CD shoppers lost one option for nabbing the top CD rate of 5.35% today, nearly as quickly as it appeared. Home Savings Bank dropped the rate of a 1-year certificate paying 5.35% that it had just unveiled Monday. That leaves Langley Federal Credit Union as the sole option for you to earn 5.35% APY, and that's on a 22-month term.
If that doesn't suit you, there are still seven other CDs paying at least 5.25% APY, including a new promotional 10-month CD from Premier Members Credit Union paying 5.25%. Others have terms that range from 6 months to 24 months.
- The best-paying nationally available CD, in any term, is currently 5.35% APY, though you now only have one option at that rate.
- You can earn at least 5.25% APY on eight different CDs in our rankings—down from 12 early last week.
- Rates of 5.00% or better are available in every term from 3 to 35 months.
- The top returns in jumbo CDs continue to hold steady.
|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||5.35% APY||5.25% APY||- 0.10|
|18 months||5.25% APY||5.25% APY||No change|
|2 years||5.35% APY||5.35% APY||No change|
|3 years||5.00% APY||5.00% APY||No change|
|4 years||4.73% APY||4.73% APY||No change|
|5 years||4.68% APY||4.68% APY||No change|
|10 years||4.30% APY||4.30% APY||No change|
Dozens of the top CD rates still beat the 5% March inflation rate, released last week. This is a relatively 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.
|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||5.25% APY||5.15% APY|
|18 months||5.10% APY||5.25% APY||5.25% APY|
|2 years||5.28% APY||5.35% APY||5.04% APY|
|3 years||4.60% APY||5.00% APY||4.99% APY|
|4 years||4.55% APY||4.73% APY||4.89% APY|
|5 years||4.50% APY||4.68% APY||4.84% APY|
|10 years||4.10% APY||4.30% APY||None|
The top rate for a jumbo certificate is holding steady at 5.25%, offered in two terms. It's always smart to keep your search open to standard CDs, even when you have a jumbo-size deposit because you can typically find better rates among regular certificates. But right now, the best jumbo 4-year and 5-year APYs are better than other market leaders in those terms.
Will CD Rates Rise or Fall?
CD rates skyrocketed as a result of the Federal Reserve aggressively hiking the federal funds rate to combat inflation. Although the Fed has raised the fed funds rate twice this year, both times by 0.25%, that's far lower than the cumulative 4.25% in increases it implemented last year. As a result, rates on deposit accounts surged in 2022, and then have crept only slightly higher this year.
The Federal Reserve will conclude its next rate-setting meeting in two weeks, and market predictions are currently running at an 86% probability that it'll hike rates a minimal quarter point. But after that, most federal funds futures traders are betting we'll see rates plateau and eventually decrease, so it's a good time to consider locking in an attractive CD rate that will pay off for months or years down the road.
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.
CME Group. "CME FedWatch Tool."