We’re two days on from the Federal Reserve’s latest rate increase, and certificate of deposit (CD) rates have begun to move. While the industry-leading rate across all terms continues to be 5.50% APY for a 9-month term, today brings a new option to lock in 5.25% APY for 2 years, which is an improvement from yesterday’s top 24-month rate of 5.15% APY. We also saw rate increases from several institutions in the mid-term range of our daily CD rankings.
- You can score a market-leading high rate of 5.50% APY from two 9-month certificates.
- Several institutions raised upped CD rates today, including a new 2-year option paying 5.25% APY, raising the top rate in that term from 5.15% APY yesterday.
- Our daily rankings of the top CD rates now include eight certificates that pay 5.25% APY or better.
- A top rate of 5.00% APY or better is available on CD terms from 6 months to 2 years.
- The Federal Reserve raised rates another quarter percentage point Wednesday, but signaled it could pause the increases at its June 14 meeting
|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||5.25% APY||+ 0.10|
|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||5.25% 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, often aren’t competitive with the rates you can get on standard CDs. 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 Wednesday’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 this year have only inched higher.
Language in the Fed’s announcement Wednesday suggested it’s possible it 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 past week’s increase 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.