Friday’s six-way tie for the industry-leading CD rate across all terms gave way to a new national leader today. You can now earn 5.80% APY with a 1-year certificate from The Federal Savings Bank—an upgrade from the 5.75% APY you could earn last week.

The news wasn’t all rosy, however. The national leader for 2-year CDs came off the market today, lowering the top rate in that term from 5.55% to 5.50% APY. You can secure that return from Vibrant Credit Union on a 23-month certificate.

Key Takeaways

  • The top rate in our daily ranking of the best nationwide CDs climbed to 5.80% APY today, available on a 1-year term.
  • The number of nationally available CDs paying 5.65% or better climbed by another option today, raising the count to 17.
  • The best 2-year CD rate dropped today from 5.55% to 5.50%.
  • Anyone with a jumbo deposit can earn a bit more, with 5.85% APY offered at a $100,000 minimum.
  • It’s a near certainty the Fed will hold rates steady when it meets this week. But the probability of a Fed hike in November or December is currently estimated to be 30-40%.

If you want to extend one of today’s record rates further into the future, you can score 5.23% with the best 3-year CD. For terms of 4 years and 5 years, the leading rates are 4.82% and 4.89% APY, respectively.

CD TermsFriday’s Top National RateToday’s Top National RateDay’s Change (percentage points)Top Rate Provider
3 months5.65% APY5.65% APYNo changeBayer Heritage Federal Credit Union and Dow Credit Union
6 months5.75% APY5.75% APYNo changeUSAlliance Financial and BluPeak Credit Union
1 year5.75% APY5.80% APY+ 0.05The Federal Savings Bank
18 months5.75% APY5.75% APYNo changeFirst Harvest Credit Union
2 years5.55% APY5.50% APY– 0.05Vibrant Credit Union
3 years5.23% APY5.23% APYNo changeU.S. Senate Federal Credit Union
4 years4.82% APY4.82% APYNo changeFirst Harvest Credit Union
5 years4.89% APY4.89% APYNo changeFirst Harvest Credit Union
To view the top 15–20 nationwide rates in any term, click on the desired term length in the left column above.

Have a jumbo-sized deposit? You have the chance to earn even more. The top jumbo rate is currently 5.85% APY—available on a 6-month certificate requiring at least a $100,000 deposit. If you only have $50,000, though, you can still snag a rate of 5.80% APY on a 13- or 15-month certificate.

CD TermToday’s Top National Bank RateToday’s Top National Credit Union RateToday’s Top National Jumbo Rate
3 months5.36% APY5.65% APY*5.20% APY
6 months5.56% APY5.75% APY5.85% APY*
1 year5.80% APY*5.75% APY5.80% APY*
18 months5.70% APY5.75% APY5.80% APY*
2 years5.40% APY*5.50% APY5.50% APY
3 years5.11% APY5.23% APY5.28% APY*
4 years4.75% APY4.82% APY4.86% APY*
5 years4.75% APY4.89% APY4.92% APY*
*Indicates the highest APY offered in each term. To view our lists of the top-paying CDs across terms for bank, credit union, and jumbo certificates, click on the column headers above.

Jumbo CDs don’t always pay a higher return than standard certificates. Sometimes you can do just as well or better with a standard CD, as you can see in three of the terms above. So always be sure to shop both certificate types before making a final decision.

How High Will CD Rates Go This Year?

The Fed has been aggressively combating decades-high inflation since March of last year, with fast-and-furious 2022 hikes to the federal funds rate, and easing to more moderate increases in 2023. On July 26, the Fed bumped rates for the 11th time in 12 meetings, taking the cumulative increase to 5.25%.

That raises the central bank’s benchmark rate to its highest level since 2001. In turn, it’s created record rate conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.

The Fed’s next meeting will conclude Wednesday, and traders are pricing in a 99% chance that the Fed will hold rates stable, according to CME Group’s FedWatch tool. But the probability of the Fed hiking rates at its November or December meeting is higher, currently standing at 30-40% odds.

That’s due to inflation still remaining stubborn, as reported in the latest inflation data released last week. For a second month in a row, inflation rose month-over-month. And while the Fed’s preferred measure of “core” inflation, which excludes volatile gas and food prices, did not rise as much, it was still slightly higher than economist forecasts. This could lead the Fed to implement a 12th rate hike in November or December.

In an Aug. 25 speech, Fed Chair Jerome Powell said further rate increases were on the table if inflation doesn’t come down enough in the coming months. Other Fed Board members have since echoed the sentiment that future rate hikes are still a possibility.

Though this week’s meeting will almost certainly not conclude with a new rate hike, it will involve a fresh release of projections on whether Fed board members believe another increase will be needed. It will also likely provide clues on how long Fed committee members expect the benchmark rate will need to be held at its 22-year high.

If the Fed does implement another increase later this year, it would certainly nudge CD rates a bit higher than their already record levels. But September’s expected hold will leave markets—and CD shoppers—guessing if the pause is temporary or permanent. Once the end of the Fed’s campaign is more confidently in sight, that will finally signal CD rates have reached a peak.

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.

The words

Investopedia / Alice Morgan & Sabrina Jiang

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