Best CD Prices Today, July 7, 2023

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CD buyers have better options to consider over the weekend, thanks to many banks and credit unions unveiling new, higher CD rates today. Among the hikes is a new national rate on a 2-year CD, which yields 5.27% APY. That’s up from the 5.25% APY that topped the 2-year CD rate from April.

Also in the good news column are four new offerings in our daily ranking of the best CDs paying at least 5.35% APY. This brings the number of options in this lucrative tier to 23, after dropping from 20 to 19 earlier this week. And it includes all the certificates from our best one-year CD range.

The maximum you can earn with a Domestic CD in any term is still 5.65% APY on a 9 month certificate. But if you’d rather lock in a rate of at least 5.00% much further into the future, you might be interested in the first 3-year CD, which pays 5.13% APY, or the first 4-year jumbo CD. which pays 5.12. %APY. You will, however, need a deposit of at least $100,000 for the jumbo option.

Key points to remember

  • The maximum you can earn on a 2-year CD available nationwide today increased from 5.25% to 5.27% APY.
  • Twenty-three CDs in our daily rankings now pay at least 5.35% APY, up from 19 yesterday.
  • The highest rate on a domestic CD at any term remains 5.65% APY for a 9 month option.
  • The longest terms for which you can earn at least 5.00% APY continue to be 3 years for a certificate paying 5.13% APY. or 4 years for a jumbo certificate paying 5.12% APY, but this requires a $100,000 deposit.
  • The Federal Reserve is mostly expected to raise the federal funds rate at the end of this month, with additional increases possible later this year. Any further Fed hikes will push CD rates higher.
CD Terms Yesterday’s National Best Rate Best domestic rate of the day Change of day (percentage points)
3 months 5.16% ABS 5.16% ABS No change
6 months 5.65% APY 5.65% APY No change
1 year 5.50% APY 5.50% APY No change
18 months 5.50% APY 5.50% APY No change
2 years 5.25% APY 5.27% ABS + 0.02
3 years 5.13% APY 5.13% APY No change
4 years 4.85% APY 4.85% APY No change
5 years 4.77% ABS 4.77% ABS No change
To view the top 15-20 national rates for any term, click on the desired term length in the left column above.

Advice

Despite the suggestion that a larger deposit entitles you to a higher return, this isn’t always the case for jumbo certificate rates, which often pay less than standard CDs. Today’s best jumbo deals, which typically require a deposit of $100,000 or more, beat the best standard rates in five CD terms, but you can do better with standard CDs in the other three terms. Don’t forget to shop around for all types of CDs before making your final choice.

To view our lists of the highest paying CDs by bank, credit union, and jumbo certificate terms, click on the column headings above.

Where are CD rates going this year?

CD rates could rise even further this year, thanks to widely expected Federal Reserve action, starting with a quarter-point hike in the federal funds rate at the end of this month. The federal funds rate strongly influences CD rates.

The Federal Reserve has been on a mission since March 2022 to fight decades-high inflation with aggressive increases in the federal funds rate. These cumulative increases (they totaled 5.00% in total) pushed today’s savings and CD rates to their highest levels since 2007. This created a peak for CD buyers as well as for anyone holding money in a savings or high yield money market. account.

On June 14, the central bank kept its key rate unchanged for the first time in 11 meetings, in order to better study the impact of previous rate hikes. Minutes of that meeting were released on Wednesday, and while they showed all 11 voting members of the rate-setting committee had agreed to the break, several members pushed or “could have supported” a proposal to raise quarter point rates at this meeting because “The labor market remained very tight, momentum in economic activity was stronger than expected and there were few clear signs that inflation was poised to return to the committee’s 2% target over time.”

The minutes and several other indicators, including statements from Fed Chairman Jerome Powell last week, signaled that two or more rate hikes are possible later this year. And financial markets have already priced the odds of the Fed implementing one of those quarter-point hikes at more than 90% when it meets July 26. As for post-July, there are several signs that one or two more hikes could come later in 2023.

As always, however, be aware that Fed rate movements are never reliably predictable, as conditions can change quickly and every rate decision is based on up-to-the-minute economic data and news. What we do know is that if the Fed implements further rate hikes, it will almost certainly push CD rates higher. But if instead the Fed continues to hold its benchmark rate steady, today’s CDs could already be at or near their peak rates, making them a good buy right now.

Note that the “highest rates” quoted here are the highest rates available nationwide that Investopedia has identified in its daily rate searches of hundreds of banks and credit unions. This is very different from the national average, which includes all banks offering a CD with this term, including many large banks that pay paltry interest. Thus, the national averages are always quite low, while the highest rates you can find while shopping are often five, 10, or even 15 times higher.

Disclosure of rate collection methodology

Each business day, Investopedia tracks rate data from more than 200 banks and credit unions that offer CDs to customers nationwide and determines the daily ranking of the highest-paying certificates for each major term. 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 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 do not hold a certain type of employment), we exclude credit unions with a donation requirement of $40 or more. To learn more about how we choose the best rates, read our full methodology.

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