If you're looking to lock in a certificate of deposit (CD) rate above 5.00% for as long as possible, you just got a new option. You can now earn 5.13% on a 3-year CD. Previously the best rate you could get for that term was 4.85%, and if you wanted to earn 5.00% or better, you could only do so with a 2-year term.
The top annual percentage yield (APY) across all CD terms is still 5.50%. This rate remains available for 9-month and 15-month terms.
Beyond these two products, there are an additional 12 CDs on our list of the best nationwide CDs that have rates of at least 5.25% APY, with terms ranging from six months to two years.
- The top rate for a 3-year CD rose to 5.13% today.
- The best rate you can get on any CD is still 5.50% APY, available on 9-month and 15-month terms.
- There are more than 12 other CDs in our daily rankings that pay at least 5.25% APY.
- The top jumbo CD rates jumped in three different term periods: 6-month, 2-year, and 3-year.
- With Federal Reserve members talking of pausing federal fund rate increases, now is an excellent time to lock in a top CD rate.
|CD Terms||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||5.13% APY||+0.28|
|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||5.20% 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||5.23% APY|
|3 years||4.76% APY||5.13% APY||5.18% 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 typically follow the trend established by the federal funds rate, and the quarter-point increase in the fed funds rate May 3 bumped CD rates slightly higher. But while CD rates are at their highest levels since 2007, whether that remains the case will likely depend on what the Federal Reserve decides to do during its next meeting on June 13–14.
The Fed has been on a 14-month campaign to combat inflation, with aggressive increases totaling 4.25% in 2022. And while that growth has been a boon for CD owners, recent increases have been far tamer as inflation has come down. As such, CD rates have also risen more slowly within the last few months.
Fed watchers look to economic indicators and statements from members of the Federal Reserve Board of Governors for clues about what will happen next. They've been giving different opinions.
Last week, Federal Reserve Chair Jerome Powel said policy rates may not need to rise as much as originally thought to meet inflation goals. But the head of the Dallas Fed argued that at least one more rate increase is needed to ensure inflation falls further.
On Monday, St. Louis Fed President James Bullard joined the dissenting group, arguing for raising the benchmark interest rate twice more this year. His Minneapolis counterpart, Neel Kashkari, stated that if the central bank does decide to pause rate hikes, it should still confirm that tightening isn't over just yet.
Fed fund futures traders are now betting three-to-one that the Fed will pause rate hikes at its next meeting, with the others betting on a quarter-point increase.
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. "Federal Open Market Committee."
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."