After a smattering of certificate of deposit (CD) rate increases earlier in the week, the top rates are holding firm at levels slightly elevated by the Federal Reserve's minor rate hike last week. You now have a dozen options to earn at least 5.25% APY on a certificate of up to 24 months, while the market-leading rate in any term stands its ground at 5.50% APY.
- The most you can earn on a nationally available CD of any length continues to be 5.50% APY, offered on one 17-month certificate and two 9-month options.
- The number of offers paying at least 5.25% APY in our daily ranking of the best CDs stands at 12, after numbering just eight at the start of the week.
- The longest term for which you can lock in a rate above 5.00% is 24 months for 5.25% APY.
- A rate of at least 5.00% is available in every CD term from 3 months to 2 years.
- The Federal Reserve raised interest rates again last week, but also signaled that its hikes could soon be ending, making now an excellent time to open a CD as rates likely approach a peak.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.01% APY||5.01% APY||No change|
|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 mirror the trend of the federal funds rate, and last week's quarter-point increase by the Federal Reserve has already nudged CD rates slightly higher. 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, which 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 13-14 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 Fed watchers 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."