The top annual percentage yield (APY) offered on a certificate of deposit (CD) of any term is still 5.50% today, but you'll only be able to access that rate for a maximum of 15 months now. Yesterday, three financial institutions offered 5.50% on CDs with terms of 9, 15, and 17 months. Today, that top rate is no longer available on the 17-month CD from INOVA Federal Credit Union, so the longest you can earn 5.50% is 15 months.
There are 11 more CDs on our lists of the best nationwide CDs offering rates of at least 5.25% APY on a variety of terms ranging from 6 months to 2 years.
- The top nationally-available CD rate remains 5.50% APY, but that's only on two different CD terms now: 9 and 15 months.
- There are still over 11 other CDs in our daily rankings that pay at least 5.25% APY.
- CD rates often follow the federal funds rate, and Federal Reserve Chairman Jerome Powell made remarks Friday that indicated the Fed may pause further rate hikes at its June meeting.
- If there's no rate hike at the next Fed meeting in June, we could see the CD rate heyday start to end.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.10% APY||5.10% 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||4.85% APY||4.85% 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||5.10% APY||4.75% APY||5.01% APY|
|6 months||5.11% APY||5.50% APY||5.15% APY|
|1 year||5.25% APY||5.25% APY||5.35% APY|
|18 months||5.50% APY||5.30% 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 pay less than standard CDs. Today's best jumbo offers, which typically require a deposit of $100,000 or more, only beat the best standard rates in four CD terms, while you can do better with standard CDs in the other four terms. So remember to shop every CD type before making a final choice.
Where Are CD Rates Headed This Year?
CD rates are at their highest levels since at least 2007, the last time we saw the federal funds rate this high, but a plateau—or drop—may be coming sooner than we thought.
Rates on CDs generally mirror the trend of the federal funds rate, and the quarter-point increase in the fed funds rate by the Federal Reserve on May 3 nudged CD rates slightly higher.
But now, Fed officials are divided on whether an 11th rate hike in June is necessary to tame inflation. Federal Reserve chair Jerome Powell said at a research conference Friday that recent bank failures and tighter credit conditions may have a greater impact on the economy, including hiring and inflation.
“So as a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals," Powell said. "Of course, the extent of that is highly uncertain."
Earlier this week, Atlanta Fed president Raphael Bostic said that watching and waiting was the best course of action and he doesn't see rates declining this year. But on Thursday, Lorie Logan, the head of the Dallas Fed, said that current data doesn't justify pausing rate hikes just yet.
Fed watchers are betting that the "pause" idea will prevail. An overwhelming majority of futures traders predict there will be a pause on rate changes in June.
If there is no change to the fed funds rate next month, we could see CD rates stabilize where they are until the September Fed meeting. About a third of Fed watchers currently predict rates could fall at that time, though a majority predict a decrease will come in November or later.
With rate decreases potentially on the near horizon, it's a smart time to lock in one of the nation-leading rates in our CD rankings, guaranteeing you an excellent rate even after the Fed ultimately hits reverse.
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."
C-Span. "Federal Reserve Chair Participates in Monetary Policy Conference."
Federal Reserve Bank of Dallas. "Remarks on Liquidity Provision and on the Economic Outlook and Monetary Policy."
CME Group. "CME FedWatch Tool."