Human is paying that rate on any term you like from 24 to 35 months.
|CD Term||Today's Top National Bank Rate||Today's Top National Credit Union Rate||Today's Top National Jumbo Rate|
|3 months||5.00% 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||5.25% 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|
The most you can earn on any jumbo certificate remains 5.25% APY, available in the 6-month and 18-month terms. But anytime 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 the top CD rates have trended over the last several weeks. The points on the graph indicate a Monday-to-Monday look at the highest nationally available CD rate in each term.
Wednesday's monthly release of the Consumer Price Index (CPI) showed that inflation has cooled somewhat, reading 5% for March, down from 6% in February. This seems to indicate that the Fed's rate hikes are taking hold, and the data will certainly inform the Fed's decision on whether to raise rates further, and by how much.
The Fed's rate-setting committee will conclude its next meeting on May 3, and currently, about two-thirds of market forecasters expect the Fed will raise rates a quarter point that day. The remaining third are predicting a rate hold.
As for the rest of 2023, current expectations are that rates will plateau at or slightly above the current level, and could even start to be lowered within this year. That makes a good case for looking hard at the most attractive CD rates available and considering locking in a rate soon that you can enjoy for months or years to come.
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."
U.S. Bureau of Labor Statistics. CPI Home.
CME Group. CME FedWatch Tool.