After positive news every day this week, the top CD rates took a notable hit today. While the highest nationwide rate of 5.50% APY is still available, you can now only get it with a 9-month certificate. For the last two weeks, a 15-month option was also on offer, but that evaporated today.
Fortunately, a new CD paying 5.25% APY joined the ranks today, keeping us at 16 options in our daily rankings of the best nationwide CDs that offer that rate or higher. And if you want to lock in one of today's record rates for as long as possible, you can continue to earn 5.13% APY on a 3-year CD.
- The highest rate you can score in any CD term continues to be 5.50% APY, but it's now only available on one 9-month certificate.
- A rate of at least 5.25% APY is still available on 16 options in our daily ranking of the best-paying CDs.
- The longest term on which you can earn 5.00% or better remains 3 years, paying 5.13% APY.
- It's currently up in the air whether the Fed will pause its interest rate hikes or implement another one in June. When the Fed does stop raising rates, CD rates will also plateau and likely begin to fall.
|CD Terms||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||5.15% APY||5.15% APY||No change|
|6 months||5.50% APY||5.50% APY||No change|
|1 year||5.28% APY||5.28% APY||No change|
|18 months||5.50% APY||5.30% APY||- 0.20%|
|2 years||5.25% APY||5.25% APY||No change|
|3 years||5.13% APY||5.13% 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||5.15% APY||5.12% APY||5.01% APY|
|6 months||5.25% APY||5.50% APY||5.20% APY|
|1 year||5.28% APY||5.25% APY||5.35% APY|
|18 months||5.25% 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. And they've been speaking out with different opinions. In addition, one of the Fed's closely watched inflation indicators was released today, and it showed that inflation remains stubbornly high, which may prompt the Fed to continue its rate-hike campaign.
As a result, Fed fund futures traders have shifted from betting on a pause in rate hikes to betting on a quarter-point increase at the June meeting. At the time of this writing, the prediction is roughly 2-to-1 in favor of an 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."
CME Group. "CME FedWatch Tool."