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We knew it would be coming. Yesterday saw the expiration of the last remaining 6% CD that has topped our charts of the best nationwide rates. That moves our previous 5.88% runner-up into the top slot, followed by 11 more options that pay at least 5.75% APY.
Our 5.88% leader is available for a 7-month term from West Town Bank & Trust. If you want to score a leading rate for a longer term, the next best rate of 5.80% is offered for 18 months from Seattle Bank.
Key Takeaways
- Today’s top nationwide CD rate is 5.88% APY, available for a 7-month term. For a longer 18 months, you can earn up to 5.80% APY.
- There are 10 more offers in our daily ranking of the best CDs that pay 5.75% APY or better.
- For terms of 2 to 5 years, the top nationwide rates range from 5.20% to 5.60% APY.
- The highest jumbo CD rate is currently 5.85% APY, available on a 12-month certificate from either State Bank of Texas or All In Credit Union.
- Markets overwhelmingly predict the Fed is finished with its rate increases, but Fed Chair Powell said more hikes could be on the table until inflation is reliably under control. CD rates are likely to flatten out, and eventually decline, unless the Fed raises rates again.
Below you’ll find featured rates available from our partners, followed by details from our complete ranking of the best CDs available nationwide.
If you’re looking for a nationwide CD paying a top rate of at least 5.75%, the longest term available is 18 months. But if you want to secure one of today’s historically high rates for longer, you can lock in 5.60% APY for 2 years or 5.50% APY for 3 years. Still not long enough? You can get a 4-year CD with a rate of 5.20% or a 5-year CD that pays 5.25% APY.
If you have enough to make a jumbo deposit of $50,000 or $100,000, you can stretch your rate in the 1-year term to 5.85% APY or boost your 2-year rate to 5.63% APY.
When asked if they were choosing more or less of certain investments during recent market events in November, 28% of Investopedia readers said they were choosing CDs. This is slightly down from what readers told us in October, when 29% of investors said they were choosing CDs over stocks. Additionally, 14% of readers said they would open a CD if they had an extra $10,000 to invest, which was just behind the 15% who said they’d put it in individual stocks.
Note that 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. That’s currently the case in six of the eight terms above, so it’s smart to shop both certificate types before making a final decision.
How High Will CD Rates Go This Year?
The Federal Reserve has been aggressively combating decades-high inflation since March of last year, raising the federal funds rate with fast and furious hikes in 2022 and then more moderate increases in 2023. This has created historically favorable conditions for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
The Fed opted to hold rates steady on Nov. 1, its second such move in as many meetings. That maintained the central bank’s benchmark rate at its highest level since 2001. But in his post-announcement press conference, Fed Chair Jerome Powell made it clear that holding rates in place right now does not necessarily mean the committee is finished with increases.
Since then, inflation data has come in encouragingly lower, down to its lowest rate since March 2021. As a result, financial markets increasingly predict the Fed will not make any further rate increases—with odds for a hike at the next two meetings now below 3%, according to the CME Group’s FedWatch Tool.
But Powell pushed back on those predictions today, indicating it’s premature to assume the Fed has concluded its rate-hike campaign. He said the committee is prepared to make yet another increase if it does not feel inflation has been sufficiently and reliably controlled.
As we always caution, trying to predict the Fed’s future rate moves is an unreliable exercise. But for now, it seems CD rates are likely to stabilize near their current levels.
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.
How We Find the Top CD Rates Today
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.
Investopedia / Alice Morgan