Savers looking to pull the trigger and buy a short- to mid-term certificate of deposit (CD) got some good news today. It's now possible to score over 5.00% APY on a 3-month certificate, and you also have two new options for locking in 5.25% APY, one for 12 months and another for 18 months.
But the very best rate you can earn on a nationwide CD of any duration is even better—it remains 5.50% APY, available for either 9 months or 17 months.
- You can now earn 5.00% or better in every CD term from 3 months to 2 years.
- The industry-leading rate of 5.50% APY on nationally available certificates continues to be offered on two 9-month CDs and one 17-month CD.
- The number of options in our daily CD rankings that pay at least 5.25% APY rose again today, now up to 12 vs. 10 yesterday and eight on Monday.
- The longest duration that you can get a rate of at least 5.00% is 24 months, paying 5.25% APY.
- Though the Federal Reserve raised interest rates again last week, it signaled that its rate-hiking campaign could soon come to an end. That means CD rates may be at or near their peak.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||4.90% APY||5.01% APY||+ 0.11|
|6 months||5.50% APY||5.50% APY||No change|
|1 year||5.25% APY||5.25% APY||No change|
|18 months||5.50% APY||5.50% APY||No change|
|2 years||5.25% APY||5.25% APY||No change|
|3 years||4.90% APY||4.90% APY||No change|
|4 years||4.73% APY||4.73% APY||No change|
|5 years||4.68% APY||4.68% 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||5.01% APY||4.75% APY||4.35% APY|
|6 months||5.50% APY||5.50% APY||5.25% APY|
|1 year||5.25% APY||5.25% APY||5.25% APY|
|18 months||5.25% APY||5.50% APY||5.27% APY|
|2 years||5.00% APY||5.25% APY||5.04% APY|
|3 years||4.76% APY||4.90% APY||4.99% APY|
|4 years||4.54% APY||4.73% APY||4.89% APY|
|5 years||4.52% APY||4.68% APY||4.84% APY|
Rates on jumbo certificates, which typically require a deposit of $100,000 or more, often don't pay as well as standard CDs, despite the notion that a larger deposit should earn you a higher rate. Currently, the best jumbo rates only beat the best standard rates in three of the eight major CD terms. So remember to shop every CD type before committing to your best choice.
Where Are CD Rates Going This Year?
Rates on CDs and other deposit accounts generally follow the federal funds rate, so last week's quarter-point increase by the Federal Reserve could nudge CD rates slightly higher this year. Though they surged in 2022 as a result of the Fed's fast and furious rate hikes aimed at taming decades-high inflation, this year's Fed increases have been more modest. That has considerably slowed the growth of CD rates.
The Fed's announcement last week included a notable change in wording from prior announcements, indicating that the Fed may pause its hikes at its June meeting. This plus other economic factors have futures traders betting overwhelmingly that last week's increase will be the Fed's last hike of its campaign. In fact, many are predicting a rate drop later this year.
That makes it a ripe time to lock in a top CD rate with one of our best-paying options, guaranteeing you one of today's record rates 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.
Federal Reserve. "Open Market Operations."
Federal Reserve. "May 3, 2023: Federal Reserve Issues FOMC Statement."
CME Group. "CME FedWatch Tool."