The best certificate of deposit (CD) rates were unmoved today by yesterday's Fed interest rate hike. But the already-record-breaking rates are nothing to sneeze at.
The top rate you can get on any CD continues to be 5.50% APY, available on two 9-month certificates. And seven options in our daily rankings of the best CDs pay at least 5.25% APY. If you're looking to stretch out these record returns, the longest-term certificate currently offering a rate above 5.00% is a 24-month option paying 5.15% APY.
- CD rates held firm today, after the Fed's announcement yesterday of another quarter-point federal funds rate increase.
- You can score a market-leading high rate of 5.50% APY with two 9-month options.
- Our daily CD rankings include seven certificates that pay 5.25% APY or better.
- The longest duration CD offering at least 5.00% is a 24-month certificate paying 5.15% APY.
- A top rate of 5.00% APY or better is available on CD terms from 6 months to 2 years.
|CD Term||Yesterday's Top National Rate||Today's Top National Rate||Day's Change (percentage points)|
|3 months||4.90% APY||4.90% 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||5.30% APY||5.30% APY||No change|
|2 years||5.15% APY||5.15% 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|
|10 years||4.20% APY||4.20% 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||4.90% APY||4.75% APY||4.35% APY|
|6 months||5.50% APY||5.50% APY||5.15% APY|
|1 year||5.25% APY||5.25% APY||5.25% APY|
|18 months||5.20% APY||5.30% APY||5.27% APY|
|2 years||5.05% APY||5.15% APY||5.04% APY|
|3 years||4.76% APY||4.90% APY||4.99% APY|
|4 years||4.55% APY||4.73% APY||4.89% APY|
|5 years||4.50% APY||4.68% APY||4.84% APY|
The top nationwide rates on jumbo certificates, which typically require a deposit of $100,000 or more, are not always competitive against standard CD rates, where you can usually find a higher rate. Currently, jumbo certificates beat out the best standard rate in only three of the eight terms above. So always be sure to shop all CD types to find your best rate.
Where Are CD Rates Going This Year?
CD rates generally follow the federal funds rate, and yesterday's slight boost from the Federal Reserve may push CD rates slightly higher this year. Last year, they skyrocketed as a result of the Fed aggressively hiking rates to combat inflation. Although the Fed has raised rates three times this year, by 0.25% each time, that's far lower than the cumulative 4.25% in hikes it implemented last year. As a result, rates on deposit accounts surged in 2022, but have then only inched higher this year.
Language in the Fed's announcement yesterday opened the door to the possibility that the Fed may pause its hikes at the next meeting, scheduled for June 13-14. This plus other economic factors have futures traders currently assigning an overwhelming probability that this will be the Fed's last hike of this campaign. In fact, many are predicting rate drops this year.
That makes the next few weeks a good time to consider locking in a guaranteed CD rate that will pay attractive dividends for months or years into the future.
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."