Best CD Prices Today, Jun 26, 2023

Rates on the country’s top certificates of deposit (CDs) continue to improve, with the number of options in our daily Top CDs rankings paying at least 5.35% rising to 15 today from 13 on Friday.

Yields on the best CDs available domestically have risen so much lately that we are focusing on this 5.35% threshold rate instead of the 5.25% rate we previously reported on. The number of certificates paying at least 5.25% rose from low single digits in early May to 42 today, including an increase of seven over the past week.

The highest rate of all terms continues to be 5.65% APY, available for a 9 month term. But if you want to extend a good rate (at least 5.00%) as far into the future as possible, there’s a 3-year CD that pays 5.13% APY and a 4-year jumbo CD that pays 5.00% APY. 12% APY – You’ll need a $100,000 deposit for that one.

Key points to remember

  • Fifteen CDs in our daily ranking are paying 5.35% APY or better, up from 13 on Friday.
  • The best overall rate across terms is still 5.65% APY, available on a 9 month CD.
  • If you want to get an exceptional rate in the future, you can get an APY of 5.13% on a 3-year certificate or 5.12% on a 4-year jumbo certificate with a deposit of $100,000.
  • Although the Fed decided to hold rates steady at its June 14 meeting, it signaled that it would likely raise rates later this year. A Fed bump, if it occurs, would almost certainly push CD rates even higher than today’s record highs.
CD TermsBest National Friday RateBest domestic rate of the dayChange of day (percentage points)
3 months5.16% ABS5.16% ABSNo change
6 months5.65% APY5.65% APYNo change
1 year5.52% ABS5.52% ABSNo change
18 months5.45% APY5.45% APYNo change
2 years5.25% APY5.25% APYNo change
3 years5.13% APY5.13% APYNo change
4 years4.85% APY4.85% APYNo change
5 years4.77% ABS4.77% ABSNo change
To view the top 15-20 national rates for any term, click on the desired term length in the left column above.

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 three CD terms, but you can do as well or better with standard CDs in the other five 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?

The Federal Reserve has been on a 15-month mission to fight decades-high inflation with aggressive increases in the federal funds rate, which have totaled 5.00% so far. Because deposit rates closely track the fed funds rate, multiple Fed hikes pushed today’s savings and CD rates to their highest levels since 2007, creating a high for buyers of CDs, as well as for anyone holding cash in a money market or high-yield savings. account.

At its last meeting on June 14, the Fed kept rates unchanged for the first time in 11 meetings. But Fed Chairman Jerome Powell said last Wednesday that one or two more rate hikes were still likely this year, and US Federal Reserve Governor Michelle Bowman echoed that prediction on Thursday. “While monetary policy tightening has had some effect on economic activity and inflation to date, we have seen core inflation stagnate since the fall of 2022.” As a result, she said, she believes “further policy rate increases will be needed to bring inflation back to our target over time.”

Any further rate hikes by the Fed are overwhelmingly expected to come in tiny increments of 0.25%, meaning that if one or two more hikes come in, we could see a fed funds rate increase by up to 0.50% compared to today. Even a 0.25% increase later this year would almost certainly drive CD rates higher.

But a word of warning: there is never any guarantee what the Fed will do, as every rate decision is based on up-to-the-minute economic data and financial news. So while it is currently likely that the Fed will raise rates further, it is also still possible that the Fed will back out of this plan. If that were to happen, it would mean today’s CDs are already at or near their peak rates, making them a good buy right now.

The next Fed meeting will end on July 26.

Note that the “highest rates” quoted here are the highest rates available nationwide that Investopedia has identified in its daily search of rates from 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 although 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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