The CD marketplace was again boosted by positive rate news today, as yet another institution added a 5.25% APY certificate to the national offerings. In addition to three CDs available at that rate in our 6-month term category and three in our 18-month term category, CD shoppers can now also earn 5.25% APY on a 12-month bank certificate.
The top nationally available rates in all other terms held their ground, with the best annual percentage yield (APY) you can get on any CD today remaining 5.50% APY, and second-place going to a 5.35% APY certificate. You'll have to stretch to about two years to earn those best-in-the-country rates, however.
With the future decidedly uncertain on further Federal Reserve rate hikes this year—and even talk of possible rate decreases before 2023 ends—CD returns are exhibiting a bit of a wavering pattern. Though the top rate has generally held or risen in each term, we've seen a handful of lower-ranked CDs reduce their rates. Given the Fed's cloudy rate forecast, with a rate plateau seeming probable in the coming months, grabbing a top-paying CD now could pay significant dividends down the road.
- A new 12-month CD has joined six others paying 5.25% APY, ranging from 7 months to 18 months.
- For those willing to stretch to two years, two credit union options exist that earn 5.50% or 5.35% APY.
- The most you can earn on a jumbo CD is still 5.25%, available in multiple terms.
- If shopping only for a bank CD, your top rate maxes out at 5.25% on terms of 9 to 15 months.
For more than a month now, 5.50% APY has been the top available offering on any nationwide CD. You can get that certificate from Credit Human, a nationally open credit union, on any term you choose between 24 and 35 months.
Joining a nationally available credit union is usually pretty easy, but if don't want that extra step, you can come close to the top rate with a bank CD. Right now, Brilliant Bank, BrioDirect, and Amerant Bank are each offering a 5.25% APY certificate, on 9-month, 12-month, and 15-month terms, respectively. SouthEast Bank also has a 9-month CD that earns 5.25%.
Select jumbo CDs, which typically require a $50,000 or $100,000 minimum deposit, are also available at 5.25% in a few terms. But you're usually best served by shopping all CD rates rather than limiting yourself to those marketed specifically as jumbo certificates.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||4.75% APY||4.75% APY||No change|
|6 months||5.25% APY||5.25% APY||No change|
|1 year||5.20% APY||5.25% APY||+ 0.05%|
|18 months||5.25% APY||5.25% APY||No change|
|2 years||5.50% APY||5.50% APY||No change|
|3 years||5.50% APY||5.50% APY||No change|
|4 years||5.00% APY||5.00% APY||No change|
|5 years||4.68% APY||4.68% APY||No change|
|10 years||4.30% APY||4.30% APY||No change|
|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||5.25% APY||5.25% APY|
|1 year||5.25% APY||5.05% APY||5.15% APY|
|18 months||5.25% APY||5.25% APY||5.25% APY|
|2 years||5.13% APY||5.50% APY||5.04% APY|
|3 years||4.60% APY||5.50% APY||5.25% APY|
|4 years||4.55% APY||5.00% APY||4.89% APY|
|5 years||4.50% APY||4.68% APY||4.84% APY|
|10 years||4.10% APY||4.30% APY||None|
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.
The Fed's next meeting will conclude May 3, and 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.
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.
Credit Human. "Share Certificates."
Federal Reserve. "Open Market Operations."