CD shoppers lost a top-paying CD today, dropping the best rate you can earn in any term down to 5.35% APY. Jumbo CD rates also saw some movement.
- After rising to 5.50% APY for one day, the top nationally available rate across all CD terms is back to 5.35% APY, available on a 22-month certificate.
- CD shoppers now have nine options for earning at least 5.25% APY, up from seven last Monday.
- A rate of 5.00% APY or better continues to be available in every term from 3 months to 3 years.
- Jumbo CD rates lost ground in the 6-month term, while inching up just slightly for 18-month certificates. But standard CD rates are beating out jumbo rates in five of the eight primary terms.
- The Federal Reserve is likely to raise interest rates in nine days, but it could be the last hike for a while, making this a smart time to lock in record-high CD rates.
|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||5.00% 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 this month. 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||4.75% APY||3.91% APY|
|6 months||5.25% APY||5.01% APY||4.94% APY|
|1 year||5.25% APY||5.25% APY||5.15% APY|
|18 months||5.10% APY||5.25% APY||5.27% 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 edged slightly higher today, from 5.25% to 5.27% APY. But another 5.25% jumbo certificate available for the last few weeks was reduced to 4.94% APY. Even when you have $100,000 or more to deposit, be sure to shop all kinds of CDs, as you can typically earn more on regular certificates than jumbo rates.
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.
We are just over a week away from the Federal Reserve's next rate-setting meeting, which will wrap up on May 3. Current market predictions are running at an 89% probability that the Fed will hike rates a minimal quarter point. But after that, federal funds futures traders generally expect we'll see rates plateau and eventually decrease.
So though rates may possibly inch higher, they are already at their highest levels since 2007, making now a good time to consider locking in a CD that will pay attractive dividends 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.
CME Group. "CME FedWatch Tool."
Federal Deposit Insurance Corporation. National Rates and Rate Caps.