After two days of rate improvements for CDs with shorter terms, the news turned south today for CD shoppers looking at longer-term options. Two credit unions took a market-leading rate off their menus, lowering the top nationwide rate you can now earn on a 4-year term with a standard certificate and a 3-year term with a jumbo deposit.
The top rate you can earn on any CD is 5.50% on a 2-year term.
Forecasts about the Federal Reserve's rate moves for the rest of 2023 are currently very uncertain. Though nothing can be reliably predicted, it's a reasonable bet that CD rates may not go much higher, making it a good time to snag a high-paying option.
- The top rates on 4-year standard CDs and 3-year jumbo CDs dropped by more than a quarter point each today.
- All other terms held steady in their leading rate.
- The most you can earn on any term continues to be 5.50% APY, available for a two-year term.
- The best jumbo CD rate is still 5.25%, available in multiple terms.
- If you're only considering bank CDs, your top rate maxes out at 5.25% on terms of 9 to 15 months.
University Federal Credit Union was paying 5.00% APY on 48-month long CDs requiring a modest $1,000 minimum. But today it reduced that rate all the way to 3.50% APY, leaving the new leading rate significantly diminished at 4.73% APY, available from Lafayette Federal Credit Union.
The best rate on jumbo 3-year CDs took a similar haircut. With Quorum Federal Credit Union lowering its 36-month rate from 5.25% APY down to 4.95% APY on deposits of $100,000 or more, that leaves Lafayette Federal Credit Union in the jumbo 3-year top spot, paying 4.99% APY.
In the rest of the regular and jumbo terms, the top nationally available rate held steady. The best annual percentage yield (APY) you can get on any CD continues to be 5.50% APY, offered since March 3 by nationally available credit union Credit Human. You can choose any term of 24 to 35 months for that rate.
Joining a credit union is often not much more work than opening an account with a bank. But if you don't want to become a credit union member, the most you can earn with a bank CD is 5.25% APY, from Brilliant Bank and SouthEast Bank on 9-month terms, from BrioDirect on 12 months, and from Amerant Bank on 15 months.
The top rate on jumbo CDs, which typically require depositing at least $100,000, is also currently 5.25% APY in three terms. But it's smart to shop all CDs rather than focus only on jumbo offers, as the standard rates often outpay the jumbo rates.
|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||5.25% APY||5.25% APY||No change|
|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||4.73% APY||- 0.27%|
|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||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|
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 it appears most likely that additional hikes will be minimal. It's even possible the Fed could start lowering the federal funds rate before the year's out. 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."