With another day comes another installment of great news for CD shoppers: Instead of only being able to earn the nation-leading CD rate of 5.75% APY for a 9-month term, you can now lock up that record return for 15 months.
Today’s new co-leader at 5.75% APY comes from Citizens State Bank, available with a $10,000 minimum deposit. But don’t sweat it if that entry point is too high for your budget. Our daily ranking of the best CDs offers dozens of other options paying top-tier rates with low minimum deposit requirements.
Key Takeaways
- The highest national rate across all CD terms is now available on two CDs, paying 5.75% APY, one with a 9-month term from Andrews Federal Credit Union, the other with a 15-month term from Citizens State Bank.
- The longest duration for which you can earn at least 5.00% APY is 36 months, for a CD with 5.13% APY. If you have a jumbo-sized deposit, however, you can stretch that to four years and earn 5.12% APY.
- The Federal Reserve raised the federal funds rate to a 22-year-high last week. Though many banks and credit unions boosted their CD rates ahead of the move, others could still push rates higher in coming weeks.
Benchmark Leaders
Today we are raising the bar on our daily count of elite CDs that pay at or above a high threshold rate that we monitor. After moving our original benchmark from 5.25% up to 5.35% APY on June 23, the strong and steady improvement in nationwide CD rates has now overstuffed that tier, with almost 40 options paying at least 5.35% APY. Our new definition of “Benchmark Leaders” is CDs paying 5.50% APY or better, of which there are 15 today.
To help you earn as much as possible, here are the top CD rates available from our partners, followed by more information on the best-paying CDs that are available to U.S. customers everywhere.
If you’re looking for a top rate but want to extend it longer than the 15 months available at the current market-leading rate, you can still earn nearly that—5.70%—for 18 months with USAlliance Financial.
Still not long enough? You have a few options for beating the very good rate of 5.00% for an extended time period. A rate of 5.25% is available on a 30-month certificate, or you can earn 5.13% for 36 months. If you happen to have a deposit of at least $100,000, you can stretch that horizon to four years with a 5.12% APY jumbo CD.
Tip
Despite the suggestion that a larger deposit entitles you to a higher return, that’s not always the case for jumbo certificate rates, which often pay less than standard CDs. Today’s best jumbo offers, which typically require a deposit of $100,000 or more, beat the best standard rates in five CD terms, but you can do just as well or better with standard CDs in the other three. So always be sure to shop every CD type before making a final decision.
Where Are CD Rates Headed This Year?
Though CD rates are already at record levels, it’s possible they could climb a bit higher. That’s because the Federal Reserve last week announced another quarter-point increase in the federal funds rate. That matters because the fed funds rate is a direct driver of the yields that banks and credit unions are willing to pay customers for their deposits.
Since March 2022, the Federal Reserve has been aggressively combating decades-high inflation, making 11 hikes to its benchmark rate over the past 12 meetings. With the latest bump, the cumulative increase so far totals 5.25%, bringing the fed funds rate to its highest level since 2001. That’s created a heyday for CD shoppers, as well as for anyone holding cash in a high-yield savings or money market account.
Last week’s announcement provided no strong indications on whether the Federal Reserve will raise its benchmark rate even higher this year. The written announcement simply reiterated the Fed’s commitment to bring inflation back down to its target level of 2%.
In his post-announcement press conference, Federal Reserve Chairman Jerome Powell indicated that the rate-setting committee has made no decisions at this time on whether to raise rates again in 2023, or if so, what timing or pace the committee would follow.
It is reasonable to expect that last week’s increase, as well as any potential future hikes, will nudge CD rates a bit higher. But the impact could presumably be small because the Fed’s July move had been nearly certain since June, and many banks and credit unions bumped rates in advance. Once it finally appears the Fed is ready to end its rate-hike campaign for good, that will be the signal that CD rates have likely peaked.
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.