If you're in the market for a short-term CD, your best options were downgraded today, with the industry-leading rates for 3-month and 6-month certificates declining. Fortunately, the elevated rates in other terms all held their ground—including the top nationally available CD rate of 5.35% APY—as banks and credit unions await the Federal Reserve's rate decision next Wednesday.
- The best-paying nationwide rate for 3-month CDs dipped from 5.00% APY to 4.90% APY, while the best 6-month rate dropped from 5.25% APY to 5.05% APY.
- The top nationally available CD rate in any term remains 5.35% APY on a 22-month certificate.
- The number of certificates in our CD rankings that return 5.25% APY or better is eight, down from nine yesterday.
- A top rate of at least 5.00% APY is no longer offered on any 3-month CDs, but continues to be available in terms from 6 months to 3 years.
- The Federal Reserve is generally expected to raise interest rates Wednesday, but another hike is not guaranteed.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.00% APY||4.90% APY||- 0.10|
|6 months||5.25% APY||5.05% APY||- 0.20|
|1 year||5.25% APY||5.25% APY||No change|
|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|
Our rankings of the top nationwide CD rates include more than 40 certificates that 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||4.90% APY||4.75% APY||3.91% APY|
|6 months||5.05% 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|
The top nationwide rate on jumbo certificates, which typically require a deposit of $100,000 or more, is holding at 5.27% APY. But in five out of the eight CD terms with jumbo certificates on offer, you can earn more by opening a standard CD and then simply making a jumbo-sized deposit.
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's next rate-setting meeting will wrap up Wednesday. Current market predictions are running at a 87% 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 it's possible rates will inch higher, they are already at their highest levels since 2007 with no further hikes guaranteed, making now a good time to consider locking in a rate 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.
Board of Governors of the Federal Reserve System. "Open Market Operations."
CME Group. "CME FedWatch Tool."
Federal Deposit Insurance Corporation. National Rates and Rate Caps.