If you’re shopping for a record rate in the short to medium term, the music keeps coming for the best CD rates. Just 12 days ago, our ranking of the best CDs nationwide included 30 certificates paying 5.50% API or more. Today that count has grown to 46 options ranging from 3 months to 2 years.
It remains the national rate leader on all CD terms America 1 Credit Union‘6.00% APY, available for 1-year terms.
Key receivers
- Nationwide, the number of CDs paying 5.50% API or higher rose to 46 today, up from 41 on Friday and 30 less than two weeks ago.
- The daily rate for the best CDs nationwide remains at 6.00% API for a 1-year certificate, the first CD to reach that level since the Federal Reserve began raising interest rates last year.
- If you want to earn more than 5.00% over a longer period of time, your best bet is a 3-year certificate that is paying 5.23% APR.
- Last week’s data showing a cooling economy made the Fed less likely to raise interest rates again this year. This means that CD ratings cannot go much higher than their current levels.
You’ll find the highest CD rates available from our partners to help you earn as much as possible, followed by more information on the best paying CDs available for US customers everywhere.
Always make sure you understand the bank or credit union’s early withdrawal penalty for the CD you are considering. The penalty policies vary widely – from mild to severe – and you are fully within your rights to ask for the policy to be explained to you before committing your funds.
Always make sure you understand the bank or credit union’s early withdrawal penalty for the CD you are considering. The penalty policies vary widely – from mild to severe – and you are fully within your rights to ask for the policy to be explained to you before committing your funds.
Want to maintain a record rate for a longer period of time? You can earn a 5.23% API from our top 3-year CDs ranking leader, or at least 5.00% from five other competitors in that term. The maximum rates in the 4-year and 5-year terms are 4.81% APY and 4.86% APY.
If you have a jumbo deposit, you can get a little more on some terms. The maximum Jumbo rate is currently 5.85% APY, available on a 6-month certificate that requires a minimum deposit of $100,000.
Despite the perception that a larger deposit entitles you to higher fees, that’s not always the case for jumbo certificate prices, which pay less than standard CDs. Although today’s best jumbo offers, which typically require a deposit of $100,000 or more, beat the best standard rates in five CD terms, you can do as well or better with a standard CD in the remaining three terms. So always make sure to buy each certificate before making a final decision.
Despite the perception that a larger deposit entitles you to higher fees, that’s not always the case for jumbo certificate prices, which pay less than standard CDs. Although today’s best jumbo offers, which typically require a deposit of $100,000 or more, beat the best standard rates in five CD terms, you can do as well or better with a standard CD in the remaining three terms. So always make sure to buy each certificate before making a final decision.
Will CD prices rise this year?
The Fed has been battling the highest rate of inflation in decades since March of last year, with fast and furious increases in the federal funds rate in 2022 and easing to moderate increases in 2023. On July 26, the Fed lowered its inflation target. For the 11th time in 12 meetings, taking the cumulative increase to 5.25%. This pushed the benchmark rate to its highest level since 2001. In turn, it created record rate conditions for CD consumers, as well as anyone with cash in a high-yield savings or money market account.
The Fed’s official July announcement gave no firm indication that it would raise the benchmark rate this year. The written statement simply reiterated the Fed’s commitment to returning inflation to the 2 percent level it has been at.
In a speech at the Jackson Hole Economic Symposium in late August, Fed Chairman Jerome Powell said that more rate hikes are on the table if inflation does not fall sufficiently in the coming months or if economic growth is too rapid (which would put upward pressure on inflation). He stated that he can maintain it, and pointed out that increasing this amount will unnecessarily harm the economy.
The next meeting of the federation will end on September 20. More than 90% of traders now expect the Fed to hold rates at that meeting, according to Fed Funds Futures published by CME Group. But the chances of another hike are still lingering in November, when 45 percent of traders are betting on a new rate hike.
Another hike by the Fed will certainly add a little more fuel to CD prices. But if the September decision is a rate hike, markets — and CD buyers — may be left wondering if that will be a temporary or permanent pause. With the Fed finally looking like it’s ready to end its rate hike campaign for good, that means CD prices have reached record highs.
Note that the “peak rates” quoted here are the highest rates nationwide that Investopedia has identified in its daily rate survey of hundreds of banks and credit unions. This is very different from the national average, where all banks that offer CDs with that term, including many large banks, charge a small fee in interest. So, while national averages are always very low, the highest price you can get by trading is often five, 10 or 15 times higher.
Note that the “peak rates” quoted here are the highest rates nationwide that Investopedia has identified in its daily rate survey of hundreds of banks and credit unions. This is very different from the national average, where all banks that offer CDs with that term, including many large banks, charge a small fee in interest. So, while national averages are always very low, the highest price you can get by trading is often five, 10 or 15 times higher.
Disclosure of collection method
Each business day, Investopedia tracks rate data from more than 200 banks and credit unions nationwide that offer CDs to their customers and determines the highest-paying certificates for each major period. To qualify for our listings, 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 present 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 (for example, you don’t live in a certain area or work in a certain occupation), credit unions don’t have a donation requirement of $40 or more. For more on how we choose the best rates, read our full methodology.
Correction – September. In the year 2, 2023: This article has been updated to describe the previous 3-year CD maximum rate and the current 4-year Jumbo CD maximum rate.
Investopedia / Alice Morgan and Sabrina Jiang
