Rates on the nation's best CDs have again edged higher, with new opportunities today to earn a top-tier return. You can now score the industry-leading rate of 5.50% APY on a 15-month CD, in addition to previously-available 9-month and 17-month options. And there are now 15 certificates paying at least 5.25% APY, up from a dozen yesterday.
It wasn't all good news, though. The leading rate on a nationally available 3-year certificate dropped today from 4.90% to 4.85% APY.
- You can now earn 5.25% APY or better with 15 options in our daily ranking of the best CDs, up from 12 yesterday and eight to start the week.
- The highest rate from a nationally available CD in any term remains 5.50% APY, now available for a 15-month term in addition to 17-month and 9-month options.
- You can get a 5.00% return or better on every CD term from 3 months to 2 years, with the best 24-month certificate paying 5.25% APY.
- The best rate on a 3-year CD declined slightly, from 4.90% to 4.85% APY.
- With the Federal Reserve signaling last week that its rate hikes may soon conclude, now is an excellent time to open a CD with what could be a peak rate.
|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||4.85% APY||- 0.05|
|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||5.11% APY||5.50% APY||5.25% APY|
|1 year||5.25% APY||5.25% APY||5.25% APY|
|18 months||5.50% APY||5.50% APY||5.27% APY|
|2 years||5.00% APY||5.25% APY||5.04% APY|
|3 years||4.76% APY||4.85% 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|
Despite the suggestion that a larger deposit should earn you a higher return, rates on jumbo certificates often don't pay as well as standard CDs. Currently, the best jumbo offers, which typically require a deposit of $100,000 or more, only beat the best standard rates in three of the eight major CD terms. So remember to shop every CD type before making your choice.
Where Are CD Rates Headed This Year?
Rates on certificates of deposit generally mirror the trend of the federal funds rate, and last week's quarter-point increase by the Federal Reserve has nudged CD rates higher throughout this week. Though deposit rates surged in 2022 as a result of the Fed's aggressive federal funds rate hikes aimed at taming decades-high inflation, this year's Fed increases have been more subdued, which has considerably slowed the growth in 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 now a good time to lock in one of today's top CD rates from our rankings, ensuring you'll earn a stellar rate for months or years, even after the Fed ultimately reduces rates.
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."